Current defense budget climate indicates that each Service within the Department of Defense (DOD) can expect substantial reductions. The challenge facing DOD is how to reduce its budget while being engaged in counter-insurgency and stability operations. These operations along with maintaining a global presence are manpower intensive. The question that needs answered is how might the military services achieve the required reductions? To study all the Services was beyond the scope of this research, but analyzing a single service, such as the Marine Corps, provides an easier model from which the DOD writ large can benefit. The Marine Corps was selected because it is a microcosm of the DOD and possesses capabilities similar to its sister services. The Marines require ground mobility platforms like the Army. The Marines employ aviation platforms like the Air Force and conduct amphibious operations that require naval assistance. Examining budget reductions through the lens of the Marine Corps provides an example for the other Services to emulate. The research focused on three Marine Corps budget categories of manpower, procurement and research, and operations and maintenance (O&M). These categories together make up 90 percent of the 2011 Marine Corps Annual budget totaling 27 billion dollars. Manpower is the most expensive category. The increase in Marine Corps end strength by 22,000 between the years of 2007 to 2009 has increased the budget. A review of historical trends shows that the Marine Corps' end strength always declines after war. In fact, at the end of Desert Storm all the Services began reducing their respective end strengths. The research found that the Marine Corps can absorb a 15 percent reduction to its end strength, thus saving nearly 60 billion defense dollars over the next ten years. Like manpower, procurement and research has grown 33 percent since the Cold War peak. Analyzing the Marine Corps roles and functions identified addition savings that can be made if reductions in ground mobility and aviation programs are implemented. The research suggests that the Marine Corps can save 78 billion dollars over the next 10 years if it cancels a variety of aviation and ground mobility programs. None of the recommendations prohibits the Marine Corps from maintaining Marine Corps core competencies. Finally, in the category of O&M the research indicates that efficiencies are achievable within the Marines O&M budget and reductions are possible. However, O&M funding cannot be significantly reduced until the war in Afghanistan subsides and Marine forces are withdrawn. To reduce the three budget categories the Marine Corps will need to reduce its overall end strength. A 15 percent reduction would bring the current force of 202,100 Marines to below 185,000 Marines a number not seen since before 9/11. A manpower reduction would then create additional savings because a smaller Marine Corps will not need as much resources or funding to operate. The Marine Corps analysis provided suggests a blue print that other Services can follow to reduce their respective budgets.

ADA 545718 Approved for public release; Distribution is unlimited. The opinions and conclusions expressed herein are those of the student-authors and do not necessarily represent the views of the U.S. Army Command and General Staff College or any other governmental agency. (References to these studies should include the foregoing statement.)