this year presenting an oco budget request totalling $10.7 billion. $9.2 billion or 86% of the oco budget is for operation of maintenance requirements for day-to-day operations. the request also supports our deployed airmen at the guard and reserve with proper pay and allowances. additionally our oco investment request supports isr platforms, munitions and other emergent and capability requirements. next slide. this brings us to the end of our brief. again, i want to emphasize the air force is fy '16 present budget built on strategy and most urgents needs of our combatant commanders. sequestration returns in '16 hauls readiness and renders us unable to execute the defense strategy. more tough choices will be required and it will force us to choose between ready force today or capable force tomorrow the bottom line we'll need both for joint force to be successful. support of this pb request, what it does for us keeps us on a path to full spectrum readiness and allows us to invest in future capabilities. it's the first step in a down payment on the air force our airmen deserve, capabilities

in front of you and tell you -- >> i understand that but speed is that's going to require a kind of oco. so i think it's important to have come i don't want to be flippant about this i do think it's important to have an overseas contingency fund. >> we have always dealt with issues like that with supplemental but the problem with oco, i think all of us recognize, it's kind of just and off-line, you know budgetary and not that we do with him would just increase oco funds. switch later we shouldn't have. >> the way to deal with it is passed the authorization and we will work with you to do. then we have to get the appropriations people to fill it out otherwise we'll be right back it with another oco request. it would help if we had an actual budget rather than a continuing resolution, i think. >> thank you. moving on. with regard to cuba as you know i've been very supportive of what the administration has done. i'm please were going to establish diplomatic relations. you mentioned that is accounted for in the budget to its not increase budget about isn't established an embassy in havana s

but it's only since 2012 these oco funds have been requested. in my view, and i think the view all of us have is that the state department is becoming overly reliant on oco funding. you described these as temporary, as unforeseen and something we need to move away from, yet who seem to be overly reliant on them. do you want to comment on that? >> you're right. we are and it's because we can't get the budget increase we need to institutionalize it. put it in the budget. we are already asking for what i think is tantamount to -- if you take all of our foreign assistance because of the oco, it's about a 14% increase. if you take our -- or an 8% increase. if you take the -- just the parts of the usdai and state department which is about, you know, 50.3 billion, that represents a 6% increase, i guess. the point i'm making is, are you prepared to give us what would then amount, if we institutionalized oco, the larger increase? that's how simple it is. you want to institutionalize it, please do. while you're at it, up it to the amounts we need to do th

but it's only since 2012 these oco funds have been requested. and in my vushgs and i think the view all of us have is that the state department is becoming overly reliant on oco funding. you described these as temporary, as unforeseen and something we need to move away from, yet who seem to be overly reliant on them. do you want to comment on that? >> you're right. we are and it's because we can't get the budget increase we need to institutionalize it. put it in the budget. i mean we're already asking for what i think is tantamount to -- if you take all of our foreign assistance because of the oco, it's about a 14% increase. if you take our -- or an 8% increase. if you take the -- just the parts of the usdai and state department which is about you know 50.3 billion, that represents a 6% increase, i guess. the point i'm making is are you prepared to give us what would then amount, if we institutionalized oco, the larger increase? that's how simple it is. you want to institutionalize it please do. while you're at it, up it to the amounts we need t

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this year we are submitting and oco budget request totaling 10.7 billion. nine time .2 billion for operation and maintenance requirements. the request supports are deployed airmen after guard and reserve with proper pay and allowances. additionally our oco investment request supports isr platforms munitions and other emergent capability requirements. next slide. this brings us to the end of our breathing and again i want to emphasize the air force is fy16 president's budget is built on strategy and the most urgent needs of our combatant commanders by the sequestration returns and 16 at halts readiness and renders us unable to execute the defense strategy. more tough choices will be required and it will force us to choose between a ready force today or a capable force tomorrow. the bottom line is we will need both for the joint force to be successful. so supported the. >> request and what it does for us keeps us on a path to full spectrum readiness and allows us to invest in future capabilities. the first step in a down payment if you will on the air force a

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i think we need to move away from funding oco and get them back on a budget. that is something to the budget process that we will attempt to do this year. i do have four things that i would like to highlight. that is, the state department right now has an overreliance on oco and carryover balances. there is a great concern that those over balances create a lack of discipline in the department. with strategic planning efforts, with the diplomacy and -- for those not being linked up in an appropriate way seem to miss an opportunity that we are aligned properly. we have a massive increase in peacekeeping with the share of funding. and we have a failure to read prior torus -- reprioritize. it is very difficult to see the resources that are being put forth to do with that. so a look forward to your testimony. i know that there will be a lot of questions, not just about the budget, but other activities that you have been dealing with. we thank you for taking time out to be with us today. and with that i would like to recognize the distinguished ranking member, senat

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you are right on what will happen with the oco funds, the easiest get out of jail free card. the republicans are split, democrats do not see benefit to cover my thing with republicans, and obama has got a lot of flack during his first six years of his presidency for waiting for their evidence to become uncompromised, and sending him that no one has really met him halfway, and when they had tried to meet him halfway, the more fringe parts of the party have cratered that approach. you are seeing it now in the defense budget with a debate about whether or not they will have any sequester relief. you also see that in a nondefense budget, where there is a real lack of investment in our infrastructure, investment in our education, investment in our diplomatic missions abroad and you are using ebola as a scare tactic to try to fund nih, where we should have been funding it earlier. calling for bipartisanship is easy. how do we get to bipartisanship? before you were in the pentagon you had a long and distinguished career on the house and senate side. is there a path forward for bipar

meanwhile the budget also achieves $1.8 trillion in deficit reduction not including reductions to oco primarily by focusing on the key challenges. health care cost growth and inadequate levels in the face of an aging population. building on the historically slow rates in years that have significantly improved our fiscal out look the budget includes roughly $400 billion in health savings which grows significantly over time raising about $1 trillion in the second decade. the budget also raises about $640 billion in net revenue for deficit reduction from curbing inefficient high income tax expenditures. and this year's budget again reflects the president's support for common sense comprehensive immigration reform along the lines of the bipartisan senate-passed bill. immigration reform would reduce deficits by almost $1 trillion over two decades while strengthening social security and growing the economy. as a result of these measures the budget maintains deficits well below the 40-year historical average during every year of the budget window. it meets a key test of fiscal sustainability

meanwhile the budget also achieves $1.8 trillion in deficit reduction, not including reductions to oco primarily by focusing on the key drivers of our challenges. health care cost growth and inadequate levels in the face of an aging population. building on the historically slow rates in years that have significantly improved our fiscal outlook the budget includes roughly $400 billion in health savings which grows significantly over time, raising about $1 trillion in the second decade. the budget also raises about $640 billion in net revenue for deficit reduction from curbing inefficient high income tax expenditures. and this year's budget again reflects the president's support for common sense comprehensive immigration reform along the lines of the bipartisan senate-passed bill. immigration reform would reduce deficits by almost $1 trillion over two decades while strengthening social security and growing the economy. as a result of these measures, the budget maintains deficits well below the 40-year historical average during every year of the budget window. it meets a key test of fisca

in 24 days respectively with oco and also being readied for the navy or the record with the exceptionof both services you are under constrained by the highlighted area earlier. maintenance is funded at 80% in the base budget and is also funded at the capacity. this as critical chain initiatives such as increased hiring of civilian engineers and mentioned earlier. with readiness funding to be an historical levels 91% of the totals is sustainment funding respectively for the navy and marine corps and also from the budget and whether it remains pressurized 67 3% respectively. finally the request to meet the statutory requirement of investment. the secretary of the navy is to achieve stability to affordably field the strategy has 48 ships the same number as last year's program the highlights are continued funding of two submarines and the second is the first flight three version to provide capability to simultaneously conduct anti-air ballista look missile defense operations this budget fully funded in fy16 that congress provided funds for in the first replacement they have the complex ov

>> the cost, particularly what we call overseas contingency operations or oco contributed to what were very, very high historical deficits when the president came into office. one of the important steps we've made, president talked to the state of the union we had 180,000 troops overseas. we're now down to 15,000. the human costs were obviously enormous. fiscal side we've seen overseas contingency costs come down by $130 billion a year under this president. what we propose is to continue that trend into next year with the end of combat operations in afghanistan last year we have the real opportunity to make sure we're reaping savings and reinvesting it in the key things we need to do in the defense department. >> those costs don't go away when the troops come home. i was at the v.a. this morning in fact, waiting in long lines. it's clear that these war costs are going to go on for veterans. now, under the budget the house republicans passed last year that eliminated sequester for defense but paid for it by doubling sequester cuts to nondefense programs, if that budget were to be put in