Book Description

When the Administration assumed office in January 1981, it inherited a fleet of about 480 ships, including twelve deployable carrier battle groups. Considering this fleet inadequate for U.S. defense needs, the Administration established higher force goals in almost every ship category, with the objective of building up the total number of battle force ships to over 600 by the end of the 1980s. Other key goals were an increase in deployable carrier battle groups from 12 to 15 and a comparable increase in aircraft to fly from these carriers. Concerns have been raised about the costs of attaining and maintaining this 600-ship Navy. Such concerns could be well-founded. From 1980 through 1985, the Navy's total budget grew at a real (inflation-adjusted) average annual rate of about 7 percent a year, or from $71.5 billion in 1980 (adjusted for accrual accounting) to $100.3 billion in 1985. This study estimates that, over the next decade, the Navy's budget would have to continue to increase at a real rate of between 3 and 6 percent a year to meet the Navy's goals. Such sustained growth would result in doubling the Navy budgets in constant dollars between 1980 and 1994.