Thursday, October 21, 2010

Budget fun

My uncle, in an effort to poke fun, used to always claim that his tax dollars weren't being well-spent if they were paying my salary as a member of our country's military.  He'd be happy to know, and most would be surprised to find out, that the Great American Public does not foot the bill for SCOs/SAOs.  The host nation has that privilege.

As such, it's incumbent upon us (the SCO/SAO) to submit a budget every year to the host nation.  Very simply, we say "this is what it'll take to continue the mission for the next year" and they decide how much to actually pay.  For the last few years, USMTM has submitted requests around the $32 million mark.  That includes approximately $9 mil for military payroll and $5 mil for civilian payroll.  It even includes funds for  temporary duty travel and the funds that buy our tickets back to the States when we take our mid-tour leave.

Unfortunately, we have, over the last few years anyway, been approved by the Kingdom for about 75% of what we ask for.  This forces the powers that be to rob from Peter to pay Paul in some instances.  An example is that we submit the budget for military payroll personnel based on a 100% fill of the manning roster.  In actuality, we are not 100% manned for all services.  In other words, there are several Army slots that have yet to be filled, but we've received the funding that pays for those slots.  That 'surplus' in military payroll is used to fill a deficit elsewhere in the overall budget.  If we asked for $1.5 mil in TDY funding and only received $1 mil, then that's where the hole gets patched.

While that may sound fair, an audit by our gracious hosts would result in their wanting the 'extra' military payroll funds returned regardless of our needs in other areas.  Saudi will replenish funds such as paying for tickets home should they run out during the fiscal year.  But any budgeteer will tell you they can't properly plan for funds that they don't know when and if they're gettin'.  It's nice to know ahead of time that you don't need to rob Peter to pay Paul if Paul is gonna get his later in the year.

My question was, why are we slighted on our budget request?  Is Saudi hurtin' economically?  The short answer is no.  The King has said that $37 of every barrel of oil is earmarked for the economy.  A barrel goes for about $89 bucks these days and this country produces 12.5 million barrels A DAY.  The other $52 per barrel is "the King's money".  The Saudi national debt could be paid off with one day's production of oil, by the way.  Surely, a good portion of the King's money goes to other reforms, payment of those debts and foreign investment, but the dude doesn't exactly need to borrow change for a cup of coffee.   Additionally, the King has already set aside $100 Billion for military improvements this year. $50 Billion of that is going towards the purchase of F15 fighter jets from the good ole U.S. (which will equate to thousands of new jobs in the States) as well as $25 Billion for Apache helicopters.  If our request is around $32 mil again, that equates to about less than one-thousandth of a single percent of the $25 Billion remaining for 'military improvement'.

So, what the Hell?  Why short us.  I don't have an answer.  We'll call my theory the 'suq' theory.  The traditional market shops here are called 'suqs' (pronounced 'sook').  Every price in a suq is negotiable.  It is even considered a cultural slight not to haggle.  Maybe that's why we don't get what we ask for.  We don't haggle or they feel they should never agree to the first offer.  I say, why not just figure out what we need, arbitrarily add 25% and submit that?  That may actually end up being the plan.  Don't know.  But when I find out, I'll let you know.

2 comments:

  1. I thought 'suq' was going to be the "suck" theory but I was wrong. I did see on NPR about our military equipment being sold to the Saudi's..it's crazy how much money "floats" around.
    I do like your 'suq' theory tho...I don't think the big budget guys are aware of it tho :(

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  2. I agree w/Paola. Frustrating stuff that the money is there but that one person is too greedy to pay Military - and I'm just guessing, probably improvements for the citizens as well

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