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PrefaceAs a result of the Budget Control Act of 2011 and sequestration, the U.S. Army experienced an approximate $15.35 billion budget decrease in fiscal year (FY) 2013 and initiated a decrease of more than 106,000 soldiers and civilian employees from all components. Although full sequestration-level cuts were not imposed in FYs 2014 and 2015, their return could mean that the Army's cumulative total budget reductions would be more than $79 billion from its baseline for FYs 2016-2020. Even if automatic sequestration is legislatively altered or overturned, there could be pressure on the Army to further decrease its force size and expenditures as the United States continues to increase its ratio of debt to gross domestic product. Despite the near-term (and perhaps temporary) relief from sequestration, the 2014 Quadrennial Defense Review states that the Regular Army will decrease strength from its wartime high of 570,000 to 440,000-450,000 soldiers. 1 Although key decisions have not yet been made, and there are numerous factors involved, plausible consequences for a return to sequestration-level funding include further decreases in the Army's Regular, Reserve, and Guard forces-cutting Regular Army end strength to 420,000, Army National Guard to 315,000, and U.S. Army Reserve to 185,000. The government civilian workforce in each of these components would also be reduced.Decreasing Army spending, soldiers, and government civilian positions will produce broad economic effects in the states and communities that experience these reductions, including the loss of additional jobs and output linked to Army procurement and personal spending by soldiers and government civilians whose positions are eliminated. To help inform decisionmaking in th...
