Cutting School - By Michael Peck

The budget axe is descending on National Defense University, the Pentagon's flagship institution for professional military education. The cuts come amid controversy over whether NDU should focus solely on Joint Professional Military Education (JPME), which addresses military strategy and cooperation between the services, or whether it should also serve as a think-tank for strategic analysis. According to an internal Pentagon document, the Joint Chiefs of Staff want NDU to stick to JPME, and have recommended a long list of budget cuts that would slash other functions. But critics worry that narrowing NDU's mandate will deprive the United States of big-picture thinking at a time when American planners are struggling to adapt to changing geopolitical and budgetary circumstances.

The budget cuts, including dozens of layoffs from NDU's 800-strong workforce, are part of a long list of recommendations compiled by the Joint Staff, which works for the Joint Chiefs of Staff. JCS spokesman Richard Osial refused to comment on the grounds that the cuts are part of an internal staff document under review, but a copy obtained by Foreign Policy says the changes are intended to "align NDU organization and funding with [the] new fiscal reality."

That reality is less than cheerful. NDU is scheduled to lose nearly 10 percent of its Pentagon funding, from about $93 million in FY2012 to about $85 million in FY2013, and the Joint Staff report provides recommendations on how to reach that goal. NDU has two main sources of funding: direct funding from the Joint Chiefs for JPME, and reimbursable funding from other government agencies for various research and analysis activities.

It's the non-educational activities that are drawing scrutiny. "NDU's overall budget has grown from approximately $51 million in 2001 to $143 million in 2011. The majority of this growth was outside the education mission," according to the Joint Staff report. NDU's research budget, for example, has nearly quadrupled, from $6.5 million to $24.5 million. The problem is that outside funding is drying up. "NDU's business model has become increasingly dependent on reimbursable funding. As all government agencies are experiencing budget impacts, outside sponsors who provide funding to NDU research and programs are likely to reduce their funding, making NDU's current budget model unsustainable," the report says.

NDU's website shows an organization of remarkable breadth, including five colleges, a dozen research centers spanning everything from Chinese military affairs to tabletop war games, and five geographical research areas for various parts of the world.

Yet the Joint Staff report points to an unwieldy organization: "The existence of multiple management structures across the numerous NDU schools adds significant overhead costs and complicates sound fiscal decisions and management due to competing equities." In addition, the report cites high personnel costs: 58 percent of NDU's budget goes to salaries because many employees are GS-15 or Senior Executive Service (NDU's FY2013 budget report puts the average civilian employee salary at $115,000). Also, the Middle States Association of Colleges and Schools, which accredits Mid-Atlantic universities, found that NDU had critical information technology deficiencies that jeopardize its teaching functions.

The Pentagon's solution? Focus NDU on professional military education so that it can eliminate departments and jobs. There are almost a dozen recommendations, some of which seem almost petty, such as a $40,000 savings by eliminating two courses at the Joint Forces Staff College at NDU.