Desert Storm/Desert Shield Cost How Much?

I appreciate the opportunity to testify today before this
Committee on the cost of Operations Desert Shield and Desert
Storm and allied contributions to help defray this cost. At the
outset, I would like to emphasize that the Office of Management
and Budqet (OMB) reports on the incremental costs of the
Operations. We have reported on both incremental and total costs
and now estimate that total costs could exceed $100 billion. Our
allies have pledged about $54.6 billion or about half of the
total cost. Having said that, I will present our views on the
Administration's most recent cost estimates, the differences
between estimated costs and funding requirements, and the extent
to which taxpayer financinq will be required.
In summary, we believe that, for the most part, OMB's and the
Department of Defense's (DOD) estimated cost throuqh May 1991 is
reasonable, but we believe that the estimate of future costs is
unsupported and appears hiqh. More importantly, we believe that
incremental fundinq requirements will be substantially less than
OMB's cost estimate, and that fiscal year 1991 incremental
fundinq needs can be fully financed through allied contributions
to the Defense Cooperation Account.

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