DEF-36 CUT RESERVE STRENGTH

                                   Annual Savings                 Cumulative
                                (Millions of dollars)              Five-Year
Savings from         -----------------------------------------      Savings
CBO Baseline         1994     1995      1996     1997     1998
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Savings in Total Federal Budget

Budget Authority      220      690      1,190    1,720    2,030      5,850

Outlays               200      630      1,110    1,630    1,960      5,530

Savings in Defense Budget

Budget Authority      250      770      1,330    1,920    2,260      6,530

Outlays               220      710      1,250    1,830    2,200      6,210
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NOTE:  Savings in the federal and Department of Defense budgets differ
       because of the effects of accrual accounting for military retirement
       and other pay costs that are offset in the federal budget.

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