Skippy,
I'm not in the military, but I suspect you are correct. I would bet that ALL federal, and most state budgets are more about ego over how much money the Dept head gets to control than the real expenses involved. I have done enough management that I know that cutting a budget can always be done. It does take a forceful person at the top who really wants the cuts. If I was in charge, I'd demand a percent cut ( maybe 10% as a start) across the board with the provision that the cut must not affect the public. This is necessary because politicians always make the first cuts painful to the populace--close Parks, and Fire Stations, and reduce police.
I'd demand that there be no impact to the public, and give 3 months to get it done. If they failed, I'd accept that as their resignation, and appoint another Dept Head and give that person the same mission.
It can be done.

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1982 300SD " Wotan" ..On the road as of Jan 8, 2007 with Historic Tags