and they aren't going to cut furlough soldiers.
Not as part of sequestration but DoD will be making additional cuts to troop strength beyond what has already been announced. The service chiefs have little choice in the matter. Over two thirds of the DoD budget is consumed by personnel costs to include not only pay and entitlements but all of the community services that Congress has provided as a show of goodwill to the troops e.g. The Defense Commissaries spend $1.8 billion a year to provide a wide selection of food to troops in CONUS and to fly good old American brands overseas. Every attempt by the JCS to scale back or close DeCA is overruled by Congress (commissaries are a populars jobs program).
The growing pension commitments to military retirees (of whom I will be one sometime in the coming five years) are eating the DoD. The service chiefs recommended a 1.0 % pay raise for CY 14 since inflation has been low and military pay increases over the past decade have surpassed the average in the private sector. That was not good enough for Congress which included a 1.8% pay raise for both the house and senate bills. If 0.8% does not sound like much compound that annually over 20 plus years and the difference in pension obligations is huge.
The DoD also gets caught in the middle of pissing contests between congress when they decide to fund a new weapon system (JSF) while simulataneously extending the one it was supposed to replace (F/A-18) because the SASC member in whose district to old system is built does not want to suffer the consequences of the job losses in her district.
Yeah, there will be troop cuts to come. You can count on it.