Showing posts with label budget. Show all posts
Showing posts with label budget. Show all posts

Thursday, August 4, 2011

NAVY BUDGET: Despite Troubled Waters, Navy Will Stay the Course with LCS

Despite troubled waters, Navy will stay the course with LCSBy Philip Ewing We observed not too long ago that the urgency seemed to have gone from the Navy’s littoral combat ship program, but nevertheless, the service’s next chief of naval operations, Adm. Jonathan Greenert, said Thursday that it’s still committed to its vision of 55 ships and their interchangeable mission equipment. Greenert told Senate lawmakers at his confirmation hearing that he’s spent the night aboard the first ship, the steel-and-aluminum USS Freedom, as well as some quality time aboard the second, the all-aluminum USS Independence, and he and the brass remain convinced that the Navy has made the right bet with the LCS concept.
Arizona Sen. John McCain, the top Republican on the Senate Armed Services Committee, is not a fan of LCS. He castigated the Navy for spending so much money and still failing to “have a single ship that is operationally effective or reliable.” (Both Freedom and Independence are laid up today, and neither has any of the custom equipment it needs to hunt submarines, mines or fight surface battles.) Hey, we get it, Greenert said, but just you wait and see — the Navy’s bet on LCS is going to pay off. One of its bets already has, Greenert’s hearing showed: After going back and forth about whether it would select a single LCS design or build both of them, the Navy decided last year to go with both, pleasing shipbuilding-state lawmakers whose constituent yards will all get to share the work.  Read more

What Could Austerity America's Defense Posture Look Like?

By Philip Ewing 
Posted in Rumors

What could Austerity America’s defense posture look like?

The Pentagon is staring at the prospect of as much as $850 billion in budget reductions over the next 10 years and beyond — which, as DoD and service officials keep saying, will require some major strategic recalculations. Even now, we can only imagine what’s in the PowerPoint slide decks rocketing back and forth across the Building as staffs come up with alternatives and scenarios for absorbing those kinds of cuts. The only upside, from DoD’s perspective, is that it sounds as though the White House and Congress are sold on the idea of a grand strategy that lays out how to move forward and where to accept risks.
Two old caveats remain in effect, though: First, whatever the Pentagon comes up with has to survive Congress, where defense lawmakers in the age of austerity will fight harder than they ever have to keep their pieces of the military-industrial complex. And second: The Pentagon needs a better bad guy than “persistant global instability” when it’s fighting to keep budgets and hardware, and we all know what that means: China. It’s a fair bet that the Mother of All Reviews will call for the military to keep or increase its focus on the Western Pacific, even as it dials back the U.S. forces positioned elsewhere around the world.
Here’s one vision for how this movie plays out:  Read more

Thursday, July 7, 2011

MILITARY > Cutting the Military Budget...

Panetta’s challenge: Not just cut, but cut quickly
photo courtesy  www.dodbuzz.com
By Philip Ewing 
Posted in Rumors


As Fred Kaplan points out in Slate, it does a penniless United States less good — and even less good for President Obama and other politicians — if DoD can’t yield big budget “savings” until years down the road. For practical and political reasons, Secretary Panetta will be charged with seeing what he can effectively cut soon, and that could make his job even more difficult, Kaplan writes:
If the goal is to find fast ways of cutting the deficit, cutting payrolls is fastest of all. When money is authorized to buy a weapons system, it takes a while—sometimes a long while—to spend that money. For instance, according to the Fiscal Year 2012 edition of the National Defense Budget Estimates (also known as the Pentagon’s “Green Book”; see especially Table 5–11), only 15 percent of the money budgeted for a Navy shipbuilding project actually gets spent in the first year. Another 25 percent is spent in the second year, 20 percent in the third, 15 percent in the fourth, 12.5 percent in the fifth, and still another 12.5 percent in the sixth. (Similar figures apply to building military aircraft, missiles, and armored vehicles.)
To spell out one implication of this unalterable fact of military contracting, the Fiscal Year 2012 budget includes $2 billion to buy one [Arleigh Burke-class] destroyer for the Navy. Of that sum, only $300 million (15 percent of it) will wind up being spent in the first year. By the same token, if Congress or the White House removed this $2 billion destroyer from the budget, only $150 million would be saved in the first year. (And the Pentagon would probably have to pay “cancelation costs,” which are routinely incorporated into weapons-procurement contracts.) In other words, killing weapons systems is not a very good way to cut the deficit quickly.

All this is why Kaplan believes the Army will be the biggest target in Austerity America, because cutting soldiers, and their payrolls and other benefits, frees up that money on the balance sheet much faster.
And if you want to pick on the Army, you also could argue that one of its biggest and potentially most expensive priorities, the Ground Combat Vehicle, may not survive in its present form. Lawmakers have scratched their heads as to why the Army even needs a big new armored personnel carrier. Although the brass has a clear case — its current generation of vehicles is maxed out, in terms of size and power, and the Army needs something that can carry an entire squad — all the budget blades flying in Washington may find a quick and easy target in the GCV, given how early it is in development. It’s just like anything else: The more momentum the program gets, the harder it will be to stop. Everyone in the Building and on the Hill understands this, and they’ll no doubt push or pull accordingly.
For what it’s worth, Kaplan sees the F-35 as a potential target, too — although as you’ll see, he got its name wrong:
Cutting Air Force or Navy personnel would mean getting rid of airplanes or ships, a move that would sire a separate set of controversies. (Then again, it’s likely that Panetta will cancel or cut back some planes and ships, if just to spread the pain; the Air Force and Navy’s troubled Joint Strategic Fighter, aka the F-35 stealth aircraft, is a likely candidate. But there will be limits here, as his predecessor, Robert Gates, already cut a few dozen systems, and further cuts would spark political fights, especially given the already-high unemployment rate.)
By contrast, cutting Army and, to some extent, Marine personnel would mean erasing brigades or divisions from the roster and warehousing their weapons—which could then be transferred to other units as training or replacement gear, for more savings still. None of this is necessarily to say that the Army or Marines should be slashed—only that they almost certainly will be, given the traditional end-of-wars syndrome, the enormous pressures on the federal budget, and (a new factor) an emerging coalition of anti-war Democrats and anti-spending, isolationist Republicans.