Posts Tagged ‘Budget’

Air Force Priorities for a New Strategy with Constrained Budgets

U.S. Air Force. February 2012.
http://defensealt.org/HA4Mbm

The New US Defense Strategy and the Priorities and Changes in the FY2013 Budget

Anthony H. Cordesman with Bradley Bosserman. Center for Strategic & International Studies, 30 January 2012.
http://defensealt.org/xpBqhn

Excerpt:

The US must fundamentally rethink its approach to “optional wars.” It is far from clear that it can win the Iraq War, rather than empower Iran, without a strong military and aid presence. It will decisively lose the Afghan and Pakistan conflict if it does not quickly develop plans for a military and diplomatic presence, and help to aid Afghanistan in transitioning away from dependence on foreign military and economic spending during 2012-2020. US troop cuts are not a transition plan, and focusing on withdrawal is a recipe for defeat.

That said, the US cannot, and should not, repeat the mistake it made in intervening in Iraq and Afghanistan. It must deal with nontraditional threats with a far better and more affordable mix of global, regional, and national strategies that can deal with issues like the turmoil in the Middle East, and South and Central Asia, and terrorism and instability on a global basis. It must rely on aiding friendly states, deterrence, containment, and far more limited and less costly forms of intervention.

Panetta Releases DoD “Austerity” Budget: Pentagon Retains Most of post-1998 Increase

from the Project on Defense Alternatives, 26 January 2012

The future-years Pentagon base budget plan released by Secretary Panetta on 26 January 2012 foresees rolling spending back to the level of 2008, corrected for inflation.  Spending on the non-war part of the budget during the next five years (2013-2017) will be about 4% lower than during the past five (2008-2012) in real terms.  The real (that is, “inflation corrected”) change from 2012 will be a reduction of 3.2%

The chart below corrects for inflation by rendering all sums in 2012 dollars.  It shows that base-budget spending had jumped 55% after inflation between 1998 and 2010.  The new budget plan sets 2013 spending at $525 billion, which is 46% above the 1998 level.

The new budget plan – represented by the green trend line — stands in stark contrast to the reductions mandated by the Budget Control Act under the provisions for sequestration (represented by the red trend line).  Sequestration would roll Pentagon base-budget spending back to the level of 2004, which would still be 31% above the 1998 level (corrected for inflation).  The new budget plan and sequestration do have one thing in common: both would keep Pentagon spending above the inflation-adjusted average for the Cold War years (represented by the horizontal dash line).

 

Regaining Our Balance: the Pentagon’s New Military Strategy Takes a Small Step

Christopher Preble and Charles Knight. Huffington Post, 20 January 2012.
http://defensealt.org/ysCbHQ

Excerpt:

Balance depends on what you are standing on. With respect to our physical security, the United States is blessed with continental peace and a dearth of powerful enemies. Our military is the best-trained, best-led, and best-equipped in the world. It is our unstable finances and our sluggish economy that make us vulnerable to stumbling.

Unfortunately, the new strategy does not fully appreciate our strengths, nor does it fully address our weaknesses. In the end, it does not achieve Eisenhower’s vaunted balance.

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Pentagon Resource Wars: Why They Can’t Be Avoided

Nathaniel H. Sledge Jr. National Defense, 20 January 2012.
http://defensealt.org/H8o8I8

Excerpt:

When crises fade and wars end, the services, ever focused on the resource war, fight to ensure the inevitable budget reductions are minimized to preserve readiness and modernization accounts, or whatever is the highest priority at the time. The drums of outrage and indignation beat loudly as each service warns of catastrophe if their budgets are reduced too much or at all. The services eventually shed people, infrastructure, systems, and capabilities they do not deem critical to their futures. What is left is, to a large extent, what is already in their plans, and what is in their plans is whatever is critical to their identities and helps them win the resource war.

Obama to press Congress to revisit $1.2T in cuts

Andrew Taylor. AP, 20 January 2012.
http://defensealt.org/HbwoVl

Excerpt:

The White House plan, likely to reprise new taxes and fee proposals that are nonstarters with Capitol Hill Republicans, would turn off the entire nine-year, $1.2 trillion across-the-board spending cuts, referred to as a “sequester.”

“We have a sequester coming less than a year from now unless Congress acts,” said a senior administration official. “We’re going to ask Congress to do now what we think Congress should have done in December, which is enact more than $1.2 trillion in deficit reduction, turn off the sequester and maintain the (spending caps).”

Sequester Not All It’s Cracked Up to Be

DefenseTracker.com, 18 January 2012.
http://defensetracker.com/web/?p=1681

Excerpt:

Part of the “Doomsday Mechanism” hysteria spread by Defense Secretary Panetta and his comrade in the budget wars, Cong. Buck McKeon, has been the automaticity of the across-the-boards cuts that sequester would impose on the defense budget next January–in the likely event that the lame duck Congress and its successor next year will both be as dysfunctional as the can of red and blue worms we have now. (The other part of the hysteria is the “horror” of returning to 2007 levels of base budget defense spending.)

It seems that the president has existing statutory authority to modify the sequester mechanism–but not the amount of cuts required.

Key Risks in the New Defense Guidance: What Kind of War and Where?

Nathan Freier. Center for Strategic and International Studies, 17 January 2012.
http://defensealt.org/KAW4AS

Excerpt:

Like any change in strategy, however, the new approach has risk embedded in it. One of the more prominent risks involves the wholly predictable and complete triumph of classical realism in DoD’s future outlook. It appears that high-tech war between states is back in vogue as the single most important core planning scenario; this at a time when war within important states may be increasingly likely and, depending on location, equally impactful. How defense leaders account for and manage this risk will determine whether or not the guidance survives first contact with global uncertainty.

Keeping a Competitive U.S. Military Aircraft Industry Aloft

John Birkler, Paul Bracken, Gordon T. Lee, Mark A. Lorell, Soumen Saha and Shane Tierney. RAND, 16 January, 2012.
http://defensealt.org/J83lFJ

Excerpt:

For at least two decades, policymakers have expressed concerns that further consolidation could erode the competitive environment for military aircraft and degrade the industry’s abilities to develop, manufacture, and support innovative designs. The authors find that only by involving two prime contractors equally in performing RDT&E (research, development, test, and evaluation) on a new large program, such as a bomber, could DoD sustain two firms through 2020 with RDT&E funding and through 2025 with procurement funding.

Keep Pentagon Cuts in Perspective: What the administration proposes is hardly dramatic

Carl Conetta. Project on Defense Briefing Memo #53, 05 January 2012.
http://www.comw.org/pda/fulltext/1201bm53.pdf

Excerpt:

The roll back in spending plans and the actual cuts to the budget are sufficient to engage every office and program in the Pentagon. That makes for a contentious debate as well as a load of fodder for partisan politics. It will help if we can keep things in perspective. The cuts we face today are far less dramatic than those following the Cold War. Aggregate budget authority during 1991-1996 was nearly 20% lower in real terms than during 1987-1990 – a decline five times greater than what the administration today proposes. Given our nation’s current economic straights, Pentagon advocates should actually breathe a sigh of relief.

Sustaining U.S. Global Leadership: Priorities for 21st Century Defense

Department of Defense. 05 January 2012.
http://www.defense.gov/news/Defense_Strategic_Guidance.pdf

Is Leon Panetta the Right Man to be Secretary of Defense?

Winslow Wheeler. TIME Battleland, 13 December, 2011.
http://defensealt.org/HsDI1j

Excerpt:

Without the inclusion of war spending, the DOD base budget under the “Doomsday Mechanism” is no longer at or near its post-World War II high, but it is also not near any of the historic lows. In fact, it is roughly $38 billion above annual spending during the Cold War…

What happens when ‘demand’ for the Army exceeds its ‘supply’?

Robert Haddick. Small Wars Journal, 29 November 2011.
http://defensealt.org/KAZEeg

Insiders: U.S. Should Begin ‘Pivot’ to Asia Through Diplomacy, Not Military Steps

Sara Sorcher. National Journal, 29 November 2011.
http://defensealt.org/HqhEoL

Excerpt:

President Obama recently announced steps to strengthen the architecture of an American foreign policy with new focus on the Pacific, including plans to deploy 2,500 troops to a base in Australia—all the while insisting that any reductions in U.S. defense spending will not come at the expense of priorities in the Asia-Pacific region. Even as many in Washington warily eye China’s rapidly modernizing military and expanding naval presence in the Pacific, 39 percent of Insiders said the next move is to improve American engagement with Beijing while avoiding any military-related steps.

History shows danger of arbitrary defense cuts

Paula G. Thornhill. CNN, 23 November 2011.
http://www.cnn.com/2011/11/23/opinion/thornhill-defense-cuts/index.html

Excerpt:

The nation’s leadership needs a Plan B so that a heroic assumption — or hope — about the unlikelihood of future wars does not inadvertently lead to strategic disaster. This is harder than it seems. Plan B would allow more flexibility to meet what could go wrong in the strategic environment rather than just making budget cuts.

Editor’s Comment:

Plan B is to maintain a good ‘strategic reserve.’ As neo-conservatives like to point out the United States spends only 4.5% of its GDP on its military. If new threats pinch, the U.S. can easily ramp up spending and engage its still considerable industrial and knowledge base. The problem this country faces with a reconstitution strategy is lack of political will. Civilian leaders are loathe to ask the American people to sacrifice. A robust National Guard and Reserve force that is not abused by frequent deployments to unnecessary wars and a societal expectation to pay a tax surcharge in times of national emergency are the fundamentals of what this country needs to be strategically prepared while maintaining a small standing peacetime force. With such a strategic plan the U.S. can be well provisioned for any threat.

A 1% Solution Gives Pentagon Strategic Choices

Matthew Leatherman. Bloomberg Government, 21 November 2011.
http://defensealt.org/veAUPs

Defense Budget Cuts and Non-Traditional Threats to US Strategy: An Update

Anthony H. Cordesman and Bradley Bosserman. Center for Strategic and International Studies, 17 November 2011.
http://defensealt.org/Hy8CVc

A Frugal Fleet to the Rescue

Michael E. O’Hanlon. New York Times, 14 November 2011.
http://defensealt.org/H4n3z7

Excerpt:

By keeping a ship abroad for a couple of years and having two crews share that vessel as well as a training ship at home, the Navy could improve its deployment efficiency by up to 40 percent per ship, accomplishing with about three and a half ships what, on average, might have required five. Focusing on the Navy’s large surface combatants, cruisers and destroyers, this approach could theoretically allow roughly 60 ships (with slightly less than half of them deployed abroad at a time) to maintain the global presence that the Navy says it needs, rather than the 94 ships it is currently pursuing.