Friday, February 11, 2011

Pentagon budget relies heavily on anticipated savings - Nextgov

Pentagon budget relies heavily on anticipated savings - Nextgov: "When Robert Hale was a defense budget analyst at a think tank in 2002, he urged the Defense Department not to count on savings from efficiency efforts to pay for new weapons. Too often, he warned, the savings never materialized.
But Hale seems to have abandoned that counsel. Now the chief budget officer at the Pentagon facing grim fiscal circumstances, he's a key architect of the department's 2012 budget, which projects $154 billion in savings from efficiency efforts and banks on using $90 billion of that money to buy and upgrade weapons.
Former colleagues at the Center for Strategic and Budgetary Assessments reminded him Feb. 10 of his earlier advice. 'Investments in new weapons can be risky when funded by projected savings, since history has shown that these projected savings often do not materialize as expected,' Todd Harrison wrote in an early analysis of the budget Hale and his boss, Defense Secretary Robert Gates, are scheduled to release Feb. 14.
Gates revealed some of the budget details in January, including plans to use money wrung from other programs through efficiency measures to buy scores of new weapons, including 41 F/A-18 Super Hornet fighters, at least five more Navy ships and more Reaper drones, as well as modernize tanks, fighting vehicles and amphibious assault vehicles.
Savings are also expected to accelerate development of new weapons such as a long-range bomber for the Air Force, carrier-based unmanned strike and surveillance planes for the Navy and a next-generation electronic warfare jammer for the Navy. All three are designed to overcome anti-access, area denial threats that appear to be rising in China and Iran."
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