Defense budget continues to climb
Technology transformation programs fare well, while some poor-performing or low priority items are recommended for reductions.
The Pentagon's $439.3 billion fiscal 2007 budget request continues a steep upward trend in defense spending, marking a 48 percent increase since 2001.
But while many top technology transformation programs will still see hefty budgets, officials shaved billions off poor-performing and low-priority items to make room for more pressing needs. This budget, Defense Secretary Donald Rumsfeld told reporters, is a "calibration in our direction as we continue transforming to meet new challenges."
Lawmakers will likely welcome cuts to two much criticized ventures: high-risk space programs and the Joint Tactical Radio System. Defense officials want to delay development of some space programs to save $2 billion over five years and cut $233 million from the struggling radio system in fiscal 2007 alone. Restructuring the Air Force's tanker replacement program should save $896 million through fiscal 2011.
A new analysis concluded the service can safely delay plans to replace its tanker fleet. The Army's decision to cancel Lockheed Martin's Aerial Common Sensor spy plane would save $314 million next year.
Replacing the Joint Unmanned Combat Air System --consisting so far of two Boeing X-45A prototype smart aircraft and a Northrop Grumman X-47A demonstrator --with a longer range unmanned aircraft will save $158 million next year.
The Navy's termination of four planned T-AOE(X) fast combat support ships frees up $4.4 billion through fiscal 2011. A San Diego-based unit of General Dynamics and Northrop Grumman Ship Systems of Pascagoula, Miss., was expected to bid for the shipbuilding contract. In addition, cutting "lower-priority operation and maintenance programs" would generate an additional $3 billion in fiscal 2007, documents show.