McCain-Warner Defense Budget

[Gawain Kripke <gkripke@Essential.ORG>]

Memo to Interested colleagues, 12/7/1994

McCain-Warner Defense proposal.

This message is to provide more information on the McCain-Warner Defense
Budget proposal released December 5. Lenny posted some information
earlier.

The proposal was offered by Sen. John Warner (R-VA), the second-senior
member of the Senate Armed Services Committee and Sen. John McCain
(R-AZ), the fourth senior member. The proposal is offered as a
"bipartisan alternative to a failed Clinton defense strategy".

Many details are unclear, but the basic outline of the proposal is to
freeze defense spending at FY95 (this year) levels. Within this budget,
McCain-Warner want to shift funding from "non-defense areas" and "pork" to
pay for military pay increases, beef up star wars programs, and
"readiness" (which is combat preparedness, training, operations).

A budget freeze is effectively an increase for the defense budget which
otherwise is slated for decreasing budgets in coming years. For FY96
freezing at FY95 levels is the equivalent of adding $15 billion to the
budget.

Among the shifts Sens. McCain and Warner propose are:

B-2 bomber $125 million
Industrial base set-asides $36 million
M-1 tankupgrade $150 million
Military construction Add-ons
 (pork-barrel items) $987 million
DoD & DOE environmental progs. $930 million
Excess Guard/Reserve forces $50 million
Civilian workforce restruct.$360 million
Unrequested Guard/Reserve
 Equipment $800 million
C-21/C-XX aircraft $11 million
Technology Reinvest Program $550 million
Defense Conversion programs $1.5 billion
Medical and university research $1.5 billion
Support for civilian sporting
 events and celebrations $15.4 million

Although it is not entirely clear from the package of materials
Sens. McCain and Warner released, these figures appear to represent
savings for one year. A table entitled "Five-year Savings Available
for Readiness From Terminiating (sic) 6 Major Programs" indicates
they expect to save $5 billion from DoD & DoE/defense environmental
programs and $3.4 billion from the Technology Reinvestment Program.

Not all the numbers seem to add up, and there are scant details on how
these cuts would be allocated (i.e. where do they take $980 million
from DOE and DOD environmental programs).

None of this is good news for those of us who want to see progress on
military cleanups and compliance. McCain-Warner is the opening shot in
what will certainly be a complicated and difficult year for Administration
and Congressional budget decision-makers.

I will try to pass along information as I get more details. In the
meantime, I am happy to share the few documents I have. Of course, they
are in hard copy so I can't email them.

Hope this is helpful.

Gawain Kripke