Application Essay For Graphic Design Graphic Design College Admission Essay Admissions Essay Graduate School Proper College Admission Essay Heading College Admission Essay Heading Graduate Admission Essay Heading Heading On Admission Essay Admission Essay Harvard Admission Essay For Harvard Application Essay For Harvard University Funny Harvard Admission Essay Jfk Harvard Admission Essay Harvard Llm Admission Essay Harvard Mba Admission Essay Harvard Admission Essay Prompt Rivers Cuomo Admission Essay Harvard Admission Essay To Harvard Kennedy#39s Admission Essay To Harvard Rivers Cuomo Admission Essay To Harvard Harvard University Admission Essay Prompt College Application Essay How Long Common Application Essay How Long Should It Be How Long Should Admission Essay Be Admission Essay How To Application Essay How To Application Essay How To Start College Admission Essay How To Application Essay To A University Admission Essay To Business School Admission Essay For Baylor University Admission Essay Cornell Admissions Essay Csu Admission Essay To Dental School Admission Essay For Dental Hygiene Admission Essay Ethical Dilemma Admission Essay For Duke Admission Essay Graphic Design Admissions Essay To Fidm Admission Essay For Graduate School Admission Essay For Mba Admission Essay Heading Admission Essay For Howard Admission Essay Mph Admissions Essay To Nursing Application Essay To Nyu Admission Essay Prompts Admission Essay Psychology Admission Essay Physical Therapy Admission Essay For Rutgers Admission Essay International Relations Admission Essay To Stanford College Application Essay How To Start Admission Essay Teacher Admissions Essay Ucf Admission Essay For Usf Admission Essay For Vcu College Application Essay How To Write Admission Essay Yale Nyu Admissions Essay Hugh Gallagher College Admissions Essay Hugh Gallagher Common Application Essay Help Uc Application Essay Help Ib Application Essay Help College Application Essay Help Online Study Abroad Application Essay Help Nyc Doe Application Essay Help Internship Application Essay Help Mba Application Essay Help Medical School Application Essay Help Scholarship Application Essay Help Nyc Teacher Application Essay Help College Application Essay Heading Heading For Application Essay Graduate School Application Essay Heading Heading On Application Essay Proper College Application Essay Heading Scholarship Application Essay Heading College Admission Essay Introduction Graduate Admission Essay Introduction Admissions Essay Art School Admissions Essay Blog Admission Essay College Admission Essay Computer Science Admission Essay Carnegie Mellon Admission Essay For Culinary School Admission Essay For Dental School Admission Essay For University Admission Essay Goals Admission Essay How Long Admission Essay Hooks Admission Essay For Howard University Admission Essay Ivy League Admission Essay For New York University Admission Essay For Njcu Admission Essay Occupational Therapy Admission Essay For Odu Admission Essay For Ohio State University Admission Essay Proofreading Admission Essay Public Health Admission Essay Public Administration Application Essay Quotes Admission Essay For Radiology Admission Essay Social Work Admission Essay To Mba Admission Essay Uf Admission Essay Word Limit College Application Essay Prompts 2011 College Application Essay Thesis Statement Application Essay For Internship Appic Internship Application Essay Essay Applying For Internship How To Write An Application Essay For Internship Moma Internship Application Essay Museum Internship Application Essay Marketing Internship Application Essay Nursing Internship Application Essay Psychology Internship Application Essay Research Internship Application Essay Science Internship Application Essay Teaching Internship Application Essay Ib Application Essay 2012 Student Application Essay For Ib Essay For Ib Application Pre Ib Application Essay College Admission Essay Prompts 2012 College Admission Essay By Hugh Gallagher College Admissions Essay Blog College Admissions Essay Body College Admissions Essays Brown College Admission Essay Conclusion College Admission Essay Double Space College Admission Essay Don#39ts College Admissions Essay Diabetes College Admission Essay Funny College Admission Essay For Uf College Admission Essay Humor College Admission Essay How Long College Admission Essay Length College Admission Essay Mistakes College Admission Essay Music College Application Essay Prompts Nyu College Admission Essay Narrative College Admission Essay On Nursing College Admission Essay On Music College Admission Essays On Yourself College Admission Essay Prompt College Admission Essay Pharmacy College Admission Essay Quote College Admissions Essay Religion College Admission Essay Stanford Which College Entrance Essay Thesis Statement Is The Most Appropriately Focused College Application Essay Prompts Texas College Admission Essay Texas College Admissions Essay Ucf College Admission Essay Writing Prompts College Entrance Essay Writing Prompts College Admission Essay Word Limit College Application Essay Prompts New York University College Application Essay Art Institute Art Institute Of Chicago Admission Essay Admission Essay For Art Institute Application Essay For Art Institute Of Pittsburgh Art Institute Of California Admission Essay Essay For Admission To Art Institute Admission Essay Why I Want To Be A Nurse College Admission Essays For Criminal Justice Jmu Admissions Essay Prompt Juilliard Application Essay Johns Hopkins Application Essay 2012 Johns Hopkins Admission Essay Johns Hopkins Admission Essay Prompt Johns Hopkins Admissions Essays Worked Journalism Admission Essays Journalism Application Essay Journalism School Admission Essay Journalism College Admission Essays Jfk Admission Essay Jfk Application Essay Kellogg Admission Essays Kellogg Admissions Essays 2010 Kellogg Admissions Essays 2012 Kellogg Admissions Essays 2013 Kellogg Admissions Essays 2011 Kellogg Mba Admission Essay Kenyon Application Essay Kenyon College Admission Essay Kutztown Application Essay Ksu Admission Essay Ksu Application Essay Admission Essay Length Common Application Essay Length 2011 Graduate School Admission Essay Length Common Application Essay Length Limit Length Of Admission Essay Admission Essay Law School Best Law School Admission Essay Admission Essay For Law School Good Law School Admission Essay Harvard Law School Admission Essay Law School Admission Essay Length Yale Law School Admission Essay Admission Essay Low Gpa Admission Essays About Leadership College Admission Essay About Leadership College Admission Essay Leadership Mba Admission Leadership Essay Admission Essay For Lsu Application Essay For Lsu Harvard Law Admission Essay Nus Law Admission Essay Admission Essay To Law School Common Application Essay Length College Application Essay Length Common Application Essay Length 2012 Ut Application Essay Length Uc Application Essay Length Texas Application Essay Length Secondary Application Essay Length Common App Essay Length 2012 Common App Essay Length 2013 Ut Austin Application Essay Length Average College Application Essay Length Aampm Application Essay Length Texas Aampm Application Essay Length Common Application Activity Essay Length Common App Essay Ideal Length Tamu Application Essay Length Transfer Application Essay Length Texas Common Application Essay Length The Common Application Essay Length Apply Texas Application Essay Length University Of Texas Application Essay Length Common Application Transfer Essay Length Admissions Essay Leadership Application Essay For Leadership College Application Essay About Leadership College Application Essay Leadership Mba Application Essay Leadership Admission Essay On Leadership College Application Essay On Leadership Admitted Mba Essays Stanford Admission Essays Mba Application Essay For Mba Admission Essay For Business School Mba Admission Application Essay Mba Admission Essay Analysis Bu Mba Admission Essay Mba Admission Essay Consultant Mba Admission Essay Columbia Mba College Admission Essay Cambridge Mba Admission Essay Mba Admission Essay Editing Executive Mba Admission Essay Mba Admission Essay Help Hkust Mba Admission Essay Essay For Admission In Mba Mit Mba Admission Essay My Mba Admission Essay Nus Mba Admission Essay Nyu Mba Admission Essay Essay On Mba Admission Mba Admission Essay Pdf Personal Essay Mba Admission Mba Admission Essay Writing Service Mba Admission Essay Writer Wharton Mba Admission Essay Yale Mba Admission Essay Secondary Application Essay Medical School Best Medical School Admission Essay Admission Essay For Medical School Harvard Medical School Admission Essay Admission Essay To Medical School Mit Admission Essay Prompt Mit Admission Essay 2012 Mit Admission Essay 2013 Mit College Admission Essay Admission Essay For Mit Mit Graduate Admission Essay Mit Sloan Admission Essay Admission Essay For Msw Admission Essay For Social Work Application Essay For Social Work Secondary Application Essay Med School Admission Essay For Med School Application Essay For Mcgill University Medical College Admission Essay Application Essay For Medical School Application Essay Medical School Medical School Admission Essay Service Nursing Graduate School Admission Essay Nursing Grad School Admission Essay Essay For School Of Nursing Admission Writing Nursing School Admission Essay Admission Essay Nursing Admission Essay For Nursing School Admission Essay For Nurse Anesthesia Best Nursing Admission Essay College Admission Essay Nursing Graduate Nursing Admission Essay Nursing Admission Essay Help

House Begins to Cut Defense Budget

The House Armed Services Committee (HASC) approved by a 60 to 1 vote their version of the 2012 Defense Budget. This is basically similar to what was requested by the Obama Administration and reflects the first real reduction to U.S. defense spending since the attacks of 9/11.

As in previous budgets it was split into three parts: first, the base budget which funds the U.S. military and its investment, production, training and support activities; second, the cost of “Overseas Contingency Operations” (OCO) which used to be called the Global War on Terror (GWOT) which are the costs associated with operations in Iraq and Afghanistan and finally it also includes money for the Department of Energy (DOE) support to the U.S. military which is primarily related to nuclear weapons.

The base budget was about $535 billion which was a slight increase on the $533.8 billion programmed in 2010 for such activities. Due to the fact that no 2011 budget was officially passed by Congress until late in the year the Department of Defense relied on continuing resolution which restricted spending to 2010 levels. When the final budget deal was struck funding the rest of the year total planned spending remained consistent with 2010 levels. The Obama Administration had requested $548 billion with almost $160 billion for OCO. This amount was not approved or provided.

The HASC bill approved amounts to a reduction as the OCO funding was reduced to only $119 billion from the $130 billion in 2010 and the $160 billion proposed in 2011. Total spending in 2012 based on the HASC will be $690 billion including the DOE funding of $18 billion. This is a net increase over 2010 but almost $20 billion less then the planned spending in 2011.

What does this all mean for defense contractors? If the House totals hold, and after the work with the Appropriations Committee and the Senate there may be many changes in what the money is spent on, it will be the first net reduction in U.S. defense spending in 10 years. This will mean that some contracts won’t get funded and some companies will see their revenue and earnings reduced.

The cuts to OCO mean those companies heavily involved in providing support and equipment for Iraq and Afghanistan will see the first cuts. The Army’s LOGCAP IV contract provides much of this support for deployed forces and companies like DynCorp International, Fluor and KBR have received large contracts as part of it. The reduction to OCO may affect LOGCAP and those companies involved in it.

It will also mean less bullets, beans and gas will be bought to support the troops in Iraq especially. Suppliers of basic items may see reductions in the amount of items purchased from them. This includes ATK who make ammunition as well as the various gasoline refiners and providers. As the fighting in Iraq and Afghanistan winds down the DoD will be concentrating on making new weapon systems and repairing and refitting the equipment used by the military in those operations.

If and when all of the U.S. and Allied forces return from the fight there will be no need for OCO funding at all. This seems to indicate that the base U.S. defense budget will sink to about $500 – $600 billion a year. This will provide opportunities for those companies providing new, advanced weapons as well as supporting the U.S. military in its bases in the U.S., Asia and Europe. The next round of cuts though will be to this base budget. That will affect the entire U.S. defense industry and may lead to reductions in the number of contractors either through M&A or just moving to other business lines.

Defense spending has been a major prop to the U.S. economy as a whole as it supports businesses and jobs across all of the states. If the civil market has not recovered sufficiently cuts to this money will have a negative effect on many local economies across the U.S. already being experienced as some contracts are eliminated or reduced.
This HASC vote may be the first step into a period like the Nineties which saw wholesale changes to the U.S. defense industry and the countries’ industrial base as a whole.

Photo from David Paul Ohmer’s Flickr Photostream.

Article first published as House Begins to Cut Defense Budget on Technorati.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter


Feel free to leave a comment...
and oh, if you want a pic to show with your comment, go get a gravatar!

You must be logged in to post a comment.