A year after industry groups such as the Aerospace Industries Association started warning about the threatened U.S. government budget reductions known as “sequestration,” the White House has offered specifics about what the impact would be for the Department of Defense (DoD) and other federal agencies.
United States public debt
In mid-December the U.S. Congress authorized $662 billion in defense spending for fiscal 2012, trimming $27 billion from President Obama’s request in probably the last budget before deeper, more painful, cuts are required by the Budget Control Act passed in August.
The trend of robust U.S. military aircraft sales offsetting a lagging civil aircraft market is changing.
Here we go again. Three years after the bottom dropped out of the economy, and just months after a long, slow and painful climb toward recovery seemed to be producing results, the flooring is starting to feel awfully flimsy again.
General Aviation Manufacturers Association president Pete Bunce decried President Obama’s “negative rhetoric” about the GA industry during a rally last month in Cedar Rapids, Iowa.
Defense spending cuts of some $350 billion over the next decade contained in the new debt-limit legislation passed by the U.S. Congress correspond with the numbers expected from an earlier goal advanced by President Obama. But the Pentagon leadership described the potential of $600 billion more in automatic spending cuts as disastrous.
A recent Government Accountability Office (GAO) report to the House Transportation and Infrastructure Committee illustrates the FAA’s challenge in defining NextGen, which would transform 20th Century communications, navigation and surveillance into the advanced technology environment of 2025 and beyond.
• One of the annual Washington rituals calls for the President to send Congress an administration budget proposal for the next fiscal year. President Bush followed through with a FY2007 plan asking for $27.7 trillion. The proposed budget would increase defense spending by 7 percent and cut some $15 billion from 141 programs in nine of 15 Cabinet agencies.
The nonpartisan Congressional Budget Office (CBO) in late January announced that the federal deficit is expected to climb to $477 billion this year, up from $375 billion last year. It also estimated that, in the next 10 years, the government will accumulate nearly $2.4 trillion in additional debt.
• In view of the enormous funds allocated for hurricane relief ($62 billion to date with more to come) and a mounting budget deficit, President Bush and legislators in both houses of Congress have been pushing programs that would reduce federal spending.
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