Big cuts in defense programs seen looming

Published: Oct 18, 2005
Source: wireservice.wired.com



WASHINGTON (Reuters) - Major U.S. weapons programs are facing big cuts given mounting budget pressures from the war in Iraq, rising fuel and personnel costs, and the need to rebuild the U.S. Gulf Coast, defense analysts said on Monday.

The military services -- the Air Force, the Navy and the Army -- are drafting lists of programs that could be cut back before the White House's Office of Management and Budget issues its guidance to the Pentagon in mid-November.

Air Force Chief of Staff Gen. Michael Moseley lifted the veil on the highly secretive process last week when he said told a Washington audience it might be time to start "killing" programs with cost overruns and delays.

Officials at all three services have also talked more about the need to work on joint programs, rather than continue to fund separate programs with similar objectives, such as surveillance programs, which could also help trim costs.

Cuts to major weapons programs could be "well in excess" of $10 billion just for fiscal year 2007, said Loren Thompson of the Virginia-based Lexington Institute, predicting that fighter jets and shipbuilding were particularly vulnerable to cuts.continue..