Personnel, Compensation and Health Care in Sights for DOD First Round of Cuts

Dec 1, 2011
Defense Drumbeat

As the Department of Defense begins to plan for sequestration next fiscal year, details are emerging about cuts already enacted by the Budget Control Act, with personnel, compensation and health care for retirees slated for the deepest cuts according to a recent Bloomberg story.

According to Bloomberg’s “Obama Gets Defense Plan to Cut $450 Billion from Budgets,” by Roxana Tiron:

“The Defense Department won’t rely on weapons program cuts as the main way to meet its spending reduction goals, Deputy Comptroller Mike McCord said. “We are not going to look only at modernization,” McCord said today at a defense industry conference in New York.

“The number of uniformed personnel, compensation, retirement health-care benefits and continued savings from efficiencies are getting more attention than major cuts in acquisition, according to McCord. The review is taking a 'balanced' approach, he said.

The additional Super Committee cuts are not even reflected in this proposal, which would mean a cumulative cut ranging from 18% - 24% across the board:

“The Pentagon’s fiscal 2013 budget request is not expected to reflect additional cuts up to $600 billion over 10 years, mandated after a special congressional supercommittee last week failed to reach an agreement on ways to reduce the federal deficit by at least $1.2 trillion.

“Several U.S. lawmakers, including Republican Senators Lindsey Graham of South Carolina and John McCain of Arizona, say they will prepare legislation early next year to reverse the automatic defense cuts.

"Representative Howard P. 'Buck' McKeon, the California Republican who leads the U.S. House Armed Services Committee, said he will also introduce legislation to reverse the cuts.

“‘I will not be the armed services chairman who presides over crippling our military,’ McKeon said in a statement Nov. 21.”


112th Congress