Marine Log - February 2009 - (Page 14) INSIDEWASHINGTON Obama defense budget to be delayed W ith Navy work still the mainstay of American shipbuilding and ship repair expenditure, there’s keen interest in what the first Obama defense budget will look like. The President’s annual budget request usually is submitted to Congress the first Monday in February. However, President Barack Obama’s 2010 defense budget request will be delayed, possibly until April, according to White House and Defense Department officials. With only a week in office at the time the delay was announced, the new administration needed more time for a substantial review of the submission, officials said. Office of Management and Budget (OMB) officials projected the delay in April and sent a memorandum delaying the budget submission. Civilian and military financial experts have prepared a draft budget for review by administration officials. They will issue budget guidance via the OMB, which will guide the Department of Defense. Pentagon officials said they expect this guidance to come to the Pentagon “shortly” and Defense Department finance officials are prepared to move quickly to apply the guidance to the submission. It is possible that the total Defense Department request, known as the “topline” number, may be released earlier than April, but that must wait on the more detailed submission, officials said. Where will the new administration’s substantial review leave Navy shipbuilding? According to the White House, the administration’s strategy is to recapitalize our naval forces, replacing aging ships and modernizing existing platforms, while adapting them to the 21st century. The administration plans to add to the Maritime Pre-Positioning Force Squadrons to support operations ashore and invest in smaller, more capable ships, providing the agility to operate close to shore and the reach to rapidly deploy Marines for global crises. On the face of things that looks good for the LCS, but what about just about everything else? We’ll have to wait for the budget request to see where this administration comes down on such issues as whether to press ahead with the DDG-1000 or to reactivate the DDG 51 program. What’s significant is that at the Pentagon level, three of the key players making shipbuilding choices remain in place, the CNO, Admiral Gary Roughead; the Secretary of Defense, Robert M. Gates; and, at least for now, Secretary of the Navy, Donald C. Winter. Similarly, the leadership of key House and Senate committees concerned with Navy shipbuilding remains unchanged—and just as likely as ever to override the Navy if it feels that it is necessary. Something else to consider is that in the present economy, nobody wants to be seen making changes that would make major reductions in shipbuilding employment. Our bet is that when the Navy shipbuilding request comes out changes will be modest. 14 MARINE LOG FEBRUARY 2009 www.marinelog.com http://www.shipconstructor.com http://www.shipconstructor.com http://www.marinelog.com
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