CSBA in the News

Now that it appears cuts to US defense spending won’t be removed any time soon, analysts are urging the Defense Department to start making critical strategic choices to live within its means. But while such tough decisions are increasingly necessary to ward off looming financial challenges, such as sharp increases in personnel costs, the analysts expect little to change/…/

For Washington lawmakers who measure the national debt in trillions, $6 billion is a pittance. But for many military veterans—and key lobbying groups—the $6 billion in pension cuts contained in December’s budget compromise meant a broken promise.

The US Army estimates it will need to spend $1.7 billion in supplemental wartime dollars over the next several years to modernize and retain 8,585 mine-resistant, ambush-protected vehicles, while divesting itself of another 7,456 MRAPs it no longer needs.

Although the Bipartisan Budget Act of 2014 is now law, Congress must still act soon to reconcile its authorizations with its appropriations or risk once again getting slammed by sequestration’s deep cuts, a leading budget expert notes. BBA advocates claim the nasty effects from the sequester will at least be stayed for the next two years, but Center for Strategic and Budgetary Assessments’ expert Todd Harrison says it’s a bit more complicated than that. The BBA merely raises sequester budget caps for Fiscal 2014 and Fiscal 2015, with the Pentagon’s piece rising from $475 billion to $497 billion.

Four top China analysts testifying this month before a key US congressional subcommittee were clear in their response to a straightforward question on whether Washington has a strategy for dealing with China’s rise. No, each said in turn, there is no strategy.

Senators blocked a proposal to restore $6 billion in cuts to military retirees as part of the budget deal, but the issue will be back when the Senate reconvenes at the start of 2014.