The Aerospace Industries Association (AIA) expressed “serious concerns” over defense budget spending outlined through the end of the 2011 fiscal year in a U.S. congress resolution passed in April.
    The resolution, initially revealed on April 13, follows recommendations from U.S. Defense Secretary Robert Gates to appropriate at least $540 billion for fiscal year 2011 for the U.S. military to successfully carry out its missions, maintain readiness and prepare for the future. The association agreed with secretary Gates’ budget, but AIA CEO Marion Blakey expressed disappointment with Congress’ adapted long-term outlook in the April resolution, which was substantially below the U.S. Department of Defense’s initial proposal.
    “Indiscriminate cuts inevitably will fall disproportionately on R&D and procurement, increasing the risk that the war fighter will not get the best equipment that America can provide,” Blakey said in an AIA statement. “As the President reviews our current military missions with DOD and the Joint Chiefs, we hope that they realize the potential long-term danger that more defense cuts will cause to both our nation’s national security and shrinking defense industrial base.”
    While the congressional resolution follows negotiations between the White House and the budget-conscious House of Representative, the adapted budget puts the Obama administration at odds with its own plans outlined by Gates in March. The Obama administration now seeks $400 billion in additional defense cuts between now and fiscal year 2023 – an average of over $33 billion per year. Cuts will go into effect only after a review of the Pentagon’s current mission operations are conducted in conjunction the U.S. Joint Chiefs of Staff.
    “The president made special note of Gates’ efficiency initiative. While the contractor community supports that initiative to reduce the number of requirements and procedures that are either duplicative or provide little added value, the initiative bears the potential to have a far wider impact and may be a double-edged sword,” said Blakey. “Without the ability to make a reasonable return on investment, contractors will refocus on more profitable commercial businesses, which will in turn reduce competition for programs and increase costs to the federal buyer. Worst of all, the technological advantage that has made our U.S. military the best equipped in the world may be threatened.”
    The congressional resolution also reduced U.S. Federal Aviation Administration (FAA) accounts for facilities, equipment, research, engineering and development, which are responsible for the FAA’s acquisition of next-generation technology. The AIA said it would be “heavily engaged” with congressional appropriations committees and the FAA on the implications of these reductions.
    “NextGen implementation is at a critical juncture, and a majority of Americans favor investment in our nation’s airspace infrastructure,” said Blakey. “AIA hopes the president will keep this in mind as he reviews our current military missions with DOD and the Joint Chiefs. In the meantime, AIA’s Legislative Affairs team will continue to reach out to freshmen, committee and caucus leaders and the administration to ensure our elected leaders understand the importance of our industry to U.S. national security and economic vitality.