Panetta: Modernization, Ops Will Pay Bills

Oct 11, 2011 By Jen DiMascio - AviationWeek.com

WASHINGTON - Pentagon weapons programs and operating costs will bear the brunt of military spending cuts aimed at reining in the federal deficit, the U.S. defense secretary says.

In an Oct. 11 speech at the Woodrow Wilson Center, Leon Panetta said modernization and operations will be the “largest area” of change and vowed to scrub every program, contract and facility for savings. But his address provided no details about which programs the Pentagon’s ongoing review of spending might wipe away.

“These cuts will need to be carefully targeted to avoid a hollow force, to ensure that we maintain a robust industrial base, and to protect the new military capabilities we need to sustain our military strength,” Panetta says. “But we will need to consider accepting reduced levels of modernization in some areas, carefully informed by strategy and rigorous analysis.”

Panetta’s speech comes days before congressional committees are scheduled to deliver recommendations to a 12-member panel in charge of trimming $1.2 trillion out of the federal budget.

His address called on Congress to be a “responsible partner” in preserving the military during a time of budget constraints. “They have as much responsibility to defend this country as we do in the executive branch,” the secretary says.

In addition to modernization, the cost-cutting drive will affect personnel programs as well as force structure. However, Panetta pledged to “grandfather” in changes to benefit programs — so that they would not affect benefits already being received by the fighting force. And he suggested that the sting of force structure cuts could be reduced by reliance on a strong National Guard and Reserve force.

Panetta acknowledged the effort to cut more than $450 billion out of the defense budget while trying to shield the military from steeper cuts will define his tenure at the Pentagon. And he pointed out that he would have to “navigate through some very perilous political waters.”