. Military Space News .
SPACEWAR
Pentagon Slush Funds
by Staff Writers
Moscow (Sputnik) Dec 01, 2015


The National Sea Based Deterrence Fund (NSBDF) acts like a piggy bank for the ballistic missile submarine replacement program, with both Congress and the defense secretary being able to put money into the account.

US has set ambitious plans to modernize all three legs of its nuclear triad over the next thirty years, already awarding contracts to various defense contractors. However here's the rub - where can it get the money for weapons it can barely afford? It turns out that Washington has a few tricks up its sleeve to secure its precious treasure.

There are certain "budget gimmickries" that the US can use, according to Sarah Tully, a Policy Analyst at the Center for Arms Control and Non-Proliferation and Council for a Livable World.

"One option is to divvy up the bill, paying for all or part of the program from a pot of money apart from the normal budget," she wrote in an article for The National Interest magazine.

"Congress is currently working to create a loophole to pay for the navy's leg of the nuclear triad, its submarines, outside of its standard budget: the so-called National Sea-Based Deterrence Fund, a scheme set up by Congress to fund the Ohio-class replacement subs," the author adds.

The National Sea Based Deterrence Fund (NSBDF) acts like a piggy bank for the ballistic missile submarine replacement program, with both Congress and the defense secretary being able to put money into the account - Congress would theoretically move ORP-related spending items from the shipbuilding and research and development accounts into the NSBDF, and the defense secretary could move extra money in via reprogramming requests.

"Lawmakers argued that because the new submarines are a "national asset," they shouldn't have to be funded using the navy's regular shipbuilding money. It will take nearly $100 billion just to procure the Ohio-class ballistic missile submarine program, and the Sea-Based Deterrence Fund would, in theory, allow the navy to pay for the subs through this off-budget account while funding its other projects through its regular budget," Sarah Tully says.

The Fund was created to cover the extraordinary cost of replacing the Ohio-class sub - $80 billion to $92 billion depending on the estimate. The appropriators consider it a fiscal gimmick.

With such a scheme in place, the author reasons, "what is keeping the air force from getting its own special, off-budget account for the bomber it also can't afford?"

"In fact, some policy makers are indeed eyeing the special submarine fund as a model for a potential way to bankroll the new bomber."

In January 2015, Lt. Gen. Stephen Wilson, Commander of Global Strike Command, said, "We're looking to see how we can do something like that" in response to a potential Air Force version of the Sea-Based Deterrence fund.

The author then explained the inspiration for the gimmick.

"The inspiration for these accounts was likely the Overseas Contingency Operations account (OCO), the most egregious loophole in the federal budgetary process," she said.

"Unlike the Pentagon base budget and all discretionary non-defense spending, OCO is not subject to the budget caps imposed by the 2011 Budget Control Act. Consequently, OCO is used by all branches of the military as a slush fund to pay for projects that it can't afford out of the base budget."

"President George W. Bush established an emergency war funding mechanism after 9/11 to pay for the wars in Iraq and Afghanistan because it was easier than planning for war spending within the base budget."

The account has since expanded from a war fund to a true Pentagon slush fund, adding, for instance, funding for the F-15 aircraft program when none of these planes have been shot down in Afghanistan or Iraq, the author explains.

"OCO is spending $200 to $300 million on fixing propellers on nuclear submarines. That couldn't possibly be related to Afghanistan. The last I saw, it was a landlocked country," she quotes budget expert Gordon Adams as saying.

The author then makes a conclusion that similar practices are "bad budgeting practices and are contagious" and "do nothing to improve the affordability of a given program."

"The Pentagon base budget is zero-sum. If the Navy doesn't foot the bill for its submarines, or the Air Force for its new bomber, that money is still going to have to come from elsewhere within the defense budget.," she says.

"Skirting responsibility for the cost of a weapons system is admitting that it is not affordable. If it were, these budget gimmicks wouldn't be on the table at all," she therefore concludes.

Source: Sputnik News


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


.


Related Links
Defense Procurement News
Military Space News at SpaceWar.com






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Previous Report
SPACEWAR
China's hypersonic weapon capable of overcoming air defense systems
Moscow (Sputnik) Nov 30, 2015
China has conducted a sixth flight test of its DF-ZF (previously known as WU-14) hypersonic glide vehicle (HGV) designed to defeat US missile defenses. "The DF-ZF is an ultra-high-speed missile allegedly capable of penetrating US air defense systems based on interceptor missiles," Bill Gertz of The Washington Free Beacon wrote. The DF-ZF HGV was launched at the Wuzhai missile test cente ... read more


SPACEWAR
Poland's new govt rethinks Patriot missiles, Airbus choppers

Thales sub-contracted for NATO BMD test activities

Patriot takes out two ballistic missiles in latest test

Army system integrates different radars for Patriot-3 interceptor

SPACEWAR
Saab to modernize Sweden's RBS 97 Hawk missile system

US has 'concerns' over Russian missile system: US official

India test fires ship-based nuclear-capable missile

India test fires Advanced Air Defense missile

SPACEWAR
Elbit to supply Hermes 900 HFE UAS to Switzerland

Elbit to supply Hermes 900 HFE UAVs to Switzerland

US approves drone sale to Japan

CACI launches SkyTracker UAV detection system

SPACEWAR
Australia contracts for defense computer network upgrades

Harris Corporation Wins $40 Million Air Force Satellite Control Network Contract Extension

Commercialization is coming to WGS

DARPA's RadioMap Program Enters Third Phase

SPACEWAR
BAE Systems, SAIC making amphibious armored vehicle prototypes

U.S. Air Force orders more JDAM bomb kits

U.K. awards Cook Defence Systems contract for armored vehicle tracks

Rockwell Collins opens new facility in India

SPACEWAR
British PM David Cameron announces boost in defense spending

US approves $1.29 bn sale of bombs to Saudi Arabia

New York City turns tide on homeless vets

Orbital ATK and Boeing open offices in UAE

SPACEWAR
Turkey warns against Russia travel in tit-for-tat jet downing dispute

'Large' Chinese military fleet flies near Japan islands: media

Russia-Turkey war of words escalates over downed warplane

Russia targets Turkish economy over downed warplane

SPACEWAR
MIT mathematicians identify limits to heat flow at the nanoscale

Navy researchers recruit luminescent nanoparticles to image brain function

Light wave technique an advance for optical research

Nanostructuring technology can simultaneously control heat and electricity









The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.