Budget Control Act of 2011 forces real cuts to defense, and difficult choices.

• Author: Farrell, Lawrence P., Jr.
• Position: President's Perspective

Enactment of the Budget Control Act of 2011 now provides specific information on the future course of defense spending. One recalls the budget adjustments proposed by former Defense Secretary Robert Gates as recently as May 2010, and the subsequent efficiency initiatives. These were relatively modest compared to what has followed. The president submitted a 2012 budget with fairly generous projections for defense out through 2021. This was voted down in Congress as his entire federal budget was rejected. In the same year, the president also proposed a reduction to defense of $400 billion over 12 years.

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The Budget Control Act has two phases. The first sets a single cap for all discretionary spending. In fiscal years 2012 and 2013, it separates the cuts between security and non-security. Security is broadly defined as Defense, Homeland Security, Veterans Affairs, the National Nuclear Security Administration, the intelligence community management account and international affairs. The caps are $684 billion in 2012 ($5 billion less than 2011) and $686 billion in 2013 ($36 billion less than requested in the aforementioned and rejected 2012 budget request).

A proportional distribution of cuts would have the defense base budget at $525 billion (versus $530 billion enacted for 2011). It is also $28 billion less than the president originally requested for 2012. Fiscal year 2013 would have the defense base budget about the same for 2012, according to a study by the Center for Strategic and Budgetary Assessments.

The 2014 through 2021 plan does not separate security and non-security, but the Office of Management and Budget estimates reductions to the defense base would total around $330 billion over 10 years, the same yearly reduction calculated from the president's proposed $400 billion in cuts over 12 years. A coincidence?

The Joint Committee on Deficit Reduction must act to propose spending cuts across the federal budget of at least $1.2 trillion. If the committee proposes less than that amount, or if Congress fails to enact the committee's recommendations, the "trigger" takes effect. The trigger sets separate caps for security and non-security, and defines the security category as only the 050 account (most of which is defense). If Congress fails to enact, the Pentagon would lose $54 billion in 2013--leaving a base budget of $472 billion. Trigger-forced cuts over 10 years (2012-2021) would subtract $968 billion from the...