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http://dailynews.yahoo.com/h/ap/20020201/pl/bush_defense_budget_6.html

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Friday February 1 8:06 PM ET
Bush to Propose $379B Defense Budget

By ALAN FRAM, Associated Press Writer

WASHINGTON (AP) - President Bush (news - web sites) will propose a $379.3
billion Pentagon (news - web sites) budget, which would spend $9.4 billion to
battle terrorism, plus extra money for weapons procurement, training and a
pay raise for troops, according to documents obtained by The Associated
Press.

The proposal, part of the $2.13 trillion federal budget for next year that
the president will release Monday, provides the first detailed glimpse of
Bush's vision for defense spending. He and other administration officials
already have said defense, domestic security and the economy will be the
three top priorities of his spending plan.

Bush's plan calls for an increase of $45 billion, or 13.5 percent, over this
year's defense total. Bush announced a $48 billion increase last week, but
the budget documents use the smaller figure because they include spending
this year for some retirement costs that had not been counted earlier.

The papers show that Bush envisions the Pentagon's budget growing gradually
to $451.4 billion in 2007. When past years' defense budgets are adjusted for
inflation, the biggest ever was under President Reagan in 1985, $451.8
billion.

``The budget fulfills President Bush's pledge to win the war against
terrorism, defend America and its people, improve quality of life for our men
and women in uniform and accelerate a bold transformation of the U.S.
military to counter 21st century threats,'' one of the papers says.

The proposal, like the rest of the budget, will be considered by Congress.
But with a war against terror under way and troops in Afghanistan (news - web
sites), lawmakers of both parties are sure to support healthy defense
increases this year, even as federal deficits return.

``We support every penny that's necessary to fight terrorism at home and
abroad,'' said Thomas Kahn, Democratic staff director of the House Budget
Committee.

Even so, some congressional officials have privately criticized Bush's
proposed increase as providing less than the numbers would make it appear.
They say that after money is factored out for inflation, costs of buttressing
the military's ailing health-care system and a $10 billion contingency fund
that Bush is proposing to cover military operations, little is left to
strengthen the Pentagon's war-fighting capabilities.

According to the documents, money for fighting terror includes $3 billion for
counterterrorism, force protection and domestic security; $1.2 billion to
continue combat air patrols over the United States; and extra money for
communications, munitions and other items.

Bush also wants $68.7 billion for buying weapons and other equipment, more
than 10 percent above the roughly $60 billion the Defense Department received
last year.

Included is $911 million to continue developing the Comanche reconnaissance
helicopter.

The budget also requests $53.9 billion for research and development, almost
10 percent above this year's total.

It includes $7.8 billion for national missile defense research and testing
procurement, plus an extra $815 million for development of space-based
sensors that can detect missile launches, about the same as this year.

The documents say Bush will also propose money for:

-A 4.1 percent increase in basic military pay, with the administration
considering additional raises for some officers;

-A cut in troops' out-of-pocket costs for private housing, from 11.3 percent
to 7.5 percent;

-Extra spending for costs of training and for the increased operations the
services have performed since additional troops were deployed overseas after
the Sept. 11 attacks.

The budget also is claiming about $9 billion in savings from ``management
improvements'' and changes in acquisition procedures, the documents say.

In other details obtained by The Associated Press, Bush's budget will also
propose:

-A $1 billion increase, to $11.35 billion, for grants to states for school
districts that have many low-income students. The Title I education program
was one of the initiatives that was given extra funds under the school
improvement bill that Congress and Bush enacted late last year;

-$8.5 billion in grants to states for special education, $1 billion more than
was provided this year for programs for handicapped children.




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