Military Spending Stays Flat; Boost for California

The Pentagon’s fiscal 1999 budget proposes to hold overall military spending nearly flat, but offers a boost to California’s defense industries through increased spending for new weapons.

The $252.6-billion defense spending plans, if approved by Congress, would take savings from the shrinking uniformed and civilian work forces, along with other cost cuts, to provide $48.7 billion for new equipment.

A healthy chunk of that spending would go to California in several procurement projects. Two of the biggest spending proposals are for the F-18 model E and F tactical fighter plane, built in part by Northrop Corp.; and the C-17 cargo aircraft, largely built by Boeing Aerospace of Long Beach.

Spending for the F-18 would jump about $800 million, to $3.3 billion, while spending for the C-17 would rise about $900 million, to $3.2 billion.

Modernization spending, which began tumbling in 1985, would increase $3.9 billion over last year, an upswing that would reach $61.3 billion by fiscal 2001.

The spending plan submitted to Congress on Monday by President Clinton reflects decisions made in the spring of 1997 about troop strength. Under that plan, about 23,000 troops are to be cut in fiscal 1999, reducing the active duty force to 1.39 million. That compares to 2.2 million troops in 1989, at the close of the Cold War.

The new budget touches another subject of keen interest to Californians in its call for two additional rounds of base closings, in 2001 and 2005.