The Denver Post October 24, 2002
Bush signs spending hike for military $ 37.5 billion jump is biggest funding increase since 1982
By Jennifer Beauprez
President Bush signed into law Wednesday the biggest military spending increase since 1982 - a move that could add $ 230 million to Colorado businesses and help usher them through hard times.
With the president contemplating war against Iraq, and U.S. troops involved in an anti-terror campaign across the globe, Bush signed a defense measure that provides $ 355 billion for defense, an increase of $ 37.5 billion over fiscal 2002. He also signed military construction legislation. Overwhelmingly approved by Congress, the measure contains a 4.1 percent salary increase for military personnel, $ 7.4 billion to keep developing a ballistic missile defense system and $ 72 billion for new weapons.
'Our nation faces grave new dangers, and our nation must fully support the men and women of our military,' Bush said at a Rose Garden signing ceremony on Wednesday. 'We've asked our military to prepare for conflict in Iraq, if it proves necessary.'
Industry experts say it remains unclear how the money will ultimately be distributed. But the additional $ 37.5 billion is three times bigger than NASA's budget, 10 times larger than the CIA's budget and more than almost any other country's defense budget on the globe, said John Pike, a defense analyst with GlobalSecurity.org in Alexandria, Va.
'It's an enormous amount of money,' he said.
Colorado economic development officials, desperately seeking ways to create new jobs for out-of-work Coloradans, hope the budget increases will translate into economic growth here.
Statewide, companies announced plans to lay off 16,233 people this year. Most of those cuts have been in technology and telecom, which boomed in the 1990s.
During that heyday, the defense industry faced job cuts and a 40 percent decline in defense spending.
Last year, following Sept. 11, Colorado's defense contractors perked up. Aerospace and defense companies employ an estimated 100,000 people statewide.
'Clearly aerospace is one component of the economic growth that the state needs, but it's not the only one,' said Rocky Scott, president of the Greater Colorado Springs Economic Development Corp. 'It will be a positive for Colorado, but we don't know yet how positive.'
An estimated $ 2.3 billion went to Colorado from the Department of Defense in fiscal year 2001. And Pike, the defense analyst, suggested that number could increase by 10 percent.
'By definition we will still make out pretty well,' said Glenn Bruels, Colorado Springs-based senior vice president with defense consulting firm Booz Allen Hamilton Inc., which is based in McLean, Va. He said Colorado has heavy emphasis on aerospace, which should be important in fighting today's wars.
Colorado has a significant presence in aerospace, including Lockheed Martin, which employs 5,000 in Jefferson County, and Boulder-based Ball Aerospace, which employs 1,800.
The padded budget could also help smaller Colorado companies such as SimAuthor Inc. in Denver stay afloat.
The 28-employee company makes software that provides additional 3-D training to pilots who fly commercial airliners, corporate jets and F-18 fighter jets.
'I don't want us to go to war,' said Rich Frankenheimer, chief financial officer of SimAuthor. 'But this has the potential to help us through tough times.'
While Congress gave Bush most of what he requested, lawmakers rejected his plea for a $ 10 billion fund he could tap without congressional input for combating terrorists overseas.
In a statement later in the day, Bush said he was disappointed by that decision and another to approve $ 2.7 billion less than he wanted for operations and maintenance programs. 'Without these funds, we may be forced to reduce other important programs to finance the war on terrorism,' Bush said.
Copyright 2002 The Denver Post Corporation
