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The California Institute prepares a quick analysis of the President's budget request on the day it is released. For the FY 2009 Budget, the budget was released the morning of February 4, 2008. The following represents an examination of this portion of the budget from a California perspective. For analysis of other components visit our 2009 Budget page.
The President’s budget proposes total Defense Department spending of $585.4 billion for FY 2009, a reduction from $624.6 billion for 2008 and $600.9 billion in 2007. The 2009 total includes $515 in discretionary spending (some consider this the "non-war" portion) and an additional $70 billion in emergency discretionary BA associated with military activities in the middle east. In addition, DOD indicated that it will submit an additional request for more money at a later time.
California receives a far smaller share of total federal defense spending than it had in past decades, as defense procurement has diversified around the nation. In addition, to the extent a larger portion of defense spending is focused on operations and personnel rather than on procurement contracts, California’s share of the total also declines. Nevertheless, California is and will likely continue to be a significant recipient of federal defense contract spending, which comprises approximately two-thirds of all federal procurement expenditures.
The President’s Budget again includes no new funding for procurement of C-17 cargo airlifters, despite the fact that top Air Force leaders want to keep the program open. The C-17 is built in Long Beach and represents the last major aircraft production line in the state.
For total Navy aircraft procurement, the 2009 budget would increase by $2.4 billion, from $12.4 billion to $14.7 billion. Aircraft procurement by the Air Force would also rise, from $11.9 billion to $12.7 billion.
The budget proposes an increase in Air Force missile procurement from $4.9 billion to $5.5 billion.
Total federal funding for DOD’s research, development, testing, and evaluation would see a small increase, from $21.2 billion in 2008 to $21.5 billion in 2009. (The totals for these years remain below the 2007 level of $21.8 billion.
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This page was last modified on 02/05/08