Leon Panetta, nominated to become the next U.S. defense secretary, told the Senate Armed Services Committee on June 9 that the government does not need to choose between fiscal discipline and a strong national defense.
The $400 billion cut to the security budget over 10 years called for by President Barack Obama will not pose a risk to national security, he said during his confirmation hearing.
He acknowledged that some tough choices would have to be made, but Panetta said the country could maintain the strongest military in the world while also reining in defense spending.
Panetta said he did not know how much of the $400 billion would come from the Pentagon. The security budget includes funding for the State Department, the intelligence community, the Department of Homeland Security, the Department of Veterans Affairs, the U.S. Agency for International Development and the nuclear weapons activities of the Department of Energy.
The chairman of the Senate Armed Services Committee, Sen. Carl Levin, D-Mich., asked Panetta to find out and report to Congress. "We need to know that," he said.
In considering Panetta's suitability as the next defense secretary, several senators highlighted his experience managing budgets as a skill that the Pentagon needs today.
Panetta, a former Democratic congressman from California, was director of the Office of Management and Budget (OMB) during the Clinton administration. He is now director of the CIA.
Panetta's service at OMB is "invaluable" because he "understands the inner workings of the budget process and because he shaped the decisions that helped achieve the budget surpluses of the late 1990s," Levin said.
The hope is that Panetta's budget background will help the Pentagon make responsible budget cuts that contribute to the president's debt reduction efforts, as well as get soaring weapon costs under control.
Panetta told the Senate panel that he intends to accelerate the Pentagon's efforts to achieve a full financial audit.
"We should be able to audit that department," he said. The Pentagon has never completed a full audit and does not plan on being able to do so before 2017.
"One of the first things I'm going to do is see if we can improve on that timetable," Panetta said.
The Pentagon is currently conducting a "Comprehensive Review," called for by the president to help determine what should be cut to meet the $400 billion target. In Panetta's written responses submitted to the Senate panel before the hearing, he noted that the review would be completed by the fall.
"If we are going to manage costs, I believe everything must be on the table," Panetta said in response to the advance policy questions. "It may be appropriate to conduct a comprehensive review of the military pay and benefits structure to determine where costs can be contained."
Military health care and other entitlement programs included in the Pentagon's budget are currently growing faster than inflation. In a few years, military health care is expected to exceed 10 percent of the overall defense budget.
As for other entitlement programs, it may "also be appropriate to review the military retirement system for needed changes and efficiencies," Panetta said.
As for weapon programs, Sens. John McCain, R-Ariz., and Saxby Chambliss, R-Ga., asked Panetta specifically about the F-35 Joint Strike Fighter, the Pentagon's most expensive program.
Variants of the F-35 fighter jet are scheduled to replace aircraft in the Air Force, Navy and the Marine Corps. Recently, the F-35 was estimated to cost $380 billion over its lifetime, but the Pentagon has said it is working to re-baseline the program.
The country cannot afford an aircraft that doubles or triples from its original cost, McCain said.
"I support DoD's current effort to focus on and reduce F-35 sustainment costs," Panetta said. "If confirmed, I will review the overall program's status and health."
CIA Director Leon Panetta testifies on June 9 during a confirmation hearing before the U.S. Senate Armed Services Committee. Panetta has been nominated to succeed Robert Gates at the Pentagon. (Win McNamee / Getty Images)
He acknowledged that some tough choices would have to be made, but Panetta said the country could maintain the strongest military in the world while also reining in defense spending.
Panetta said he did not know how much of the $400 billion would come from the Pentagon. The security budget includes funding for the State Department, the intelligence community, the Department of Homeland Security, the Department of Veterans Affairs, the U.S. Agency for International Development and the nuclear weapons activities of the Department of Energy.
The chairman of the Senate Armed Services Committee, Sen. Carl Levin, D-Mich., asked Panetta to find out and report to Congress. "We need to know that," he said.
In considering Panetta's suitability as the next defense secretary, several senators highlighted his experience managing budgets as a skill that the Pentagon needs today.
Panetta, a former Democratic congressman from California, was director of the Office of Management and Budget (OMB) during the Clinton administration. He is now director of the CIA.
Panetta's service at OMB is "invaluable" because he "understands the inner workings of the budget process and because he shaped the decisions that helped achieve the budget surpluses of the late 1990s," Levin said.
The hope is that Panetta's budget background will help the Pentagon make responsible budget cuts that contribute to the president's debt reduction efforts, as well as get soaring weapon costs under control.
Panetta told the Senate panel that he intends to accelerate the Pentagon's efforts to achieve a full financial audit.
"We should be able to audit that department," he said. The Pentagon has never completed a full audit and does not plan on being able to do so before 2017.
"One of the first things I'm going to do is see if we can improve on that timetable," Panetta said.
The Pentagon is currently conducting a "Comprehensive Review," called for by the president to help determine what should be cut to meet the $400 billion target. In Panetta's written responses submitted to the Senate panel before the hearing, he noted that the review would be completed by the fall.
"If we are going to manage costs, I believe everything must be on the table," Panetta said in response to the advance policy questions. "It may be appropriate to conduct a comprehensive review of the military pay and benefits structure to determine where costs can be contained."
Military health care and other entitlement programs included in the Pentagon's budget are currently growing faster than inflation. In a few years, military health care is expected to exceed 10 percent of the overall defense budget.
As for other entitlement programs, it may "also be appropriate to review the military retirement system for needed changes and efficiencies," Panetta said.
As for weapon programs, Sens. John McCain, R-Ariz., and Saxby Chambliss, R-Ga., asked Panetta specifically about the F-35 Joint Strike Fighter, the Pentagon's most expensive program.
Variants of the F-35 fighter jet are scheduled to replace aircraft in the Air Force, Navy and the Marine Corps. Recently, the F-35 was estimated to cost $380 billion over its lifetime, but the Pentagon has said it is working to re-baseline the program.
The country cannot afford an aircraft that doubles or triples from its original cost, McCain said.
"I support DoD's current effort to focus on and reduce F-35 sustainment costs," Panetta said. "If confirmed, I will review the overall program's status and health."
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