Page 19: of Maritime Reporter Magazine (December 1988)

$29.4-BILLION FY89 NAVY BUDGET APPROVED

FOR SHIPS AND EQUIPMENT

STATUS REPORT ON U.S. NAVY PROGRAMS

FOR SHIP PROCUREMENT AND MAINTENANCE

By James R. McCaul, President

International Maritime Associates, Inc.

Construction and maintenance of the U.S. Navy ships continues to be the dominant source of business for shipyards in the United States. It is also a major source of business for marine equipment and electronics systems manufacturers. This article provides an update on the status of the U.S. Navy programs.

FY 1989 Budget

Congress appropriated $282 bil- lion for defense spending in FY 1989. This figure is an increase of $3

Photo: City of Portland. Maine, fireboat pro- vides a water salute as the U.S. Navy guided missile frigate USS Samuel B. Roberts (FFG- 58) is towed toward a berth at Bath Iron

Works Overhaul & Repair Yard. The ship, damaged when it struck a mine in the Per- sian Gulf earlier this year, is expected to be tied up for 12 to 14 months. BIW photo by

Deb Huston. billion over FY 1988 and $1 billion less than the President's request last February. Separate legislation was passed to authorize military programs. This is the first time in several years that the defense bud- get has been approved prior to be- ginning the new fiscal year.

The Navy represents 33 percent of the total defense budget for FY 1989. This compares with 36 percent in FY 1988—when full funding for two carriers was provided.

Ship and Equipment

Procurement Budget

Totals $29.4 Billion

The FY 1989 budget provides funding for four submarines, five

Aegis destroyers, one amphibious assault ship, two minehunters, 12 support ships and 15 air cushion landing craft. Funding totaling $9.1 billion is provided for these acquisi- tions. Major beneficiaries of this spending will be Newport News (submarines), GD-Electric Boat (submarines), Litton-Ingalls and

Bath Iron Works (Aegis destroyers),

Exhibit 2—Quantities of Major Shipboard Weapons

Requested and Approved for FY 1989

FY 1989 Program as

Proposed in Final Results

Jan. Feb. Authorized Approp. 1987 1988 Sept. 1988 Sept. 1988 number of units

Missiles

Trident II 66 66 66 66

Tomahawk 510 510 475 510

Standard 1635 1635 1310 1310

RAM 260 260 260 260

Harpoon 138 138 138 138

Torpodoes

MK 48 ADCAP 350 261 261 320

MK 50 ALWT 224 140 140 140

December, 1988 23