Page 13: of Maritime Reporter Magazine (March 1986)

Exhibit 5—Proposed Navy Procurement And RDT&E Budget (billions of $)

Appropriations* Budget Report

FY 1985 FY 1986 FY 1987 FY 1988

Shipbuilding and Conversion $11.0 $10.8 $11.0 $12.3

Weapon Procurement 4.4 5.2 6.1 7.9

Aircraft Procurement 10.4 11.2 11.3 12.4

Other Navy Procurement 5.1 6.4 6.5 7.8

Research, Devel., Test & Eval. 9.1 10.1 10.6 10.6 "Figures do not reflect effects of Gramm-Rudman sequestrations

Source: Navy Budget Submission

The constitutionality of the

Gramm-Rudman law is now being argued in federal court. Meanwhile, cuts (technically called sequestra- tions) in the FY 1986 budget are programmed to reduce government outlays this year by $11.7 billion.

The projected impact of Gramm-

Rudman on Navy procurement and

RDT&E programs is shown in Ex- hibit 4. Figures in the first three col- umns are the amounts of budget authority to be sequestered from st a reminder of whatc when you

Our R&D team has developed replacements for parts and engine conversion kits that can transform older pieces of equipment into better performers than when they were brand new. So you get improved efficiency and longer service life.

We have also instituted new pro- cedures in our manufacturing that make our record of quality control even better.

Contact us at the Electro-Motive

Division, LaGrange, Illinois 60525.

Or telex us at 270041.

And then find out how our parts can save your company money, increase the per- equipment and reduce unsched- uled downtime.

ELECTRO MOTIVE

Division of General Motors Corporation this and prior year appropriations in order to reduce outlays by the amounts shown.

Gramm-Rudman has produced a very complicated situation that is affecting fiscal planning in Navy and other government agencies.

PROPOSED FY 1987 AND 1988 BUDGET

Exhibit 5 summarizes the Navy budget request for procurement and

RDT&E programs in FY 1987 and 1988. Figures for FY 1985 and 1986 are given for comparison.

Shipbuilding And Conversion

Navy proposes a two percent in- crease in shipbuilding and conver- sion funding in FY 1987 compared to the FY 1986 appropriation. Pro- posed FY 1988 funding is 11 percent greater than FY 1987—an aggres- sive funding increase considering the furor over the growing federal deficit. Details for the new budget request are shown in Exhibit 6.

Weapons Procurement

Large increases are proposed in this part of the Navy procurement budget. Next year's proposed bud- get is an increase of 17 percent over this year. FY 1988 is projected to grow another 29 percent. Most of the growth is duet to production start of the Trident II missile in FY 1987. Lockheed is the prime con- tractor for this multibillion-dollar program. Production of the ad- vanced lightweight torpedo (a Hon- eywell contract) and the vertical launch ASROC (a Goodyear con- tract) are other major programs scheduled to start next year. Details for the proposed weapon procure- ment budget are shown in Exhibit 7.

Electronics And Other

Procurement

The FY 1987 funding request is two percent higher than this year. A 19 percent increase is proposed for

FY 1988. Much of the increase is attributable to purchases of elec- tronic equipment—with $577 mil- lion budgeted in FY 1987 for com- munication equipment, $373 million for ASW electronics and $285 mil- lion for electronic warfare equip- ment. Details for the proposed bud- get for electronics and other pro- curement are shown in Exhibit 8.

Research, Development,

Test and Evaluation

A five percent increase in Navy

RDT&E funding is proposed for FY (continued) 15