Page 5: of Maritime Reporter Magazine (January 1994)

LEGISLATIVE UPDATE

The $261 Billion Defense

Authorization: In Real Terms

Now that President Clinton has signed the $261 billion defense au- thorization bill for fiscal year 1994, the question being asked by all com- panies affected by it is "what's in it for me?" Here's a breakdown of what the bill means to the ship- building industry.

ECONOMIC CONVERSION

The bill authorizes $2.55 billion for programs aimed at helping gov- ernment and private sector defense workers, defense contractors and their communities adapt to a long- term retrenchment in defense spending. The bulk of that total, $2.22 billion, is earmarked to help defense firms reorient themselves toward finding commercial mar- kets. This includes $624 million, or $300 million more than the Presi- dent requested, for "dual use" part- nerships to help small- and me- dium-sized firms develop technolo- gies that have military applications

DEFENSE AUTHORIZATION

H.R. 2401, the $261 billion defense authorization bill, was signed by President Clinton on

November 30. Here's the final tally (in millions of dollars):

Clinton House Senate Final

Request Bill Bill Bill

Procurement $45,466 $45,322 $42,322 $46,090

Research & Development $38,620 $37,885 $35,900 $34,706

Operations & Maintenance $89,458 $89,081 $86,262 $87,404

Defense Business Operations $1,161 $1,091 $1,161 $1,116

Sealift Fund $291 $291 $2,669* $291

Military Personnels — $70,671 $70,711 $70,184

Military Construction $10,786 $11,597 $11,156 $10,066

Other ($977) $10 $91 $101

TOTAL DEFENSE $184,806 $255,948 $250,273 $249,958

Energy Department, defense-related programs $11,536 $11,046 $11,291 $10,877

Other Defense $146 $146 $153 $146

TOTAL fiscal 1994 Authorization 5196,488 $267,140 $261,717 $260,982 * Senate Armed Services combined funding requested for the C-l 7 cargo plane and for fast cargo ships in a "strategic lift fund" in this amount. # The bill included military personnel costs, which the administration did not consider part of the measure.

NOTE: Numbers may not add due to rounding.

Source: House and Senate Armed Services committees. but also would give companies a foothold in the commercial arena.

The bill also includes $ 197 million to help domestic shipbuilding compa- nies become competitive in the con- struction of commercial ships. And it has several provisions intended to speed the search for new job-pro- ducing uses for abandoned military bases.

The total authorized for opera- tions and maintenance programs fell $2.1 billion short of President

Clinton's request, totaling $87.4 billion. Added funds to boost the combat-readiness of forces in the field include $300 million for major overhauls of ships, planes and ve- hicles in military depots.

THE NAVY'S CUT

The bill authorizes $2.64 billion, as requested, for three Arleigh

Burke-class destroyers. It provides $373 million, or $19 million more than requested, for a program in- (Continued on Page 25)

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