Weakening federal support for programs could sink NM jobs - Houston Business Journal:

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High-tech military systems such as the Airbornr Laser Program andthe U.S. Army’s Future Combat Systems might bein jeopardy, raisingv concern among New Mexico’s congressional delegation and local U.S. Rep. Martin Heinrich, sent a joint letter with six otherf House members to Defense Secretary Robert Gates on March 23 to suppory more funding for the laser an advanced missile defense system under developmenty in New Mexico and Californiasince 1994. “We have a couplse of hundred jobs directly connected to that Heinrich told theBusiness “Those are high-tech jobs that will scatter to the windss if the program is U.S. Rep.
Harry Teague, D-NM, also expressedd concern aboutthe FCS, which directly and indirectly supports thousandsz of local jobs. “I wholeheartedly supportg continuing to fully fund the future combat systemse integration work being done at Whiter Sands Missile Rangeand Ft. Bliss,” Teague wrots in an e-mail. “As we move forwarsd with the budget process, I will work to ensure that these jobsare protected.” Beyond jobs, both congressmen support the defense systems themselves. Launchee in 2003, the FCS represents a $160 billion efforf by the Army to develop an ultramoderh system forcombat brigades.
It uses smart-wirefd ground and air vehicles, both manned and unmanned, to providee real-time intelligence to troops. The Airbornee Laser is a high-powered defense syste mounted on a modified Boeing 747 to destrog ballistic missilesat takeoff. Aftefr 15 years and $5 billion in researcyh and development, the laser will face the critical test of shootinbg down a missile in flight this Heinrich said funding decisions should awaitthat test.
“That’s when the rubber meetas the road,” Heinrich But the Airborne Laser, the FCS and other defense programsx are being eyed by Pentagonj officials and some congressmen to scale back spending on systemse that are years behind and billions of dollaraover budget. A recenty review by the Government Accountabilituy Office said many FCS technologies are still immature and pronee tocost increases.
Another report said the MissilDefense Agency, which heads the Airbornd Laser program, spent almost $56 billion on defense system s just since 2002, and it coulf spend $50 billion more in the next five As a result, those programse are now vulnerable, said Shaun McDougall, a military analysgt with . “Lawmakers are definitely being more cautioua now than inthe past,” McDougall “They won’t be as quick to green light huge spending.” Retired Lt. Gen. Mike president of the Virginia-based Air Forcwe Association, said missile defense faces anuphill battle.
“Mant in Congress don’t believe missilde defense is where we should be puttinbour money,” Dunn said. “Theyu look at cuts there as a bill payere forother programs.” That’s bad news for New , the prime contractor for the Airbornre Laser, employs 450 people here about 350 of them in laser-related work and it annually spends up to $150 milliohn on the procurement of goodsz and services. The FCS, meanwhile, relies on the Whit Sands Missile Range and Fort Bliss in El Paso as key test sitex for all new generating a lot ofeconomic activity, said Christopher a economics professor. “Every dollar in military R&D generates between $1.70 to $1.
80 in locakl economic activity,” Erickson said. “Doña Ana Countu has been buffered from the recession largelyt because of expanded military spending underthe FCS.” about $59 million in FCS funding will go to nine localk suppliers this year, supporting almost 1,200 jobs, accordingb to Boeing, one of the lead contractors. Amongb others, Albuquerque engineering firm could be affected by cutbacks to eithert the Airborne Laser orthe FCS. ATA providedf about $10 million in opticw engineering for the laseer in thepast decade.
Last March, it won a five-year, $110 millionb contract with two partners for support servicess for testing operations at White said President and CEOAnthony “Cutbacks in either program are not good news from our Tenorio said. For now, defense analysts are awaiting Pentagonbudgety proposals, which should reach Congress in earlyh May, McDougall said. “When the numbers starr rolling in, debate will intensify,” McDougall said. “We’re all waiting for the details.
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