$17 Billion Cut... But Trillions More Spent Elsewhere

The Obama Administration, in the process of spending trillions of dollars for all manner of programs and projects, is trumpeted the 17 Billion dollars it is trying to cut from the Federal Budget. Rather than try to digest them all en masse, we'll look at each of them one at a time and allow you to make up YOUR mind as to the rationale and wisdom for the decisions included below. Herewith; another of the programs on the chopping block that has an aviation or aerospace connotation.

From the 'Terminations, Reductions, and Savings' document published this week by the OMB, as part of the FY 2010 US Budget:

Proposal: The Administration proposes to terminate the Presidential Helicopter replacement (VH-71) program and to initiate a new Presidential Helicopter replacement program, and to properly develop options for a fiscal year 2011 follow-on program. The Presidential Helicopter is responsible for the safe, reliable transport of the President in administrative and contingency environments, worldwide. The VH-71 is being developed to replace the existing VH-3D and VH-60N helicopters, which currently serve as "Marine One".

Justification: The VH-71 program is six years behind schedule, and its cost has grown from $6.5 billion to over $13 billion. Over $3.2 billion has already been spent on this program with no operational aircraft delivered. The Government Accountability Office has warned that future costs of the VH-71 are unknown, and the Congressional Research Service has raised the question if the current program should be cancelled. These high costs and schedule slippage have occurred because of challenging program requirements and an ambitious schedule. Instead of continuing to pursue the current program, the Administration proposes to cancel it, review requirements, and establish a new program. A new Presidential Helicopter replacement program will allow the Administration to take advantage of new technologies and develop a helicopter that is fiscally responsible while still meeting the President's requirements.

Funding in 2010 will cover termination costs, Government efforts to develop options for a Presidential Helicopter replacement program, and service life extensions for the current Presidential Helicopter fleet.

FMI: www.whitehouse.gov/omb/budget/fy2010/assets/trs.pdf