President’s 2014 budget request increases IT funding, but cuts some programs

President Obama’s spending plan, delivered to Congress earlier this month, proposes making cuts in a number of technology-related areas in an effort to trim the deficit.

The budget proposes nearly $82 billion in IT funding, a 1.8 percent increase from the continuing resolution for fiscal 2013 and a 2.1 percent increase over the fiscal 2012 estimated level.

However, the overall discretionary budget request of $1.2 trillion includes 215 cuts, consolidations and savings proposals, a number of which are focused on technology. According to the Obama administration, the cuts are projected to save more than $25 billion in fiscal 2014.

Among the planned cuts and savings in technology-related areas are:

$575 million from Defense Department data center closures.

$324 million from the Defense Department’s Global Hawk Unmanned Aerial Vehicle program.

$81 million from the Missile Defense Agency’s Precision Tracking and Space System.

$38 million from the Commerce Department’s Joint Polar Satellite System.

$29 million from IRS business systems modernization.

$22 million from computer and information science and engineering research programs at the National Science Foundation.

These cuts would help move the government toward a proposed $1.8 trillion deficit reduction over 10 years.

The budget includes $400 billion in cuts to health programs, including Medicare. Savings and cuts would come from negotiating better drug prices, fighting waste and fraud and requiring the wealthiest seniors to pay more.

Other budget highlights include:

$580 billion for deficit reduction through limiting tax benefits.

$230 billion in savings from changing the way the government calculates inflation for annual cost-of-living adjustments for benefits programs.

$200 billion in savings from other programs, such as farm subsidy reductions and retirement benefit reforms.

$200 billion in discretionary savings from both defense and non-defense programs.

$50 billion in investments for infrastructure such as repairs to highways, bridges, airports and transit systems.

The budget request joins competing budget plans in the House and Senate. Serious budget negotiations are not likely to take place until summer.

Angie Petty is a senior principal analyst and Alex Rossino is a principal research analyst at Herndon-based Deltek, which studies the government contracting market and can be found at www.deltek.com. Federal industry analysts at Deltek contributed to this article.

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