Personnel spending memo

I just wrote this memo on personnel spending and the military.  Here’s the gist:

It’s not surprising that weapons systems draw all the attention when defense spending reform comes up. They translate into jobs that defense contractors spread cunningly across the nation’s states and congressional districts. But the “guns versus butter” debates between liberals and conservatives miss a key point. It’s not just weapons that drive defense spending through the roof — it’s the people, too.

According to its official budget, the Defense Department will spend $533.8 billion in 2010 in the following categories:

• Personnel: $136 billion
• Operations & Maintenance: $185.7 billion
• Weapons Procurement: $107.4 billion
• Research & Development for Weapons and Technology: $78.6 billion
• Other: $26.1 billion

The personnel figure, however, doesn’t come close to capturing what America is really spending on defense personnel. According to PPI’s calculations, the real price tag is much bigger: $301.1 billion each year, 121 percent higher than the Pentagon’s figure. In other words, if you want major savings in defense spending, cutting weapons systems and the ever-elusive “waste, fraud and abuse” won’t take you far enough.