Defense spending in state increases 3.7 percent

THE ASSOCIATED PRESS

Originally published Thursday, April 25, 2002

TACOMA -- Defense spending jumped 3.7 percent in Washington in fiscal year 2001, topping $7 billion for payroll, goods and services, military retirement and assistance to veterans.

The figures, reported by a Tacoma newspaper, are contained in the annual Consolidated Federal Funds Report released this week by the U.S. Census Bureau. They show federal domestic spending in all the states and territories.

Overall, the federal government spent $36.9 billion in Washington in the fiscal year that ended Sept. 30, 2001, up 8.8 percent over the previous year. That's about three times the size of the state's general operating budget.

The fiscal 2001 report doesn't reflect increased defense spending in the wake of the Sept. 11 attacks, officials said. Nor does it cover the average 6.8 percent pay increase for service members that took effect Jan. 1.

"Prior to 9-11 there was a real effort across the federal government to make more efficient use of existing resources. They were really squeezing things down," said Chris Johnson, regional labor economist with the state Employment Security Department.

The payroll for all military members and civilian military employees totaled $2.7 billion, down 1.3 percent from the previous year.

Still, the military payroll in Washington was larger than in all but six other states. Virginia topped the list at $7.4 billion.

Kitsap County -- home to Naval Station Bremerton, Puget Sound Naval Shipyard and Naval Submarine Base Bangor -- had the largest military payroll in the state in 2001, at $972.2 million. Pierce County, home to Fort Lewis and McChord Air Force Base, was next, at $943.3 million.

Statewide, military retirees and veterans collected $1.9 billion in pay and benefits in 2001, a 4.6 percent increase over the previous year and up 34.8 percent since 1993.

In Pierce County, the total topped $468.7 million in retirement pay and benefits, up 4.1 percent. Retirement and veterans benefits paid in King County, with the second-largest total, were $299.1 million.

Defense procurement saw an 8.9 percent jump over 2000, to $2.403 billion. Tuesday's report didn't include specific contract data.

King County companies enjoyed a 30 percent increase in defense spending, to $1.38 billion, after two successive years of 18 percent drops.

In Pierce County, however, military procurement fell 20 percent to $193.9 million. Officials said the drop-off is probably due to the completion of several big-ticket projects at local installations over the past couple of years, such as new facilities at McChord Air Force Base to make way for the C-17 Globemaster III cargo jet.

The Olympian Copyright 2002

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