Senator Jack Reed covered a wide array of topics, ranging from the BRAC to Iraq, at the SENEDIA hosted breakfast at the Newport Officers Club on February 4, 2008, but time and again Rhode Island’s senior senator returned to the underlying subject of his remarks, the economy.
Starting with the BRAC (Base Realignment and Closure), Reed said that the good news for New England is that early successes of process are being translated into increases in the defense budget, most notably by making early funding available to begin advanced procurement for the second FY12 Virginia class submarine in FY11. Additional cost savings in the Virginia program will be realized, he noted, as General Dynamics Electric Boat reduces the construction period for the new attack submarine from 67 to 60 months.
Concerning the more immediate future, the senator told his audience that he expected the FY09 defense budget would be passed before the general election, but said it would involve a “reckoning with all budgets” in the Federal system. He also said that there was a real possibility that the defense budget would place restrictions on so-called “earmark” funding practices, and noted that earmarks to Rhode Island could be reduced
by as much as 50 percent. Saying that he thinks that doing away with earmarks entirely is too simplified an issue, Senator Reed emphasized that the type of earmarks he supports are those that are focused on targeting new technologies.
On the subject of Iraq, which Senator Reed had visited a week before the luncheon, he reported that there had been a reduction of violence in the country since the beginning of the year, but said that in his opinion these gains were “fragile” due to the nature of the political culture there. Pointing out that over 60 percent of Iraq’s population is under the age of 25, he predicted that distribution of oil revenues will become an increasingly thorny issue.
On the domestic energy front, Senator Reed decried the lack of emphasis on renewable energy in New England. In the short run, he said that he believes we need to increase efficiency standards on heating and air conditioning. In the long run, he said that what is missing are tax credits making alternative energy attractive to investors.
Ending his remarks on a final economic note, the senator shared his views on the downturn in the housing market and speculated on potential effects of the recent economic stimulus package implemented by Congress and the president on
that market and the economy in general.