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DEFENSE COMMUNITIES 360

Texas Economy to Adjust to Milcon Spending Pause

  • February 22, 2012
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Following BRAC-led construction booms in San Antonio and El Paso, the Texas economy will have to get used to a smaller injection of military spending.

The White House’s fiscal 2013 budget request includes $450 million for military construction projects in Texas, compared to about $640 million in the current year and $1.1 billion in FY 2011, reported the San Antonio Express-News.

For all of DOD, milcon spending would decline $1.8 billion under the FY 2013 budget request to $9.6 billion.

“This one-year pause will give us time to ensure proper investment of limited resources in light of the ongoing budget reduction pressures and potential force structure changes,” Maj. Gen. Edward Bolton Jr., Air Force deputy assistant secretary for budget, said after the budget request was unveiled last week.

The federal funds certainly will be missed as they helped the state rebound from the recession much quicker than the rest of the nation. The state was able to replace all 433,400 jobs it lost during the recession, compared to a 36 percent recovery rate nationally.

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