http://www.washingtonpost.com/ac2/wp-dyn/A50108-2003Aug26?language=printer

"Black," or classified, programs requested in President Bush's 2004 defense
budget are at the highest level since 1988, according to a report prepared
by the independent Center for Strategic and Budgetary Assessments.

The center concluded that classified spending next fiscal year will reach
about $23.2 billion of the Pentagon's total request for procurement and
research funding. When adjusted for inflation, that is the largest dollar
figure since the peak reached during President Ronald Reagan's defense
buildup 16 years ago. The amount in 1988 was $19.7 billion, or $26.7 billion
if adjusted for inflation, according to the center.

"It's puzzling. It sets the mind to wondering where the money's going and
what sort of politically controversial things the administration is doing
because they're not telling anybody," said John E. Pike, director of
GlobalSecurity.org, a research group in Alexandria that has been critical of
the administration's defense priorities.

Pike said part of the surge in the classified budget probably can be
explained by increases for the Central Intelligence Agency's covert action
programs, which are central to the war on terrorism. Traditionally, Pike
said, much of the funding for the CIA is hidden in Air Force weapons
procurement accounts.

But unlike the 1980s, when it was widely known that the "black" budget was
going to the development of stealth aircraft such as the B-2 bomber and
F-117 fighter, the uses of the classified accounts today are far murkier,
Pike said.

The Center for Strategic and Budgetary Assessments is a Washington research
group that analyzes many aspects of the defense budget. Steven Kosiak, who
prepared the report on classified spending, said he reached his conclusions
by comparing sums requested for "open," or nonclassified, programs with the
total Defense Department request for fiscal 2004.

Some black spending in the Pentagon budget is designated for code-named
programs such as the Army's "Tractor Rose" and the Navy's "Retract Larch."
But sources said some names may be accounting fictions that do not stand for
actual programs.

Other classified spending is accounted for under such bland headings as
"special activities."

Officials at the Pentagon and in Congress declined to comment on the
center's report, which was compiled earlier this summer. Key congressional
defense committees will meet in the next several weeks to resolve
differences over the 2004 Pentagon spending plan, including those involving
classified programs.

According to the Kosiak analysis, the Air Force's classified weapons
procurement budget has jumped from $7 billion in 2001 to almost $11 billion
as requested for 2004. In dollar terms, total classified spending in the
Pentagon budget request has almost doubled since the mid-1990s, according to
tables provided by Kosiak.

Kosiak said in his report that performance in the classified programs has
been mixed. He noted that highly successful weapons systems such as the
F-117 and the B-2 were initially developed within the classified budget. But
so was the Navy's A-12 medium attack plane, which was canceled in 1991 after
a series of technical problems and cost increases.

After it was canceled, manufacturers complained that secrecy in the program
kept them from acquiring critical data needed to head off some of the
problems.

"Restrictions placed on access to classified funding have meant that the
Defense Department and Congress typically exercise less oversight over
classified programs than unclassified ones," Kosiak wrote.

In the case of the new defense budget, it is anybody's guess where most of
the classified money is going, Pike said. But he said it is a good bet that
some of it is going to programs that the administration is known to strongly
favor, such as missile defense and the development of hypersonic planes that
can fly beyond Earth's atmosphere.

"This is an administration that likes to play I've got a secret," he said.
"The growth of the classified budget appears to be part of a larger pattern
of this administration being secretive."



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