Boom for military, bust for ag

M.E. Sprengelmeyer, Rocky Mountain News

Published February 7, 2006 at midnight

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President Bush's budget for fiscal year 2007 is a mixed bag for Colorado: money for a new veterans hospital and military construction pro-jects, but also cuts in agriculture and payments to rural communities.

Here are the highlights:

VA hospital

The proposal includes $52 million to acquire land for a 1.4 million- square-foot Veterans Administration Hospital at the Fitzsimons campus in Aurora.

It does not include the estimated $539 million it will take to build and equip the hospital, but Sen. Wayne Allard, R-Loveland, said he expects that money to be provided in future years.

"It's very encouraging to see the administration support this hospital, especially in a tight budget year," said Rep. Bob Beauprez, R-Arvada, whose district includes the site.

Military

More than $123 million is recommended for military construction at Colorado bases.

The largest single item is $41.8 million to begin building the long-delayed disposal facilities to destroy 2,600 tons of aging mustard agent stored at the Pueblo Chemical Depot. The construction funds are on top of $87 million proposed for research and development at Pueblo, and $46.3 million for managing programs there and in Kentucky.

Other projects are:

• $26.1 million for a combat service support complex for the 10th Special Forces Group at Fort Carson.

• $24 million for a troop deployment terminal for deploying Fort Carson troops from nearby Peterson Air Force Base.

• $21 million for a space-test and evaluation facility at Schriever Air Force Base, which controls several military satellite systems at its site east of Colorado Springs.

• $10.7 million for relocating a jet and vehicle fuel depot away from a planned housing area at Buckley Air Force Base in Aurora.

Rural funds

An estimated $2.7 million would be cut from so-called Payments In Lieu of Taxes that rural communities receive to make up for large holdings of federal lands in their boundaries.

Colorado communities received $16.8 million this fical year.

The proposed budget also calls for a 5 percent cut in farm commodity subsidies and would require sugar processors to pay a larger share of marketing programs.

"Unfortunately, the president's budget does seem to turn its back on rural America," said Drew Nannis, a spokesman for Sen. Ken Salazar, D-Denver.

Renewable energy

The overall budget for Department of Energy renewable energy programs would increase by $139 million nationally. But that does not mean more money for the National Renewable Energy Laboratory in Golden.

The proposed budget for the lab calls for a $10 million reduction in its budget to $162 million in fiscal 2007.

And this year's budget already has a $28 million shortfall, forcing NREL to lay off up to 40 employees. The Energy Department, however, says that actual spending on science research at NREL may increase next year because of a $20 million reduction in building expenses.

"My question to the president is this: How do layoffs at NREL and a flat budget for next year add up to a commitment to new thinking on energy?" asked Congressman Mark Udall, D-Eldorado Springs.

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