We’ve heard a lot lately about our nation’s economic woes. Budget deficits and spending cuts have been at the forefront of most of the media, and probably with good reason.

The Department of Defense is one of many that will feel the pinch of upcoming spending reductions.

One cost reduction proposal on the table is from the Congressional Budget Office.

In its March, 2011 report, “Reducing the Deficit: Spending and Revenue Options,” is a chapter on Discretionary Spending. Option 6 can be found on page 84.

Option 6 calls for the consolidation of commissary and exchange systems. The consolidation would take place over a five-year period, shifting the Defense Commissary Agency (DeCA) from appropriated funds to non-appropriated funds. The proposal calls for a 7 percent increase in prices, but would provide an annual grocery allowance for active duty military personnel to help offset the price increases.

I can see how this could be a great idea — on paper.

What they appear to be overlooking is that the exchange system, which has long operated without government subsidies, uses the profits it makes to fund much of the military’s Morale, Welfare and Recreation expenses.

Before they make a final decision there are some questions that should be addressed: What about our fixed-income retirees? What about the people who stand to lose their jobs in the event of a consolidation? What about the vendors who service these stores? The proposal could have far-reaching effects that might not show up on paper.

You can find a copy of the CBO’s report online at www.cbo.gov/ftpdocs/120xx/…/03-10-Reduc
ingTheDeficit.pdf. There is also information against the proposal online at www.saveourbenefit.com.

-Kathy Reed, editor