The Economics of a Bad War and Needed Intelligence

Spy chief planning to curb spending
But critics urge continued growth to meet increased demands since 9/11

By Siobhan Gorman
Sun reporter
Originally published December 26, 2005

"The current intelligence budget is $44 billion, according to one of [Intelligence Director, John] Negroponte's senior aides, Mary Margaret Graham, who let the classified number slip at a conference in October. That is an increase of nearly 50 percent over the estimated $30 billion spent on intelligence five years ago, said John Pike, who tracks the intelligence budget at Globalsecurity.org. Some intelligence veterans say $44 billion a year is not enough to meet the growing demands placed on U.S. intelligence agencies since Sept. 11. Cutting growth in spending for the intelligence agencies would stunt the growth of a nascent intelligence reform effort, they contend. "This is so incredibly short-sighted," said Mark Lowenthal, who served as a top manager at the CIA until earlier this year. The proposed reduction in growth of intelligence spending is a sign that the Bush administration is paying for the Iraq war with money that should be going to intelligence, particularly for the hiring and training of spies, he added."