Panetta addresses Defense employee fears

Defense Secretary Leon Panetta sent a memo this week to all the troops and civilians who work for him to address concerns about the mandatory spending cuts that would occur if the president and lawmakers do not reach a budget agreement by the end of the year.

In it, Panetta wrote that if the procedure, known as sequestration, were to occur, it "would not necessarily require immediate reductions in spending."

He also wrote that "under sequestration, we would still have funds available after Jan. 2, 2013, but our overall funding for the remainder of the year would be reduced."

It's a very different spin on the sequestration from Panetta, who in the past said it would be a "disaster." If this "meat ax" approach to budget cutting were used, he said, it would "hollow out the force."

The cuts are slated to be across the board, totaling roughly $500 billion over 10 years.

Panetta tried to reassure the troops that "the president indicated his intent to exercise his legal authority to exempt military personnel" from the mandatory cuts.

But he couldn't make the same promise to the Defense Department's million or so civilian employees. Instead he said, "Should we have to operate under reduced funding levels for an extended period of time, we may have to consider furloughs or other actions in the future."

Asked about the change of tone, a senior defense official said, "The secretary continues to believe that sequestration would be devastating and is puzzled that Congress can't reach a deal."

The same official said the memo reflects the Office of Management and Budget's view of the issue, especially with respect to furloughs.

Panetta wrapped up the memo by writing, "I want to assure you that we will do our very best to provide clear information about the status of events as they unfold."