Goldin had previously denied that cuts would be needed in the budget for the contract that is operating the winged fleet of Shuttles for NASA, United Space Alliance of Houston, Texas.

Goldin admitted in a speech last week to the Melbourne, Fla. Chamber of Commerce that 250 to 300 jobs will have to be abolished from the USA operation, because NASA will be unable to meet its share of the Shuttle operating budget for Fiscal year 1998 which began last Oct. 1st.

"There will be reductions", Goldin admitted, adding that $100 million will be cut from the current NASA Shuttle spending as a result of funds taken from the Shuttle account to cover cost overruns in the station program. But the station is still more than $200 million short of its FY98 needs, NASA headquarters sources say. By law, Goldin can only raid the Shuttle to pay for station budget woes without additional Congressional approval. Last year, the Congress refused to go along with a Goldin request to transfer $200 million from other space agency projects to bolster the station.

Earlier this fall, Goldin denied the rumors that cuts would be needed to the USA workforce. He called the reports then false, saying that "it is all a budget misunderstanding- there is no need for (cutbacks)." USA spokespersons say layoffs are imminent, as a result of the NASA action. The move will likely give NASA critics more ammunition in their attacks against the raids to the Space Shuttle budget. Many are asking: "what price safety?"