The Homeland Security Department's 2011 budget request is a big step toward reducing the department's reliance on contractors and improving its acquisition oversight, but it includes too many cuts in grant programs, senators said at a hearing Wednesday.

The budget plan includes a review of the department's reliance on contractors. Legislators and outside experts have long faulted DHS for a heavy reliance on private firms; at a congressional hearing earlier this year, DHS officials weren't able to say how many contractors they use.

"This committee has long been concerned about DHS' heavy reliance on contractors. Who's actually making critical decisions at DHS? Is it private contractors, or full-time federal employees?" asked Sen. Joseph Lieberman, I-Conn., the committee chairman. The requested budget "is just the beginning of a turnaround that's necessary here."

The budget also seeks $24 million to strengthen the department's acquisition workforce. Some of that money will be used to hire 100 people for the department's professional acquisition internship program; Sen. Daniel Akaka, D-Hawaii, urged DHS to make sure many of those interns decide to pursue full-time jobs.

"We're working to improve and clarify, and in some cases create, a real career path within the department," said DHS secretary Janet Napolitano. "[And] we have an aggressive plan for diversity and veterans hiring."

But legislators said they are disappointed that the budget eliminates a telecommunications grant program. The program has issued more than $4.3 billion in grants over the last few years; state and local governments use the money to buy interoperable communications equipment. The budget also slashes a grant program for firefighters by 22 percent.

"That's a mistake," Lieberman said.

Napolitano said the department decided to consolidate its grant programs to make them easier to oversee and manage.

Senators are also concerned about some of the staffing levels in the budget. The Coast Guard's civilian staffing would grow, but the agency would slash about 1,600 military positions. Napolitano said the cuts are the result of reorganizing the department and decommissioning old boats.

The department also plans to cut about 180 Border Patrol agents in 2011. Those cuts would come through attrition, Napolitano said, and the department would continue to meet congressional mandates for deployments along the northern and southern borders.

"We have a staffing plan using attrition rates and redeployment of other agents that enables us to maintain these goals," Napolitano said. "I know that a summary review of the budget would say we're [not meeting our responsibilities], but that is an incorrect assumption."