Education is mainly a local and state (for higher ed) issue. States and Municipalities can't borrow money to fund continuing operations while the Federal government can, in droves. That's the simple answer to why Education is being cut to the bone while we still design fighter planes we don't need.
The main reason fighter planes we don't are still being designed is because Congress is too chicken-shit to do anything that might affect the jobs in their states. They are more worried about reelection than doing what is good for the country (see how long the F-35 alternative engine program lasted, how behind schedule and over budget the F-35 is, or how many C-17s have been purchased since the Air Force has said they didn't need any more). Companies aren't stupid and they spread the suppliers of these programs to as many states as possible to ensure support from Congress.
Of course, that might be why the Defense Budget is footing over 50% of the budget cuts from sequestration when it is around 20% of the total budget.