Current Budget Issues PDI 2014
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1 Headquarters U.S. Air Force I n t e g r i t y - S e r v i c e - E x c e l l e n c e Current Budget Issues PDI 2014 Ms. Caral Spangler SAF/FMB 1
2 Overview FY15 President s Budget (PB) Request Across the Future Years Defense Plan (FYDP) FY15 Unfunded Prioritized List (UPL) Way Ahead Make Every Dollar Count I n t e g r i t y - S e r v i c e - E x c e l l e n c e 2
3 FY15 PB Request Billion $140 $120 $100 $80 $60 $40 $138.3 Non Blue $29.5 MILPERS $29.2 RDT&E $16.0 Procurement $16.8 OCO Transfer $2.8 $137.8 Non Blue $28.5 MILPERS $29.1 MILCON $1.8 MILCON $1.4 RDT&E $16.0 Procurement $18.5 $109.3B AF Blue Baseline MILCON 1% Installation Support $3.4B 4% MAJCOM/ COCOM $9.6B 13% Flying Hour $7.6B 10% WSS $10.7B 15% FSRM $2.3 3% MILPERS $ % Civ Pay $10.8B 15% $20 $ O&M $42.2 FY14 Enacted O&M $44.3 FY15 PB Procurement Top Aircraft: $7.1B Top Space: $2.1B Top Munitions: $0.6B Sub-Total: $9.8B % of Total: 52.9% RDT&E Classified: $3.6B KC-46, F-35, LRS-B: $2.3B T&E/S&T: $3.0B Space: $0.9B Sub-Total: $9.8B % of Total: 61.3% Without time and approval to reduce capacity, we can t avoid cuts to readiness or I n t e g r i t y -future S e r capability v i c e - E x c e l l e n c e 3
4 Across the FYDP At FY15 PB Levels: Still required to make strategic choices Fleet divestitures (e.g. A-10) Force Management Programs Maintains Flying Hours and WSS funding to continue on gradual path to recovery of full-spectrum readiness Supports readiness components: ranges, simulators, exercises (Red Flag), training pipeline (weapons school) Protects investments in Primary Fighter Trainer (T-X) and the next generation of Space Based Systems (e.g., AEHF, SBIRs, Space Fence, Weather System Follow-on) Preserve top recapitalization programs (KC-46A, F-35A, LRS-B) Accelerates munitions inventory recovery At Sequestration Levels: Reduces tanker and ISR capacity Divests KC-10A and RQ-4 Block 40 fleets Reduces steady state ISR orbits (to 45) Reduces investment in new capability: KC-46A, F-35As & MC-130J Cuts S&T funding and investment in new jet engine tech Halts radar, ISR sensor, comm modernization programs Slows readiness recovery due to cuts in WSS/ranges Compounds existing facility erosion Defers even more legacy fighter modification Stalls munitions stockpile recovery, reducing ability to meet national defense requirements Sacrifices capacity to meet minimum Less ready, less capable, less viable capability requirements I n t e g r i t y - S e r v i c e unable - E x to c e fully l l e execute n c e defense strategy 4
5 FY15 Unfunded Prioritized List Opportunity, Growth & Security Initiative Emergent Requirements Readiness Recapitalization Modernization Installations Nuclear Force Improvement Force Management Combat Rescue Helicopter Space WSS Munitions Training and Ranges F-35As C-130J MQ-9s Aircraft Mods Restoration & Modernization MILCON Facility Sustainment to 80% Readiness requirements emerged after submitting FY15 PB request Readiness enhancements will help AF recover and position us better for fight tonight Procures 2 F-35As Accelerates C-130J and MQ-9 recapitalization efforts Funds deferred modifications for legacy fleets and more advanced platforms Opportunities to improve installations and accelerate MILCON FY15 UPL would allow us to further recover from effects of sequestration in FY13 and the reduced I n t e g r funding i t y - levels S e r v of i the c e Bipartisan - E x c e l Budget l e n c eact 5
6 Way Ahead FY14/15 Update Continue to focus on full spectrum readiness training Protect Flying Hour program and Weapon System Sustainment to the maximum extent possible Protect Nuclear Deterrence Operations FY14 OMNIBUS (~1.4B in reprogramming) FY15 OCO Request (~$11B) Congressional Actions FY15 PB Mark-Up in progress Expect small level of funding for UPL FY16-20 Outlook Sequestration still looms in FY16 and beyond Build budget from the bottom-up At sequester levels first and then at topline levels FY16 topline budget will: Emphasize capability over capacity Focus on Nuclear enterprise Continue progress to improve Air Force readiness Protect top 3 recapitalization programs (KC-46, F-35 and Long Range Strike-Bomber) Continue to support compensation reform and Base Realignment & Closure The Defense Strategic Guidance requires the Air Force to maintain readiness at levels I n t to e g meet r i t our y - global S e r v rapid i c e response - E x c e commitments l l e n c e 6
7 Make Every Dollar Count Since launch, innovative and efficiency ideas saved our AF hundreds of millions of dollars Continue to leverage success Be the example cultivate a culture of innovation Be out in front understand the fiscal landscape Utilize public-private partnerships at base level Continue to find reductions we may have to cut deeper later Share your ideas with each other We must make sound and innovative choices to maximize capability within available resources All In, All The Time I n t e g r i t y - S e r v i c e - E x c e l l e n c e 7
8 More Information For more information, please visit the website below or scan the QR code for the Department of the Air Force s budget overview Integrity - Service - Excellence 8 8
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