Headquarters U.S. Air Force
Integrity - Service - Excellence
FY 2002
Budget Overview
July 2002
MGen Larry W. Northington
Dep Asst Secretary (Budget)
As of:
1
FY02 Overview
n
FY01 Enacted
n
Blueprint increase $3.8B
n
Amended budget $4.2B
FY02 PB
$72.5B
1. FY02 Add--Investment?
n
Readiness
2. Theme: Fix foundation
n
$80.5B
Costs basic Ops
n Focused Improvement
3. FY01 Supplemental ($2.0B)
n
Fix immediate requirements
n Nonexecutable without
Supplemental
4. Modernization Decisions &
Transformation Deferred
As of:
Integrity - Service - Excellence
2
Amended Budget Adds
n
People
n Readiness
n Modernization
n Physical Plant
As of:
$.6B
$2.3B
$.6B
$.7B
$4.2B
Integrity - Service - Excellence
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FY02 Target Areas
COST GROWTH
As of:
FOCUSED IMPROVEMENTS
n
Personnel
n
Targeted Pay
n
Flying Hours
n
Retention & Recruiting
n
Aircraft Repair
n
Training
n
Spares
n
Flight Operations & Repair
n
Contracts
n
Degraded Facilities
n
Utilities
n
Contractual Obligations
Integrity - Service - Excellence
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FY02 Budget
+ $0.1B
+ $0.7B
Physical Plant
5%
Modernization
30%
People
35%
Ops &
Readiness
30%
$72.5B
As of:
+ $2.8B
+ $4.3B
$80.5B
Integrity - Service - Excellence
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PEOPLE
35% of Budget
FY01: $25.4B
Real Growth: 7%
FY02: $28.2B
Compensation
Retention/Recruiting
Family Housing
Issues
As of:
Integrity - Service - Excellence
6
Compensation
n
Military
n
Targeted Pay Raise: 5-10% (Presidential Initiative)
n
Pay Gap reduced
n
Bonus & Special Pays to bolster retention
n
Housing Allowance
n
n
As of:
Reduces “out-of-pocket” expense to 11.3%
Civilian
n Pay Raise: 3.6%
n Funds Targeted Pay Increases for Critical Skills
Integrity - Service - Excellence
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Retention & Recruiting
n
Meeting Recruiting Goals for second year
n
Increasing Level of Accessions by 1,400 to 36,000
n
Exceeding First Term Enlisted Retention Goals
n
Mid & Senior enlisted force remain below goal
n
Skills shortfalls: Comm-Computer Systems, Crypto
Linguists, Air Traffic Controllers
n
Pilot Manning Below Requirements
Retention Challenges Remain
As of:
Integrity - Service - Excellence
8
Retention & Recruiting
n Retention
n
n
n
n Recruiting
Selective Reenlistment
Bonuses
Promotion Rates
Officer Retention Bonus
$564M +33.8%
As of:
n
n
n
Enlistment Bonuses
Advertising
Recruiting
$487M + 2.1%
Integrity - Service - Excellence
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Military Family Housing
FY01: $1.1B
n
Real Growth: 20%
FY02: $1.4B
Operates & Maintains Current Housing Inventory
n
Added $29M for MFH utilities cost growth
n
Builds 742 new units (465)
n
Revitalizes 2,189 units (1,226)
n
Continues Privatization Program
n
14 on-going -- 12,458 units
n
12 new privatization candidates /10,507 units
Presidential Initiative adds $91M
Integrity - Service - Excellence
People Issues
n
Pay Comparability still lagging
n
Retention remains a Challenge
n
n
Sustained MFH investment required to meet DoD goal
n
As of:
Meeting Recruiting Goals…but at higher costs
59,000 units (57%) require improvement/replacement
Integrity - Service - Excellence
11
OPS/READINESS
30% of Budget
FY01: $19.6B
Real Growth: 22%
FY02: $23.9B
Readiness Indicators
Flight & Space Ops
Critical Enablers
Issues
As of:
Integrity - Service - Excellence
12
Aircraft Mission Capable Rates
vs Total costs
$6.9
90%
$6.4
85%
$5.9
MC Rates
80%
$5.4
$4.9
75%
$4.4
$3.9
$3.4
FY95
As of:
70%
Total Cost
FY96
FY97
FY98
FY 99
FY 00
Integrity - Service - Excellence
65%
FY01
13
Combat Squadron Readiness
100%
READINESS
READINESS -- COMBAT
COMBAT
UNITS
UNITS (318
(318 units)
units)
95%
Readiness Requirement - 92%
As of: 15 Jun 01
90%
85%
Readiness decline due to
resources, aging fleet, retention
80%
75%
70%
69%
65%
60%
96
97
98
Then
• Abundant Personnel
• Adequate Resources
As of:
• Lower Tempo
• Newer Aircraft
99
00
01
02
Now
• Shortage of Personnel
• Marginal Resources
Integrity - Service - Excellence
• Higher Tempo
• Aging Aircraft
14
Working Readiness
Air & Space Ops
People
Readiness
Mods/Upgrades
Critical Enablers
As of:
Integrity - Service - Excellence
15
Air & Space Operations
n
2.1M (2.1M) flying hours
n
$6.2B ($4.8B) - fully funds fuel, supplies, spares
n
n
n
$1.9B ($1.4B) - Contractor Logistics Support
$2.8B ($2.4B) - for Depot Maintenance
n
n
n
Substantial spares increase
Funds 348 airframe and 1,056 engine overhauls
$1.0B ($.6B) for realistic combat training
n
Sustains training ranges and exercises
n
$.4B ($.1B) Training Munitions + $186M halts WRM depletion
$3.5B ($3.0B) for direct support space operations
n
40 launches (includes contractor support, mods,
satellite integration)
n Supports 12 ranges and 45 facilities
As of:
Integrity - Service - Excellence
16
Mods/Upgrades
Improving Reliability
System
Modification
C-5
n C-135
n F-16
n T-38
n F-15E
n C-17
n E-3
n B-2
n MM III
Modernize Avionics, Engine Upgrade
GANS/GATM & “R” upgrade
Updating avionics, engines & weapon delivery
Propulsion, avionics upgrade, & fuselage repair
Radar and ECM Upgrade, Modifying Engines
GATM, Engine Mods & Countermeasures
Radar System Improvements
UHF radio satellite upgrade
Replacing Guidance/Propulsion Units
n
Initiatives Total $2.8B in FY02
Integrity - Service - Excellence
Critical Enablers
n
$5.5B ($4.9B) for Overall Base Support (cost growth)
n Higher utilities
n Basic communications
n Base maintenance contracts
n Family support
n Environmental
n
$.6B ($.5B) for Training & Education
n FY02 add for increased technical training
As of:
Integrity - Service - Excellence
18
Ops/Readiness Issues
n
Readiness Indicators?
n
Munitions Replenishment
n $2B
Shortfall
n General Purpose/Preferred Munitions
n
As of:
Cost Growth/Aging Fleet
Integrity - Service - Excellence
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MODERNIZATION
30% of Budget
FY01: $23.2B
Real Growth: 2%
FY02: $24.0B
Top Investment Programs
Science & Technology
Issues
As of:
Integrity - Service - Excellence
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Modernization Objectives
Aerospace Superiority
Global Mobility
Precision Weapons
Battlespace Mgt
Transformation
As of:
Integrity - Service - Excellence
21
Top Investment Programs
(Aerospace Superiority)
Program
FY01
FY02
Remarks
Quantity
Funding
10
$ 3,932
13
$3,924
Quantity
Funding
0
$341
0
$770
Completes Concept Demonstration efforts
34
$156
48
$233
Supports acquisition of aircraft, simulators and
training information management system
4
$679
0
$389
Funding supports continuing engine upgrades
0
$379
Funding supports continuing mods for secondary
power and engine upgrades
nF-22
Funds Low Rate Initial Prod Buy of 13 A/C
and supports investment in Production Cost
Reduction Plans to reduce out-year unit cost
nJSF
nJPATS
Quantity
Funding
nF-16
Quantity
Funding
nF-15
Quantity
Funding
As of:
5
$871
Integrity - Service - Excellence
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Top Investment Programs
(Global Mobility)
Program
n
FY01
FY02
Quantity
12
15
Funding
$ 3,125
$3,781
Remarks
C-17
Supports acquisition of 137 C-17s bringing MTM/D
to 45.3. Includes $46M for LAIRCM
Funds advance procurement for 12 a/c in FY03
n
n
As of:
C-130/130J
Quantity
2
2
Funding
$450
$363
Funding supports acquisition of two additional A/C
also funds various mods & support equipment
CV-22
Quantity
0
0
Funding
$102
$147
Freeze procurement until additional EMD/Test
Funds R&D/advance procurement
Integrity - Service - Excellence
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Top Investment Programs
(Precision Weapons)
Program
n
n
FY01
FY02
Remarks
9,273
$ 226
8,383
$ 215
Continues production for a munitions tail-kit which
provides accurate weapon delivery in adverse
weather conditions
0
$ 115
76
$ 123
Begins production of a long range conventional
air-to surface precision guided standoff cruise
missile
WCMD
Quantity
Funding
6,308
$ 100
6,838
$ 112
Continues production for a guidance kit which
provides inertial navigation to correct for launch
transients and ballistics errors
AMRAAM
Quantity
Funding
170
$ 152
190
$ 163
Continues production of the next generation all
weather radar guided missile
JDAM
Quantity
Funding
JASSM
Quantity
Funding
n
n
As of:
Integrity - Service - Excellence
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Top Investment Programs
(Battlespace Mgt)
Program
n
n
n
FY01
FY02
JSTARS
Quantity
Funding
1
$504
1
$590
Funds procurement of the 16th JSTARS and long
lead items for 17th aircraft
SBIRS High
Quantity
Funding
0
$564
0
$553
Fully Funds Restructured Program Continues
manufacturing & development for space & ground
segments. Advance parts buy for satellites 3-5
GPS
Quantity
Funding
0
$440
Advanced EHF
Quantity
Funding
n MILSTAR
Quantity
Funding
0
$395
Remarks
Begins Production efforts to mod 5 GPS IIR
Satellites & 3 IIF Satellites. Funds 2 GPS IIR
launches & support for IIA & IIR satellites in orbit.
Adds New Military & Civil Signals.
n
0
$ 244
0
$ 235
0
$ 548
$
0
232
Continues satellite engineering & manufacturing
development.
MILSTAR 5 launch, test, & on-orbit checkout.
Complete MILSTAR 6 testing & begin launch
integration. Satellite 1,2 and 4 on-orbit support
n TITAN
Quantity
Funding
As of:
0
$431
0
$407
Continues Launch/Prod Support; Launches
MILSTAR 5 in FY02
Integrity - Service - Excellence
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Top Investment Programs
(Transformation)
Program
n
n
n
n
As of:
EELV
Quantity
Funding
FY01
FY02
3
$611
1
$418
Remarks
Continues Development; Procure
Launch of Wideband Gapfiller for FY04 launch
Global Hawk
Quantity
Funding
0
$142
2
$303
Supports accelerated engine & electrical power
supplies & sensors. Moves us further toward
unmanned high altitude reconnaissance
Small Diameter Bomb
Quantity
Funding
0
$12
0
$40
Provides for development of a 250 pound
precision guided weapon with standoff
capability.
0
$1
0
$50
Continues requirement definition and technical
development for space-base ground moving
target tracking capability.
Space-Based Radar
Quantity
Funding
Integrity - Service - Excellence
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Science & Technology
n
FY01 PB S & T = 1.8%
n
Congressional Add - $255M
n
2.5%
n
FY02 add - $145M
n
FY02 Funding = 1.7% of AF TOA
$1.5B
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
$1.4B
$0.3B
$1.2B
FY01
Budget Request
FY02
Congressional Add
DoD goal 3% TOA (PB=2.7%)
As of:
Integrity - Service - Excellence
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Modernization Issues
n
Sustained FY01 Budget level
n Some
transformation initiatives
n QDR/Strategy
As of:
Review Pending
Integrity - Service - Excellence
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PHYSICAL PLANT
5% of Budget
Real Growth: 2%
FY01: $4.2B
FY02: $4.4B
MILCON
Facility Maintenance
Issues
As of:
Integrity - Service - Excellence
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MILCON Highlights
Real Growth: 10%
FY01: $1.1B
n 118
FY02: $1.3B
Projects in FY02
n Addresses
most pressing near-term requirements
n
60% Mission $767M -- 72 Projects
n
18% Support $232M -- 23 Projects
n
22% Quality of Life $272M -- 23 Projects
Amended Budget adds $719M -- 66 projects
Integrity - Service - Excellence
Maintenance & Repair
n Backlog
continues to grow
n
168 Installations -- Below Sustainment $1.7B ($1.8B)
n
FY02 funded at 0.86% of Plant Replacement Value
n
Backlog of Maintenance & Repair: $5.6B ($4.3B)
Integrity - Service - Excellence
Physical Plant Issues
n Recapitalization
rates
n Restore
current degrading infrastructure
n Significantly below DoD Goal
n Maintenance
& Repair
n Below
industry standard
n Physical plant deteriorates
As of:
Integrity - Service - Excellence
32
Conclusion
n
n
FY02 Amended Budget add ($4.2B) -- substantial help
Enabled “focused improvement”
People: Compensation, Retention & Recruiting
-- Maintain momentum
Readiness: Addresses Core Programs
-- Increased costs
Modernization: Sustain Current Program
Physical Plant: Address Degraded Facilities
-- Repair a concern
As of:
Integrity - Service - Excellence
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