FY 2013 DOD Budget Analysis

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Air Force Approach

•Balancing risk by making difficult choices was the guiding principle

•Avoiding a hollow force by protecting readiness, accepting a smaller, high quality force

•Focused investments on key modernization programs while continuing to make more disciplined use of defense dollars

•Continue to emphasize taking care of our people

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FY13 Air Force Budget Themes

• Force Structure … preservation of a highly responsive and scalable force

•Rebalances force structure through retirements/reductions to maximize capability in support of new strategy

• Preserve Readiness … avoid hollowing out the force•Sustains flying hours and maintains weapon system sustainment

• Modernization … next generation, technologically superior systems

•Continues core modernization efforts to operate in highly contested environments and prevail in all domains•Enhances/upgrades nuclear and global integrated ISR capabilities

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FY13 Air Force Budget Themes (cont.)

• More disciplined use of defense dollars … maximize our constrained resources

•Continues emphasis on efficiencies to reduce cost of business operations

• Take Care of our People … protect core support programs

•Increases compensation and improves military family housing/dormitories

•Preserves quality of all-volunteer force and strengthen military families

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DOD Strategic Guidance

Shift focus to Asia-Pacific

• Natural expectation for budget to focus on Air Force & Navy

• Air Force is still busy supporting Joint Force*17 Dec 2011 – 1st day in 20 years no air tasking order over Iraq

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Budget Shares

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*AIR FORCE PAYS FOR MOST OF THE CUTS FROM FY12 TO FY13

Army 133.9 134.6

Navy 156.8 155.9

Air Force 144.9 140.1

Defense-Wide 95.0 94.9

Total 530.6 525.4

FY12 ($B) (No OCO)

FY13 ($B)(No OCO)

Aircraft Procurement

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*AIR FORCE BUYING FEWEST AIRCRAFT

Air Force Navy Army

MQ-9 24 F/A-18EF 26 CH-47 44

F-35A 19 EA-18G 12 MQ-1 19

CV-22 4 MQ-4 3 AH-64 48

HC-130J 1 F-35 10 UH-72 34

MC-130J 4 T-6 33 UH-60 59

AC-130J 2 MV-22 17 Util FW 2

54 E-2D 5 OH-58 16

AH-1 28 222

MH-60R 19

MH-603 18

MQ-8 6

177

2013 FYDP Aircraft Procurement

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*194 AIRCRAFT TAKEN FROM THE FIVE YEAR DEFENSE PLAN

Aircraft Type FY 2012 FY 2013FY 2013 OCO

FY 2013 Total FY 2014 FY 2015 FY 2016 FY 2017 Total

F-35 Lightning II 18 19 (-5) 0 19 (-5) 19 (-21) 32 (-18) 48 (-22) 48 1763

C-17 Globemaster 1 0 0 0 0 0 0 0 224 (+1)

C-130J Hercules 1 0 (-1) 0 0 (-1) 12 (+9) 10 (+6) 7 (-5) 0 134 (-4)

HC-130 King 3 1 (-2) 0 1 (-2) 3 (+2) 2 (-2) 4 (+2) 2 37

MC-130 Combat Talon 6 4 (-2) 0 4 (-2) 5 2 (+2) 5 (+1) 5 69

C-27J Spartan 9 0 0 0 0 0 0 0 25

CVLSP 2 0 (-4) 0 0 (-4) 0 (-4) 0 (-6) 0 (-6) 0 2 (-91)

CV-22 Osprey 5 4 0 4 3 0 0 0 49

HH-60M 4 0 0 0 0 0 0 0 14

LAAR 6 0 (-6) 0 0 (-6) 0 0 0 0 6

C-37 3 0 0 0 0 0 0 0 7

RQ-4 Global Hawk 3 0 (-3) 0 0 (-3) 0 (-3) 0 (-1) 0 (-1) 0 45 (-21)

AC-130 Spectre 1 2 0 2 5 0 (-8) 0 0 16

MC-9 Reaper 48 24 0 24 (-24) 24 (-24) 24 (-24) 24 (-24) 24 401 (+5)

Totals: 114 54 (-47) 0 54 (-47) 71 (-41) 70 (-51) 88 (-55) 79 N/A

In FY13 alone the Navy and the Army combined will be buying more aircraft than the Air Force does in the entire FYDP.

FY13 Aircraft Procurement Funding

Army $6.3B

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Navy $17.3B

Air Force $11.3B

*NAVY FUNDING IS 53% HIGHER THAN AIR FORCE

Replacement Rate

•Air Force has approximately 5,200 aircraft

•54 aircraft is a nearly 100-year replacement rate

•If MQ-9s are removed (not replacing anything), Replacement rate is over 170 years

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*GERIATRIC FLEET IS GETTING OLDER

Space Procurement

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Space FY12 FY13

GPS III 2 2

Advanced EHF 2 0

WGS 2 0

SBIRS GEO 0 2

EELV 4 4

TOTAL 10 8

Personnel

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FY13 End Strength Changes from FY12

Air Force

- Active Duty 328.9K (-3,900)

- ANG 101.6K (-5,100)

- Reserve 70.5K (-900)

-9,900

Army

- Active Duty 552.1K (-9,900)

Navy

- Active Duty 322.7K (-3,000)

Marine Corps

- Active Duty 97.3K (-4,900)

Observations

• Army and Navy deserve credit for supporting their air arms with 222 and 177 aircraft, respectively

• Of the $5.2B cut in the Defense Budget FY12 to FY13, the Air force paid $4.8B

• For only the 3rd time in history the Navy is spending more than the Air Force on Aircraft procurement

DOD Budget “seems at odds with the new strategic guidance, which calls for increased reliance on air and sea forces as part of the pivot

to the Asia-Pacific region.” – Todd Harrison, CSBA

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