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 Budget Update Maj Gen John Pletcher SAF/FMB 25 Apr 19

Overview FY19 Bills and Sources Strategic Environment Fiscal Environment FY20 Budget Request Continuing Programs and Changes Other Topics / Questions Integrity - Service - Excellence

FY19 Bills and Sources $6.6B in unfunded requirements…traditional sources exhausted Must Pay Bills $640M O&M $130M Investments Tyndall Recovery/Rebuild $750M O&M & $150M MILCON $350M Offutt Recovery Various capability development: $141M procurement for VC-25B, $102M Nuclear/COCOM requirements, $87M T-6 OBOGs & $32M wide area surveillance Uncertain Congressional support for reprogramming/supplemental $200M in O&M reprogramming Actions and Impacts without supplemental and reprogramming $600M - Cut Aircraft/Satellite repair $583M - Cut OCO $272M - Reduce FSRM $450M - Stop Tyndall and Offutt recoveries $275M - Delay PAR delivery, Nuclear/COCOM requirements and Wide Area surveillance capability Air Force requires a $1.2B supplemental and $1.2B reprogramming to avoid significant long-term operational, infrastructure and capability risks

O&M Solvency Council Approved Rqmnts (M) Rqmnt 80% Mission Capable Rate $539 BOS Shortfall $408 Sq Innovation Fund/CRF $122 $32 Cloud Migration $103 $33 A4 Defender $15 TOTAL $1,027 Available TOA (M) Total Flying Hour under execution $716 Current available O&M $214 TOTAL $930 Potential Levers (M) Total CAM Realignment/WSS Cut $600 Defer facility projects to FY20 $272 Curtail contract periods of performance $150 $0 Reduce TDYs $60 Civilian Hiring Freeze (1 May) $40 Stand-down Flying Ops 2 weeks $250 TOTAL $872 Emergent Requirements (M) Rqmnt Council Deferred Priority #1s $228 $0 OCO Shortfalls $583 MAJCOM #1 Unfundeds $360 ARA Shortfall $274 Civilian Pay Raise & PCS $110 Tyndall Recovery $750 $500 Offutt Flood Estimate $350 $150 JBER Earthquake Estimate $34 $15 TOTAL $775 New Sources (M) Total Hurricane Reprogramming $200 TOTAL Additional Reprogramming and/or potential Supplemental sources TBD GRAND TOTAL $1,802 GRAND TOTAL $2,002 Integrity - Service - Excellence

Investment Strategy Update Council Approved Rqmnts (M) Rqmnt VC-25B (PAR) (3600) ATR, No GTA Req'd $141 T-6 OBOGS (3010) ATR, No GTA Req'd $87 Next-Generation OPIR (3600) $632 C-sUAS (3080/3600) ATR, No GTA Req'd $68 $12 Special Warfare (3080/3600) $43 Extended Range Weapon (3600) $39 Hypersonics - ARRW (3600) $29 Hypersonics - HCSW (3600) $10 MOP Modification (3600) $30 B-52 UON (3600) $11 EMI JUON (3600/3010) ATR, No GTA Req'd $45 BLU 111 UON $25 4th - 5th Gen Gateway UON $21 $26 TOTAL $1,097 STRATEGY/WAY FORWARD Completed program reviews $1.7B total sources $1.3B at OSD $677M under consideration for Section 284 $252M Apr ATR $402M remaining If additional reprogramming available, prioritize O&M / WCF Solvency, and then Investment rqmts Emergent Requirements (M) Rqmnt Council Deferred Requirements $1,218 Wide Area Surveillance (3600) $32 MMIII Airborne Launch CS (3600) $57 Civpay Shortfall (3600) $41 $11 Judgement Fund Reimburse (3021) $240 F-35A Unfundeds (3010) $110 TOTAL $1,668 GRAND TOTAL $2,764 Integrity - Service - Excellence

Strategic Environment The United States faces an increasingly complex global security environment, characterized by overt challenges to the free and open international order and the re-emergence of long-term, strategic competition between nations. - 2018 National Defense Strategy Growing China and Resurgent Russia Challenging U.S. Dominance Air, Land, Sea, Space and Cyberspace Information warfare Ambiguous or denied proxy operations Subversive action Air Force must Compete, Deter, and Win across Five Priority Missions Defend the homeland Provide a safe, secure, and effective nuclear deterrent Defeat a powerful conventional enemy Deter opportunistic aggression Disrupt violent extremists in a cost effective manner The futIunret“eAigr Froirtcey W- eSNeeerdv” ihcase3-86EOxpecreatliolnealnScqueadrons

Fiscal Environment Congressional Support Results and Accountability Over $50B FY17-FY19 topline growth Grew 14K Total Force Military…to set foundation for readiness recovery Funded critical readiness supplies/equipment…to “fight tonight” Increased R&D over 80%…to hone our technological edge Procured 23 additional F-35As…to accelerate game-changing capabilities Enacted FY19 authorization and appropriation on-time Capitalized on multi-year effort to recover readiness Provided opportunity to accelerate execution Results and Accountability Refined cost models…to drive budget discipline Eliminated redundancy…to maximize taxpayer dollars Challenged status quo…to optimize power projection Unpredictable Future Preserving lethality and readiness gains requires Congressional topline support Integrity - Service - Excellence

FY20 Budget Request FY20 PB Comparable FY19 Enacted $204.8B $194.3B Non-Blue, $39.2 Non-Blue, $38.5 OCO, $12.8 OCO, $14.8 MILCON, $2.7 MILCON, $2.3 Procurement, Procurement, $25.9 $26.0 RDT&E, $35.4 RDT&E, $30.9 MILPERS, $34.2 MILPERS, $31.9 O&M, $49.9 O&M, $54.6 y OCO includes Direct War and Enduring requirements Numbers may not add due to rounding FY20 PB Submission $204.8B Non-Blue, $39.2 OCO, $42.3 MILCON, $2.7 Procurement, $24.3 Air Force Controlled Budget Authority $165.6B Air Force Controlled Budget Authorit $155.8B RDT&E, $35.4 MILPERS, $34.2 O&M, $26.7 OCO includes all categories Numbers may not add due to rounding Integrity - Service - Excellence

FY20 Continuing Programs and Changes Readiness Focus End-strength Growth Aircrew Shortage Civilian Depot Aircraft Modernization B-21 F-35 KC-46 Accelerating Defendable Space Nuclear Modernization Changes from FY19 TACAIR Mix F-15EX Light Attack Installation Investment Strategy FSRM MILCON Munitions Shift

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