ALA Public Policy Agenda

ALA is full partner in protecting benefit Educate major public policy makers on importance of benefit Industry has huge stake in commissary viability Meetings, June 15 th forum—Capitol Hill Authorizing and appropriations committees

Challenges Deficit Reduction Commission DoD Overhead Reductions OMB/White House Budget Guidance HASC Budget Review

DoD Budget Review and Overhead Reductions – One percent real growth Need 2-3 percent to maintain force structure, combat capability DBB says 40 % of DoD is overhead Take out $100 billion in overhead $8 billion in 2012 ($2B per Service) $3 B then $4 B then $7 B Agencies $1 billion $2 B then $3 B then $7 B Services keep savings POM due July 31

“We were country when country wasn’t cool” Cost cutting is not new to DeCA Took out major costs: 1991 Consolidation—hundreds of millions Commercial distribution--$600 million back to DoD for Stock Funds Ongoing cost saving measures Normal trajectory would have taken it to over $2 billion Lean and mean DeCA has constantly been in cost cutting or no growth mode Other QoL areas realizing 30, 40, and often 100 & 200 percent increases Talking about health care co-pays: We’ve always had co- pays—it’s called surcharge

Commissary Benefit—Huge ROI to DoD Reduces COLAs Non-pay compensation Thousands of family members employed by commissaries and industry $5 billion invested by patrons in bricks and mortar and IT since DeCA created Underpins DoD’s overseas transportation system 70 percent increase in food stamp redemption Sunk costs – buying the car but not putting gas in it Sales imperative—increase share of AD who use benefit Store directors/regions critical

Surveys show citizens losing faith in institutions GSEs such as Postal Service, Fannie Mae and Freddie Mac failing DeCA is shining example of a Private Sector/public sector partnership that works Top of the heap in Federal Accountability Patron satisfaction at all time highs

Consistent with FLOTUS goals Support Military Quality of Life Support Health life style Support reducing child obesity QoL a National Security Council Imperative

Ingrained in the OSD fabric Not inextricable without a major cost Adapts for force structure (Brigade re-stationing) BRAC Traffic driver for Exchanges Underpins transportation system Maintains ties with installations

Commissary system’s Constitution is Title 10 Our Foundation Sets out who can shop Sets out pricing (cost plus 5) Guidance on what can be sold This Constitution only modified at high risk, especially in a high threat

It’s a Wonderful Life DeCA as George Bailey TBD as Mr. Potter What would the world look like if DeCA didn’t exist? Thousands of family members out of work Hundreds of millions in increased COLAs and military pay—more on food stamps Sale of foreign products overseas—impact U.S. manufacturing $5 billion patron surcharge investment wasted Military forced to make household tradeoffs Exchange sales drop, MWR dividends decrease

Influencing the Process ALA meetings with key decision makers Networking with partners  National Military Family Association  The Military Coalition  Armed Forces Marketing Council  Coalition of Military Distributors Trade and Service Media ALA Annual Convention Support the system. Support the June 15 Caucus Davis, Wilson, Ortiz, Forbes, Jones, Public Policy and Capitol Hill Reports, 3 % withholding.

ALA & DeCA Protecting the Benefit