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

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

3. 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

4. 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

5. 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

6. 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.
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
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7. 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

8. 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

9. 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

10. Other Topics / Q&A
Space Force
Air Force We Need FM of the Future