1. 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 Headquarters United States Air Force 1 Ms. Kathleen I. Ferguson Deputy Assistant Secretary Installations 28 February 2012 2012 Association of Defense Communities Winter Forum New Challenges on the Horizon

2. 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 Overview What makes FY 13 challenging… Air Force Strategic Views FY13 Budget Force Structure Changes BRAC Strategic Basing Encroachment Base of the Future 2

3. 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 Installations Underpin These Priorities and Capabilities Air Force Priorities Continue to Strengthen the Nuclear Enterprise Partner With the Joint & Coalition Team to Win Today’s Fight Develop and Care for Airmen and Their Families Modernize Our Air and Space Inventories, Organizations and Training Recapture Acquisition Excellence Establish control in air, space, and cyberspace Hold any target at risk Provide responsive intelligence, surveillance, and reconnaissance Rapidly move people and cargo anywhere in the world Provide command and control to conduct operations rapidly, effectively, and efficiently 3

4. 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 Challenges "The AF has made the difficult decisions needed to sustain our capabilities within a constrained fiscal environment. The FY13 budget reflects a balanced approach that supports our people, preserves readiness, and protects our new capabilities and key modernization programs." – Maj Gen Bolton, SAF/FMB, 13 Feb 12 "The AF has made the difficult decisions needed to sustain our capabilities within a constrained fiscal environment. The FY13 budget reflects a balanced approach that supports our people, preserves readiness, and protects our new capabilities and key modernization programs." – Maj Gen Bolton, SAF/FMB, 13 Feb 12 4 Debt Reduction Pressure Driving Real TOA Cuts POTUS Directed Redux = $487B / 10 yrs  (AF: ~$10B/yr) Air Force’s balanced approach: Prevail in today’s war Necessary investments for the future Preserve Air Force core capabilities 4

5. 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 DoD Strategy requires one large scale, combined arms campaign and the ability to respond quickly to deny the objectives of an opportunistic aggressor or impose unacceptable costs Considered AF role in global security-emphasis on Asia-Pacific region, continued presence in Middle East, evolving posture in Europe Air Force Approach Balancing risk by making difficult choices was the guiding principle Avoided 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 5 Strategy and Approach SECDEF: “…savings we have been mandated to achieve must be driven by strategy and rigorous analysis, not by the numbers alone.”

6. 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 The Air Force Budget FY12 Enacted - FY13 PB Request FY12 Enacted FY13 PB $162.5B $154.3B NON-BLUE OCO MILPERS O&M MILCON, BRAC & MFH RDT&E PROCUREMENT $115.2BBlueBaseline $110.1BBlueBaseline 6 Numbers may not add due to rounding Air Force blue baseline declined 12% in real terms from FY09 enacted to FY13 PB request

7. 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 Military Construction, BRAC & Military Family Housing 99 8 7 Numbers may not add due to rounding Supporting critical weapon system beddown, meeting COCOM needs & taking care of Airmen  MILCON: $900M decrease from FY12 PB reflects an AF deliberate pause  Program ensures proper investment of limited resources in light of the current on-going budget pressures and potential force structure changes  Support COCOMs by funding second increment of USSTRATCOM HQ project  New Mission – funded highest priority projects such as F-35 Sim Facility & Hangar at Hill AFB, Beddown Combat Apron addition for F-22s at Joint Base Pearl Harbor-Hickam, etc.  Dormitory Focus – funded two Tier 1 dorms  BRAC focus now environmental clean-up for 28 Legacy BRAC closures and 6 2005 BRAC closures  MFH: Improves 400 units in Japan; maintains/oversees owned, leased, & privatized units

8. 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 Force Structure Adjustments Balanced response to new strategy required divestiture of portions of combat and combat-enabler forces—saves $8.7B over the FYDP Retires 227 aircraft in FY13 and an additional 59 from FY14-17 Impacts ~60 Total Force installations in 33 States Related manpower actions will impact all 54 States & Territories Before re-missioning, retirements impacted 24 units leaving 8 installations without an operational AF mission Re-missioning preserves 14 units and leaves 1 installation without an operational AF mission USAF Force Structure Changes White Paper can be obtained here: http://www.af.mil/shared/media/document/AFD-120203-027.pdf 8 Force Structure reductions must proceed They do not presuppose base closure

9. 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 DoD’s 2004 report to Congress stated AF had 24% excess capacity and does not reflect current excess AF capacity—BRAC 2005 fell short of the AF goal closing only 7 minor installations Today, 7 years later and with ~500 fewer aircraft, AF presumes additional excess capacity exists and therefore supports DoD’s request for 2 rounds of BRAC in 2013 and 2015 The AF has no current figure for its excess infrastructure—that can only be provided by a comprehensive BRAC analysis. If Congress authorizes a round of BRAC, the AF will conduct an updated capacity analysis 9 BRAC

10. 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 10 F-35A Basing Training Draft Environmental Impact Statement (EIS) publicly released on 20 January 2012 Comment period—concludes 14 March--includes public meetings Record of Decision (ROD) projected July 2012 FY11 MILCONs—prepping for execution following ROD Training EIS available at www.f-35atrainingeis.com Operations Draft EIS projected for Spring 2012 release Will pre-brief affected CODELs before public release MILCON to support OPS-1 in FY13 President’s Budget Next basing rounds will be OCONUS—decisions ~ 2016-2017

11. 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 KC-46A Basing KC-46A is the first phase of a three phase total force tanker recapitalization plan 179 aircraft delivered FY16-29 Current basing action establishes the first main operating base (MOB) and formal training unit (FTU) Basing milestones: March 2012: Criteria June 2012: Candidate locations December 2012: Preferred alternatives December 2013: Final decisions FY16: First aircraft arrival 11 Strategic Basing process underway for KC-46A

12. 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 Remotely-Piloted Aircraft (RPA) SecDef direction: 65 combat air patrols (CAPs) by FY13 Current basing action locates one RegAF MQ-9 remote split operations (RSO) squadron SecAF-approved candidates Davis-Monthan AFB, AZ Hickam AFB, HI Shaw AFB, SC Timeline Preferred alternative - Early 2012 Final basing decision - Summer 2012 ACC initial operational capability (IOC) - Feb 13 12 On track to achieve IOC on time

13. 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 AF Encroachment Program Encroachment on training and test ranges, airspace, military installations and electromagnetic spectrum is a critical issue for DoD and the services Requires comprehensive process that includes engagement with Federal, State, & local government stakeholders Establishes need for action at all levels of leadership: Installation, MAJCOM, HAF Must interact with newly established DoD Siting Clearinghouse--a single DoD voice promoting compatibility between energy independence and military capabilities. Requires realignment of resources while leveraging existing organizational structure Since March 2011, AF aided DoD Siting Clearinghouse in reviewing more than 500 renewable Energy Projects; more than 480 being released to enable development. 13

14. 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 Encroachment: any deliberate action by any governmental or non-governmental entity or individual that does, or is likely to inhibit, curtail, or impede current or future military activities within the installation complex and/or mission footprint; or deliberate military activity that is, or likely to be incompatible with the use of community resources. Encroachment Let’s understand terminology

15. 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 15 AF Encroachment Program Encroachment limits Air Force ability to test and train effectively Air Force response to encroachment is limited both by real factors, such as limited authorities, and perceived factors, such as the idea that host communities will protect our mission out of patriotism alone Urban growth over time 1972199220002006

16. 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 16 Installation Complex Encroachment Management Action Plans (ICEMAP)

17. 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 Base Of the Future Concepts 17 Leadership is critical - at all levels Win-Win & Shared risk Problem-solving mindset Many legal authorities already exist Communities have significant tools of benefit to the AF Financial & economic development resources Organizational resources Base Of the Future? Concepts

18. 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 Take Aways FY 13 challenges brings opportunities and challenges to both military services and communities New Strategic Guidance and fiscal constraints are driving AF to make hard decisions to preserve readiness while absorbing risk in infrastructure Force Structure changes are in response to new strategic guidance, not a precursor to a future BRAC AF supports two more rounds of BRAC, excess infrastructure is a critical drain on our limited resources Communities need to remain engaged with installation leadership to work together on such issues as encroachment Base of the Future—more to follow… 18

19. 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