1. FY 2013 DOD Budget Analysis EducateAdvocateSupport 1

2. 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 EducateAdvocateSupport 2

3. 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 EducateAdvocateSupport 3

4. 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 EducateAdvocateSupport 4

5. 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 – 1 st day in 20 years no air tasking order over Iraq EducateAdvocateSupport 5

6. Budget Shares EducateAdvocateSupport 6 *AIR FORCE PAYS FOR MOST OF THE CUTS FROM FY12 TO FY13 Army 133.9134.6 Navy 156.8155.9 Air Force 144.9140.1 Defense-Wide 95.094.9 Total 530.6525.4 FY12 ($B) (No OCO) FY13 ($B) (No OCO)

7. Aircraft Procurement EducateAdvocateSupport 7 *AIR FORCE BUYING FEWEST AIRCRAFT Air ForceNavyArmy MQ-924F/A-18EF26CH-4744 F-35A19EA-18G12MQ-119 CV-224MQ-43AH-6448 HC-130J1F-3510UH-7234 MC-130J4T-633UH-6059 AC-130J 2MV-2217Util FW2 54E-2D5OH-58 16 AH-128222 MH-60R19 MH-60318 MQ-8 6 177

8. 2013 FYDP Aircraft Procurement EducateAdvocateSupport 8 *194 AIRCRAFT TAKEN FROM THE FIVE YEAR DEFENSE PLAN Aircraft TypeFY 2012FY 2013 FY 2013 OCO FY 2013 TotalFY 2014FY 2015FY 2016FY 2017Total F-35 Lightning II1819 (-5)0 19 (-21)32 (-18)48 (-22)481763 C-17 Globemaster10000000224 (+1) C-130J Hercules10 (-1)0 12 (+9)10 (+6)7 (-5)0134 (-4) HC-130 King31 (-2)0 3 (+2)2 (-2)4 (+2)237 MC-130 Combat Talon64 (-2)0 52 (+2)5 (+1)569 C-27J Spartan9000000025 CVLSP20 (-4)0 0 (-6) 02 (-91) CV-22 Osprey5404300049 HH-60M4000000014 LAAR60 (-6)0 00006 C-37300000007 RQ-4 Global Hawk30 (-3)0 0 (-1) 045 (-21) AC-130 Spectre120250 (-8)0016 MC-9 Reaper4824024 (-24) 24401 (+5) Totals:11454 (-47)0 71 (-41)70 (-51)88 (-55)79N/A In FY13 alone the Navy and the Army combined will be buying more aircraft than the Air Force does in the entire FYDP.

9. FY13 Aircraft Procurement Funding Army $6.3B EducateAdvocateSupport 9 Navy $17.3B Air Force $11.3B *NAVY FUNDING IS 53% HIGHER THAN AIR FORCE

10. 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 EducateAdvocateSupport 10 *GERIATRIC FLEET IS GETTING OLDER

11. Space Procurement EducateAdvocateSupport 11 SpaceFY12FY13 GPS III22 Advanced EHF20 WGS20 SBIRS GEO02 EELV44 TOTAL108

12. Personnel EducateAdvocateSupport 12 FY13 End StrengthChanges from FY12 Air Force - Active Duty328.9K(-3,900) - ANG101.6K(-5,100) - Reserve70.5K(-900) -9,900 Army - Active Duty552.1K(-9,900) Navy - Active Duty322.7K(-3,000) Marine Corps - Active Duty97.3K(-4,900)

13. 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 3 rd 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 EducateAdvocateSupport 13