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Officials unveil 2004 budget proposals

02/03/03 - WASHINGTON (AFPN) -- The president's fiscal 2004 budget proposal authorizes $380 billion for the Department of Defense to win the global war on terrorism and continue the transformation of the military, senior defense officials announced Jan. 31.

The budget also addresses several quality-of-life initiatives, including a military pay raise ranging from 2 percent to 6.25 percent, targeted by rank and years of service. It continues the effort to eliminate out-of-pocket housing expenses by fiscal 2005, reducing overall cost from 7.5 percent to 3.5 percent this year.

The Air Force's portion of the budget, $93.5 billion, continues the service's investment in its people and readiness while accelerating the service's transformation and integration efforts, according to a senior military budget official.

The budget is divided into four categories: people, readiness, infrastructure and modernization.

The largest portion of the Air Force budget, 34 percent, is focused on people and quality-of-life initiatives because it is a retention-based force.

"We recruit airmen but retain families," the senior military budget official said.

The Air Force set aside $29.4 billion for pay and compensation, almost $1 billion for recruiting and retention initiatives and $1.5 billion to replace 2,081 military family housing units, renovate another 1,524 units and fund seven new projects that will privatize and upgrade another 6,950 units.

"The Air Force goal is to eliminate inadequate housing units in (the continental United States) by 2007 and overseas by 2009," the official said.

The Air Force has dedicated 28 percent of its budget, $25.8 billion, to readiness. This includes $14.1 billion for flying operations, $1.8 billion for space operations and $9.6 billion for mission-support functions.

The Air Force's aging infrastructure led the service to set aside $4.6 billion of its fiscal 2004 budget to address this problem.

Nearly $1.4 billion will go toward the sustainment, restoration and modernization of the Air Force's current facilities. Almost $1 billion will fund military construction projects that address new mission requirements and force-structure changes.

Also included in the infrastructure request is $2.3 billion in funding for new base and community support projects such as construction of 12 dormitories, four fitness centers, one child development center and one family support center.

Modernization, at $31.2 billion, is the second largest portion of the Air Force's budget. It includes $12.5 billion for research, development, testing and evaluation, and $2.2 billion for science and technology.

Also included is $16.5 billion for the procurement of new aircraft, unmanned aerial vehicles and space systems including:

-- 22 F/A-22 Raptors. -- 11 C-17 Globemaster IIIs. -- Five C-130J Hercules. -- 52 T-6A Texan IIs. -- Four RQ-4A Global Hawks. -- 16 RQ-1 Predators. -- Two CV-22 Osprey. -- Four Evolved Expendable Launch Vehicles.

"We think this is a good budget that accelerates our transformation and integration efforts to adapt to the changing world environment while still maintaining the gains in our readiness and people programs," the senior military budget official said.

The Air Force was the premier air force in the world at the end of the first century of flight and this budget keeps the service on track to remain the world's best air force throughout the second century of flight, the official said.