The Air Force Fiscal 2008 budget released today is $153.9 billion. Of that, after subtracting special funds for the war on terror and “pass through” monies that the Air Force doesn’t control—such as for national intelligence programs, defense healthcare, and special operations, what’s left is a budget topline of $110.7 billion. Even though that marks a $6.2 billion increase over Fiscal 2007, Air Force officials said that most of that increase is eaten up by inflation, increased cost of fuel, and rising health and personnel costs, leaving the service with essentially flat funding. The topline includes a three percent pay raise for personnel. Incidentally, funding for Operation Noble Eagle—the aerial intercept mission designed to stop hijacked airliners or terrorist aircraft—is taken from normal USAF operations, and no longer from supplemental “war on terror” accounts.
Boeing received a $2.47 billion Air Force contract Nov. 25 for 15 more KC-46s, bringing to 183 the number of Pegasus tankers on contract to all customers, foreign and domestic. The new contract—for Lot 12 of the initially planned KC-46 buy—is to be completed by 2029.
