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.
The Air Force is leaning toward a less-sophisticated autonomous aircraft in the second increment of the Collaborative Combat Aircraft, the services chief futurist said. He also suggested that the next increment of CCA may be air-launched, a la the "Rapid Dragon" experiments conducted by the service in recent years.