and reserve components. the top block is what we refer to as nonblue, which is a portion of the air force budget that is not directly under our control that's managed by other departments or agencies. the remainder of the budget or air force blue budget is the focus for today's brief. in the bracketed area you'll see air force blue budget for fy 2016 is $122.2 billion or roughly 20% of dod's 2016 budget. of the $2.2 billion air force blue budge $77 billion or 63% represent day-to-day operations. military and civilian pay, which make up approximately 52% of day to day operating costs. flying hours weapons system sustainment, approximately 40%. facility requirements and installation support represent remaining 8% of the total operating cost. the gray boxes at the bottom highlight our top procurement and largest rte programs. these programs total approximate 6% of our investment accounts. so hopefully you can see the largest portions of our budget are in people, readiness and future capability. when forced to take large and sharp budget reductions, we simply can't avoid impacts in these areas. now we'll look at each appropriation starting with military personnel. next slide. the military personnel budget is 24% of our request and supports a total end strength of 492 airmen. as i mentioned earlier, continued readiness challenges and extreme high ops tempo made it clear our fy '16 end strength was too low. as an air force we've never been smaller and we're busier than ever. airmen have told us they don't have enough people to do the mission. we listened. that's why secretary james made i clear, enough is enough. people remain our number one priority. so as you can see on this chart, our fy 2016 budget request makes an upward adjustment to alleviate some stress on the force. the increase also allows us to make adjustments for structure and strengthen nuclear enterprise. involves pay for some rpa pilots and increases in the number of cyber teams. it also supports 1.3% pay raise for our airmen and continues to support violates people programs. however, sequestration could drive total force end strength down another 10,000 airmen. further reductions would leave us with a team that has an incomplete roster, that is too small to meet a demanding schedule and allows little time to practice and provides no downtime. our airmen deserve better than that. now let's move onto the operation and maintenance account. next slide. fy 2016 oem continues path to recovery while bipartisan budget act stops decline for readiness levels, readiness is not a short-term physical and will take years to rebuild. to continue on that path to readiness recovery we have funded all the necessary readiness components. includes hours and wss to capacity. investing in ranges, simulators, critical skills training combat exercises and advanced weapons schools. the increase allows us to ramp us support 60 steady state isr caps. it supports vital space programs establishes 39 cyber teams. it strengthens nuclear enterprise by adding funding for icbm, b 2, b-52 sustainment and modernization programs. it also helps fix aging infrastructure. by funding facility sustainment 80% and continues the commitment to our airmen by finding support services such as sexual assault prevention and response program child care facilities fitness centers, food services educational benefits for both military and civilian members along with a 1.3% pay raise for our civilian employees. however bca levels readiness recovery will stop. bca levels reduce weapons systems sustainment by $1.2 billion potentially impacting 2,000 jobs at our depots. we will have to reduce flying time by 41,000 hours so critical training will be lost. we'll be forced to potentially cut advanced weapons schools and combat flag exercises. we'll drop facility sustainment funding to 74%. efforts to sustain infrastructure across all five core missions will be challenged to include nuclear enterprise. now we'll move on to rdt & e. next slide. research, develop, test and evaluation where big ideas make the leap from just ideas to technology we use every day. this appropriation directly supports the air force's vision of world's greatest air force powered by airmen fueled by innovation. innovation is at the core of our identity. gps is a great example of this. because of this we've increased funding by $2 billion from fy '15 to start recovery in this appropriation. this year we focused on new and emerging technologies while continuing modernization of recapitalization of our tanker, fighter and bomber fleets. strengthening the nuclear enterprise remains the air force's number one mission priority. supports by modernizing three mann icb program, accelerating long range standoff weapon by two years and restoring funding to the b2 defense management system direct attack cap able. assured access to space is paramount. this budget begins development to provide two competitive launch providers with the objective of eliminating reliance on a foreign made rocket engine. while maintaining readiness for the current environment we must also invest in recapitalization to prevent future threats. for example this budget request invests in adaptive engine technology that will increase performance and revolutionize engine fuel consumption. j star capitalization program providing critical command and control with enhanced isr on a modern, fuel efficient aircraft. we will continue design and development of f-46 35 long range strike bomber and combat rescue helicopter programs. this budget will also allow us to begin recapitalization frts for "air force one." bca levels, potential actions we would have to take would be reducing funding or cutting programs such as adaptive engine, global hot block 30 sensor enhancements, b2 dms and minuteman 3 monitor control modernization. all these programs could be at risk. next slide. our fy 2016 procurement budget prrves production ramps for top modernsation programs sustains our space procurement strategy and restores our munitions levels. as you can see, this is an increase from fy 2015 to 2016 due to increased quantities for 46 tankers f-35s, c-130j aircraft. we also by additional mq 9 for increased isr demands. additionally this budget maintains multi-year procurement for c-130j with 27 aircraft purchased in fy 2016. for the space mission, we sustain our efficient spaces procurement strategy for block of aehf satellites 5 and 6, geo 5 and 6 and will fund modernization of mobile ground units mobile control, 5 and purchase one gps satellite. finally this budget also allows us to significantly increase funding for munitions based on forecast demand and current ops tempo however if our budget is limbed to bca lechls we could potentially cut 14 f-35s and munition inventories will not be replenished to the necessary levels. the next slide will show our procurement quantities by platform. these are planned procurement quantities for the budget. it shows both base and oco quantities and potential bca impacts. we'll now discuss next slide. as i mentioned earlier, new construction has been put on the back burner over the last three years due to reduced funding levels. this request allows us to recover and invest in critical projects projects that strengthen nuclear enterprise support new mission bed downs, continue combat and commander support and enhance quality of life. this request funds three nuclear enterprise projects for weapons storage and two alert facilities. it also funds a basic military training dorm and three permanent party dorms. to support kc 46 and f-35 beddowns we request funding for several projects such as maintenance, munitions flight simulator facilities. for the air force reserve, there's funding to construct high priority projects out lined on the slide. for the international guard, this request includes funding to support cyber, isr and rpa bed downs. all critical for total force operations. finally, the air force continues to fund construction for combat and commands to support high priorities missions. bca levels we will continue to take risk in military construction and could be forced to cut approximately 50% of our projects. on the next slide i'll provide a brief summary of our fc '16 oco budget high demand and provision funds for operating in ocr. this allows them to conduct operations, command and control deliver consistent isr and support joint partners with airlift and air fueling capability capabilities. this year presenting an oco budget request totalling $10.7 billion. $9.2 billion or 86% of the oco budget is for operation of maintenance requirements for day-to-day operations. the request also supports our deployed airmen at the guard and reserve with proper pay and allowances. additionally our oco investment request supports isr platforms, munitions and other emergent and capability requirements. next slide. this brings us to the end of our brief. again, i want to emphasize the air force is fy '16 present budget built on strategy and most urgents needs of our combatant commanders. sequestration returns in '16 hauls readiness and renders us unable to execute the defense strategy. more tough choices will be required and it will force us to choose between ready force today or capable force tomorrow the bottom line we'll need both for joint force to be successful. support of this pb request, what it does for us keeps us on a path to full spectrum readiness and allows us to invest in future capabilities. it's the first step in a down payment on the air force our airmen deserve, capabilities our joint team needs and security our nation expects. that concludes my brief. i'm happy to answer questions. >> thank you. you have said that if sequestration continues, air force would have to cut 10000 airmen. given how congress works you may not get appropriations under december. would these cuts have to be made in fiscal '16 or fiscal '17? >> i'm just saying based on the current estimates right now that's one potential action that could happen. but the chief and the secretary have made it clear that we don't need to $315,000 is our red line. we would look at other options but given the numbers, that's the potential impact. >> have you already identified what type of airmen might have to be let go? >> no. in fact we've said we're stopping the downsizing. in fact, there were no more involuntary separation programs scheduled for fy 2015. the budget -- that's why support of this budget request is important so we can eliminate stress on the force, adding that monday for the structure we have as well as support and strengthen nuclear enterprise such as cyber teams. >> in order to save personnel, would you consider buying fewer f-35s? >> well, when you get into a bca funding level discussion, what i've shown you here today is a list of potential actions that we would have to take. again, these actions -- this list of actions are required to try to save $10 billion in one year. so we would look at all the different options as we go forward. that's something we would work with osd and also congress before we made final actions. yes? >> general, you've once again proposed getting rid of this. is this air force backing out of electronic mission or is this something congress won't tolerate or fund you for? >> no. again, even at the pb levels we had to make tough choices. that's why we're divesting some of this fleet. we still have budget levels to live within. again, if you go back to the chart that showed what our '16 position was in fy '12, even at the pb level we're still $10 billion below. so we need to divest some for the future. >> same thing with getting rid of the block 40s and different things at the sequester level. what analysis did you do to figure out that that was the best place to cut, should have you to meet those budget control levels? >> well again, the analysis was really based on what we need to be ready today, capabilities in high demand for our combat commanders and capabilities we'll need in the future. that's really what we did our analysis on. >> so the budget request notes there are two launches, and i think you note as well, that have been set aside for competition. can you tell us which launches those are and if those might go away with sequestration if that stays. and also, are these new launches that are being put out for competition or was it always assumed these would be competitive launches? >> i think we said last year we had two competitive launches available for '15, fy '16, five launches, three of which will be competitive. in '17 three will be competitive. fy '16, i think it's three to four. decisions on what pay loads go on those launches are still predecisional. when that contract was awarded, then that announcement will be made. >> and because you're assuming that you have a new entrant, the rational for this has been that it will decrease the cost of launch substantially through competition. so how much less were you able to budget for eelvs or launches because you have this competition? >> well, you know, we've said all along competition is a good thing. it's a good thing for air force good thing for our nation because it gives us a better product. it does drive down cost. when competitors know someone else is competing for the same workload. last year we awarded our eelv contract -- hard to say with a southern accent and a cold -- but we think that that was one of the reasons why we saw significant savings. >> is it possible for us to get a number of how much you expect to save because of these competitive -- >> i don't think we've truly defined what that number is. again, part of our acquisition strategy for just about everything we're doing is try to have more competition. again, it gives us a better product, potentially better capability. it's good for the air force, good for the nation good for the industrial base. >> couple of questions. one, controller charts indicates air force has the lion's share of boost in 2016, $16 billion added to air force budget versus army and navy. can you give me a sense what areas the $16 billion was distributed to? who were the winners? >> in broad terms, air force capabilities, like i said are in high demand right now. increased isr capabilities. there's initiatives to increase space capabilities strengthen our nuclear enterprise is something we're putting a lot of investment in. again, like i said air force demand or air force capabilities are in high demand right now. >> how much of that $16 billion jeopardized by sequestration? certainly not all of it but is there a sense you have? >> if you go back across the chart -- tony you weren't here when we talked about that. if i can get them to pull that chart up. again, i think with our priorities to enhance space capabilities strengthen the nuclear enterprise maintain readiness, maintain some capability for the future, what we would do in any bca funding scenario try to balance the risk across all core mission sets and make sure we're meeting the requirements our president expects and combat commanders require. >> my understanding is that all 14 of the launches from 2018 to 2020 would be competitive. is that accurate? >> that's correct. that's correct. >> can you say if there's any sort of priority in terms of the options on the table these levels aren't raised? a whole bunch of different options there. this one first go, next here and next here. >> right now bca or sequestration is the law. so what we try to do, we try to build a present budget that supports defense strategy. knowing that sequestration is the law, we've tried to highlight what potentially could be at risk. but again, before we made any final decisions we'd have to know what the actual bca funding levels were. then we would go back and look across all five mission sets and make sure we're meeting the most urgent requirements expected out of the air force and then we would, like i said, work this with osd. congressional feedback is part of that process as well. [ inaudible ] >> again we would go back and take a look at that and, again, try to balance risk across all mission sets. >> so talk about a 10, congress retiring that others things retired, congress blocked that. congress necessarily raised levels emphasis or thought what's going to happen this year. so is this a realistic budget request? is this saying it would be nice to have but -- >> no again this is a pb request built on strategy. again, we use a process across total force to make sure meeting capabilities our commanders need now. we also need to look ahead in the future. not only being ready today but what do we need to be ready 10 years from now. i think this pb request is what we need to support defense strategy. still $10 billion less than what we're planning for a few years ago. >> courtney allen from inside the air force. first, there's been a lot of analysis in the last few years about the air force's force mix between the components. how does this budget reflect in various mission areas and platforms various recommendations that come from that analysis. >> you're talking about the results of the study that came out? >> yes. >> right. >> i would tell you that in every budget process i've been a part of and i've been up here four of the past five years, a total force budget. active guard reserve personnel in the room when we build these budgets and it's all based on capability. everything we do we try to leverage unique capabilities of guard and reserve. i mentioned to you before much of our tactical airlift and air refueling exist in the garden reserve. we continue to look at that. i think the study recommended -- had 42 recommendations and i think we agree with 41. our chief commissioned a group to try to study those and see how quickly we can implementation men those recommendations. i think that study or that action is about 80% complete. so we're moving out as fast as we can to leverage unique capability our guard reserve components can give to us. >> the other question i had this may be a little bit -- in the weeds a little bit. there's a chart in the back of the budget over view back that lists airframe by airframe the number of aircraft in fy 2015 and '16. it reflects almost a 40 aircraft drop from fy '15 to fy '16 in the c-17 areas. am i reading that right? what is that? >> i don't have numbers in front of me. let me take that for the record and get back to you. i know we had a couple of corrections on the chart you're referring to. >> washington examiner. one of the things you didn't mention during briefing is six generation fighter. if you could describe any details about the program, particularly a line item for it. we haven't seen anything. >> well here is what i would tell you about the sixth generation aircraft. it's a concept, not a platform that's in our budget. that's kind of the theme we're trying to get back to in our snt budget to look at that next generation we need to stay ahead of our potential adversaries. it's a concept and there's money scattered throughout the budget but we can certainly go back and try to give you a number for that. one follow-up. >> where is that money scattered? >> in rte budget. >> last year plan for units, if approved same schedule for units. >> similar to what. >> what's different? is there a change? some lawmakers said they would block it right away. they vowed to stop it. is there a change in communication. what is different this year that would give us a chance. >> i don't think anything is different from the standpoint of our proposal. again, phasing out the a-10s. we don't actually phase them out until 2019. but again it's going over and explaining why saving $4.2 billion, what we can do with that savings. we need to in vest in multi-platforms that can not only do task but also survive in a high-end fight. i think you remember from last year we said over 80% of our close air mission is done from other platforms. certainly we all love the a-10, but we have a transition plan to remove that aircraft. >> see all of this briefing online at c-span.org. we'll take you live to capitol hill where ashton carter president obama's nominee for defense secretary is about to face senate arms services committee. being led into the room by senator john mccain chairman of the committee. the ranking democrat on the committee is jack reed of rhode island. ashton carter coming into the committee room to replace chuck hagel stepping down as defense secretary. i want to remind you throughout the hearing we'll be asking the question on social media what should next defense secretary's priority be go to facebook.com/c-span. associated press better use of taxpayer dollars but congress must bring stability back to the military's budget. they are reporting on his opening statement which you'll hear shortly. live coverage on c-span3. >> good morning. the committee meets this morning to consider the nomination of dr. ashton b. carter to be the secretary of defense. there are standard questions by committee rule that i would put forth to dr. carter at this time. dr. carter in order to exercise its legislative and oversight responsibilities it's important that this committee and other appropriate committees of the congress are able to receive testimony, briefings and other communication of information. have you adhered to applicable laws and regulations governing conflicts of interest? >> i have. >> have you assumed any duties or undertaken any actions which would appear to presume outcome of the confirmation process? >> no. >> will you ensure that your staff complies with deadlines established for request and communications including questions for the record in hearings? >> i will. >> will you cooperate in providing witnesses and briefers in response to congressional request? >> yes. >> will those witnesses be protected from reprisal for their testimony or briefings? >> they will. >> do you agree if confirmed to appear and testify upon request before this committee? >> yes. >> do you agree to provide documents including electronic forms and communications in a timely matter and requested by a dull dully constituted for gooth faith denial in providing such goumts? >> yes. documents. >> yes. >> yes. documents. >> yes. >> that concludes reteen questions we ask nominees. before the committee proceeds before us today on behalf of all members of the committee, we'd like to extend deepest cop

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