		REPORT ON AIR FORCE INSTITUTE OF TECHNOLOGY (AFIT): STUDY FOR SENATE AND HOUSE ARMED SERVICES CHAPTER TEN *The Near- and Long-Term Funding of the Institute* Near-Term Funding (through 2002). During recent years, funding has remained nearly constant at AFIT, while overall requirements have increased. Mission efficiencies have helped AFIT continue its mission with minimal impact. For instance, two schools, the Graduate School of Acquisition and Systems Logistics and the Graduate School of Engineering and Management, merged to become the Graduate School of Engineering and Management. This allowed sharing of resources and reduced repetitive processes, but no future mission efficiencies are expected. AFIT is expected to run a budget shortfall in the next few years. Since 1996, overall funding has remained nearly steady while AFIT has identified additional requirements totaling $4M-8M annually. The funding from FY96 through FY01 is listed below. Approximately $30M is for military and civilian pay and over $38M is fenced for programs such as medical and environmental education. Approximately $12M is discretionary operations and maintenance (O&M) funding: YEAR AMOUNT ($000) 96 80,739 97 79,222 98 81,716 99 80,417 00 81,999 01 (Estimated) 79,900 This trend is typical of the budget cuts the services have endured. Assuming a 3-4 percent inflation rate, AFIT’s budget has shrunk 4-5 percent a year. In FY 01, AFIT has $2.77M in mission critical unfunded requirements and another $630K of mission essential and mission enhancement requirements. Mission critical is defined as “cannot start new programs or must stop current operations.” Mission essential is defined as “not broken but not optimal delivery.” Mission enhancement is defined as “improves quality of life; the need exists; however, there is little impact on mission acomplishment.” The critical shortfalls in funding are: ITEM, AMOUNT($000) Critical lab equipment and supplies 1,652.7 Replacement of outdated computer systems 1,122.0 The lab equipment and supplies cited above are underfunded because the AFIT lab equipment budget was zeroed out in the early 1990s. The computer upgrades are required to support education and research activities. At the time this report was compiled these items still required funding. The mission essential items consist of $355.1K in lab equipment and supplies, and $75.0K in audio/visual upgrades. The mission enhancement is $200.0K for modular furniture and carpet required to accommodate the Air Force Research Library merger with AFIT’s Library. At the time of this report, AFIT was seeking funding for the above items. To procure mission critical items in FY00, AFIT deferred some requirements to FY01 including computer buys, library documents and resources, and equipment replacements. AU provided $1M out of its budget to fund lab equipment in support of AFIT’s accreditation review by the North Central Association of Colleges and Schools (NCA). In FY 02, discretionary O&M funding is expected to be around $14M, while AFIT has identified over $18M in requirements, of which approximately $12M is committed to “must pay” items. AFIT prioritized over $6M in unfunded requirements to determine what would be funded. AFIT plans to fund the following items in priority order as referenced below: ITEM AMOUNT($000) Lab equipment 1,250.0 Automated data processing equipment contract increases 353.0 Custodial contract increases 72.5 Copier maintenance contract 12.0 Copiers 20.0 Official Trips for Commandant to Support Official Travel 20.0 Virtual School House Contract (web-based instruction for logistics) 109.0 International Flight Safety Officer course (zeroed out of AF budget) 72.0 TOTAL 1,908.5 AFIT continues to work around these shortfalls and is functioning adequately as an institute of higher learning as evidenced by its recent NCA reaccreditation, but is constrained by budget limitations. Long-term Funding (FY 03-09). This section outlines the long-term operational funding required by the institute from FY 03-09 as projected in the POM cycle requirements. It is based on AFIT’s anticipated budget being $80M with 3-4 percent annual increases for inflation. AFIT has identified the following deficiencies in funding from FY 03-09: FY AMOUNT($000) 03 11.6 04 19.9 05 13.8 06 14.1 07 14.9 08 15.4 09 15.5 Recommendation: Continue to work shortfalls in funding.

REPORT ON AIR FORCE INSTITUTE OF TECHNOLOGY (AFIT):
STUDY FOR SENATE AND HOUSE ARMED SERVICES

CHAPTER TEN

The Near- and Long-Term Funding of the Institute

Near-Term Funding (through 2002).

During recent years, funding has remained nearly constant at AFIT, while overall requirements have increased. Mission efficiencies have helped AFIT continue its mission with minimal impact. For instance, two schools, the Graduate School of Acquisition and Systems Logistics and the Graduate School of Engineering and Management, merged to become the Graduate School of Engineering and Management. This allowed sharing of resources and reduced repetitive processes, but no future mission efficiencies are expected. AFIT is expected to run a budget shortfall in the next few years. Since 1996, overall funding has remained nearly steady while AFIT has identified additional requirements totaling $4M-8M annually. The funding from FY96 through FY01 is listed below. Approximately $30M is for military and civilian pay and over $38M is fenced for programs such as medical and environmental education. Approximately $12M is discretionary operations and maintenance (O&M) funding:

YEAR AMOUNT ($000)
    96 80,739
    97 79,222
    98 81,716
    99 80,417
    00 81,999
    01 (Estimated) 79,900

This trend is typical of the budget cuts the services have endured. Assuming a 3-4 percent inflation rate, AFIT’s budget has shrunk 4-5 percent a year.

In FY 01, AFIT has $2.77M in mission critical unfunded requirements and another $630K of mission essential and mission enhancement requirements. Mission critical is defined as “cannot start new programs or must stop current operations.” Mission essential is defined as “not broken but not optimal delivery.” Mission enhancement is defined as “improves quality of life; the need exists; however, there is little impact on mission acomplishment.” The critical shortfalls in funding are:

ITEM, AMOUNT($000)

Critical lab equipment and supplies 1,652.7
Replacement of outdated computer systems 1,122.0

The lab equipment and supplies cited above are underfunded because the AFIT lab equipment budget was zeroed out in the early 1990s. The computer upgrades are required to support education and research activities. At the time this report was compiled these items still required funding.

The mission essential items consist of $355.1K in lab equipment and supplies, and $75.0K in audio/visual upgrades. The mission enhancement is $200.0K for modular furniture and carpet required to accommodate the Air Force Research Library merger with AFIT’s Library.

At the time of this report, AFIT was seeking funding for the above items. To procure mission critical items in FY00, AFIT deferred some requirements to FY01 including computer buys, library documents and resources, and equipment replacements. AU provided $1M out of its budget to fund lab equipment in support of AFIT’s accreditation review by the North Central Association of Colleges and Schools (NCA).

In FY 02, discretionary O&M funding is expected to be around $14M, while AFIT has identified over $18M in requirements, of which approximately $12M is committed to “must pay” items. AFIT prioritized over $6M in unfunded requirements to determine what would be funded. AFIT plans to fund the following items in priority order as referenced below:

ITEM AMOUNT($000)

    Lab equipment 1,250.0
    Automated data processing equipment contract increases 353.0
    Custodial contract increases 72.5
    Copier maintenance contract 12.0
    Copiers 20.0
    Official Trips for Commandant to Support Official Travel 20.0
    Virtual School House Contract
        (web-based instruction for logistics)     109.0
    International Flight Safety Officer course
        (zeroed out of AF budget)         72.0

TOTAL 1,908.5

AFIT continues to work around these shortfalls and is functioning adequately as an institute of higher learning as evidenced by its recent NCA reaccreditation, but is constrained by budget limitations.

Long-term Funding (FY 03-09).

This section outlines the long-term operational funding required by the institute from FY 03-09 as projected in the POM cycle requirements. It is based on AFIT’s anticipated budget being $80M with 3-4 percent annual increases for inflation. AFIT has identified the following deficiencies in funding from FY 03-09:

FY AMOUNT($000)
    03 11.6
    04 19.9
    05 13.8
    06 14.1
    07 14.9
    08 15.4
    09 15.5

Recommendation: Continue to work shortfalls in funding.

REPORT ON AIR FORCE INSTITUTE OF TECHNOLOGY (AFIT): STUDY FOR SENATE AND HOUSE ARMED SERVICES

REPORT ON AIR FORCE INSTITUTE OF TECHNOLOGY (AFIT):
STUDY FOR SENATE AND HOUSE ARMED SERVICES