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Assessing the Implications of Policy Options for the Military Personnel Budget: An Analytic Framework for Evaluating Costs and Trade Offs

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[Technical Report, Summary Report]

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The military personnel budget provides financial resources to compensate active military personnel MILPERS.This includes pay and allowances, subsistence of enlisted personnel, permanent-change-of-station travel, andother military personnel costs. Spending on MILPERS has grown at an average annual rate of 3.3 percent peryear since fiscal year FY 2000, to approximately 36 billion in FY 2021. This outpaced growth in prices in theoverall economy, which averaged 1.9 percent per year for the same period. To ensure a ready workforce withoutundercutting modernization efforts, the Department of the Air Force DAF must explore options to maximizeMILPERS affordability. At the same time, the DAF must consider the nonmonetary trade-offs and risks thatthese options entail. The DAF needs an analytic framework to view savings, trade-offs, and risks of differentsolution options alongside one another this report describes and applies a tool that can be used to evaluate theimplications of workforce and personnel policies on MILPERS spending.

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[A, Approved For Public Release]