DEPARTMENT OF THE NAVY FAMILY HOUSING - 2006 BUDGET ESTIMATES JUSTIFICATION OPERATING EXPENSES The FY 2006 estimated program represents the Navy Family Housing requirements using Office of Management and Budget inflation factors and foreign currency exchange rates. Reconciliation of estimates is provided for each program element as follows: RATIONALE FOR CHANGES IN THE MANAGEMENT ACCOUNT IMPACT OF PRIVATIZATION: A reduction in the Management account request for FY06 is included, based on the privatization of roughly 9,600 homes at the end of FY06. Housing personnel reductions and associated administrative support reductions have been identified, as property management functions will no longer be performed post privatization. Installations will continue to provide community housing referral services and waiting list management services. CALCULATIONS 4a 31,188 (CIVPERS estimate) x .034 (pay raise assumption) = 1,084 (Personnel Comp) 4b. 34,917 (Travel, Training, IT, Consulting, Programs & Studies, etc.) x .021 (inflation rate) = 733 (Inflation) 4c. Increase based on various locations currencies gained strength against the US Dollar. 5a Estimated cost for labor, travel, training, & benefits associated with 5 FTEs. Note that this exact amount is shown as an increase on the PPV Support (BP-13) OP-5. 5b Reflects the costs associated with the closure of Keflavik 5c. Reflects the delta between the (FY05 Estimate +/- Adjustments 4a, b & 5a, b, c) and the validated Service Level 3 (SL3) funding (80% of total requirement). RATIONALE FOR CHANGES IN THE SERVICES ACCOUNT Pricing adjustments are proposed in the Services account for Civilian Personnel Compensation, Inflation, and Working Capital Fund, as well as Foreign Currency. Program increases are for revitalized homes coming back on line. Program decrease reflects those units being pulled off of line primarily due to PPV execution and demolition. IMPACT OF PRIVATIZATION: A reduction in the Services account request for FY06 is included, based on the privatization of roughly 9,600 homes at the end of FY06. Detailed calculations below show the impact of these projects on this account. CALCULATIONS 4a 162 (CIVPERS estimate) x 034 (pay raise assumption) = 6 (Personnel Comp) 4b. 32,096 (Non-WCF Services) x .021 (inflation rate) = 674 (Inflation) 4c. 3,836 (WCF Services) x various pricing factors = 60 (WCF) 4d. Increase based on various locations currencies gained strength against the US Dollar. 5a. Inventory Reductions by Location/Region Avg. Units |