Military Community and Family Program Support for Quality of Life

provide savings to the customer and to produce revenues at a level set by their MilitaryService to sustain exchange capitalization requirements and to help finance their MWRprograms. Collectively, the exchanges estimate profits of $628 million for the retail year2007, which closed at the end of January 2008. The exchanges continue to plan forcapital investment averaging $528 million per year, with $158 million identified forinformation technology modernization and $370 million designated for facilities andequipment. On a combined basis, the exchanges plan to distribute $349 million (56percent) of their 2007 profits as dividends, up from $316 million in FY 2006. Dividendsare projected to fall to $283 million in Fiscal Year 2008.The MWR programs plan to increase their average capital investment to $401million per year, with $24 million identified for information technology modernizationand $377 million designated for facilities and equipment. In addition, the Lodgingprogram is planned to increase average capital investment to $230 million per year, with$222 million designated for facilities and equipment.MORALE, WELFARE AND RECREATION (MWR) FUNDINGWithin Secretary of Defense policy and fiscal guidance, each Military Servicemanages and funds its MWR program using a combination of appropriated andnonappropriated resources. The continued vitality of the MWR programs depends onsound management, meeting command and customer needs, a predictable stream of NAFrevenues, and also solid APF support of Category A and B activities.All the Military Departments report that their MWR programs were profitable inFiscal Year 2007. The combined MWR profits of $117 million represent a $73 millionincrease over Fiscal Year 2006. Fiscal Year 2007 APF of $2.1 billion, with $1.5 billionin direct support, represents 51 percent of total MWR program costs. The remaining 49percent of MWR program costs was supported with NAFs. However, not all of the23