I agree 2012 IMPO is going to be painful. I wouldn't be surprised if they change the pay scale for AD members to save money. Right now it is 0.5 or 1.0% above COLA (can't remember and too lazy to look it up). With the fact that we are not seeing AD members dive due to the economy, they may decide to take that number to what they do federally, which is -0.5% below the COLA for pay raises. You could also see bonuses drop for a certain career fields...in other words, they may turn and say no need for Nav bonuses.
Do the math, millions of military members and that would save billions in a yr.
You may also find that they will reduce scholarships, not so much in the amount given, but in the type. In other words for the AF, you may see very few Type 1's, fewer 2's, but more 7's. This would save them millions a yr. Again mathematical issue. 5000 cadets per yr group, but only 5% are Type 1. Lower that number to 2.5%, and you saved a million,, give fewer type 2's, and another few million. Now give the bulk to 7, you just kicked the can to 2013. Because, most will now convert to 2, and that will save millions.
If you look at why there was no IS for AFROTC this yr from a business approach, that is what they did. They have an alloted number for each yr. They kicked the can for 2013/14 by offering more type 7's, and now there was no money left for IS. Additionally, by reducing EA, those passed over are in jeopardy for keeping their scholarship. That allowed them to balance the books, PLUS save money for the AF. It also is a manpower issue, but that is really an intense conversation, and you need to understand that it goes back to people not diving in the AD world.
I am sure I made your cranium spin. Sorry, if I did, I was just trying to inform.