Analysis of the Scale of Annual Operation & Maintenance Appropriation Returned to the US Treasury

Abstract

This thesis examines the PPBE process and the key contributors to passing a budget. Comptroller funding data were extracted and analyzed for the years 2015-2019. The analysis investigated the Appropriation approval date and the percentages of unobligated Operation and Maintenance funds for the DOD, USN, and the Navy. The most extensive range in un-obligated funds occurred in 2017, where the DON and USN combined returned 0.16%, and the DOD topline was 32.25%. The data from FY2017 indicates the longer the CR, the more likely returned funds will occur at the conclusion of the FY. Continuing resolutions played a key role in funding profiles, resulting in high obligation rates in week 52. Additionally, delayed Defense Appropriations have negative consequences on funding and execution. The inability to provide reliable, consistent funding for National Defense also influences the strategic planning efforts that play a significant role in developing the National Defense Strategy (NDS) and the National Security Strategy (NSS). A stable budgetary environment has only existed in approximately 10% of the previous 40-year budget periods. Unobligated funding is indicative of the rigid spending within the current PPBE process, delayed congressional budget approval, and lengthy CRs. Future research could investigate the COVID-19 impacts due to restricted movement, remote work, and hindrances to the supply chain to identify additional areas of improvement within the PPBE process.