An Analysis to Lengthen Operation and Maintenance Budget To 2-Year and Allow a Carryover of Expired Funds to The End of The First Quarter of The Subsequent FY

Abstract

In this thesis, I propose the extension of the operation and maintenance (O&M) appropriation or period of availability from one year to two years, along with allowing a carryover of the expired funds to cover new starts and program increases during a continuing resolution. I present both the advantages and disadvantages that such policy change would bring and argue that the advantages far outweigh the concerns raised by Congress and those who oppose the two-year proposal. Extending O&M funding availability to two years would alleviate the spike of end-of-year obligations and lower the amount of expired unobligated funds, leading to fiscal and program stability. I also discuss the opponents’ main argument against such a policy shift, i.e., Congress’s perceived loss of control. This policy proposal, if implemented, would bring much-needed budgetary flexibility and procurement stability throughout the fleet and to the DoD in general.