A Preliminary Analysis of Advance Appropriations as a Budgeting Method for Navy Ship Procurements
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A companion piece to MR-1526 that examines the pros and cons of applying advance appropriations across a broader segment of the Navy shipbuilding program than just aircraft carriers. The entire cost of a ship is normally included in the congressional budget for the year of construction start, which can cause large year-to-year fluctuations in the shipbuilding budget and complicate budget management. This report analyzes an alternative strategy, advance appropriations, whereby the full cost of a ship is distributed over several budget years. This strategy can reduce fluctuations in the budget level and can create the equivalent of a loan against future budgets, but also constrains management flexibility in coping with unexpected events.
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