A Preliminary Analysis of Advance Appropriations as a Budgeting Method for Navy Ship Procurements
ResearchPublished Apr 1, 2002
ResearchPublished Apr 1, 2002
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.
The research described in this report was performed under the auspices of RAND's National Security Research Division.
This publication is part of the RAND monograph report series. The monograph report was a product of RAND from 1993 to 2003. RAND monograph reports presented major research findings that addressed the challenges facing the public and private sectors. They included executive summaries, technical documentation, and synthesis pieces.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.