The DoD Budget Process -What You Need to Know-

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The DoD Budget Process-What You Need to Know-

• Paul Yaroschak
• Director, Environmental Compliance Restoration
  Policy
• Office of the Assistant Secretary of the Navy
• (Installations Environment)

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Bottom Line, Up Front

• Budget controls are fixed well in advance of
  budget details (requirements)
• Given budget/deficit situation, only hard core
  requirements can compete survive

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Part 1The Federal Budget Process
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INCOME SPENDINGSURPLUS/DEFICIT
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U.S. DEBT DEFICITS

• Debt as of Sep 21 2005
• 7,927,365,439,07826K per person
• Balanced Budget/Deficit Control Act of 1985
• set deficit targets for 6 years
• Budget Enforcement Act of 1990
• limited discretionary funding
• required pay-as-you-go
• In 1998, President Congress agreed to balance
  budget by end of 2002

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Off the Table!
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Takeaways

• Budget controls are fixed well in advance of
  budget details (requirements)
• Deficits generally drive down budget controls

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Part 2The DoD Budget Process
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Department of DefenseFY04 Budget 380 B
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Department of the NavyFY04 Budget 114.6 B
Environmental - 1.02 B 1.0
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Budget/Spending Rules

• Cant expend or obligate funds until appropriated
  or in excess of appropriationAnti-Deficiency Act
  31 U.S.C 1341
• Must be used for the purpose specified for that
  appropriation
• DoD has many appropriations firewalls between
  must be maintained
• OMenvironmental compliance
• DERAcleanup
• MILCONmajor construction BRAC
• RDTE

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BUDGET TERMS YOU SHOULD KNOW

• Budget...the Presidents Budget sent to Congress
  for review/approval each Feb
• FYDP...Future Year Defense Plan...the next 6
  years after the Presidents Budget
• POM...Program Objectives Memorandum...process for
  reviewing the FYDP and making adjustmentswhere
  the action isa food fight.

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CURRENT BUDGET CYCLE

• FY2006current yearappropriatedbeing expended
• FY2007...budget yearPresident provides to
  Congress for approval in Feb
• FY2006-2011current FYDP
• POM-2008reviews and adjusts FYDP every 2
  yearsPOM-2008 plays out Jan-May 06
• FY2008-2013next FYDP

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What requirements must be budgeted?

• Those specified in applicable laws or regulations
  

What requirements should be budgeted?

• Executive Orders
• DoD Policy

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Takeaways

• DoD Budget controls are fixed well in advance (2
  years) of budget year
• Requirements are scrubbed carefully during
  competition for fixed amount of funds

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KEY ISSUEWhat criteria triggers a requirement
for expenditure of DoD funds, especially if
unbudgeted?