Budgeting for national defense is a complex endeavor, particularly for a nation like the U.S. that assumes global responsibility and strives to have the most advanced and lethal force on earth. It is necessary – and challenging – to balance the myriad requirements between current and future readiness, across warfare areas and military services, between having state of the art capability with sufficient capacity, and among people, hardware, and the activities people do with that hardware. As analytically difficult as that problem is, it is embedded in the political budgeting processes and national security must be balanced with every other function of government and there must also be cooperation across branches of government. This text explores that complex endeavor. It takes the position that budgeting for defense is a particular instance of public budgeting which is a particular instance of public policy. Thus, this text starts with a conceptual, empirical, and process foundation before discussing the participants and processes that build the annual defense budget. It then covers the execution of that budget and the ultimate accounting. Compared to the first edition, this text is updated with current figures and examples. There is a new chapter on determinants of military spending in society and burden sharing within alliances. The chapter on budget execution has been disaggregated and a new chapter is devoted to fiscal law. The final chapter seeks to integrate all that came before it by discussing matters that integrate the stages of budgeting and which cross branches of government. Following in the tradition of the first edition, this is intended to be both a textbook for a course in budgeting, but also a desktop reference for defense budgeting practitioners.

"This paper presents an analytic framework that builds from previous work to yield the systematic and defendable readiness analysis that must underlie decisions ranging from budget allocation to force employment and even strategy development. To manage readiness, the Department of Defense must balance the supply and demand of deployable forces around the world. The readiness of an individual unit is the result of a series of time-intensive force generation processes that ultimately combine qualified people, working equipment, and unit training to produce military capabilities suitable for executing the defense strategy. While this discussion is a basic tenet of production theory, it had not been commonly applied to readiness management until recently. The important point here is that understanding how the readiness of military capabilities is generated provides the clearest picture of the current readiness status and whether that status is likely to change over time. Furthermore, it provides the best shot at identifying effective management policies to ensure that DOD can generate the capabilities that the Nation asks of it. This paper argues that traditional unit-level readiness metrics are useful as part of a larger readiness management construct, but by themselves they do not provide enough information to proactively manage strategically. This approach provides a clear explanation of the causes of readiness degradations and options for how to mitigate them that can be traced to precise resource investments"--Page 1.

The U.S. Department of Defense accounts for over half of federal government discretionary spending and over 3% of GDP. Half of all federal employees work for the Department. The annual budget for the military not only provides for those salaries, it covers the baseline and wartime operating expenses of the force, and hundreds of billions of dollars of investment in new capabilities and technologies. Given the materiality of the defense function and amount of resources it consumes, the processes for budgeting for defense and managing the funds is important to understand. This text provides a fully integrated view of defense budgeting. It takes the position that defense budgeting is a specific instance of public budgeting, and public budgeting is a specific instance of public policy. In order to fully understand how the nation budgets for defense, it first lays a theoretical and conceptual foundation for public policy and public budgeting. That is followed by an assessment of the political and policy context for defense, including the overarching federal budget process and role of Congress in setting defense policy. Only then does the text explore the specifics of defense budgeting: how, by whom, and why the budget is crafted. Beyond the topic of budgeting – formulating, requesting, and legitimating the request for funds – the book tackles financial management topics. Included are discussions of federal appropriations law, funds management, accounting requirements, intragovernmental business transactions, and contemporary topics of defense policy such as funding overseas contingency operations in an era of deficit control legislation. This book is an appropriate reference for both students and practitioners of defense budgeting and financial management. It would also be appropriate in a general public budgeting course. Most public budgeting texts focus on state and municipal governments and there are few that address the federal system. This book fills that gap and provides a specific example of federal budgeting.

"Operations research (OR) is a core discipline in military and defense management. Coming to the forefront initially during World War II, OR provided critical contributions to logistics, supply chains, and strategic simulation, while enabling superior decision-making for Allied forces. OR has grown to include analytics and many applications, including artificial intelligence, cybersecurity, and big data, and is the cornerstone of management science in manufacturing, marketing, telecommunications, and many other fields. This new edition of the Handbook of Military and Defense Operations Research continues to present the voices leading OR and analytics to new heights in security through research, practical applications, case studies, and lessons learned in the field"--

This monograph offers key considerations for DoD as it works through the on-going defense review. The author outlines eight principles for a risk management defense strategy. He argues that these principles provide "measures of merit" for evaluating the new administration's defense choices. This monograph builds on two previous works-- Known unknowns: unconventional "strategic shocks" in defense strategy development and The new balance: limited armed stabilization and the future of U.S. landpower. Combined, these three works offer key insights on the most appropriate DoD responses to increasingly "unconventional" defense and national security conditions. This work in particular provides DoD leaders food for thought, as they balance mounting defense demands and declining defense resources.