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Program Budget Decision (PBD)

DAU GLOSSARY DEFINITION

1.) A budget decision document issued during the joint review of Service budget submissions by analysts of the Office of the Secretary of Defense (OSD) and the Office of Management and budget (OMB). RMDs reflect the decisions of the Secretary of Defense (SECDEF) as to appropriate program and funding to be included in the annual defense budget request which, in turn, is included in the President's Budget (PB). 2.) A document including the decisions by the Secretary of Defense (SECDEF) reflecting broad strategic trades related to the program and resource levels identified in the Program Objectives Memorandum (POM).

Alternate Definition
A Program Budget Decision (PBD) is the official DoD decision document, usually signed by the SECDEF or DEPSECDEF, to reflect decisions made during the Budgeting Phase of the DOD PPBE. The Budget Review is conducted by analysts of the Office of the Under Secretary of Defense (Comptoller) and the Office of Management and Budget (OMB). PBDs reflect the decisions of the Secretary of Defense as to appropriate program and funding to be included in the annual Defense Budget request which, in turn, is included in the President‘s Budget. (Source: DoD 7000.14-R Financial Management Regulation, Vol 2A, Chapter 1). In 2009, at the inception of the Integrated Program/Budget Review, PBDs and PDMs (Program Decision Memorandum) were replaced by a single document called a Resource Management Decision (RMD) document. Beginning in with the FY 2018-2022 PPBE cycle the RMD was be replaced and the Department reverted back to using PDMs as the decision document for the Program review and PBDs as the decision documents for the Budget Review.
Figure 1 shows the relationship of PDM and PBD activity to other activities in the PPBE process.
General Information

After submission of the DoD Components’ and Defense Agencies’ Budget Estimate Submission (BES) in early September, budget analysts from the Under Secretary of Defense, (Comptroller) (USD(C)) and budget examiners from OMB conduct a joint review which lasts until early December. The OUSD(C) and OMB review emphasizes proper budget justification and execution. OSD decisions pertaining to BES issues are incorporated into a PBD.

 

Following a thorough review of the BES and the questions/answers from the OUSD(C)/OMB budget hearings, each OUSD(C) analyst normally prepares draft Program Budget Decisions for the appropriations and/or programs under his/her oversight. These draft Program Budget Decisions would adjust the funding submitted in the BES. Budget issues address primarily the budget year, although effects on the current year and the four out-years may be included.

 

Before a Program Budget Decision is signed, a “draft” or “advance” version is usually coordinated throughout the OSD staff. The draft PBD is also provided to the Services and Defense Agencies for comment (i.e., a reclama and, if desired, an alternative position). The affected Service Secretary or Head of Defense Agency is given an opportunity to disagree with the draft budget decision recommendation and provide supplemental or new information that addresses the basic argument and assumptions of the draft budget issue. The time available for this reclama process is extremely limited: normally no more than 96 hours from when the OUSD(C) releases the draft. In addition to the Component directly affected by the issue, other interested DoD organizations and OSD staff elements may respond to the draft PBD issue during the reclama coordination process. Specifically for acquisition programs, the offices of USD (Acquisition, Technology & Logistics) and Director, CAPE may develop reclamas or alternative positions to the draft budget issues that impact such programs.

 

After considering the information in the submitted reclamas (and alternative positions, if any) , the OUSD(C) analyst may choose: (1) not to go forward with the issue; (2) to submit the issue after modifying it; or (3) to submit the issue as originally drafted. If the analyst decides to submit the issue (either in the original or modified version), a summary document is prepared that includes the information supporting the draft issue as well as all submitted reclamas. The issue incorporated in with the other budget issues which are provided to the Deputy Secretary of Defense (DEPSECDEF), who normally makes the final decision by signing the PBD. The DEFSECDEF will usually choose between the USD(C) recommendation or one of the alternative positions.

 

Although it is rare, after the PBD is signed, each Service Secretary may have the opportunity to re-address a decision reflected in a signed PBD. This is the Major Budget Issue (MBI) process wherein the respective Service Secretary can meet with the SECDEF to identify a very major issue considered by that Service to be “absolutely essential”. Services generally are required to provide funding offsets from other programs within that Service to “buy back” those limited number of “essential” programs previously reduced by the signed PBD. Decisions resulting from these meetings would be reflected in another signed PBD. The MBI process usually occurs in the latter part of December.

 

The Services revise their budgets to incorporate the decisions from the budget review process (signed Budget RMDs PBDs) for inclusion in the President’s Budget (PB). After a “top line” meeting between the SECDEF, Director of OMB and the President, the PB is finalized in early January and submitted through OMB for consolidation with budget requests from all other federal agencies to Congress no later than the first Monday in February. The Future Years Defense Program (FYDP) is also updated to reflect the PB. These actions end the Budgeting Phase of PPBE and begin the Congressional Enactment process.