Assume that the IT budget for a government branch office includes the following appropriation:

Appropriation for:	Year 1 (Current fiscal year)	Year 2	Year 3	Total
New software program development costs	$750,000	$675,000	$325,000	$1,750,000

What does the total amount of $1,750,000 best represent for this government branch office?

		The office is fully authorized to spend $750,000 on IT costs in Year 1, plus up to $1,000,000 more for unforeseen costs.
		The office needs final legislative approval in order to begin incurring any costs on this budget item.
		The office is fully authorized to spend $750,000 on new software program development costs, and can spend another $1,000,000 in years 2 and 3 with further approval in future.
		The office is fully authorized to spend up to $1,750,000 on new software program development costs over the next three years.