Comments on H.R. 325

GAO was requested to comment on proposed legislation to provide for the inclusion of certain federal entities in the budget totals. GAO believes that early legislative action is needed to put the federally owned off-budget activities and spending into the budget's totals as soon as possible. It was noted that the bill does not provide for inclusion of the Synthetic Fuels Corporation in the budget totals. GAO believes that the entire activity of the Synthetic Fuels Corporation should be included in the unified budget totals. It also believes that the House Committee on Government Operations should start oversight activity during its hearings to determine whether the Board of Governors of the Federal Reserve System should be included under the provisions of the bill. Inclusion of language to realistically classify certificates of beneficial ownership as a sale of assets rather than borrowings would augment the bill's goal of bringing about honest budgeting.