Deferrals of Budget Authority for Water Resources Projects

Two Presidential deferrals of budget authority totaling $12.6 million that had been provided for water resources projects to be undertaken by the Corps of Engineers and the Bureau of Reclamation were investigated.

The administration originally deferred $7.76 million of fiscal year (FY) 1977 funds for Corps of Engineers construction projects. These funds were for major contracts which were scheduled for award before the completion date of the President's review of all water resources projects. The Office of Management and Budget is currently deferring only the funds for the Meramec Park Lake project, which accounts for $2.665 million of the originally deferred amount. Funds for the other projects were apportioned on March 14, 1977. The contractor for one project has been notified to begin work; bids for the other projects have been received, and those contracts should be awarded as scheduled. The deferral for the Colorado River Basin Project under the Bureau of Reclamation was in effect for only a short time. The $4.79 million designated for the project was released on March 15, 1977. The award of the contract for this project was delayed by 4 days. Funds for the water resources projects have been apportioned, but some delays in the use of the FY 1977 budget authority may be occurring as a result of actions at the agency level pending completion of the President's review of the programs.