1994 DOD Budget

In reviewing the military services' operation and maintenance budget requests for fiscal year 1994, GAO identified potential reductions and rescissions totaling about $6.7 billion. The potential reductions cover a variety of functions, everything from spare and repair parts to underseas surveillance and counter-drug efforts. The main reasons for the reductions include the following: An excessive amount of funds remained unobligated from prior years' appropriations. The budget request for fiscal year 1994 included an amount anticipating congressional cuts. The amount of funding that the services expect to receive from other countries was not offset against the fiscal year 1994 budget request. The services implemented cost-saving recommendations for improving inventory management that are not reflected in the fiscal year 1994 budget request. Factors affecting the requested budget amounts changed from the time the budget requests were submitted, and these changed factors reduced the amount of funds needed. The services expect to spend less than the amount of funds requested for the specific purposes used to justify the budgeted amount.

GAO found that: (1) potential reductions and rescissions to the services' 1994 O&M budget total $6.7 billion; (2) between fiscal years 1989 and 1992, the services had $1.197 billion in unobligated O&M appropriations; (3) budget requests are generally overstated to compensate for future requirements and reductions; (4) the Air Force's and Army's budget requests do not reflect anticipated burden-sharing payments received from Korea and Japan; (5) budget requests for spare parts do not recognize savings available through improved inventory management practices; (6) the services' budget requests for depot maintenance, travel funds, and pilot training flying hours are overstated; (7) funding for many Department of Defense (DOD) systems and drug interdiction efforts could be reduced due to their questionable effectiveness, viability, and continued need; (8) DOD could save substantial funding by increasing its use of existing cargo aircraft capacity and reducing its civilian personnel requests; (9) Congress could rescind funds for National Guard youth programs, special event security items, and the Navy's morale, welfare, and recreation programs; and (10) Congress could reduce the services' repair and maintenance budget requests due to an expected base closing.