1997 DOD Budget

This report evaluates the military services' and the Defense Department's (DOD) fiscal year 1997 operation and maintenance and budget requests, which total $79 billion. GAO's objective was to determine whether the operation and maintenance accounts should be funded in the amounts requested. GAO reviewed operation and maintenance activities managed by the Army, the Navy, the Air Force, and DOD. GAO also reviewed operation and maintenance activities managed by U.S. Army, Europe; U.S. Force Command; Air Combat Command; and the Atlantic and Pacific Fleets. These activities were selected for review because (1) operation and maintenance funding levels are increasing, (2) ongoing and issued reports by GAO and DOD audit agencies disclosed programmatic issues with operation and maintenance implications, or (3) congressional committees expressed interest.

GAO found that: (1) GAO identified potential budget reductions of about $3.4 billion to the FY 1997 O&M budget requests; (2) the FY 1997 Army, Navy, and Air Force budgets for spare parts could be reduced by $723 million; (3) the Army, Navy, and Air Force O&M budget requests for bulk fuel could be reduced by $522.3 million; and (4) in view of an overall trend in inaccurately establishing either requested amounts or obligations for specific projects, Congress could reduce the services' O&M funding request to amounts that more accurately reflect what is actually needed. GAO also found other potential reductions in budget requests involving: (1) aircraft storage; (2) Defense Business Operations Fund pass-throughs; (3) civilian personnel requirements; (4) Army operating tempo; (5) U.S. Transportation Command; (6) environmental restoration; (7) flying hours; (8) Air Force aircraft basing; (9) real property maintenance; (10) Hunter Unmanned Aerial Vehicle System; (11) training rotations at the National Training Center and the Joint Readiness Training Center; (12) Army Prepositioning Afloat Program; (13) fuel tax refunds; (14) Bosnia operations; (15) ammunition maintenance; (16) mine hunter ships; and (17) morale, welfare, and recreation.