President's Third Special Message for Fiscal Year 1986

GAO reported on one rescission proposal in the President's third special message for fiscal year 1986 affecting $521 million in discretionary grants for urban mass transportation systems and $150 million in deferrals affecting budget authority for the President, the Department of Energy (DOE), and the Department of Transportation (DOT).

Of the $521 million in DOT funds proposed for rescission, $223 million is an impermissible reimpoundment and should be made available for obligation. GAO did not find that the passage of the Balanced Budget and Emergency Deficit Control Act was a basis for justifying reimpoundment. Of the $9 million of Maritime Administration funds proposed for rescission, $8 million is an impermissible reimpoundment. The current deferral proposes to transfer funds for a replacement training vessel to other activities but does not provide a substantial justification for the reimpoundment. DOE is converting the deferral of $38 million for energy programs to a rescission proposal and proposes using $27 million in deferred funds to defray costs in its technical information management programs. Appropriated funds for Sub-Saharan Africa were deferred pending review of the budget implications of the Balanced Budget Act. GAO identified no other information, except as noted, that would be useful to Congress in its consideration of the President's proposals.