Impoundments

Nine new rescissions and eight new deferrals were proposed in the President's seventh special message for fiscal year 1977.

The funds currently sought for rescission (R77-5) were included in an earlier deferral (D77-38). The sums deferred have been reduced by the amount of the proposed rescission. The rescission proposal R77-9, involving funds for Naval shipbuilding and conversion, includes some funds that have already been the subject of impoundment action. The remainder of the sum has already been obligated. The Small Business Administration advises that they cannot support the justification used for the proposed rescission of funds for that agency (R77-13). The indication in the message that none of the funds in a Federal Aviation Administration budget account would lapse if deferral D77-25A is not disapproved is incorrect. GAO thinks that there is sufficient legislative basis on which to initiate an Energy Extension Service program, although the lack of such authority was used as the justification for the proposed deferral of funds for the Energy Research and Development Administration (D77-49). The information provided in the remainder of the rescission and deferral proposals and supplementary reports is correct and the actions being proposed have been clearly and accurately stated.