Corps of Engineers Benefit-Cost Analysis for the Elk Creek Project

GAO discussed the results of its review of the Army Corps of Engineers' benefit-cost analysis for a project in Elk Creek, Oregon, designed to provide flood control, water supply, recreation, irrigation, area redevelopment, fish and wildlife enhancement, and water quality control benefits. Although the Corps estimated that the project would produce an excess of benefits over costs, questions were raised during the review relating primarily to the changing conditions of the area since the Corps' computation of the benefits. GAO found that, since the Corps does not reevaluate project benefits and costs each year to reflect changing conditions, in many cases the benefits do not reflect the current conditions of the area and the effect those conditions will have on the project. GAO recommended that the Corps resolve this matter and recalculate project benefits and costs so that, when further funding is being considered, Congress will have current information on the economic feasibility of the Elk Creek Project.