Deficit Reductions For Fiscal Year 1988

Pursuant to a legislative requirement, GAO reviewed the Office of Management and Budget's (OMB) reports and the President's orders of October 20 and November 20, 1987 to determine if they complied with the Balanced Budget and Emergency Deficit Control Act of 1985.

GAO found that: (1) the majority of the reports and orders substantially complied with the act's requirements; (2) OMB incorrectly determined that the Railroad Supplemental Annuity Pension Fund was not an exempt account; (3) OMB properly excluded two assistance programs from its baseline for the Compact of Free Association Act of 1985, but should have included $16 million in budget authority for two other programs; (4) the OMB baseline for the United States Information Agency's radio construction account incorrectly reflected $20 million in permanent indefinite budget authority; and (5) OMB improperly reported expected savings of $18.2 million for the Corporation for Public Broadcasting. GAO expressed concern about the quality, timeliness, and reliability of the financial data underlying the budget process, since it affects: (1) decisionmaking and policy formation; (2) the act's implementation; and (3) deficit estimates and allocations. GAO believes that some short-term adjustments to the budget may provide temporary relief, but negatively affect long-term problems.