Fiscal Year 1998 Budget Estimates for the U.S. General Accounting Office

During the past year, GAO marked two important milestones. Charles A. Bowsher retired as Comptroller General at the end of his 15-year term, and the agency celebrated its 75th anniversary. In fiscal year 1996, GAO issued more than 900 reports and testified about 200 times before various congressional committees. GAO's recommendations and audit findings resulted in financial benefits to the taxpayer of more than $17 billion as well as many improvements to government operations. As a result of a 25-percent budget reduction during fiscal years 1996 and 1997, GAO's staffing is at its lowest level since before World War II. To maintain its strong tradition of service to Congress and the nation, GAO is seeking an increase in its appropriation for fiscal year 1998. This increase will finance mandatory increases in pay and benefits, the rising cost of goods and services that the agency purchases, information technology upgrades, and maintenance and repair of GAO's headquarters building.

GAO noted that: (1) the increase included in its budget request is for mandatory pay and benefits increases, price-level increases to cover the higher costs of transportation, printing, supplies, personnel services, and other essential mission support goods and services, pay-related costs for promotions and employee recognition, which GAO has foregone in recent years, information technology upgrades, and maintenance and repair of GAO's headquarters building; (2) mandatory pay and benefit increases are the most important piece of its request; (3) without the funding to cover uncontrollable costs such as locality pay, cost of living, and personnel benefits incentives, GAO will have to reduce its staff level even further; (4) funding for promotions and employee recognition will help GAO to retain and recruit the talent needed to continue GAO support of Congress; and (5) if GAO is to maintain its long tradition of service to Congress, it needs the resources necessary to maintain a strong and effective organization.