NASA

NASA's largest programs may consume an increasing share of its limited future budgets. Additional unplanned cost growth typical of NASA research and development programs may push funding needs for these programs even further. Under this scenario, NASA would have to cut funds originally meant for other programs. NASA is now reviewing the costs of all its major programs and plans to make appropriate adjustments to ensure a balanced overall space and aeronautics program within budget realities. The results of this effort, however, may not be known until NASA submits its fiscal year 1994 budget proposal. NASA's strategic plan, prepared last year before the appointment of the current administrator, did not address the mismatch between the agency's 5-year program plan and potential budget. The new administrator plans to give top priority to creating a new strategic plan. Information provided to Congress on NASA's future program cost estimates could be improved. Although program plans cover 5 years, NASA provides Congress with funding estimates for only 1 year beyond the current budget request. This time frame is too short to provide Congress with the broad view necessary to anticipate program funding needs and make forward-looking decisions.

GAO found that: (1) the largest of NASA programs, such as the space shuttle, Space Station Freedom, and Earth Observing System, may require nearly all of the potential NASA appropriation by fiscal year (FY) 1997; (2) other budget areas may have large future funding demands; (3) NASA is reviewing its major programs with the view of reducing their cost and making appropriate adjustments to balance its overall space and aeronautics program with budget realities; (4) NASA 5-year planning estimates may be too optimistic in face of a 5-year domestic spending freeze; (5) major program growth may exacerbate the budget shortfalls and jeopardize funding for other NASA activities; (6) the NASA Vision 21 strategic plan does not accurately project the current programs' resource needs or likely future available funding; (7) Vision 21 is inconsistent with the executive branch's FY 1993 budget submission and several criteria mandated by Congress, but NASA is addressing the latter issue; and (8) NASA could improve its program status reports by including anticipated 5-year funding projections and life-cycle cost estimates in the funding section.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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