National Commission for Student Financial Assistance Fiscal Year 1982 Funding Level

A decision was requested concerning the funding level for the National Commission on Student Financial Assistance. The submission suggested that the funding level of the Commission provided for in the continuing resolution should be $240,000, an amount which equals the fiscal year 1981 funding level for the Commission less the 4-percent reduction required by the continuing resolution. The Commission took the position that its appropriation for fiscal year 1982 is $960,000. GAO requested the views of the Commission and the Office of Management and Budget (OMB) about the 1982 funding level of the Commission. Both agencies indicated that the current rate of operations of the Commission in 1982 should be $250,000 per quarter, or $1,000,000 for the entire fiscal year, less 4 percent. Their conclusion was based on legislation, which they assert was enacted for the last quarter of fiscal year 1981 and therefore reflected only a partial year's appropriation. Additionally, OMB asserted that the effect of funding the Commission at only $240,000 in fiscal year 1982 would be to force the Commission out of existence; a result which OMB contended is not in accord with congressional intent. GAO held that the funding level of the Commission, under the continuing resolution for the fiscal year 1982, is $960,000. In fiscal year 1981 the appropriation for the Commission was apportioned for use only in the fourth quarter of the fiscal year. Therefore, to determine the current rate of operations for the Commission it is necessary to annualize the partial-year amount over the full fiscal year. Reducing this amount by 4 percent as required by the continuing resolution results in a funding level of $960,000.