Army Budget:

Potential Reductions to the Operations and Maintenance Budget

NSIAD-90-275BR: Published: Sep 10, 1990. Publicly Released: Sep 10, 1990.

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Pursuant to a congressional request, GAO reviewed the Army's justification for its fiscal year 1991 operation and maintenance (O&M) budget, focusing on two of its major commands, U.S. Army, Europe (USAREUR) and U.S. Army Forces Command (FORSCOM).

GAO found that there were $734 million in potential reductions, including $326 million from USAREUR and $407.8 million from FORSCOM, since the: (1) budget figures the Army submitted to Congress exceeded figures in budget planning guidance; (2) Army included costs to repair and maintain facilities at installations it planned to close; (3) Army did not consider the planned attrition of civilian personnel as a result of a hiring freeze; (4) Army lacked documentation to completely justify planned ground and air operating tempo amounts; and (5) Army cancelled some planned training exercises. GAO also found that the Army expected an O&M budget reduction between 5 and 10 percent and instructed its major commands to prepare for it.

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