Transition Issues:

Critical Issues and Problems Facing the New Administration and Congress

T-GGD-89-2: Published: Jan 18, 1989. Publicly Released: Jan 18, 1989.

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GAO discussed critical issues that Congress and the new administration must face if the government is to function well. GAO found that: (1) in 1988, the reported budget deficit of $155 billion consisted of a surplus of $97 billion in trust funds and a deficit in the general funds of $252 billion; and (2) unfunded costs included about $85 billion to solve the savings and loan crisis, between $100 billion and $150 billion to modernize and clean up the nuclear weapons production complex, modernization of several agencies' computer and telecommunications systems, and a military budget that doubled over 5 years. GAO believes that: (1) a broad restructuring and rebuilding of the government's overall financial management structure is essential and should be a top priority for the new administration and Congress; and (2) its transition reports include a variety of specific suggestions for governmentwide consideration on how to attract quality personnel for public service and improve the way the government manages its major computer and telecommunications systems, financial and budget affairs, and program evaluation information.

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