Questions Pertaining to the Surface Transportation Act

GAO was asked to comment on sections of the Surface Transportation Assistance Act of 1982. Specifically, GAO was asked whether: (1) the Coast Guard is authorized to spend $45 million each fiscal year in advance of appropriations and, if so, whether it is required to wait for contract liquidation authority from the Appropriations Committee before obligating money to the states; (2) the Coast Guard would be liable to contracting parties if it obligates money to the states and, within the same fiscal year (FY) the Appropriations Committee limits the amount of funds available for contract liquidation; and (3) the Coast Guard could automatically expend up to $45 million, if the Administration's deferral of $40 million authorized to be expended in FY 1983 is rejected by Congress. GAO stated that: (1) the Coast Guard is authorized to obligate each FY for assistance for state recreational boating safety programs up to $45 million in the National Recreational Boating Safety and Facilities Improvement (NRBF) Fund in advance of appropriations, but it can only liquidate those obligations to the extent provided in its applicable appropriations act; (2) if the amounts appropriated to liquidate obligations are not sufficient to cover obligations to the states, the United States, through the Coast Guard, would probably be found liable by a federal court; and (3) if the Administration's proposed deferral of $40 million is rejected by Congress, the Coast Guard must make available for obligation in FY 1983 up to $45 million or any lesser amount in the NRBF fund.