Army Budget:

Potential Reductions to the Operation and Maintenance Budget

NSIAD-88-223: Published: Sep 29, 1988. Publicly Released: Sep 29, 1988.

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Pursuant to a congressional request, GAO evaluated the Army's: (1) justifications for its fiscal year (FY) 1989 operation and maintenance budget request; and (2) prior-year spending patterns to identify potential reductions and budget issues.

GAO found that: (1) the Army requested $22.085 billion for FY 1989 operation and maintenance, a 4.5-percent increase from its FY 1988 appropriation; (2) there were potential Flying Hour Program budget reductions of $12.4 million, based on the Army's historical underuse of funded flying hours, aircraft inventory adjustments, changes in aviator training requirements, and changes in aircraft cost factors; (3) increased aircraft cost factors offset those reductions by about $3.7 million; and (4) there were potential Force Modernization Program reductions of $5.9 million, based on a decrease in the number of fielded and sustained systems planned for FY 1989. GAO also found that Army operation and maintenance budget spending patterns included: (1) using mission funds for base operations activities; (2) using depot maintenance funds for central supply and transportation activities; (3) requesting funds for depot maintenance work for the succeeding FY; (4) using an overstated foreign exchange rate; and (5) reallocating unobligated funds to areas of congressional interest.

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