State Department: Options for Addressing Possible Budget Reductions
NSIAD-96-124
Published: Aug 29, 1996. Publicly Released: Aug 29, 1996.
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Highlights
Pursuant to a congressional request, GAO reviewed the Department of State's reform and cost-cutting efforts and identified options that would enable State to adjust to reduced budgets.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| If future funding levels require the State Department to close and reduce the size of posts, Congress may wish to establish an independent panel to review State's proposals in view of the: (1) potential financial benefits to the U.S. government; (2) impact on governmentwide interests and the many agencies that depend on State's services; and (3) potential opposition to closing posts. Although the criteria involved in closing and downsizing overseas diplomatic posts are different, a panel much like the Defense Base Closure and Realignment Commission established to review military installations may be useful. |
Closed – Implemented
|
The congressional committees with jurisdiction have considered action on this matter. State did not reject this approach outright. In its initial comments on the report, State said that GAO did a good job of outlining some approaches to reducing the number of posts. However, State also asserted that a diplomatic presence in all countries with which the United States has diplomatic relations continues to be important. |
| If Congress believes that ambassadors' authority over U.S. government resources should be expanded to reduce spending, it could explore with the executive branch how a pilot program, such as the one recommended by the National Performance Review, could be structured and implemented. |
Closed – Implemented
|
The congressional committees with jurisdiction have considered action on this matter. State is not planning to implement this approach. However, State's new mission performance planning effort for the FY 2000 budget year will directly incorporate the Chiefs of Missions and their country teams into the front end of the resource allocation process. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of State | The Secretary of State should develop a downsizing strategy that: (1) identifies critical and noncritical functions and their costs; (2) specifies the changes that would be necessary to adjust to potential funding levels; and (3) identifies what legislative actions or modifications to interagency agreements, if any, would be required to implement the changes. At a minimum, State should have a strategy that is based on out-year funding guidance from OMB. |
Closed – Implemented
In its initial comments on the report, State disagreed with the recommendation regarding the need to develop a strategy for adjusting to potential budget reductions. Commenting on another recent GAO report, State indicated that its position on this issue remained unchanged, and that the options GAO proposed for adjusting to reduced funding would, if implemented, seriously undermine America's foreign policy infrastructure. However, State is evaluating overseas presence in the context of "rightsizing" posts to better align with strategic objectives.
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Topics
Administrative costsAgency missionsBudget cutsCost controlFederal agency reorganizationFederal downsizingForeign policiesInteragency relationsProperty disposalStrategic planning