President's Third Special Message for Fiscal Year 1986

OGC-86-5: Published: Feb 25, 1986. Publicly Released: Feb 25, 1986.

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GAO reviewed one deferral included in the President's third special message for fiscal year 1986. The deferral affects the Department of Energy's budget authority for the development, operation, and management of the Strategic Petroleum Reserve (SPR).

GAO found that: (1) $156.8 million of the deferred budget authority for the SPR account is a redeferral of budget authority that was subject to the 1985 proposal; (2) Congress considered and rejected the deferral in August 1985; (3) the President's 1985 and 1986 proposals state that the deferral resulted from a proposed indefinite moratorium on further development of the SPR; (4) the proposed deferral presents Congress with no new alternatives or considerations; (5) it would be inconsistent with the purpose of the Congressional Budget and Impoundment Control Act to allow the President to reimpound funds that were the subject of a previous impoundment; and (6) since the redeferral of $156.8 million is not permissible under the act, the funds must be made available for obligation.

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