Coast Guard: Issues Related to the Fiscal Year 1996 Budget Request

GAO discussed the Coast Guard's fiscal year (FY) 1996 budget request. GAO noted that: (1) the Coast Guard's FY 1996 budget request is 2.8 percent higher than its FY 1995 budget and reflects an average annual increase in the budget since FY 1992; (2) most of the increase is for acquisition, construction, improvements, and retirement costs; (3) a number of Coast Guard initiatives have reduced potential FY 1996 expenditures by $38 million; (4) greater savings could be realized through streamlining and reducing the Coast Guard's organizational structure; (5) reducing the number of small boat units could produce $6 million in savings without significantly reducing boating safety; (6) improved inventory management could produce additional savings; and (7) additional actions such as consolidating or closing air stations, using alternative financing options, and merging supply systems with the Department of Defense could further reduce the Coast Guard's FY 1997 budget request.