Pursuant to a congressional request, GAO reviewed the fiscal constraints that the Coast Guard is facing and the efforts that it is making to adjust to constrained budgets, focusing on: (1) the extent of the gap between the funding needed to maintain the Coast Guard's current level of services and the funding that the Office of Management and Budget (OMB) has targeted for the agency through fiscal year (FY) 2002; (2) the Coast Guard's strategy for addressing this gap, and whether the strategy is adequate; and (3) what additional actions, if any, would help close the gap. GAO did not verify the accuracy of or attempt to validate the Coast Guard's estimates for future acquisition needs.
Matter for Congressional Consideration
|If future funding levels require the Coast Guard to consider closing operational units such as small boat stations, air stations, marine safety offices, or training centers, the Congress may wish to establish an independent panel to review potential agency facilities closures in view of the: (1) potential financial benefits; (2) impact on beneficiaries of services currently provided; and (3) potential opposition that inevitably accompanies consolidation and closure decisions. A panel much like the Defense Base Closure and Realignment Commission established to review military installations may be useful to address these issues.||The Congress has yet to take action on this recommendation in the over four years since it was made.|
|If the Congress believes that potentially controversial issues within the Coast Guard, such as changing military rotation policies or converting more military positions to civilian positions, merit further consideration, the Congress may wish to: (1) direct the Coast Guard to commission an outside study of these options; or (2) otherwise ensure either that the options are reviewed independently or that the Coast Guard's studies of controversial internal issues are validated by a third party.||The Congress has yet to take action on this recommendation in the over four years since it was made.|
Recommendations for Executive Action
|Department of Transportation||1. The Secretary of Transportation should direct the Commandant of the Coast Guard to incorporate the following approach into the Coast Guard's strategy for confronting and managing possible changes in the current budget climate: to the maximum extent possible, quantify the anticipated year-by-year savings from actions already under way or planned, such as specifying the future savings realized by replacing old vessels with fewer new ones and implementing alternative vessel inspection methods.|
|Department of Transportation||2. The Secretary of Transportation should direct the Commandant of the Coast Guard to incorporate the following approach into the Coast Guard's strategy for confronting and managing possible changes in the current budget climate: develop a more comprehensive strategy and corresponding plan for addressing impending budget targets, including systematically identifying and prioritizing alternatives that could be considered if future budget targets require additional spending reductions. In so doing, the Coast Guard should give serious consideration to relevant but unimplemented recommendations from past studies and options identified in its recent National Streamlining Study. The agency should also identify the legislative actions necessary to implement these alternatives. Particularly in light of the large anticipated backlog of capital projects, the Coast Guard should consider including a reassessment of its missions and its relationship to user groups as part of this activity.|