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GAO discussed the Federal Aviation Administration's (FAA) programs and activities that provide the framework for its fiscal year 1994 budget request. GAO noted that: (1) the FAA Air Traffic Control Modernization Program has been weakened by cost increases and schedule delays; (2) FAA must field some systems, resolve the budgetary impact of its facility consolidation plan, and strengthen acquisition management to improve its management of the modernization program; (3) the primary challenges FAA faces are effective distribution of its air traffic controller work force among key facilities and targeting inspector resources to areas that need the most attention; (4) due to an increase in the number of new systems planned, FAA is evaluating various options to better utilize its existing maintenance work force; (5) FAA would be able to evaluate projects and allocate limited airport improvement funds among projects if it developed national goals to guide its Airport Improvement Program; and (6) FAA needs to resolve technical problems and industry concerns about cost before it can meet the expectations of Congress and the public.

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