Budget Process: Biennial Budgeting for the Federal Government (Testimony,
04/28/94, GAO/T-AIMD-94-112).

GAO supports the provisions of S. 1824 that deal with multiyear
authorizations and biennial budget resolutions.  GAO believes that
multiyear fiscal policy agreements and multiyear authorizations make a
great deal of sense, but they do not require changing the appropriations
decision cycle for annual to biennial.  Although biennial appropriations
could save time for federal agencies, they also could shift control and
oversight over federal programs away from Congress.  Moreover, although
budgeting always involves forecasting, the longer the period of the
forecast, the greater the uncertainty.  Increased difficulty in
forecasting is one of the main reasons that states have switched from
biennial to annual cycles.  Dramatic changes in program design or agency
structure, such as those that Congress is considering in many areas,
will make budget forecasting even more difficult.  Moving from an annual
to a biennial appropriations cycle at the same time may be unwise, given
the potential for program changes that could require major budgeting
changes in the second year of a biennium.  If this were to happen,
biennial budgeting would exist only in theory.  In GAO's view, biennial
appropriations would hardly be a cure-all for the nation's budget
problems.  Congress will have to ask itself how it wants to exercise its
constitutional authority over appropriations and in what forum it will
conduct its oversight responsibilities.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-AIMD-94-112
     TITLE:  Budget Process: Biennial Budgeting for the Federal 
             Government
      DATE:  04/28/94
   SUBJECT:  Oversight by Congress
             Fiscal policies
             Future budget projections
             Proposed legislation
             Multiple-year budget authority
             State budgets
             Appropriations
             One-year budget authority
             Budget administration
             Congressional budgets
IDENTIFIER:  National Performance Review
             
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