Testimony issued by the General Accounting Office with an abstract that begins "The events of September 11 imposed new demands on the federal budget, while pent-up demands from years of fighting deficits remain. In the past, GAO has suggested four broad principles for a budget process. That process should (1) provide information on the long-term impact of decisions, both macro--linking fiscal policy to the long-term economic outlook--and micro--providing recognition of the long-term spending implications of government commitments; (2) provide information and focus on important macro trade-offs--e.g., between investment and consumption; (3) provide information to make informed trade-offs between missions and between the different policy tools of government; and (4) be enforceable, provide for control and accountability, and be transparent, using clear, consistent definitions. New rules and goals will be necessary to ensure fiscal discipline and to focus on long term implications of decisions. The federal government still needs a decision-making framework to evaluate choices between today's and future needs. Amending the current Budget Enforcement Act without setting realistic caps and addressing mandatory programs is unlikely to be successful because the original act used limited actions to achieve a balanced budget. A budget process appropriate for the early 21st century needs …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses (1) the status of the 2001 tax filing season, (2) the status of the Internal Revenue Service's (IRS) business systems modernization effort, and (3) the security of IRS' electronic filing system. GAO found that although the 2001 filing season appears to be running smoothly, some matters require further attention. For example, IRS has had problems with the personal identification number assigned to electronic filers. Although data indicate that taxpayers are having an easier time reaching IRS to ask questions, concerns persist about the productivity of its telephone assistors. With respect to business systems modernization, GAO has long held that IRS needs to establish fundamental modernization management controls before it begins to build and implement modernized systems. IRS has made some progress in this area, but it is still not where it needs to be. GAO is concerned that IRS is allowing its system acquisition projects to get ahead of its capabilities for managing them. Lastly, GAO's review of IRS' electronic filing systems last year showed that IRS had ineffective controls to ensure the security of those systems and electronically-transmitted taxpayer data. IRS moved promptly to …

Testimony issued by the General Accounting Office with an abstract that begins "We are pleased to be here today as Congress examines Medicare's financial health and consider the budgetary and economic challenges presented by an aging society. The Comptroller General has been particularly attentive to the sustainability challenges faced by the nation's two largest entitlement programs--Medicare and Social Security--for more than a decade since he served as a public trustee for these programs in the early 1990s. The recent publication of the 2003 Trustees' annual report reminds us, once again, that the status quo is not an option for Medicare. If the program stays on its present course, in 10 years Hospital Insurance (HI) Trust Fund outlays will begin to exceed tax receipts, and by 2026 the HI trust fund will be exhausted. It is important to note that trust fund insolvency does not mean the program will cease to exist; program tax revenues will continue to cover a portion of projected expenditures.1 However, Medicare is only part of the broader health care financing problem that confronts both public programs and private payers. The unrelenting growth in health care spending is producing a health care sector that continues to claim …

Testimony issued by the General Accounting Office with an abstract that begins "GAO discusses the progress the National Nuclear Security Administration (NNSA) has made in implementing title 32 of the National Defense Authorization Act for Fiscal Year 2000. Title 32 established NNSA as a semiautonomous agency within the Department of Energy (DOE) with responsibility for the nation's nuclear weapons, nonproliferation, and naval reactors programs. GAO found that the agency is making progress in implementing changes to its organization; planning, programming, and budgeting functions; and use of personnel authority. However, it will be several months before real, tangible evidence of these changes will be seen. And it may be several years before these changes are fully implemented and can be definitively assessed. Important work remains to be done in (1) establishing an organization that clearly defines the roles and responsibilities of headquarters and field staff, moves program management officials as close to the action as possible, and establishes clear lines of authority between NNSA and its contractors; (2) implementing an integrated planning, programming, and budgeting system that can deliver information to decision makers and Congress in time for the 2003 budget deliberations; and (3) overcoming obstacles to using NNSA's Expected Service …

Testimony issued by the General Accounting Office with an abstract that begins "The Federal Financial Assistance Management Improvement Act of 1999 is one of the most recent in a series of efforts to reform the federal grants management system. The act seeks to improve the effectiveness and performance of Federal financial assistance programs; simplify application and reporting requirements; improve delivery of services to the public; and facilitate greater coordination among those responsible for delivering such services. GAO has a responsibility to evaluate the implementation of this Act by 2005 and will soon begin developing an approach and methodology for the study. This testimony describes the problems fostered by proliferation and fragmentation, which the Act addresses indirectly."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the security of the nation's air transportation system, focusing on the Federal Aviation Administration's (FAA) efforts to implement and improve security in two key areas: (1) air traffic control computer systems; and (2) airport passenger screening checkpoints."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the steps needed to improve financial management at the Department of Defense (DOD), focusing on: (1) the impact of financial management weaknesses on DOD's ability to efficiently and economically carry out its operations; (2) efforts DOD has initiated, and additional actions that are necessary, to improve financial management systems and controls in the short term; and (3) enhancements needed in updating DOD's Biennial Financial Management Improvement Plan--its long-term blueprint for financial management reform."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed federal efforts to combat terrorism, focusing on the: (1) need to link threats to strategies and resources in federal efforts to combat terrorism; (2) need to improve federal and state intergovernmental coordination and program issues; and (3) findings of a report from the Advisory Panel to Assess Domestic Response Capabilities for Terrorism Involving Weapons of Mass Destruction--better known as the Gilmore Panel."

Testimony issued by the General Accounting Office with an abstract that begins "In the wake of the Enron collapse and the proliferation of earnings restatements and pro forma earnings assertions by other companies, questions are being raised about the soundness of private sector financial reporting, auditor independence, and corporate governance. In addressing these issues, the government's role could range from direct intervention to encouraging non-governmental and private-sector entities to adopt practices that would strengthen public confidence. GAO believes that Congress should consider a holistic approach that takes into account the many players and interrelated issues that brought about the Enron situation."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the management challenges facing the Office of Management and Budget (OMB), focusing on the broader challenges facing the nation and the federal government now and in the future and their implications for central leadership approaches in general, and OMB in particular."

Testimony issued by the General Accounting Office with an abstract that begins "Welfare reform significantly changed federal policy for low-income families with children and established a five-year lifetime limit on cash assistance. Welfare reform also extended transitional Medicaid assistance through 2001. States have implemented various initiatives to help families move from cash assistance to the workforce, including some enhancements to transitional Medicaid. These initiatives likely helped to cut cash assistance caseloads by more than half from 1996 through mid-2001. Low-wage or part-time jobs--which are common for newly working individuals--often do not come with affordable health insurance, thus making transitional Medicaid coverage an important option. The implementation of transitional Medicaid assistance varied across the 21 states that GAO reviewed. State practices enhanced beneficiaries' ability to retain Medicaid coverage. However, many families did not receive their full transitional Medicaid assistance benefits because they failed to report their income three times during the 12-month period of coverage. Amending the Medicaid statute to provide states with greater flexibility to ease income-reporting requirements, as has been done for other aspects of the Medicaid program, could facilitate uninterrupted health insurance coverage for families moving from cash assistance to the workforce."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the Customs Service's development of: (1) a Resource Allocation Model (RAM); (2) an Automated Commercial Environment (ACE); and (3) airline passenger personal search procedures."

Testimony issued by the General Accounting Office with an abstract that begins "DOD faces growing challenges in carrying out realistic training at installations and training ranges--land, air, and sea--because of encroachment by outside factors. These include urban growth, competition for radio frequencies or airspace, air or noise pollution, unexploded ordnance and munition components, endangered species habitat, and protected marine resources. Building on work reported on in 2002, GAO assessed (1) the impact of encroachment on training ranges, (2) DOD's efforts to document the effect on readiness and cost, and (3) DOD's progress in addressing encroachment."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony is based on a GAO report (GAO-02-156) that analyzed key characteristics of women and men in management positions, identified the representation of women in management positions in specific industries, and identified salary differences between men and women in full-time management jobs. Female managers in the 10 industries GAO examined were younger, less educated, were more likely to work part-time, and were less likely to be married than were male managers. In five of these industries, GAO found no statistically significant differences between the percent of industry positions filled by women and the percent of management positions filled by women. In four of the industries, women were less represented in management positions. In one of these industries, women were represented in management positions to a greater degree than they were in all positions in the industry. Full-time female managers earned less than full-time male managers in all 10 industries, after controlling for education, age, marital status, and race. GAO was unable to take years of experience into account."

Testimony issued by the General Accounting Office with an abstract that begins "Because of Amtrak's worsening financial condition, there is growing agreement that the current mission, funding, and structure for providing intercity passenger rail needs to be changed. Intercity passenger rail has the potential to complement other more heavily used modes of transportation in markets where rail transport can be competitive. The potential benefits include reduced air and highway congestion, reduced pollution caused by automobiles, reduced fuel consumption and energy dependency, and greater safety. Intercity passenger rail systems, like other intercity transportation systems, are expensive. Amtrak has called for $30 billion in federal capital support over 20 years to upgrade its operations and to invest in high-speed rail corridors. Amtrak also estimates that the cost to fully develop the 10 federally designated high-speed rail corridors and Amtrak's Northeast Corridor could exceed $50 billion over 20 years. Congress must determine if and how intercity passenger rail fits into the nation's transportation system. and what level of federal investment should be made in light of other competing national priorities. Key initial steps in this framework could include (1) establishing clear, non-conflicting goals for federal support of intercity passenger rail systems; (2) establishing …

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the: (1) impact of the year 2000 challenge on the nation's emergency and state and local law enforcement systems; and (2) Department of Justice (DOJ) and the President's Council on Year 2000 Conversion efforts to facilitate remediation and contingency planning and to gauge the year 2000 readiness of these two important sectors."

Testimony issued by the General Accounting Office with an abstract that begins "The District of Columbia Family Act of 2001 was enacted to (1) redesignate the Family Division of the Superior Court of the District of Columbia as the Family Court of the Superior Court, (2) recruit trained and experienced judges to serve in the Family Court, and (3) promote consistency and efficiency in the assignment of judges to the Family Court and in its consideration of actions and proceedings. GAO found the Superior Court made progress in planning the transition of its Family Division to a Family Court, but some challenges remain. The transition requires the timely completion of a series of interdependent plans to obtain and renovate physical space for the court and its functions. Adequate space may not be available to support the additional judges the Family Court needs. Furthermore, the development of the Integrated Justice Information System will be critical for the Family Court's operational effectiveness, its ability to evaluate its performance, and to meet the judicial goals mandated by the Family Court Act."

Testimony issued by the General Accounting Office with an abstract that begins "In response to concerns that some children were languishing in temporary foster care, Congress enacted the Adoption and Safe Families Act of 1997 (ASFA) to help states move children in foster care more quickly to safe and permanent homes. ASFA contained two key provisions: (1) the "fast track" provision allows states to bypass efforts to reunify families in certain egregious situations and (2) the "15 of 22" provision requires states, with a few exceptions, to file a petition to terminate parental rights (TPR) when a child has been in foster care for 15 of the most recent 22 months. Representative Wally Herger, Chairman of the House Ways and Means Subcommittee on Human Resources asked GAO to review (1) changes in outcomes for children in foster care since ASFA was enacted, (2) states' implementation of ASFA's fast track and 15 of 22 provisions, (3) states' use of two new adoption related funds provided by ASFA, and (4) states' initiatives to address barriers to achieving permanency"

Testimony issued by the General Accounting Office with an abstract that begins "Federal, state, and local governments share responsibility for terrorist attacks. However, local government, including police and fire departments, emergency medical personnel, and public health agencies, is typically the first responder to an incident. The federal government historically has provided leadership, training, and funding assistance. In the aftermath of September 11, for instance, one-quarter of the $40 billion Emergency Response Fund was earmarked for homeland security, including enhancing state and local government preparedness. Because the national security threat is diffuse and the challenge is highly intergovernmental, national policymakers must formulate strategies with a firm understanding of the interests, capacity, and challenges facing those governments. The development of a national strategy will improve national preparedness and enhance partnerships between federal, state, and local governments. The creation of the Office of Homeland Security is an important and potentially significant first step. The Office of Homeland Security's strategic plan should (1) define and clarify the appropriate roles and responsibilities of federal, state, and local entities; (2) establish goals and performance measures to guide the nation's preparedness efforts; and (3) carefully choose the most appropriate tools of government to implement the national strategy …

Testimony issued by the General Accounting Office with an abstract that begins "Gasoline prices in West Coast states are frequently among the highest in the nation and these states tend to see longer periods of high prices compared with other parts of the country, the West Coast gasoline market is characterized by a tight balance between supply and demand, and isolation from other U.S. gasoline markets. Both of these situations cause rapid price increases in reaction to supply disruptions. GAO's comparisons of gasoline prices in California, Oregon, and Washington found that individual markets in the three states are closely linked and are essentially part of a single market for gasoline on the West Coast. Gasoline prices for cities in these states generally followed similar patterns with respect to price increases and decreases. As a result, any event that a significantly changed prices in one state could affect gasoline prices in other West Coast states. Although California, Oregon, and Washington are essentially part of the same West Coast market, each state has attributes that tend to increase its respective gasoline prices. Moreover, within any given state, local market conditions may cause prices to vary considerably. GAO's analysis found that lifting the …

Testimony issued by the General Accounting Office with an abstract that begins "GAO is a key source of objective information and analyses and, as such, plays a crucial role in supporting congressional decision-making and helping improve government for the benefit of the American people. This testimony focuses on GAO's (1) fiscal year 2002 performance and results, (2) efforts to maximize our effectiveness, responsiveness and value, and (3) our budget request for fiscal year 2004 to support the Congress and serve the American public."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the implementation of the Paperwork Reduction Act of 1995 (PRA). The data indicate that federal paperwork increased by nearly 180 million burden hours during fiscal year 2000--the second-largest one-year increase since the act was passed. This increase is largely attributed to the Internal Revenue Service (IRS), which raised its paperwork estimate by about 240 million burden hours. The rest of the government decreased its burden estimate by about 70 million burden hours during the fiscal year. Within that non-IRS grouping, some agencies were more successful than others in reducing their paperwork estimates and some increased their estimates. In addition, federal agencies identified a total of 487 violations of the PRA during fiscal year 2000--fewer than the 710 they identified during fiscal year 1999. These 487 violations, however, represent substantial opportunity costs and many have persisted for years. GAO believes that the Office of Management and Budget can do more to ensure that agencies do not use information collections without proper clearance."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the status of the FTS 2001 long distance telecommunication program. The General Services Administration (GSA) failed to meet its goal of completing the transition from FTS 2000 to the FTS 2001 contracts by December 6, 2000. Several factors contributed to the delays, including staffing shortages and turnover, contractor billing problems, and contract-related modifications. As of April 11, 2001, the overall FTS 2001 transition was about 92 percent complete. The transition of voice services from FTS 2000 and FTS 2001 is almost entirely complete and switched data services and dedicated transmission services are about 82 and 88 percent complete, respectively. The remaining transition requirements are scheduled for completion by the end of June 2001. Nevertheless, the collective effect of delays encountered during this complex transition has jeopardized the timely achievement of FTS 2001's goals of (1) ensuring best service and price to the government and (2) maximizing competition. GSA has taken steps to position the FTS 2001 program for greater success, including developing better telecommunications planning procedures and improving contractor billing. This testimony summarizes a March 2001 GAO report, GAO-01-289."

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed quality-of-care and consumer protection issues in assisted living facilities in California, Florida, Ohio, and Oregon, focusing on: (1) residents' needs and the services provided in assisted living facilities; (2) the extent to which facilities provide consumers with sufficient information for them to choose a facility that is appropriate for their needs; (3) the four states' approaches to oversight of assisted living; and (4) the types of quality-of-care and consumer protection problems they identify."