About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-290600 1 (2002-07-10)

handle is hein.gao/gaocrptaogh0001 and id is 1 raw text is: ,Accountability * Integrity* Reliability B-290600 July 10, 2002 The Honorable Bill Young Chairman Committee on Appropriations House of Representatives Subject: Apportionment of Budget Authority for America West Airlines Dear Mr. Chairman: This responds to your letter dated May 20, 2002. You requested that we determine whether the Office of Management and Budget (OMB) violated the Antideficiency Act in apportioning $172 million of budget authority for airline loan guarantees authorized under Title I of the Air Transportation Safety and System Stabilization Act, Public Law 107-42, 115 Stat. 230 (2001). As explained in further detail below, both OMB and the Air Transportation Stabilization Board (ATSB), in January 2002, violated the Antideficiency Act. Four months later, in May 2002, the Administration corrected the violations. On June 25, 2002, ATSB reported to the Congress and the President that ATSB and OMB violated the Act, and that OMB had implemented procedures expected to ensure that a violation of this type does not occur again. Congress established the ATSB to review and decide on applications for federal credit instruments to air carriers. It is composed of the Secretary of Transportation, the Chairman of the Board of Governors of the Federal Reserve System, the Secretary of the Treasury, and the Comptroller General of the United States (a nonvoting member), or their designees. Pub. L. No. 107-42, § 102(b), 115 Stat. 231. The Comptroller General does not participate in the review, operations, or deliberations of the Board in connection with individual loan guarantees, or otherwise participate in the Board's exercise of any executive power. 14 C.F.R. § 1300.2. The Air Transportation Safety and System Stabilization Act authorized the President to issue up to $10 billion in federal credit instruments in the form of loan guarantees, and to provide the subsidy amounts necessary for such instruments,' to assist air 'Pursuant to the Federal Credit Reform Act, agencies are required to have budget authority in advance to cover the long-term costs of direct loans and loan guarantees. 2 U.S.C. § 661c(b). The cost of a loan guarantee (the subsidy cost) is the net present Continued

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most