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B-133170 1 (1975-01-29)

handle is hein.gao/gaobaactm0001 and id is 1 raw text is: 

                  DIGEST - NO CTCUrATION                                   854

                  COMPTROLLER GENERAL OF THE UNITED STATES
                           WASHINGTON. D.C. 20151               / /,/



                                                        JAN 2 9 1975


       u.orable Geor&e El. Mahon, Chiruan
       ttee on Appropriations
         of Representastives

    hia Mr. Chairman:

        Your latter of January 13. 1975, requested our review of the
    S,::,ad,-4le-fty of a proposal by the Department of Defense
  r:0)o Proceed with Navy shipbuilding programs as presently
       tituted in spite of predicted funding deficits.

       The Navy shipbuilding prograiss woere funded in a total amount of
  4039. million, to remain available for five fiscal years, under
      , i beading Shipbuilding and Convrsion, Navy in title IVopf the
            t of   fenso Appropriation Act, 1975, approed October 8,
       * Pub. L. No. 93-437, 88 Stat. 1220. IndividWl progrms under
       bStpuildiS end Conversion, Navy heading wre funded in 1975
       esparat* lfte items, in accordance with the Department of Defense
            tino Author, )t.ion Act, 1975, approved August 5, 1974,
         g . o. 93o-365~ 0V  Stat. 39, 400.

         7he problem existing with rspect to the shipbuilding progrm
       WCi'e proposed action are described in a letter to you from the
          Secretory of Defense dated January 9, 1975. The Deputy
        tary's letter indicates that there in a predicted funding
        *it of $2#269 ml~lion through the years during which ships will
           Maket conditions, and necessary progam eb amps. Of the
         practed deficit, $1,34 uilIon applies to shipbuilding
       tas for fiscal year 1974 and prior years which are all under
   J~t An to this portion of the deficit, thes Deputy Secretary
        dAodg  to practice, the funding problem an the
        Fiscai Year 1974 and prior program will be budgeted
        Is the Fisal Year 1976 budget, with the Department
        t~questing new appropriations to restore those ship
        PtOgrm to a fually funded status. This procedure,
        4? th some reprogrimmig of existing finds to insure
        Proper allocation vithU .1ine items, allows those
    1t  Progran vith funding deo/ieucies to continue without



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