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OGC-81-5 1 (1981-03-11)

handle is hein.gao/gaobabbql0001 and id is 1 raw text is: 
                                                   I114


                     COMPTROLLER GENERAL OF THE UNITED STATES
                             WASHINGTON o.C. 2054


B-200685                                  March 11, 1981




To the President of the Senate and the
Speaker of the House of Representatives           114637

     On February 13, 1981, the kresident's fifth special message
for fi-se  yee-r 1981 was transmitted to the Congress pursuant to
the Impoundmient Con -rol Act of 1974. The special message con-
tained 38 deferral proposals. These proposals are comprised of
a conversion of the 33 rescissions proposed by the Carter Admin-
istration to deferrals, four new deferrals, and a revision to
one previously transmitted deferral.

     The Carter Administration proposed 33 rescissions (R81-1
through R81-33), involving $1,142.4 million in budget authority,
in the President's third special message for fiscal year 1981,
dated January 15, 1981. The Reagan Administration proposes in
this message to convert those rescission proposals to deferral
proposals (D81-42 through D81-70, D81-73, D81-74, D81-77, and
D81-78).

     We find nothing in the Impoundment Control Act which pre-
cludes a President from withdrawing pending rescission propo-
sals and converting them to deferral proposals. We are advised,
and have no reason to question, that the conversion to deferrals
is a temporary action for the purpose of allowing the new Admin-
istration an opportunity to review and revise the rescission
proposals within the context of the new President's overall
economic plan. We are further advised that the temporary con-
version to deferrals will not be used to attribute to the Presi-
dent a new 45-day withholding period if the original proposals,
or an amended version of them, are resubmitted at a later date.
We agree that the temporary conversion should only toll the run-
ning of the 45-day withholding period. Therefore, since 22 days
had run before this message was submitted, any resubmitted
rescission proposals are expected to be subject to a 23-day with-
holding period.

          UNITED STATES POSTAL SERVICE

D81-77    Postal Service Fund
           18X1001

     One of the 33 conversions concerns a proposal involving the
appropriation to the United States Postal Service for the Postal
Service Fund. The Postal Reorganization Act of 1970, Pub. L.


OGC-81-5

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