United States General Accounting Office

GAO Report to the Committee on Science,

House of Representatives

March 1998 NATIONAL WEATHER

SERVICE

Events Surrounding

Fiscal Year 1997

Budget

GAO/AIMD-98-69

GAO United States

General Accounting Office

Washington, D.C. 20548

Accounting and Information

Management Division

B-277958 

March 4, 1998

The Honorable F. James Sensenbrenner, Jr.

Chairman

The Honorable George E. Brown, Jr.

Ranking Minority Member

Committee on Science

House of Representatives

This report responds to your request that we review key events related to

the fiscal year 1997 budget “shortfall” of the National Weather Service

(NWS), a component of the National Oceanic and Atmospheric

Administration (NOAA) within the Department of Commerce. Although NWS

was able to operate within its appropriated level in fiscal year 1997, it had

to operate with a smaller budget than 1996 and absorb increased costs.

NWS referred to this difference in available funds as a budget “shortfall.”

The objectives of our review, based on subsequent discussions with your

offices, were to (1) describe the formulation and execution of the NWS

fiscal year 1997 budget and (2) identify key events regarding NWS’ fiscal

year 1997 budget “shortfall” and efforts to address it. We did not assess the

impact of NWS’ reduced budget on NWS’ ability to meet its mission

effectively.

Results in Brief Based on guidance provided by the department and the Office of

Management and Budget (OMB), NOAA prepared a fiscal year 1997 budget

proposal for each of its components—including NWS. The Department of

Commerce reviewed this proposal and asked OMB to include $693 million

for NWS in the President’s budget. Based on OMB’s direction regarding

NOAA-wide and NWS-specific reductions, this request was revised to the

$671 million that appeared in the President’s budget submission to the

Congress. The Congress further reduced this amount, enacting

appropriations that included $638 million in fiscal year 1997.

Although NWS believed it had a budget “shortfall” because of the reductions

that OMB and the Congress made to its fiscal 1997 budget request, as well

as inflationary and other cost increases, NOAA and NWS reported varying

amounts to the Congress about the size of this “shortfall.” Consequently,

some Members of Congress were confused by the varying amounts of the

reported “shortfall.” According to NOAA and NWS officials, the information

provided to the Congress responded to specific questions asked at

particular points in time and did not necessarily include all known

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elements of the “shortfall.” NWS ultimately succeeded in staying within its

fiscal year 1997 budget level by implementing a number of temporary and

permanent actions.

Other events associated with the “shortfall” raised concerns among

department officials and the Congress. The first event centered on an NWS

reprogramming request to NOAA and NWS’ intention to start filling critical

field vacancies prior to receiving NOAA authorization. NWS assumed that the

reprogramming request would be approved by Commerce and funds

would be available to fill these vacancies. NOAA, however, informed NWS

that the vacancies could not be filled because the reprogramming request

had not yet been approved.

The second event involved NWS’ effort to obtain certification approval from

NOAA to consolidate, automate, and/or close weather service offices. Upon

learning that NWS would not be able to fill critical field vacancies, NWS

recommended to NOAA that selected certification packages be held back

because, according to NWS, this would have resulted in a degradation of

weather services at certain locations. NWS had assumed that these

vacancies would be filled when the certification packages were forwarded

to NOAA for approval. However, in commenting on a draft of this report, the

Department of Commerce noted that the certification packages, as

submitted by NWS on April 22, 1997, did not indicate that there were

vacancies in these offices that would preclude proceeding with

certification. Likewise, no link was made during this time between the

ability to proceed with certification and the need for reprogramming

approval by the Congress. NOAA subsequently did not take action on any of

the certification packages NWS sent to it in 1997.

Background The primary mission of NWS is to help protect life and property by

providing weather and flood warnings, public forecasts, and advisories for

all of the United States, adjacent waters, and ocean areas. NWS operations

also support other agencies’ missions and the nation’s commercial

interests. For example, NWS provides weather forecasts and warnings to

support aviation and marine safety.

To fulfill its mission, NWS uses a variety of systems and manual processes

in collecting, processing, and disseminating weather data to and among its

network of field offices and regional and national centers. Many of these

systems and processes are outdated. NWS began a nationwide

modernization program in the 1980s to upgrade observing systems, such as

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satellites and radars, and design and develop advanced computer

workstations for weather forecasters. The goals of the modernization are

to achieve more uniform weather services across the nation, improve

forecasts, provide better detection and prediction of severe weather and

flooding, permit more cost-effective operations through staff and office

reductions, and achieve higher productivity.

In conjunction with its modernization, NWS plans to restructure its field

offices, reducing their number from 256 to 119. However, delays in

implementing the Advanced Weather Interactive Processing System have

slowed progress in office restructuring. NWS now expects the

modernization to be completed before the end of fiscal year 1999.

In the past, we and others have identified several weaknesses in NWS’

actions to modernize its operations and manage its information technology

resources. In February 1995, we designated the NWS modernization as an

area of high risk due to its cost, complexity, past problems, and criticality

to the NWS mission.1

 Because of continuing concerns over cost increases

and schedule delays associated with the modernization, it remains in the

high-risk category today.2

NOAA has also been plagued by financial management problems. For

example, Commerce’s Office of the Inspector General noted in

February 1997 that NOAA could not provide all the financial information

required by the Chief Financial Officers Act of 1990, as expanded by the

Government Management Reform Act of 1994, or ensure the accuracy of

certain components of financial information in its consolidated financial

statements. The independent certified public accounting firm auditing

NOAA’s fiscal year 1996 financial statements was unable to express an

opinion on these statements due to inadequacies in NOAA’s accounting

records and internal controls. The auditors identified 11 material

weaknesses in NOAA’s internal controls, including budgetary execution

transactions that were not supported or reconciled. The auditors

recommended that NOAA focus on communicating the importance of

financial management and fiscal responsibility to its program offices.

Scope and

Methodology

To describe key events related to the formulation and execution of NWS’

fiscal year 1997 budget, we examined guidance developed by OMB,

including the communication of budget requests and apportionments, as

1

High-Risk Series: Overview (GAO/HR-95-1, February 1995).

2

High-Risk Series: Information Management and Technology (GAO/HR-97-9, February 1997).

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well as congressional guidance provided in appropriation acts and

accompanying congressional committee reports on the execution of NWS’

budget. We also obtained and reviewed relevant budget documents for

NWS, including its budget request and its requests for the reprogramming of

funds.

To identify key events regarding NWS’ fiscal year 1997 budget “shortfall”

and efforts to address it, we examined records of communication among

NWS, NOAA, and Commerce, as well as communications to the Congress.

This included memoranda, briefings, electronic messages, and statements

to the Congress.

We interviewed Commerce, NOAA, and NWS budget and program officials to

identify key events related to the NWS budget for fiscal year 1997. We also

examined relevant reports, such as An Assessment of the Fiscal

Requirements to Operate the Modernized National Weather Service During

Fiscal Years 1998 and 1999.

3

 We also reviewed the audit report prepared

by the Department of Commerce’s Office of Inspector General and an

independent certified public accounting firm on NOAA’s fiscal year 1996

financial statements, dated February 26, 1997.4

We performed our work at NOAA headquarters in Washington, D.C., and at

NWS headquarters in Silver Spring, Maryland, from July 1997 through

January 1998. Our work was performed in accordance with generally

accepted government auditing standards. We requested comments on a

draft of this report from the Secretary of Commerce or his designee. The

Secretary provided written comments, which are discussed in the “Agency

Comments” section and are reprinted in appendix I.

NOAA’s Budget

Formulation and

Execution Process

In developing their internal budget preparation instructions and

formulating budget requests, executive agencies follow guidance

contained in OMB Circular A-11, Preparation and Submission of Budget

Estimates. This circular provides detailed guidance on the form and

content of budget requests and the basis for making budget estimates. At

NOAA, this guidance is supplemented by a budget handbook that reinforces

many of the circular’s principles.

3

Brigadier General (Retired) John J. Kelly, Jr., October 14, 1997.

4

National Oceanic and Atmospheric Administration: Financial Statements, Fiscal Year 1996 (Audit

Report No. FSC-8841-7-0001, February 26, 1997).

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According to the NOAA handbook, the NOAA Comptroller with input from

the NOAA components—the National Weather Service; National Ocean

Service; National Marine Fisheries Service; Oceanic and Atmospheric

Research; and National Environmental Satellite, Data, and Information

Service—prepares a draft budget request for departmental review and

approval. NOAA’s fiscal year 1997 budget request contained several

appropriation accounts, including operations, research and facilities;

construction; and fleet modernization, shipbuilding and conversion. The

operations, research and facilities account, the largest appropriation,

includes separate estimates for each of NOAA’s components and provides

the majority of their funding. This account contains no-year funding

authority—that is, its appropriation remains available for obligation for an

indefinite period of time. There is no appropriation account specific to

NWS.

Table 1 provides a snapshot of the development of the NWS fiscal year 1997

budget. This process began when the department submitted a fiscal year

1997 budget request of nearly $2 billion to OMB for NOAA operations,

research, and facilities, including a request of $693 million for NWS.

Table 1: Development of NWS’ Fiscal Year 1997 Budget

Dollars of budget authority in millions

Organization

Request to

OMB

OMB passbacka

cut

Request in

President’s

budget

Congressional

reductions

Fiscal year 1997

appropriations

NOAA $1,988.0 $16.8 $1971.2 $117.1 $1854.1

NWS $693.0 $22.3 $670.7 $32.7 $638.0

— operations $494.0 $22.3 $471.7 $10.9b $460.8

— systems $199.0 $0 $199.0 $21.8 $177.2

Note: Dollar amounts for NOAA and NWS refer only to NOAA’s operations, research, and facilities

appropriation. This appropriation contains the majority of NWS’ funding.

aAmounts in this column represent the cumulative result of the passback process and include

spending increases for some items and spending reductions for others. Although NOAA’s

passback amount includes NWS’ passback, its cumulative reduction is smaller overall than NWS’

total passback amount because increases and reductions for NOAA’s other components are also

included.

bNWS included $10.5 million of this reduction as part of its budget “shortfall” and reported to the

Congress in February 1997 on how it would address this reduction.

Sources: NOAA’s fiscal year 1997 budget request, congressional committee report

accompanying NOAA’s fiscal year 1997 appropriations, and internal NWS documents.

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OMB reviews each department and agency budget request based on

presidential priorities and other factors and makes an initial proposal on

how resources will be allocated. Departments and agencies are notified of

OMB’s initial resource allocation decisions about 2 months after making

their initial budget submissions. This notification is commonly referred to

as a “passback.” Agencies may appeal their passbacks.

The OMB passback to the Department of Commerce resulted in overall

reductions for NOAA as well as a specific reduction of about $22 million for

NWS’ portion of NOAA’s operations, research, and facilities request. As

required by OMB Circular A-11, NOAA revised its budget request to bring it

into accord with these decisions. Both OMB and NOAA budget preparation

guidance instruct staff to support the ultimate request in the President’s

budget. In response to the passback, NWS revised its fiscal year 1997

budget to about $671 million, the amount contained in the President’s

budget request to the Congress.

The final step in the budget formulation process is congressional review of

the agency’s budget and the enactment of appropriations. After holding

hearings and deliberating on NOAA’s budget request, the Congress reduced

the amount for NOAA’s operations, research, and facilities request by about

$117 million and specified that NWS absorb about $33 million5

 of the cut,

resulting in a fiscal year 1997 budget for NWS of $638 million.

After an agency’s appropriation is enacted, the agency receives an

apportionment6

 from OMB. Apportionment and subsequent allotments7

within the agency are established, often by calendar quarter and by

program or major activity, to prevent obligations in a manner or at a pace

that would result in the agency exceeding appropriated levels.

As an agency executes its budget, it may feel changes from planned

spending levels are needed. To allow for efficient and effective execution

of agency budgets while still maintaining appropriate oversight of

executive actions, the Congress has provided reprogramming guidelines

5

Of the $33 million cut, $10.5 million was based on a recommendation in a report by the Department of

Commerce’s Office of Inspector General (National Weather Service Should Streamline Its

Headquarters and Support Operations, Audit Report No. NOA-6979-6-0001, February 29, 1996) to

eliminate nonessential NWS headquarters functions and positions.

6

The action by which OMB distributes amounts available for obligation, including budgetary reserves

established pursuant to law, in an appropriation or fund account.

7

An authorization by either the agency head or another authorized employee to incur obligations

within a specified amount. The amount allotted by an agency cannot exceed the amount apportioned

by OMB.

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that define when changes from planned spending levels require

congressional notification. Reprogramming is the shifting of funds within

an appropriation for purposes other than those contemplated at the time

of appropriation. For example, to help address its budget “shortfall,” NWS

requested a $7.9 million reprogramming of NOAA funds in April 1997.

There are no governmentwide reprogramming guidelines; guidance varies

among appropriation subcommittees. For example, the annual Commerce,

Justice, State, the Judiciary and Related Agencies Appropriations Act

typically provides that no funds are available for a reprogramming which

results in, among other things, the creation of a new program; elimination

of a program, project, or activity; or relocation of an office or employees

unless the Appropriations Committees of both Houses of Congress are

notified 15 days in advance of the reprogramming.8

Appendix II contains a chronology describing the key events related to the

formulation and execution of the NWS fiscal year 1997 budget.

Key Events

Associated With NWS’

Budget “Shortfall” and

Efforts to Address It

Due to the reductions that OMB and, subsequently, the Congress made to

NWS’ fiscal year 1997 budget request, as well as inflation and other cost

increases, NWS believed it had a budget “shortfall.” NWS officials felt that

NWS’ fiscal year 1997 budget was not sufficient to provide desired levels of

services. NWS appeared to define its “shortfall” generally as the gap

between its final 1997 budget (less a one-time program increase of

$14 million for modernization and associated restructuring demonstration

and implementation) and its 1996 budget adjusted for inflationary and

other increased costs, such as pay raises.

Varying Amounts of Budget

“Shortfall” Were Reported

to the Congress

NOAA and NWS reported varying amounts to the Congress about the size of

NWS’ estimated budget “shortfall.”9 For example, after receiving its fiscal

year 1997 appropriations, NOAA and NWS officials noted spending

reductions of $27.5 million in a February 14, 1997, briefing to

congressional staff. Two months later, in an April 4, 1997, briefing to

congressional staff, NOAA noted spending reductions of $42.2 million. By

May 1997, the reported “shortfall” had increased to $47.4 million. Table 2

shows the varying estimates of “shortfall” reported to the Congress and

the changing components associated with each estimate.

8

Public Law 104-208, § 605(a), 110 Stat. 3009, 3009-64 (1996).

9

The budget “shortfall” estimate relates to NWS’ operations only.

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Table 2: Budget “Shortfall” Amounts

Reported to the Congress

Element

February 1997

briefing

April 1997

briefing

May 1997

testimony

Proposed reductions arising from

—streamlining the certification

procedures for closing weather offices $7.4 $7.4a $7.4

—personnel and administrative

streamlining reductions 7.0 7.0a 7.0

—privatization of specialized weather

services 2.6 2.6a 2.6

Congressional reduction to NWS’ base

operations budgetb 10.5 10.5a 10.5

Inflation increases for salaries and

other expenses 9.7 9.7

Increase in NWS’ contribution for

NOAA-wide support services 5.9

Costs associated with personnel

separations 5.0 5.0

Reprogramming of funds to restore

proposed cuts to the National Centers

for Environmental Prediction (0.7)

Total $27.5c $42.2 $47.4d

aIn the April 1997 briefing, NOAA and NWS presented these “shortfall” amounts as part of the

$27.5 million reduction in base operations.

bThe conference committee report accompanying NWS’ appropriations bill specified that NWS

should apply the reduction to the operations and staffing levels in NWS central headquarters

activities in the national capital area. According to the Department of Commerce, there were also

staffing reductions in centralized operations activities located in the national capital area.

cThe briefing stated that this $27.5 million figure represents the difference between NWS’ fiscal

year 1996 appropriations and the fiscal year 1997 base operations budget.

dThe Assistant Administrator for Weather Services testified that this figure represented NWS’ fiscal

year 1997 total budget “shortfall.”

Sources: February 14, 1997, and April 4, 1997, briefings to House and Senate Appropriations

Subcommittees and May 15, 1997, testimony before the Subcommittee on Science, Technology

and Space, Senate Committee on Commerce, Science, and Transportation.

In a May 15, 1997, hearing before the Subcommittee on Science, Space and

Technology, Senate Committee on Commerce, Science and

Transportation, some Members of Congress indicated that they were

confused by the varying amounts of reported budget “shortfall.” According

to NOAA and NWS officials, the varying amounts provided to the Congress

responded to specific questions asked at particular points in time and did

not necessarily include all known elements of the “shortfall.” For example,

although a January 3, 1997, NWS memorandum to NOAA mentioned the

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withholding of inflationary increases and a March 18, 1997, NWS

memorandum to NOAA mentioned the increased NWS contribution for

NOAA-wide support services, these elements of the “shortfall” were not

provided to the Congress in the February 1997 and April 1997 briefings,

respectively.

A Variety of Measures

Were Planned to

Address the

“Shortfall”

To address its budget “shortfall,” NWS planned a number of measures, both

temporary and permanent. Table 3 describes a set of planned actions to

address the “shortfall” reported in May 1997.

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Table 3: Planned Actions to Address

Budget “Shortfall” as of May 7, 1997 Dollars in millions

Action Amount Subtotal

Permanent reductions in the national capital area

Subtotal $10.5

Agencywide permanent and one-time reductions

Accelerate transition program staffing activities $7.3

Accelerate transition program office close-outs 4.7

Consolidate mainland regions-southern region 1.1

Other 2.4a

Subtotal 15.5

Temporary reductions not sustainable through fiscal year

1998

Reduce centralized logistics quantities 2.2

Reduce operational supplies and stock levels 1.3

Defer maintenance for central communications network 1.0

Reduce field staff training 1.0

Freeze operational equipment replacement 1.0

Subtotal 6.5

Other actions taken to fund inflationary costs

Deobligate prior-year PCSb costs (one-time) 4.2

Reduce regions and NCEPc across the board (temporary) 3.3

Other 2.2c

Subtotal 9.7

Other one-time and temporary actions taken to offset

additional NOAA withholdings

Reduce all organizations across the board 3.9

Deobligate prior-year PCS costs 2.0

Subtotal 5.9

Reprogramming offsets and associated permanent costs (.7)

Total Reductions $47.4

aThis amount was rounded upward.

bPermanent change of station

cNational Centers for Environmental Prediction

Source: National Weather Service

NWS ultimately succeeded in staying within its fiscal year 1997 budget level

by implementing a number of actions. According to a December 1997 NWS

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analysis, NWS reduced (1) contracts and services by $15.2 million, (2) rent,

communications, and utilities by $9.4 million, (3) salaries and benefits by

$4.4 million, (4) employee relocations by $3.6 million, and (5) travel by

$3 million. It also deobligated10 prior year funds, primarily permanent

change of station costs, by $6.6 million. In commenting on a draft of this

report, the Department of Commerce stated that NWS did not fill field office

operational vacancies as they occurred throughout fiscal year 1997. This

was done to enable NWS to place employees in available positions, thereby

mitigating the negative impact of a planned major reduction-in-force. It

further stated, however, that the longer these operational vacancies

remained unfilled, the more critical the need to fill the positions became.

As we will discuss in the next section, NWS also received congressional

concurrence on a reprogramming request to NOAA, giving NWS $5.4 million11

 that enabled it to restore funding to maintain its operational equipment

and fund some personnel separation costs.

Reprogramming Request

and Certification Process

Contributed to Confusion

on “Shortfall”

Two key events to address the NWS budget “shortfall” appeared to cause

confusion among department officials. The first event centers on an NWS

reprogramming request to NOAA. According to an April 18, 1997, NWS

schedule, NWS requested a reprogramming of $7.9 million12 to address its

“shortfall.” This request was forwarded to the Department’s Acting Chief

Financial Officer by the NOAA Under Secretary on May 29, 1997.

Our review of e-mail correspondence between the Counselor to the NOAA

Under Secretary and an NWS Budget Analyst showed that there were

several inquiries made about the status of the reprogramming request

between May 6, 1997 to June 6, 1997, but there was no official

communication that the request had been approved. However, the NWS

Deputy Assistant Administrator for Operations assumed that the

reprogramming request would be approved by Commerce and that funds

were available to hire personnel to fill vacancies in the field that had been

deferred because of the “shortfall.” This official told NOAA officials on

June 13, 1997, that NWS intended to start filling critical field vacancies.

10Deobligation is an agency’s cancellation or downward adjustment of a previously recorded

obligation.

11The $5.4 million involved reprogramming $3.6 million from NOAA’s National Environmental Satellite,

Data, and Information Service satellite programs, and $1.8 million from NOAA’s Economic

Development Revolving Fund.

12Of the $7.9 million reprogramming request, $4.3 million was to pay for the one-time cost associated

with personnel reductions, $3.1 million for maintenance of operational equipment, and $0.5 million for

training.

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On June 16, 1997, the NOAA Deputy Under Secretary informed the NWS

Deputy Assistant Administrator for Operations that NWS could not fill the

vacancies because it had a “deficit on the books.” This was primarily

because the reprogramming request had not yet been approved, which

meant that funds NWS believed were available for new hires would need to

be retained to pay for possible personnel separations. Indeed, the

department’s Acting Chief Financial Officer did not notify the Congress of

the reprogramming request until July 3, 1997, nearly 3 months after the

original request. By this time, the request for $7.9 million had been revised

to $5.4 million13 because the department, based on input from NWS,

determined that less money was needed to address personnel reductions

associated with the streamlining of NWS. The Subcommittee on the

Departments of Commerce, Justice, and State, the Judiciary and Related

Agencies, House Committee on Appropriations, informed the department

on July 16, 1997, that it had no objections to the reprogramming proposal.

The second event involves NWS’ effort to obtain certification approval from

NOAA to consolidate, automate, and/or close weather service offices. On

April 22, 1997, 4 days after NWS submitted the reprogramming request for

$7.9 million, NWS forwarded 83 certification packages to the NOAA Under

Secretary for approval. Section 706(b) of Public Law 102-567 specifies that

the Secretary of Commerce must certify that consolidating, automating,

and/or closing of field offices will not result in any degradation of service

to the affected service areas. The NWS Deputy Assistant Administrator for

Modernization told us that he briefed the Secretary of Commerce on this

certification process on June 10, 1997.

Upon learning that NWS would not be able to fill vacancies in the field

because the aforementioned reprogramming request had not yet been

approved, the NWS Deputy Assistant Administrator for Modernization

recommended to the NOAA Deputy Under Secretary on June 20, 1997, that

27 of the 83 certification packages be held back. This was because the

packages included about 27 affected areas whose responsible weather

field offices contained vacancies. The NWS Deputy Assistant Administrator

for Modernization stated that the vacancies, if left unfilled, would result in

a degradation of services for the area served by that weather field office.

The NWS Deputy Assistant Administrator for Modernization told us that he

had assumed all along that these vacancies would be filled when the

13Of the $5.4 million reprogramming request, $3.6 million was to pay for deferred maintenance of

operational equipment, $1.6 million for the one-time costs associated with personnel reductions, and

$0.2 million to maintain the current staffing level (approximately 45 positions) at NWS’ southern

regional headquarters.

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certification packages were forwarded to the NOAA Under Secretary for

approval.

Subsequent to the NWS Deputy Assistant Administrator for Modernization’s

recommendation, the NOAA Under Secretary did not take action on the 83

certification packages sent to him in 1997. The NWS Deputy Assistant

Administrator for Modernization told us that NWS plans to forward about

80 certification packages for consolidation, automation, and/or closure of

offices in 1998.

Additional Developments

Relating to the “Shortfall”

Only 5 days after the NWS Deputy Assistant Administrator for

Modernization recommended that the 27 certification packages be held

back, the NOAA Under Secretary announced on June 25, 1997, the

reassignment of the Assistant Administrator for Weather Services. The

NOAA Under Secretary claimed that NOAA had been receiving conflicting

information from NWS on how it would provide essential weather services

while recognizing that the public expects government agencies to reduce

their costs. At the same time, the Under Secretary announced his intention

to appoint an outside Special Advisor on Weather Services to conduct a

rigorous evaluation of the NWS budget and operations.

According to the Special Advisor’s subsequent October 14, 1997, report to

the Secretary of Commerce,14 Commerce and NOAA financial management

information systems, coupled with NWS’ complex budget structure, budget

formulation/execution policies and management processes, limit visibility

of operational and overhead costs and the traceability of these costs to

products and services. The Secretary of Commerce later announced on

October 23, 1997, that he plans to hire a chief financial officer for NWS to

address the need for management and budget reforms. NOAA’s Chief of

Audit and Internal Control told us that the department is currently

reviewing the position description for the NWS Chief Financial Officer and

intends to advertise for it soon.

Lastly, the Special Advisor felt that the fiscal year 1998 proposed budget

and the 1999 department submission to OMB contained inadequate base

funding. He recommended to the Secretary that the fiscal year 1998 budget

for NWS be $680 million to provide essential public services and complete

14See footnote 3.

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modernization activities.15 The Congress enacted appropriations that

provided about $668 million in November 1997.16

Agency Comments In commenting on a draft of this report, the Department of Commerce

stated that the report accurately reflected the events surrounding the fiscal

year 1997 budget and acknowledged that we had conducted thorough

work in researching and documenting the complex events and issues

included in the report. For additional clarity in the report, the department

provided several technical comments and changes that have been

incorporated into the report as appropriate.

As agreed with your offices, unless you publicly announce the contents of

this report earlier, we plan no further distribution until 15 days from the

date of the report. At that time, we will send copies to the Chairmen and

Ranking Minority Members of the Senate Committee on Commerce,

Science, and Transportation; the Senate and House Committees on

Appropriations; the Senate Committee on Governmental Affairs; and the

House Committee on Government Reform and Oversight; and the Director,

Office of Management and Budget. We will also send copies to the

Secretary of Commerce and to the Administrator of the National Oceanic

and Atmospheric Administration. Copies will also be made available to

other parties upon request.

Please contact me at (202) 512-6253, or by e-mail at

willemssenj.aimd@gao.gov, if you have any questions concerning this

report. Major contributors to this report are listed in appendix III.

Joel C. Willemssen

Director, Civil Agencies Information Systems

15Of the $680 million, $473 million would be for base operations and modernization and associated

restructuring demonstration and implementation, and $207 million, for systems acquisition and

construction.

16This appropriation includes about $520 million for NWS operations, research, and facilities, and

about $148 million for NWS capital asset acquisition.

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Contents

Letter 1

Appendix I 

Comments From the

Department of

Commerce

18

Appendix II 

Chronology of Key

Events Related to the

Formulation and

Execution of the NWS

Fiscal Year 1997

Budget

21

Appendix III 

Major Contributors to

This Report

24

Tables Table 1: Development of NWS’ Fiscal Year 1997 Budget 5

Table 2: Budget “Shortfall” Amounts Reported to the Congress 8

Table 3: Planned Actions to Address Budget “Shortfall” as of

May 7, 1997

10

Abbreviations

NOAA National Oceanic and Atmospheric Administration

NWS National Weather Service

OMB Office of Management and Budget

Page 16 GAO/AIMD-98-69 National Weather Service
Page 17 GAO/AIMD-98-69 National Weather Service
Appendix I 

Comments From the Department of

Commerce

Page 18 GAO/AIMD-98-69 National Weather Service
Appendix I 

Comments From the Department of

Commerce

Now on p. 2.

See comment 1.

Now on p. 8.

See comment 2.

Now on p. 8.

See comment 1.

Now on p. 11.

See comment 1.

Page 19 GAO/AIMD-98-69 National Weather Service
Appendix I 

Comments From the Department of

Commerce

The following are GAO’s comments on the Department of Commerce’s

letter dated February 20, 1998.

GAO’s Comments 1. Report has been modified to reflect agency comments.

2. The Department of Commerce noted that the $27.5 million figure should

include $5 million in personnel separation costs, which would bring the

total to $32.5 million. We did not change the table because the

$32.5 million figure is not contained in the February 1997 briefing.

Page 20 GAO/AIMD-98-69 National Weather Service
Appendix II 

Chronology of Key Events Related to the

Formulation and Execution of the NWS

Fiscal Year 1997 Budget

Date Description

11/95 Department of Commerce’s fiscal year 1997 budget request

submitted to OMB included $2 billion for NOAA’s operations,

research, and facilities which included $693 million for NWS.

11/95-1/96 OMB passback and subsequent discussions resulted in reductions of

$16.8 and $22.3 million to NOAA and NWS budgets, respectively.

2/5/96 President’s budget for fiscal year 1997 submitted to Congress

included about $2 billion request for NOAA’s operations, research,

and facilities. The President’s backup book included about $670.7

million for NWS—about $471.7 million for operations and research

and $199 million for systems acquisition. It also showed that the

request included increases in the operations, research and facilities

over fiscal year 1996 for pay raise and within-grade step increases.

4/30/96 and

5/14/96

House and Senate Appropriations Subcommittees on Commerce,

Justice, and State, the Judiciary, and Related Agencies held hearings

on Commerce’s budget request. In testimony, NOAA’s Under

Secretary noted that NWS’ fiscal year 1997 request for operations and

research funds to provide public weather and flood warnings and

forecasts and applied research in support of the weather service

modernization was reduced by $18.2 million from the base.

9/30/96 The Omnibus Consolidated Appropriations Act for fiscal year 1997

appropriated $1.85 billion for NOAA operations, research and

facilities. The Conference Report provided $638 million for NWS of

which $460.8 million was for operations and research. The

appropriations represented a reduction of $117.1 million for NOAA

and $32.7 million for NWS. Of NWS’ reductions, $10.9 million was cut

from NWS’ operations and research request and $21.8 million was cut

from NWS’ systems request.

1/3/97 Memorandum from NWS’ Director of Management and Budget Office

to NOAA Chief Financial Officer mentioning a $36.3 million NWS base

deficit for fiscal year 1997 and expressing deep concern over

NOAA’s withholding of within grade adjustments of $1.9 million.

2/14/97 Congressional briefing by NOAA and NWS officials, including the

NOAA Deputy Under Secretary, the Assistant Administrator for

Weather Services, and the NWS Deputy Assistant Administrator for

Operations, noting that fiscal year 1997 Base Operations Budget

showed reductions of $27.5 million based on the fiscal year 1997

enacted appropriation versus the fiscal year 1996 appropriation and

planned actions of $27.5 million to address the reductions.

3/18/97 The Modernization Transition Committee recommended that the

Assistant Administrator for Weather Services approve over 80

certifications for consolidation, automation and/or closure of weather

service offices.

3/18/97 Memorandum from Assistant Administrator for Weather Services to

NOAA Deputy Under Secretary stating that the “operational deficit”

facing NWS in fiscal year 1997 is $36.3 million rather than $27.5

million. The memo also cites another $6.8 million in withheld

adjustments to base which raises the “operating deficit” to $43.1

million.

(continued)

Page 21 GAO/AIMD-98-69 National Weather Service
Appendix II 

Chronology of Key Events Related to the

Formulation and Execution of the NWS

Fiscal Year 1997 Budget

Date Description

3/21/97 Department of Commerce press release on NWS’ plans to restructure

operations to meet lower budget allocations discusses recommended

actions, which include (1) accelerating planned reductions in staffing

and operations at headquarters, regional offices, central operations

and field offices and (2) reengineering certain programs, including

accelerating plans for up to 200 reduction-in-force actions and

closing the southern region headquarters office.

4/1/97 Analysis of NWS “deficit” showing $42.2 million “deficit” and $42.2

million in actions to meet “deficit,” including $15.5 million in

permanent and one-time reductions, $6.5 million in temporary

reductions, and $9.7 million of reductions to absorb inflationary costs.

4/4/97 Congressional briefing by NOAA and NWS officials on Base

Operations-Fiscal Year 1998 Funding Restoration showing reductions

of $42.2 million, composed of $27.5 reduction plus $9.7 million in

inflationary costs plus $5 million in estimated personnel separation

costs. The briefing also lists $42.2 million in actions taken to meet the

reductions.

4/8/97 Hearings before the House Committee on Appropriations

Subcommittee on Commerce, Justice, and State, the Judiciary, and

Related Agencies indicate the NOAA Under Secretary said NWS

could fulfill its public safety mission with fiscal year 1997 funding.

Assistant Administrator for Weather Services referred to components

comprising a $27.5 million reduction and noted that NWS and all

agencies must absorb 3-percent pay raises. The Assistant

Administrator for Weather Services further noted that in an operational

organization such as the weather service, ongoing degradation as a

result of that ongoing absorption of pay raises will eventually lead to a

much smaller weather service.

4/17/97 Notification to House Appropriations Subcommittee on Commerce,

Justice and State for $0.7 million reprogramming to NWS for the

National Hurricane Center.

4/18/97 NWS schedule on $7.9 million reprogramming request for fiscal year

1997 operations and research.

4/22/97 Assistant Administrator for Weather Services forwarded over 80

certifications for consolidation, automation, and/or closure of weather

service offices to NOAA Under Secretary for approval.

5/6/97 E-mail message from Counselor to the NOAA Under Secretary to

NWS Budget Analyst noting that the NWS reprogramming request for

$7.9 million for fiscal year 1997 has not been acted upon yet by

NOAA.

5/15/97 NOAA Under Secretary and the Assistant Administrator for Weather

Services testify before the Senate Subcommittee on Science,

Technology and Space on the components of the $47.4 million

“shortfall,” including NWS funding reductions and increased costs,

such as pay-related costs and the cost of NOAA support and

centralized services.

5/16/97 E-mail message from Counselor to NOAA Under Secretary to NWS

Senior Budget Analyst stating that the reprogramming package is

with NOAA Deputy Under Secretary and is on its way to NOAA Under

Secretary for signature.

(continued)

Page 22 GAO/AIMD-98-69 National Weather Service
Appendix II 

Chronology of Key Events Related to the

Formulation and Execution of the NWS

Fiscal Year 1997 Budget

Date Description

5/22/97 Memorandum from NOAA Chief Financial Officer to NOAA Under

Secretary requesting a reprogramming for NWS of $7.9 million.

5/29/97 Memorandum from NOAA Under Secretary to Department of

Commerce Acting Chief Financial Officer requesting a

reprogramming of $7.9 million for NWS.

6/6/97 E-mail message to NWS Senior Budget Analyst stating that the NOAA

reprogramming is under review and that hopefully there will be a

Department of Commerce decision late the next week.

6/19/97 E-mail from NWS Deputy Assistant Administrator for Operations to

NOAA Deputy Under Secretary asking for guidance on how to

proceed with vacancies. E-mail notes that on June 16 NOAA Deputy

Under Secretary indicated that NWS would not be able to fill the

vacancies because NWS still had a deficit on the books. E-mail notes

that this was a surprise to NWS because of NOAA’s previous

commitment to pay the separation costs.

6/20/97 NWS Deputy Assistant Administrator for Modernization recommended

in an e-mail to NOAA Deputy Under Secretary that the certification

packages for approximately 27 offices be held back because of

staffing vacancies.

6/25/97 E-mail message from NWS’ Management and Budget Office Director

to NWS Senior Budget Analysts stating that the Department has

requested that the NOAA fiscal year 1997 reprogramming request be

submitted 6/25/97.

6/25/97 Department of Commerce press release notes that the Assistant

Administrator for Weather Services is reassigned to other duties within

NOAA.

7/3/97 Reprogramming Notification from the Department of Commerce

Acting Chief Financial Officer to the Congress on a $5.4 million

reprogramming for NWS operations and research.

7/16/97 House Committee on Appropriations, Subcommittee on Commerce,

Justice, and State, the Judiciary, and Related Agencies, responded

to Department of Commerce Acting Chief Financial Officer on the

$5.4 million reprogramming notification for NWS that it has no

objection to reprogramming $3.6 million from satellite programs for

deferred maintenance and related activities, but directs the

department to transfer the additional $1.8 million from the Economic

Development Fund.

7/21/97 E-mail message forwarded by Counselor to NOAA Under Secretary to

NWS Senior Budget Analyst stating that the House and Senate have

officially concurred with the $5.4 million reprogramming for NWS.

Page 23 GAO/AIMD-98-69 National Weather Service
Appendix III 

Major Contributors to This Report

Accounting and

Information

Management Division,

Washington, D.C.

Helen Lew, Assistant Director

Michael J. Curro, Assistant Director

Joan B. Hawkins, Assistant Director

James C. Houtz, Information Systems Analyst-in-Charge

Laura E. Castro, Senior Evaluator

David R. Fisher, Senior Auditor

Paul F. Foderaro, Senior Auditor

(511430) Page 24 GAO/AIMD-98-69 National Weather Service
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