GAO Reports Continuing Resolutions Cause Administrative Burdens, Stunted Services
In a new report, the Government Accountability Office (GAO) highlighted the impact of a continuing resolution (CR) on three federal agencies and how these agencies seek to mitigate the ensuing disruption.
To avert a government shutdown, Congress often passes a CR which maintains government funding at the previous fiscal year’s level for a short period of time until new appropriations are passed. Congress has failed to enact appropriations on time in all but three of the last 46 fiscal years (FY).
GAO has previously reported on the impact of CRs at the Department of Defense (DOD), but members of the House and Senate Budget Committee requested additional information on how CRs impact operations at agencies other than DOD, particularly programs that provide benefits and services to individuals with low incomes. After considering various criteria for evaluation, GAO ultimately selected the Section 521 Rural Rental Assistance (RA) at the Department of Agriculture (USDA), the Predominantly Black Institutions Formula Grant Program (PBI-FGP) at the Department of Education (ED), and the Low-Income Home Energy Assistance Program (LIHEAP) at the Department of Health and Human Services (HHS) for evaluation. GAO assessed how these agencies operated during CRs occurring between 2010 and 2022.
Overall, the agencies still operated and provided services to the best of their abilities; however, they also reported difficulties in recruitment, financial uncertainty, restricted agency operations, and heightened administrative burdens.
HHS officials noted that in preparation for a potential lapse in appropriations, the Offices of the Assistant Secretary for Financial Resources, Human Resources, and the Secretary take the time to prepare for issues the CR causes rather than focus on other activities that would otherwise take place. According to USDA officials, CRs can slow or halt hiring activities as the agency cannot extend new hire offers during a CR. This impacts training, strategic hiring plans, and program services.
ED officials reported CRs cause delays in the issuance of grants to awarded entities and cautioned that uncertainty around final funding levels can limit planning for the department and its grant recipients. The hiring problems trickle from the federal agency to grant recipients such as Predominantly Black Institutions receiving PBI-FGP. A position may not be filled for part of the year as a result of the delayed hiring process. As the grant affords a 12-month salary for positions, the leftover funds from the six months of vacancy result in increased administrative burdens.
The officials at all three agencies reported that they were able to manage the effects of CRs by utilizing budgetary flexibilities such as multi-year appropriations. Multi-year appropriations allows agencies to spend funds over several years, giving them more flexibility when funding is uncertain due to a CR. GAO reported programming concerning children, refugees, and low-income households at HHS are among the few programs funded on a multi-year basis. Budget officials at USDA also noted that the Agriculture Secretary has revised USDA facilities' accounts to shift funds within an appropriation account to use for purposes other than those outlined at the time of the appropriation.
With less than two months before the end of FY 2022, appropriators have indicated a CR may be necessary to avert a shutdown. Stakeholders expressed concern regarding Congress’s consistent inability to fund federal agencies on time.
Chad Hooper, the Executive Director of the Professional Managers Association (PMA)–which represents the interests of managers and non-collective bargaining unit employees at the Internal Revenue Service (IRS)–noted that PMA has historically advocated for Congressional action on multi-year funding on vital federal programming and services.
“The constant inability of Congress to fund the government adequately and on time has widespread ramifications on long-term planning, mission delivery, and taxpayer services.,” Hooper stated.
At the IRS, failing to enact appropriation on time curtails the equitable enforcement of tax laws and delivery of taxpayer services as well as hampers efforts to modernize operational functions. PMA has called for multi-year funding to modernize the Service's 60-year-old IT system to ease the burden on the American people.
“As lawmakers call for the American economy to regain some sort of normalcy, the federal government cannot function properly without a well-functioning IRS because the agency is the single greatest revenue source for the federal government. And the American public shouldn’t have to play a relentless game of cat and mouse with a necessary federal resource to avoid liability.,” Hooper concluded. “Congress must provide multi-year, dedicated IT modernization funding so the IRS has modernization funding that is insulated from the annual congressional dithering to fund the government. This is the only way the IRS can enact a stable modernization plan and focus annual appropriations on other workforce and mission priorities.”
