Summary: GAO discussed the problems created by funding gaps, that period of budgetary limbo when one appropriation has expired and no action has been taken by Congress to provide a new one. The most recent funding gap was triggered when the President vetoed a continuing resolution to extend the availability of appropriations for most of the executive branch agencies for fiscal year 1982. However, continuing resolutions are ineffectual to prevent funding gaps if they are used as a vehicle for imposing controversial spending limitation riders. Before 1980, most Federal agencies continued to operate at least on a minimal level, even during the period of expired appropriations, because it seemed clear that Congress could not have intended to plunge such a large part of the Government into chaos while the funding measures were being debated. However, during funding gaps, agency heads were violating the Antideficiency Act whenever they permitted an employee to report for work. A number of legislative solutions have been proposed to avert the funding gap crisis. House Bill 4394 provides a piecemeal solution to a larger problem. By law, an appropriation may only be used for the purpose for which it was appropriated, and this limits the usefulness of the legislation. There are limits to the flexibility of the necessary expense concept. The bill not only authorizes each agency to incur obligations, it also allows an agency to expend its funds to liquidate obligations. The language in H.R. 4394 should be changed to reflect: (1) continuing pay for transfers or duty changes after appropriations' expiration; (2) a period of availability for the funds to be drawn from the permanent appropriation; and (3) a chargeback provision, which covers any amounts obligated for the permanent appropriation to be charged to the regular or continuing appropriation.
