Summary: Legislation has been proposed to establish a system to collect data on the geographic distribution of Federal funds. GAO believes that a need exists for a high quality, Government-wide information system on the geographic distribution of Federal funds. For years, a similar system was operated by the executive branch to capture and report data on more than 30 Federal agencies' obligations by geographic areas. Recently, the Office of Management and Budget (OMB) decided to dispense with this system and to proceed with the development and refinement of other systems of this type. The OMB position is that information needs previously met through the system can be met through other existing executive branch information sources without significant disruptions. However, GAO believes that the absence of the original system during the development and refinement period will cause a short-term gap in meeting information needs of Congress and others. As a result of this gap, data are not currently available for analytical purposes, and the effect of Federal spending over time can no longer be assessed. The bill would establish the framework for a long-term strategy to adequately address the needs of Congress, the executive branch, and State and local government officials. To implement this approach, the practical issues of the relationship between the proposed system, existing systems, and those being developed must be addressed. In the long term, opportunities should be explored to maintain comprehensive and quality geographic information through consolidated and streamlined executive branch systems. However, in the short term, it is necessary to continue to meet the information needs of policy officials. While the elimination of the system has created a short-term gap in the availability of information on the geographic distribution of Federl funds, GAO believes that enactment of the bill would facilitate solving this problem over the longer term.
