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The resources we are requesting for fiscal year 2002 are critical to addressing our human capital
and information technology challenges and ensuring our ability to effectively meet the increasing
congressional requests for GAO services. We have reached a point that if sufficient funding is
not received to address these issues and properly support our staff, we will need to take actions
that will negatively impact our service and responsiveness to the Congress.

Congressional demand for GAO services continues to increase. For example, as illustrated
below, the number of engagements begun as a result of a congressional request has increased
during the past 4 years. These numbers do not include hundreds of other requests that had not
yet been started.

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We have worked hard over the past 3 years with available resources to significantly increase our
productivity levels to successfully meet increasing congressional demand. For example, we
realigned our organization, reengineered many of our business processes, retooled our
engagement and risk management practices, revised our performance appraisal and recognition
systems, and updated our information technology infrastructure. However, we have reached a
point that significant additional productivity gains are unlikely without sufficient funding to
further enhance our human capital and information technology programs.

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We are concerned about our ability to continue to increase our productivity levels, sustain our
return on investment, and meet future congressional demands given the recent trend in our
funding levels. Since becoming the Comptroller General at the beginning of fiscal year 1999, I
have not asked for any increase in our targeted 3,275 full-time equivalent staffing level. I have

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only requested the funding necessary to properly maintain and support this stafrag level zad cover mandatory expenses, including infiacon and compensation costs. However, as ilustrated in the following septic, te tanding G40 received has been sigricatiy less tat we requested and needed to support our sirgeted stating level

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FTES Requested and Used (Fiscal Years 1999 - 2001)

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The funds we are requesting are critical to addressing our succession planning challenges and
enhancing the knowledge, skills, and abilities of our workforce. A large percentage of our
workforce will become eligible for retirement within the next 5 years. More than 35 percent of
our analysts and 50 percent of our senior executives will be retirement eligible within that time
period. We need to aggressively continue our efforts to hire new staff, develop existing staff,
and otherwise build the future GAO. In order to be competitive in attracting, hiring, and
retaining high caliber and talented staff, we need to be able to further enhance our human capital
programs. Thus, the funding we are requesting for training, performance-based recognition and
compensation programs, education loan repayments, mass transit subsidy allowance, and
enabling technology is critical. Without such funding, we will not be competitive in attracting
and retaining the best, brightest, and expertise needed to effectively serve the Congress in
addressing the complex, controversial, and multidimensional issues and challenges it faces each



If the funding trend of the past 3 years is continued, we will need to restrict our work to only
responding to requests from committees and subcommittees, thus severely limiting-and
potentially eliminating---work done for individual members. Such a restriction also would
further reduce the limited flexibility we have to research and develop expertise on emerging
issues, thereby limiting our ability to respond to the Congress when related issues arise on short
notice. For example, were it not for the advance research and development work we had done on
computer security, China, the World Trade Organization, and last year's presidential election
issues, we would have been unable to be responsive to the congressional requests and public
debates on these real time, event driven issues. We need sufficient funding to build and ensure
we have the capacity and expertise to address such emerging issues on short notice in the future.


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We look forward to your continet spor and zorgeser scre cosey with you and your staff this year and in fiscal year 2002 Tis cociades y siemen. I socid be pleased to respond to any questions that the Mesbers of te scopee zey have.

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Mr. TAYLOR. We will go directly to questions, with your agreement. During the past 5 years, we have reduced the GAO personnel more than 25 percent. Your budget request has an increase of 125 FTEs. Please tell the committee why you need such an increase and how will those new FTEs be assigned throughout the agency?

Mr. WALKER. First, our head count is roughly 40 percent below what it was in 1992. We are requesting funding at our full targeted level, which is 3,275 FTEs. We are currently about 125 below that number. We would allocate the additional FTEs into the areas that would support our strategic plan, areas where we have the greatest supply and demand imbalances such as health care; education, workforce, and income security; information technology; and financial markets and community investment.

Everything that we are doing is being tied back to our strategic plan and to where we are getting the most demand from the Congress. As you know, demand far exceeds supply, so this is one means that can provide more equilibrium in that regard.


Mr. TAYLOR. On the question of asbestos abatement, I have only been on this subcommittee since 1993, but it seems like the asbestos abatement has been a question for the entire time. Is there any end in sight in the asbestos abatement program?

Mr. WALKER. If we can get the funding, the answer is definitely yes. I will turn it over to Dick Brown, who can bring you up to date on where we stand on it.

Mr. BROWN. We have completed asbestos removal from almost the entire building. As you may recall, all of the duct work in the GAO building was made of asbestos instead of metal. We had 35 miles of asbestos duct work that carried the air. All of it was removed except for that remaining on the west half of the sixth floor. So we have half of one floor left to go. With the funding that we have requested in 2002, we should be able to complete that floor.

Mr. WALKER. As you know, Mr. Chairman, we have seven floors in our building. So this would complete the task.



Mr. TAYLOR. Good. You are requesting $5.2 million to fund the Truth in Regulating Act. Would you provide the committee with an idea as to your plan for implementing your responsibilities under this act?

Mr. WALKER. Sure. As you know, Mr. Chairman, the Congress last year passed the Truth in Regulating Act, but in order for it to be operational, it also expressly provided that there had to be a separate appropriation to fund those activities. We are engaging in preliminary planning as to what type of skills and knowledge we would need to do that work. Some of these we already have within GAO. We do, however, anticipate that should the Congress decide to fund TIRÁ that we would want to end up adding a few additional staff, including one individual who would be specifically re

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