Anticipated increase in travel costs due to semiannual airline
fare changes. Also, the General Services Administration
annually increases travel per diem and mileage reimbursement
rates based on the increasing cost of service.

2. Transportation of Things

Anticipated increase in transportation costs to ship household
goods and other effects.

3. Rent, Communications, and Utilities.

Anticipated increase in leasing costs for office space and
utilities.

4. Printing and Reproduction

Anticipated increase in costs for printing and reproduction, and
typesetting and graphics services for producing GAO reports
and other documents.

5. Training

Anticipated increase in the cost of training provided by USDA
and other government and commercial vendors.

6. Contract Services

2

42

30

35

499

A-8

BUDGET DETAIL

As discussed in the Overview, GAO is seeking a fiscal year 1999 budget of $369.7 million, a net increase of $22.8 million to support 3,325 FTEs. This amount includes $11.5 million in mandatory pay and benefits costs, $1 million for uncontrollable inflationary increases, $1.4 million for technology modernization and upgrades to replace outdated technology and ensure year 2000 compliance, and $8.8 million to restore FTEs by 100 positions. GAO's fiscal year 1999 budget request seeks to correct the skills imbalance caused by the hiring freeze imposed since fiscal year 1992, recent downsizing actions, and higher than normal attrition; and to modernize the technology used in GAO's agencywide network by replacing outdated software and hardware and increasing system capacity. We are also requesting authority to use anticipated revenue of $2 million from reimbursable audit work.

The following chart depicts actual fiscal year 1997, revised fiscal year 1998 and estimated fiscal year 1999 costs by object class. Detailed explanations are provided for each object class.