FINANCIAL GUIDANCE FOR FY 1977

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M01066A000800070007-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 16, 2016
• Document Release Date: October 15, 2004
• Sequence Number: 7
• Publication Date: November 28, 1975
• Content Type: MF

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2 8 NOV 197,5
MEMORANDUM FOR: Executive Secretary
SUBJECT: Financial Guidance for FY 1977
REFERENCES: A. My Memorandum, dtd. 14 Aug 75, Subject:
Financial Guidance for 1976,, the Transition
Quarter and 1977
B. My Amended Financial Guidance Memorandum
for FY 1976 and the Transition Quarter
1. This memorandum amends the Program level for FY 1977
given to you in my Financial Guidance memorandum of 14 August 1975
(Reference A), supplements my Amended Financial Guidance memorandum
of current date (Reference B), and provides guidance for development
of your FY 1977 Program for inclusion in the Congressional Budget
Submission. The development of your FY 1977 Program should be con-
sistent with your revised FY 1976 and TQ estimates.
2. The Office of Management and Budget-has completed its review
of the Agency's proposed FY 1977 Program and has recommended a number
of changes. I have reviewed OMB's reductions and, although I do not
necessarily agree with-the basis for all of the individual changes, the
Agency must accommodate to the total budget figure -recommended to
the President. The attachment lists in general terms the reductions
made by OMB in the FY 1977 Budget as initially proposed for your
Area. Subject to final approval by the President, these changes form
the basis for the FY 1977 Program level for the DCI Area as indicated
below:
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3. As noted in Reference B, Congress has for the first time
placed restrictions on the Agency's authority to reprogram funds internally
once the Congress has received and acted on our annual budget request.
After our program has been submitted to Congress, we will no longer
be able to make major changes without consultation with our Committees.
This means that we must develop a firm Operating Program now for
FY 1977--one that we will not be able to revise in any significant degree
during the July Program Review. The FY 1977 Operating Plan developed.
at this time, consistent with the position and fund levels for your Area
as indicated in paragraph 2 above, must be one we can live with at
least until Congress has acted on our 1977 Budget. request. At that
time, of course, we will be required to modify the Operating. Plan to
conform to congressional action. As a part of that process we expect
to be able to make minor adjustments in the FY 1977 Operating Plan.
Any significant reprogramming, however, will have to be discussed
with our Committees, and we have no assurance that requests for major
reprogramming will be viewed sympathetically.
4. While I am mindful of the difficulty in developing a firm
financial Operating Plan this far in advance of the period during which
that Plan will be executed, we have no choice but to comply with the
intent of Congress. It is therefore essential that your FY 1977 Budget
be carefully and thoughtfully developed with the full knowledge and
understanding that it may not be. significantly changed until we have
our 1977 appropriation and then only with the express approval of our
Congressional Committees. It is clear that the Agency no longer has
the degree of flexibility enjoyed in the past in shifting resources to meet
requirements that were not subjected to and justified through the normal
budgetary process. Particularly for this reason, the importance of advance
planning in the budget development and execution process cannot be over--
emphasized.
5. The problem we face in finalizing our FY 1977 Operating Plan
now, rather than during the July Program Review, will be doubly
difficult because we are being required to submit our budget to Congress
by 2 February 1976, a full month earlier than prior years. This further
compresses the time available for adjusting to the OMB reductions in
our initially proposed FY 1977 Budget and for completing financial plans
for our FY 1977 operations. The problem is complicated additionally
by the possibility that the President may wish to append a classified
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annex to the Federal Budget which must be submitted to Congress by
1 January 1976. While the classified annex probably will not display
Agency data in detail, as a minimum we expect that totals for each
Directorate and the DCI Area will be included. It is therefore necessary
that you make a preliminary assessment of the programmatic and opera-
tional implications of the reductions imposed by OMB and advise me
within the next few days of any major problems you see for FY 1977 that
cannot be handled within the position and revised fund levels for your
Area. Also, you should identify any priority activities or requirements..
which have materialized subsequent to my approval of your. FY 1.977
Program level following the July 1975 Program Review and. which.
cannot be met by your internal reallocation of resources. You should
bear in mind, however, that the total FY 1977 position and fund levels
for the Agency have already been established and th..at any incr_c.ases
can be approved only at the expense of compensating changes elsewhere
in the Agency. In the absence of advice to the contrary, I will assume
that the position and fund levels I have approved for your Area (in,
paragraph 2 above) will be adequate to meet what you now see as your
minimum requirements for FY 1977.
6. The Comptroller will provide instructions for the submission
of Program information and the detailed financial data required for
preparation of the. Agency's .FY 1977 Congressional Budget.
W. E. Colby
Director
Attachment:
As Stated
Distribution:
Orig. - Addressee
I - DCI
l ER
- DDCI
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