BUDGET AUTHORIZATION(Sanitized)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84B00890R000400020059-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 14, 2016
• Document Release Date: June 26, 2003
• Sequence Number: 59
• Publication Date: May 27, 1981
• Content Type: MF

Approved For pleas : CIA-RDP84BOO890RQ00400020059-0 DD/A ,Registry
COMPI _81-0672
MEMORANDUM FOR: Director of Central Intelligence
. Deputy Director of Central Intelligence
Maurice Lipton
Comptroller
SUBJECT Budget Authorization
0
Memo to Multiple Adses fro dated
19 May 1981, Same subject II
1. This responds to your request for a report on where we stand rela-
tive to the zdministration's approved 1981 funding level for CIA. At the
present time we are basically on target on our spending for n' 1981. I
do not anticipate any likelihood that we will exceed our 1981 authorization,
as amended, and since our Congressional authorization and appropriation
committees have already acted on our FY 1981 supplemental, approving a total
of of thel requested, we have no problem with res-
pect to keeping Congressional action within the Administration's prescribed
authorization For CIA. Similarly, there is no problem with respect to the
rest of the Intelligence Community budget, although the operating budgets
are controlled by the respective departments, i.e., Defense, State, etc.
The ollowing table shows the 1981 budget for CIA as amended by the new
Administration, including our initial appropriation, program supplemental,
and two approved transfers from within the NFIP for the Afghanistan pro-
gram. The table on the next page shows that through April 30 we obligated
55 percent of the approved level (October through April is 58 percent of
the year).
CIA's FY 1981 Funding
($ in Millions)
Available Now
Appropriated (Nov. 1980)
Transfe for Afghanistan (Feb. 1981)
Pending before Congress
Pay Act (for Oct. 1980 pay raise)
Program Supplemental (new Administration add-on)
Transfer for Afghanistan
Subtotal
Total, approved funding level
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Status of Execution of 1981 Program
($ in Millions)
Obligations (April 30, 1981)
Percent of approved funding level obligated
Straight line projection for 30 April (for comparison)
2. We have spent a considerable amount of time this year reviewing
trade-offs and options available to the Agency in the execution of our 1981
program. The problem has been complicated this year because (1) our original
FY 1981 appropriation was inordinate) tight compared to demands upon us and
(2) the program supplemental for has not yet been enacted by
the Congress. Only in the past several wee s ave we become fully confident
that Congress will approve the major portion of the supplemental. 0
3. In October of last year the Deputy Directors and I reviewed our
major FY 1981 unfunded needs and possible trade-offs c:ithin the budge:`ed
program. It was out of this review that we becane convinced that a s;'pple-
mental appropriation was necessary in order to avoid major curtailments to
valuable ongoing programs. The transmittal of our upplemental
request to Congress in March of this year held cyst the prospect of even-
,tual help, but some of the programs included in the supplement-31
Project S AFE, and or higher than
anticipated inflation needed immediate funding. With the approval of the
DDCI, we agreed in March to proceed with a total of 0 million of pro-
grams covered in the supplemental, using already appropriated funds,
acknowled;ing that if the supplemental were only partly appropriated the
deficit would have to be recovered out of our already tight availabilities.
This decision seems to have been a good one since we are now virtually
certain of obtaining based upon co,ittee actio: to date.
4. My assessment is that most items in the supplemental can be
our funds are contained
effectively obligated if the Defense supplemental 11
in the Defense bill) is signed into law by the end of July. 0
5. With regard to the discussion at the 18 May Cabinet meeting which
prompted your questions, my understanding is that the discussion addressed
primarily out?ays. In government accounting, outlays are actual payments
(expenditures, writing of checks, payouts), as opposed to obligations, which
represent contracts or official commitments for later payments--upon comple-
tion of the service or contract. Both concepts are important for govern-
ment budgeting and accounting purposes, but governmentwide outlays affect
directly the cash on hand at Treasury, the necessity for Treasury borrowing,
and calculations of the national debt and the yearly deficit. These issues
are, of course, of particularly high interest to OMB and Treasury but of
less immediate interest to operating agencies.
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7. If you have further ques^ns on our 1981 program implementation
or outlays, please let me knew.
Mau ice Lipton
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