Congress's investigative arm, the Government Accountability Office (GAO), is prodding the upcoming 110th Congress to increase its oversight role, something Democrats are chomping at the bit to do. In a Nov. 17 report, GAO identifies 36 areas in need of congressional oversight, organized into three categories: near-term oversight; policy and program reform; and governance issues in need of long-term attention. The recommendations are comprehensive, covering an array of issues including, but not limited to, government contractor responsibility, tax and budget policy, environmental regulation, and government transparency. Contractor Responsibility Throughout its recommendations, GAO repeatedly calls for greater oversight of government contractors and grantees. Under near-term oversight, GAO recommends Congress "address governmentwide acquisition and contracting issues." GAO lists contract management as one its "high-risk areas," pointing out that acquisition and contract management issues "collectively expose hundreds of billions of taxpayer dollars to potential waste and misuse." Specifically, GAO asserts that Congress should conduct oversight on the preexisting mechanisms agencies use to prevent contract abuse. Congress should also "monitor the implementation of agency action plans to address the GAO high-risk areas related to acquisition and contract management." The recommendation singles out the Department of Defense (DoD), Department of Energy (DOE), and NASA because of their large budgets. DoD, DOE and NASA were also the three agencies that contracted out the most dollars in Fiscal Year 2005. The report also mentions the General Services Administration (GSA), ranked fourth in terms of dollars contracted in FY 2005, as another oversight priority. Recently, GSA Administrator Lurita Alexis Doan announced that the agency will reduce audits of contractors - audits that often uncover and deter contractor abuse. On Dec. 2, the Washington Post reported Doan plans to cut $5 million in audit spending. Under issues in need of long-term attention, GAO calls for increased scrutiny of recipients of federal grants. The recommendation states the existing audit structure does not go far enough and should include the "numerous federally established entities receiving significant federal funding that lack statutory requirements for accountability oversight." GAO recommends the creation of a "governmentwide accountability council" to reprioritize federal accountability issues and to coordinate the efforts of GAO, the White House Office of Management and Budget (OMB), and other oversight organizations. Also within the scope of contractor responsibility, GAO recommends oversight on the collection of royalties that mining and energy companies owe for extracting resources from federal lands, with specific proposals for assessing the reliability of the data provided by oil companies, and reflecting market values in royalty rules. Democrats have vowed in their first 100 hours agenda to target oil companies by ending subsidies, including royalty reductions. Budget and Tax Policy In its recommendations, GAO also enters the tax policy debate. Under near-term oversight, GAO critiques the tax gap - the difference between what taxpayers pay and what they actually owe, a favorite issue of Sen. Max Baucus (D-MT), incoming chair of the Senate Finance Committee. The recommendation cites an Internal Revenue Service (IRS) figure estimating a net tax gap for 2001 of $290 billion. In order to rectify this financial blunder, GAO proposes more congressional oversight of the IRS. Among the ideas are: allowing the IRS greater withholding power on capital gains and securities sales; simplification of the tax code; and greater use of technology in taxpayer service and enforcement. GAO goes into greater detail of its tax code simplification proposal in the policy and program reform category. The report criticizes the current income tax system and then calls for an overhaul that would broaden and simplify the process. One proposal calls for agencies to consider in their strategic plans the tax incentives they institute. Another suggestion calls for a bipartisan commission to examine options for both entitlement and income tax reform. GAO also has deep concerns over the country’s long-range fiscal health, or lack thereof. With the debt and deficits high and likely rising, GAO comments, “Failure to grapple with these challenges will result in a government unable to respond to any new challenges and a crushing fiscal burden for future generations.” GAO proposes a number of recommendations to mitigate the fiscal imbalance. Among the most interesting are the reintroduction of pay-as-you-go (PAYGO) rules (already likely to gain traction in the 110th Congress); requisite estimates of "long-term cost implications of major policy proposals (tax and spending) before they are acted upon;" earmark review; and consideration of biennial budgeting. Environmental Regulation GAO calls for increased oversight of various environmental laws and regulations. Throughout the report, GAO stresses the need for sound environmental information. "Without this kind of information," GAO states, "the nation's environmental policy and priorities will continue to be driven by anecdote and perception, rather than fact." Government Transparency GAO also recommends oversight of the ways in which the federal government allows access to some of its information. GAO recognizes the link between a transparent government and a healthy democracy, then goes on to suggest ways in which Congress could preserve said health. One proposal calls for Congress to compare how agencies respond to Freedom of Information Act requests from Congress, GAO, Inspectors General, and the public. Another recommendation calls for Congress to look into how and when agencies are deeming information sensitive but unclassified, and whether or not that designation impacts agency responses to information. GAO recognizes the broad and beneficial implications congressional oversight can create. In the report, the head of GAO, U.S. Comptroller David Walker, calls for oversight to be constructive and to "hold people accountable for delivering positive results." He goes on to state, "This balanced approach is likely to help accelerate progress while avoiding a further erosion of the public's trust and confidence in government."