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Federal Land Transaction Facilitation Act Restrictions and ...

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BLM Has Not Established<br />

Goals or an Implementation<br />

Strategy for FLTFA Sales<br />

BLM has established annual goals for the disposal of l<strong>and</strong> through sales or<br />

other means. 18 For example, BLM’s fiscal year 2008 budget justification<br />

contained a performance target to dispose of 11,500 acres <strong>and</strong> 30,000 acres<br />

of l<strong>and</strong> in fiscal years 2007 <strong>and</strong> 2008, respectively. However, BLM has not<br />

established similar goals for FLTFA sales. For example, BLM’s fiscal year<br />

2007 annual work plan for the l<strong>and</strong>s <strong>and</strong> realty function—which guides the<br />

activities to be completed in a given year—does not contain specific goals<br />

for FLTFA. Rather, it states that l<strong>and</strong>s <strong>and</strong> realty staff should continue to<br />

hold l<strong>and</strong> sales under FLTFA, especially in Nevada.<br />

BLM did provide an estimate in its fiscal year 2008 budget justification for<br />

FLTFA revenue—$12 million in fiscal year 2007 <strong>and</strong> $50 million in 2008.<br />

However, BLM fell short of its estimate for fiscal year 2007; it reported<br />

generating only $0.7 million from sales <strong>and</strong> exchanges. Moreover, when we<br />

asked BLM headquarters staff for the basis of the fiscal year 2007 <strong>and</strong> 2008<br />

revenue estimates, they said the estimates were based on professional<br />

judgment <strong>and</strong> that they had no supporting information. 19<br />

Our interviews with state <strong>and</strong> field office staff confirmed that there are<br />

few goals for conducting FLTFA sales. According to 27 of the 28 state <strong>and</strong><br />

field office officials we spoke with, BLM headquarters had not provided<br />

any goals; one state office said headquarters had emphasized getting their<br />

l<strong>and</strong> disposal program up <strong>and</strong> running in their office. According to 18 of<br />

these 28 officials, their state <strong>and</strong> field office management had set no<br />

targets or goals for FLTFA l<strong>and</strong> sales. Of the 10 that did mention such<br />

goals, 8 described the goal as a plan to sell specific parcels of l<strong>and</strong>.<br />

According to headquarters officials, BLM has tried to encourage FLTFA<br />

sales but is not pressuring field offices to conduct them, <strong>and</strong> there is no<br />

18 In 2000, BLM estimated that there were more than 3.3 million acres potentially available<br />

for disposal. (BLM, “Questions <strong>and</strong> Answers: <strong>Federal</strong> <strong>L<strong>and</strong></strong> <strong>Transaction</strong> <strong>Facilitation</strong> <strong>Act</strong>,<br />

Title II, of The Valles Caldera Preservation <strong>Act</strong> (Baca Ranch, NM)” (April 4, 2003,<br />

[http://www.blm.gov/nhp/news/releases/pages/2000/valles_QsAs.htm] accessed on<br />

February 28, 2007). However, the BLM FLTFA program lead said that only a small<br />

percentage of the l<strong>and</strong> designated for disposal are good c<strong>and</strong>idates for sale because the<br />

projected revenue from the sale exceeds the cost to conduct the sale.<br />

19 The BLM FLTFA program lead reported more recently that a revised estimate of future<br />

sales revenue had been prepared for FY 2008 <strong>and</strong> beyond. The estimate projects an average<br />

of $7.5 million in annual sales revenue or a total of $82.5 million in revenue from FY 2008<br />

through FY 2018, with the assumptions that the program will be extended, that revised<br />

program authority adds to the inventory of l<strong>and</strong> available for sale <strong>and</strong> that the program is<br />

made a priority by BLM state directors.<br />

Page 23 GAO-08-196 <strong>Federal</strong> <strong>L<strong>and</strong></strong> Management

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