The Panel has focused on the clear dichotomy between future Space Shuttle risk and the required level of planning and investment to control that risk. The Panel believes that current plans and budgets are not adequate. Last year's Annual Report highlighted these issues. It noted that efforts of NASA and its contractors were being primarily addressed to immediate safety needs. Little effort was being expended on long-term safety. The Panel recommended that NASA, the Administration, and Congress use a longer, more realistic planning horizon when making decisions with respect to the Space Shuttle.

Since last year's report was prepared, the long-term situation has deteriorated. The aformentioned budget constraints have forced the Space Shuttle program to adopt an even shorter planning horizon in order to continue flying safely. As a result, more items that should be addressed now are being deferred. This adds to the backlog of restorations and improvements required for continued safe and efficient operations. The Panel has significant concern with this growing backlog because identified safety improvements are being delayed or eliminated.