WASHINGTON ( CNN ) -- The United States needs to formulate an `` updated strategy '' for Iraq , now that the Bush administration 's 18-month game plan for the country is completed , the head of the Government Accountability Office told lawmakers Wednesday . U.S. soldiers crouch at their positions during a mission in Baquba , northeast of Baghdad , earlier this month . Acting U.S. Comptroller General Gene L. Dodaro appeared before a House Armed Services Committee hearing to discuss last month 's GAO progress report on Iraq , which reaffirmed the need for a renewed strategy in the war-ravaged country . The report , Dodaro said in prepared remarks , noted that `` some gains '' have been made in the security , legislative and economic areas since President Bush last year announced `` The New Way Forward '' -- the near-term goals for Iraq that included the military surge . The surge , or troop escalation , ended this month . `` The United States had made some progress in achieving key goals stated in 'The New Way Forward , ' `` the report said . `` Looking forward , many challenges remain , and an updated strategy is essential . '' Dodaro said the progress report recommended an updated strategy in Iraq to the Departments of State and Defense . He told lawmakers that the departments said they will `` review and refine the current strategy as necessary , but asserted that 'The New Way Forward ' remains valid . '' Dodaro also argued that a renewed strategy is important `` for several reasons . '' The goals and objectives for the present phase end this month and they are `` contained in disparate documents rather than a single strategic plan , '' he said in his prepared remarks . `` Much has changed in Iraq since January 2007 , when the president announced 'The New Way Forward . ' Violence is down , U.S. surge forces are leaving , and a new framework for the U.S. presence in Iraq needs to be agreed upon beyond the U.N. mandate , '' Dodaro said . The GAO report said that while the number of enemy-initiated attacks in Iraq have decreased about 80 percent from June 2007 to June 2008 , the `` security environment remains volatile and dangerous . '' The agency noted that not all of the country 's provinces have lead responsibility for security and less than 10 percent of Iraqi security forces `` were at the highest readiness level . '' The progress report also cited the enactment by Iraqi lawmakers of measures `` to return some Baathists to government , grant amnesty to detained Iraqis and define provincial powers . '' It said there is an `` unfinished '' legislative agenda , citing the need for measures on `` sharing oil revenues , disarming militias , and holding provincial elections . '' A provincial election law was passed on Tuesday by Iraq 's parliament , the Council of Representatives , but Iraqi President Jalal Talabani has rejected it , his office said Wednesday . The measure was strongly opposed by Kurdish lawmakers and Iraq 's Kurdish Regional Government had criticized it , calling for its rejection . It 's not clear whether further negotiations may take place to amend the legislation . As for the economic arena , crude oil production is below U.S. goals , even though it has `` improved for short periods , '' the GAO report said . Goals for water service are `` close to being reached , '' but the daily electricity supply `` met only slightly more than half of demand in early July 2008 . '' It also noted that Iraq `` spent only 24 percent of the $ 27 billion it budgeted for its reconstruction efforts between 2005 and 2007 . '' Dodaro said the Pentagon , State Department and other agencies should `` develop an updated strategy for Iraq that defines U.S. goals and objectives after July 2008 . '' `` This strategy should build on recent security and legislative gains , address the remaining unmet goals and challenges for the near and long term , clearly articulate goals , objectives , roles and responsibilities , and the resources needed , '' he said .
NEW : Head of Government Accountability Office speaks to House committee . Though attacks are down , situation in Iraq remains `` volatile and dangerous '' Report cites `` unfinished '' legislative agenda in Iraq . Iraq 's oil production remains below U.S. goals , report says .