Monday, January 23, 2012

Reducing Waste in Government

It is axiomatic that there is waste in government.  There are four reasons for this:  First, some government programs are inefficiently implemented.  Second, some programs duplicate substantial parts of other programs.  Third, some programs address problems that very few people care about.  And fourth, some people benefit from the waste and want to see it continue.

There have been many attempts to find waste in government.  Some have identified real opportunities.  The problem is that the constituency for eliminating waste is rarely as large or powerful as the one for continuing it, so the waste continues.   We can’t afford to do that anymore.

All government departments need to find ways to continue their important functions at a cost reduction of 5%.  This must be done as a real reduction to what was actually spent in 2011; not as some theoretical calculation relative to what would have been spent if this or that growth trend had continued or a particular budget request had been passed.  All of this must be done without reducing functions or services, without accounting tricks, and without subterfuge.  This is difficult, but it can be done.  Companies do it all the time.

Most important, there must be a simple, understandable report to the people from each department showing what cuts were made and how their potential impact on functions and services was circumvented.

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