Stop punishing personnel for saving money
Ostensibly to save unnecessary funds, agencies are required to return unused funds at the end of the year, which can encourage waste and spending sprees at the end of the fiscal year. In recent years, GAO has estimated that "carryover" funds across the government were over $2 trillion across agencies, with several DoD agencies having balances of roughly $7 billion on average per year from 2007-2012. Various options exist for ensuring agencies are not penalized for finding cost savings, including a plan introduced in the Senate in 2016 that would send unused funds to Treasury to pay down deficits while awarding bonuses to employees who find savings. Further action is necessary to ensure full savings are achieved.
$7 billion+ annually
- Daily Caller: "Bipartisan Bill Discouraging ‘Use It Or Lose It’ Gov’t Spending Moves Through Senate"
- GAO: Key Questions to Consider When Evaluating Balances in Federal Accounts
- S.1378 - Bonuses for Cost-Cutters Act of 2016
- H.R.378 - Bonuses for Cost-Cutters Act of 2017
- How The Federal Government Spent $97 Billion In One Month