Department of Defense

End "spend or lose" budgets - Save BILLIONS

Every end of the fiscal year, federal agencies rush to spend any leftover money to ensure they at least have the same budget the next year. Basically, there is a strong incentive to spend as much money as possible, resulting in terribly wasteful spending. I propose several measures be implemented to incentivize saving budget money:

 

1. Make sure that any established ceiling is not lowered simply due to a lack of spending.

 

2. Make a percentage of savings applicable to next year's budget. For example, with a 10% incentive percentage, an agency that only spends $50k of their $100k budget would have an extra $5k added to next year's ceiling.

 

3. Create a non-monetary award program for various savings percentages. For example, have gold, silver, bronze level plaque and/or certificate awards for spending only 25%, 50%, 75% of one's allocated budget.

 

Other possible incentives:

 

1. Permanently add a percentage of savings to an agency's budget: For example, with a 0.5% incentive percentage, an agency that only spends $50k of their $100k budget would have an extra $250 permanently added to their budget.

 

2. Add a monetary award program for various savings percentages. For example, add $1000, $500, $250 monetary awards for morale use for agencies that spend only 25%, 50%, 75% of their allocated budget.

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Idea No. 8167