I was first introduced to the reality of "use it or lose it" spending in the first year I began my government service as an enlisted U.S. Marine in 1993. This first experience involved being handed a government credit card, an internal SERVMART account, and was then directed to go to the self-service store to spend every last dollar remaining in the account on whatever was available, which was approximately $2,500.... more »
All federal agencies I've been involved with go through the same thing at the end of every fiscal year - a huge spending spree, many times on items not needed, to spend down money before it is swept away. A big reason for this is fear that the budget requests for the following year may not be approved if the agency did not spend it's entire budget in the current year. This is wasteful spending of money. The so called... more »
Fear that not using our full allocated budget dollars will mean a decrease in funds the next fiscal year; there is a push for unnecessary or non critical spending days before deadline. On the contrary, there should be incentives to return unused portions.
Many groups/units/divisions what have you in Federal departments are responsible for a budget. Currently, there is no reward for staying under budget. However, these groups must spend all of their money by the end of the fiscal year. Why, because these groups will be penalized by not receiving the same amount the next year. So the groups that are responsible with their money cannot give any money back with the fear of... more »
There is currently no real "personal" incentive for individuals in US government organizations to save money from their annual FY budgets (other than personal pride and/or as a US taxpayer). If each individual in an organization was permitted to "share" in some pre-determined percentage of any excess remaining funds from their organization's FY budget, each individual would have a vested interest in looking for cost... more »