[Published in the Sunday Guardian of India and Newsmax]
The United States (U.S.) must confront Federal
Government spending. U.S. national debt
is now $35.7 trillion USD. This is
larger than the country’s $29 trillion USD Gross Domestic Product (GDP).
Paying interest on the debt now exceeds $658
billion USD a year. This debt service is
becoming an increasingly large part of annual spending for the Federal
Government.
Reducing the size and cost of government
is a major priority for former President, Donald Trump.
He is promoting Elon Musk’s plan to find
and cut trillions of dollars in Federal Government waste.
Musk will only succeed if he moves
boldly and learns from the past. His
current plan to build a bureaucracy to fight bureaucracy will end in
frustration.
The Federal bureaucracy has fended off
countless similar efforts.
In 1982, President Ronald Reagan established
something similar to Musk’s proposed effort.
The Grace Commission was charged with identifying and eradicating waste.
Reagan first used the phrase, “Drain the Swamp” as part of the Commission’s
mission.
Businessman, J. Peter Grace, formed the President’s
Private Sector Survey for Cost Control (PPSSCC) as a separate organization funded
by private sources. Over 150 prominent business leaders volunteered their time
as overseers and members of the PPSSCC Task Forces. Its 36 task forces generated
2,478 recommendations that identified $424 billion USD ($1,243 billion in 2024
value) to be saved in three years. Congress ignored them all.
Earlier government waste initiatives
include the 1974-76 Commission on Federal Paperwork. It was designed to assess paperwork burdens
and implement the Paperwork Reduction Act.
The Commission employed hundreds of people to review government forms
and processes.
This was my first job in Washington,
DC. As a graduate student at American
University, I was a management analyst for the Housing Task Force. One of my most surreal findings was a 36 foot
(12 meter) long flow chart for applying to build government subsidized housing.
The report’s 800 recommendations were issued and vanished. Very few of the recommendations were
implemented.
Vice President Al Gore led the “National
Partnership for Reinventing Government (NPR)” initiative under President
Bill Clinton. It intended “to make the
federal government work better, cost less, and get results Americans care
about". During its five years, it was a catalyst for several operational
changes, including the elimination of over 100 programs, the use of performance
measurements, and expanding technology.
However, it promised savings of $207
billion USD never materialized.
There are other ways to rein in
government waste. They just haven’t been
used.
Every year, the Government
Accountability Office (GAO) and 73 Department and Agency based Inspector
General Offices issue reports. Annually
they uncover over $650 billion USD in waste.
These reports include recommended
actions. Virtually none of them are
implemented.
One example: Improper payments (payments
that are made incorrectly) cost the U.S. over $200 billion USD a year. The GAO
estimates that the U.S. government has lost almost $2.4 trillion USD in simple
payment errors over the last two decades.
No action has been taken.
Every year outsiders expose government
waste.
Senator Rand Paul issues his Annual
“Festivus Report” each December. It
focuses on dubious grants and contracts.
His 2023 report revealed the U.S. government paid $900 billion for
worthless research, fraudulent claims, and subsidies to domestic millionaires
and foreign tyrants. Some of his specific findings included: an National
Institutes of Health (NIH) grant to study Russian cats walking on a treadmill,
Barbies used as proof of ID for receiving COVID Paycheck Protection Program
funds, $6 million to promote tourism in Egypt, and $200 million to ‘struggling
artists’ like Post Malone, Chris Brown, and Lil Wayne.
Dr. Rand Paul Releases 2023 ‘Festivus’ Report on Government Waste - Senator Rand Paul
Senator James Lanford issues his
“Federal Fumbles Report” that highlights laughable waste.
Federal Fumbles - Senator James Lankford
Citizens Against Government Waste’s
annual “Pig Book” illuminates questionable earmarks (now called Congressionally
Directed Spending).
2024 Congressional Pig Book | Citizens Against Government Waste
The challenge is not finding the waste,
but actually doing something about it.
There are steps that should be taken.
Step One – Clean House
The U.S. Government’s Executive Branch
includes mostly career personnel. They are selected through a competitive application
process. Once past a probationary period
they can only be removed for cause.
However, there are thousands of
Executive Branch personnel who hold “policy positions” and are not eligible for
career status protection. These
individuals are appointed by the President and his Office of Presidential
Personnel (OPP). They are “at will”
employees and may be removed at any time for any reason. The listing of these policy positions is
known as the “Plum Book”. It lists
around 8,000 personnel that have limited or no career protection.
As Director of Personnel for the Reagan
Campaign and Transition, I looked at organizational charts for all career
personnel who directly reported to policy officials or worked in policy
offices. There were also hundreds of
agency and programmatic advisory boards and committees with their own support
staff. All of these people, upwards of
50,000, can be transferred or reassigned to clear operational pathways.
Only the Reagan Transition of 1980-81
completely cleared the policy and operational pathways. This allowed the “Reagan Revolution” to move
rapidly on a broad front to fundamentally change U.S. domestic and foreign
policy.
An incoming Presidential Administration
usually asks for the resignations from every political appointee from the prior
administration. However, some do not
comply. Other “holdovers” find career
positions. Some create consulting
arrangements to remain on the public payroll.
The Executive Branch is awash with
contractors. Many of them owe their allegiance to prior administrations. All
have a vested interest in garnering more money for themselves. A detailed review of these contracts and
contractors can empty out large swaths of those loyal to the “status quo”. Many of these contracts may be poorly written
and administered. Some may have no real
value. Ending these contracts will save
billions.
Step Two – Take Control
A new President is like a ship’s
captain. They stand on the ship’s bridge
to control its course. In reality, this
“captain” initially has no control beyond the bridge. The size and complexity of the Federal Government
hampers any change of course. Too many
activities have lives of their own, managed by individuals who are wedded to
the “status quo”.
A new President needs to insert “Change
Teams”, professionals skilled and committed to making the new Administration an
immediate operational reality, into all Cabinet Departments and major agencies
to instantly end the previous era. This means full control of every key
decision. This covers all legal, regulatory, procurement, personnel, grants,
and expenditures.
Nothing should happen until signed off
by the Change Teams.
Locking everything down also means
revoking all delegations of authority and forcing every action, communication,
and policy into the hands of the Change Teams immediately. The Change
Teams must literally patrol the corridors and rattle doorknobs to make sure no
one is extending the actions of the prior era. The first few days of
Reagan’s Presidency found numerous examples of career employees refusing to
yield. In one case, a grant administrator had to be physically stopped
from approving $350,000 USD of Carter era grants still sitting on his desk.
Bringing in new people who are loyal and
competent is vital. So is finding and
promoting their career counterparts.
Whistleblowers exposed many problems during the Biden-Harris
Administration. They should become key
advisors for identifying career allies and ferreting out resistance.
Both Republican and Democrat political
appointees complain that their career colleagues often hide, spin, or fake
facts. This is not partisan. Careerists want to protect their
power, turf, reputation, and pet projects. In many cases, careerists go
through the motions of supporting the new Administration without doing
anything. Discovering and thwarting “Malicious
Compliance” is a major challenge. This even happens within the Office of the
President as this organization is filled with career employees.
The transition planning process needs to
start identifying trusted colleagues ASAP. These may be whistleblowers
who will embrace change, and confidential sources who have already proven
themselves credible to Congress and media allies. This first wave of
trusted professionals identifies those they trust, and so on, until there is a
critical mass to substantively shift policy and operational direction
throughout the Executive Branch.
Step Three – Follow the Money
Approximately $1.028 trillion USD remains
unexpended among general accounts and $461 billion USD remains unspent in trust
funds. While these funds are technically obligated, the fact that
they have languished for years raises questions about their use and management. These funds can be reclaimed and reused.
Look for the accounting code “1941” on
federal agency accounts. This code is
for “unexpired unobligated balances”. Another database is expired grant accounts. The
GAO uncovered 7,500 just in Department of Health & Human Services’ Payment
Management System. Thousands of lapsed grant
accounts are briming with money that will never be used but can be reclaimed.
The late Senator, Tom Coburn, exposed
these funds in a detailed report, “Money for Nothing”. Nothing was done. The U.S. media ignored his findings.
Microsoft Word - MONEY FOR NOTHING June 6 - final
Another code is the “Current Services
Budget”, or “Baseline” budget. This outlines how much it costs to maintain
existing services at current levels. It factors in various cost drivers - cost
of living increases, escalation clauses in contracts, etc. Funding above
“Current Service” is a spending increase.
This is a built in “ratchet effect” to expanding government.
Step Four – Eliminate Programs
Congress is the headwaters of expanding
government. Every year new programs,
entities, and reporting requirements are established. Members from both parties jealously guard their
progeny.
Reviewing which ones are obsolete and
duplicative may shame some in Congress to let them fade away. Some may have lost their protection as their
creator has left Congress. It took years for the Base Realignment and Closure
(BRAC) process to eliminate obsolete facilities.
Abolition opportunities abound for those
programs directly created by the Executive Branch. These have no basis in law but are created
under the concept of “management by news release”. One day stories that result
in never ending wasteful activity. Other
programs are training projects to promote specific ideological ends, such as climate
change, critical race theory, and transgender awareness.
Eliminating whole Agencies and
Departments requires more courage than exists in Congress.
Step Five – Reduce Personnel
Instituting a real hiring freeze will
rapidly drop numbers through retirements and “churn” (people leaving government
to take nongovernment jobs). Special
exemptions will be required as specific vacancies for performing real tasks
arise. These waivers should only be
granted by the Change Teams. Do not conduct mass firings or “Reduction in
Force” (RIFs). This triggers an array of
procedural impediments and legal actions.
Reagan’s General Services Administration
(GSA) cut nearly two thirds of its workforce in three years using a hiring
freeze without a RIF. No legal action occurred.
Congress establishes programs and
organizations, but rarely details how they are staffed or managed. This is the best opportunity to delayer,
reduce, and consolidate.
The private sector has found that 2-5
layers of management are more than adequate to assure success. Corporate
performance “dashboards”, knowledge management, and empowering/enabling front
line workers led to abolishing the antiquated concepts of span of control, pecking
order, and fiefdoms. It is time for the Federal Government to join the 21st Century
and eliminate up to 23 layers of obsolete command & control supervisors, countless
numbers of extraneous planning staffs, and unnecessary program overseers.
Americans deserve value from every
dollar spent.
They rarely receive even $0.12 USD of
value per $1.00 USD.
Many dollars spent generate no value at
all.
It is long overdue to fight Federal
Government waste and win.