Legislative Branch

Stop useless spending at year-end

Idea: Encourage all agencies in the Federal Government to SAVE money instead of SPENDING money.

 

How it will work: As the end of the fiscal year approaches many government agencies spend money to use their appropriation for that year. Some of that spending is unnecessary, and if the agencies had an incentive to SAVE, and they were not penalized for not spending their entire appropriation a significant amount of money could be SAVED.

 

Encourage agencies to return as much of their appropriated dollars as possible under the following conditions:

 

1. For every appropriated dollar an agency can return they will receive 25% back in the form of a permanent indefinite no-year appropriation that may be used at the agencies discretion.

 

2. The amount returned will not have an impact on future budget dollars.

 

Summary: The concept is so simple and the results could be tremendous. Many agencies spend money in the fourth quarter to avoid losing the appropriated money. If those same agencies were in the private sector and worried about the bottom line, they would never make the same purchases. If the agency has an incentive to save (no year money), and they know it will not have a negative impact on future budget dollars then I think the mindset would change across the country.

Tags

Voting

68 votes
Active
Idea No. 4993