Department of Health and Human Services

Carry over money across at least 1 fiscal year; aka, instead of the annual summer money waste, save it for next year

The fiscal year cycles have become inherently wasteful, and as a result very frustrating. The annual scenario: we start the fiscal year in October on a CR, too worried about unknown budgets to buy even essentials until after Christmas (which, of course, greatly affects productivity); local departmental budgets aren't known until at least January if not March, and when budgets are at last finalized, frantic calculating and catch-up spending ensues for 2-3 months; then the annual summer "money dump" arrives, as money held back or freed up is finally released, a phenomenon that creates appalling waste since we all scramble to spend the entire appropriation by late August, no matter what. Along the line, hope fervently that you anticipated and remembered everything you need from September to January or so, and especially hope that you don't need anything perishable. Starting in October, repeat.


This system runs counter to responsible financial management, and instead is rife with incentives to waste money. That improves immediately and enormously if local units were allowed to simply save (carry over) money from one fiscal year to the next. Adding simple incentives to do so (e.g., those in the unit that doesn't spend all of their budget get 5% of the savings split among their paychecks) would create even more savings.



83 votes
Idea No. 7952