Spending by Week | Spend It or Lose It
by BankRuptingAmerica: What happens when federal agencies that spend all their money are rewarded with bigger budgets? They learn to “spend it or lose it” before the end of the fiscal year, and waste your hard-earned tax dollars in the process. So how do we fix the “spend it or lose it” problem? By signing our petition demanding Congress and President Obama work to stop this abuse of taxpayer dollars!
The Wall Street Journal summarized the problem perfectly in 2010: “Under current law, agencies are typically forced to return any unspent part of their budgets, giving them an incentive to use every last dollar even if the money isn't needed.” This results in a flurry of wasteful spending towards the end of the fiscal year as agencies worry they will “spend too little
In 2012, Federal Times reported that many federal contracting offices answered phones and emails until midnight on September 30, the last day of the fiscal year, in an effort to use up their funds.
Key Points:
What We’re Proposing:
Accountability and Transparency: Develop government-wide standards for online reporting that would allow taxpayers and watchdogs to track agency budgets and foster greater accountability. The House of Representatives passed legislation in the last Congress to create such a system, but the White House and Senate opposed it. Online reporting at USASpending.gov already exists, but it’s time to improve the quality of data to root out waste and fraud. (Digital Accountability and Transparency Act)
Rollover Taxpayer Savings: Allow federal agencies to rollover funds to the next fiscal year so the funds don’t lapse and there is no incentive to waste. In 2010, the White House proposed allowing federal agencies to save money by redirecting unused funds to other programs and the rest to pay down the deficit. We agree. The federal government should budget and save the same way American families do.
Increased Oversight: It was recently reported that some of the federal government’s largest agencies don’t have permanent inspectors general, including departments that have recently had their own spending scandals. Public Notice believes every federal agency must have an inspector general in place to provide oversight of any inappropriate actions It’s clear the government needs to get smarter, more efficient, accountable, and transparent.
Tags: BankRupting America, government Spending, by the week, budget, debt, deficit, national debt, Spend It or Lose It, spending, Washington To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!
WHAT IS “SPEND IT OR LOSE IT”?
“Spend it or lose it” is the mentality fostered by the federal government’s current budgeting process, which creates harmful incentives for agencies to spend all the money in their budgets in order to receive even bigger budgets down the road.The Wall Street Journal summarized the problem perfectly in 2010: “Under current law, agencies are typically forced to return any unspent part of their budgets, giving them an incentive to use every last dollar even if the money isn't needed.” This results in a flurry of wasteful spending towards the end of the fiscal year as agencies worry they will “spend too little
In 2012, Federal Times reported that many federal contracting offices answered phones and emails until midnight on September 30, the last day of the fiscal year, in an effort to use up their funds.
Key Points:
Ø Empirical Analysis Shows A Spike In Federal Spending During The Last Month And Week Of Each Fiscal Year.
o The Flurry Of Year-End Spending Is Associated With A Drop-Off In The Quality Of Investment.
Ø The Problem Of Spend It Or Lose It Has Been Around For More Than 30 Years
Ø Many Private Companies Strategize For Or Help Their Clients Capitalize On The End-Of-Fiscal Year Spending “Flush”
Ø President Obama Has Acknowledged The Problem And Advocated For Solutions With Republicans, But The Problem Remains
What We’re Proposing:
Accountability and Transparency: Develop government-wide standards for online reporting that would allow taxpayers and watchdogs to track agency budgets and foster greater accountability. The House of Representatives passed legislation in the last Congress to create such a system, but the White House and Senate opposed it. Online reporting at USASpending.gov already exists, but it’s time to improve the quality of data to root out waste and fraud. (Digital Accountability and Transparency Act)
Rollover Taxpayer Savings: Allow federal agencies to rollover funds to the next fiscal year so the funds don’t lapse and there is no incentive to waste. In 2010, the White House proposed allowing federal agencies to save money by redirecting unused funds to other programs and the rest to pay down the deficit. We agree. The federal government should budget and save the same way American families do.
Increased Oversight: It was recently reported that some of the federal government’s largest agencies don’t have permanent inspectors general, including departments that have recently had their own spending scandals. Public Notice believes every federal agency must have an inspector general in place to provide oversight of any inappropriate actions It’s clear the government needs to get smarter, more efficient, accountable, and transparent.
Tags: BankRupting America, government Spending, by the week, budget, debt, deficit, national debt, Spend It or Lose It, spending, Washington To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!
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