- Posted February 25, 2013 by
This iReport is part of an assignment:
Sequestration = Optimal Budget Management
After giving the Sequestration issue some thought, I’ve come to the conclusion that this is ‘the’ optimal way to cut spending.
In my experience, there is nothing quite worse than an executive several degrees removed from the operational processes of a department or division dictating how budget cuts should be applied to my department. Executives removed from the intricacies and specifics of operational functionality typically make the wrong decisions that adversely affect the overall performance of the department.
Does anyone really think that given the complexity and scope of our government, that anyone in the administration or Congress has a full understanding of how to maximize the efficiency of specific government operations? Of course not. Legislators and elected officials think in broad visionary strokes, or more cynically how better to line their pockets and get re-elected.
As in the private sector, it makes sense that government department heads have a much keener understanding of the inner workings, efficiencies and inefficiencies of their departments. They are trained and uniquely skilled to optimize the performance of their various departments.
Under the rules of this Sequestration each department will be allocated a percentage cut to their budget. Given the dramatic increases in spending and government growth over the past several years, a 1% -2% cut should be manageable. Department heads have the ability to allocate these cuts however they see fit. The natural tendency then will be to optimize the performance of the departments’ functions while mitigating the effects on government workers or the American people.
In my opinion, we may have unwittingly just uncovered the Holy Grail of budget management.
I believe that the hand wringing and cries of foul we hear from our government officials is born from the fear that they will lose their pet earmarks or projects. Nothing more.
I think this might be a good first step in managing our budget.