Deficit Panel Findings

DkAI1 DCCUMLN1 (11.12.
10 UDA1L)
ALL NUM8LkS AkL IC S1AII LS1IMA1LS 8ASLD CN C8C AND C1nLk SCUkCLS
5200 8ILLICN IN ILLUS1kA1IVL SAVINGS
(ln bllllons, savlngs rounded Lo nearesL $0.1)

201S SAVINGS
DCMLS1IC: 5100.2 8ILLICN
DLILNSL: 5100.1 8ILLICN
1C1AL: 5200.3 8ILLICN

LLADING 8 LkAMLL

1. keduce Congress|ona| & Wh|te nouse budgets by 1S percent.
1
doubled from l?2000 Lhrough l?2010.
Llke mosL areas of
governmenL, Lhe budgeLs for Congress and Lhe LxecuLlve Cfflce of Lhe resldenL have
grown slgnlflcanLly ln recenL years. lor example, leglslaLlve branch approprlaLlons almosL
2

ln order Lo Lackle our flscal lmbalance, everyone musL
sacrlflce. 1haL should lnclude Lhose aL Lhe Lop. 1hls proposal would cuL Lhe budgeLs for Congress
and Lhe WhlLe Pouse by 13 percenL, savlng abouL $800 mllllon ln 2013.
2. Ireeze federa| sa|ar|es, bonuses, and other compensat|on at non-defense agenc|es for
three years.
3
have seen Lhelr wages lncrease due Lo auLomaLlc formulas ln law LhaL provlde Lhem wlLh sLep-ln-
grade and cosL-of-llvlng-ad[usLmenLs. lor example, federal clvlllan employees recelved a 2.0 percenL
ralse ln 2010, a 3.9 percenL ralse ln 2009, and a 3.3 percenL ralse ln 2008.
uurlng Lhe CreaL 8ecesslon, mosL prlvaLe secLor employees have seen Lhelr
wages frozen, and some have even waLched wages decllne. ln conLrasL, federal workers
4

1hls proposal would
lnsLlLuLe a Lhree-year cross-agency freeze on federal pay, lncludlng salarles and Lhose beneflLs llnked
Lo pay ralses, Lo reflecL Lhe currenL economlc and flscal cllmaLe.
1he followlng esLlmaLe assumes for l?2012 a 2.3 percenL lncrease on a $143 bllllon base. lor
l?2013 Lhrough l?2013, Lhe pro[ecLed raLe of growLh ls 3.9 percenL whlch ls conslsLenL wlLh
pro[ecLlons ln Lhe resldenL's l?2011 budgeL.

I|sca| ear 2012 Ireeze 2013 Ireeze 2014 Ireeze Cumu|at|ve Annua| Sav|ngs
2012 53.3 NA NA 53.3
2013 53.3 5S.7 NA 59.0
2014 53.4 5S.8 5S.7 514.9
201S 53.4 5S.9 5S.8 51S.1
S year tota| 513.4 517.4 511.S 542.3

1
Accordlng Lo Lhe Congresslonal 8esearch Servlce, approxlmaLely $3.12 bllllon was requesLed ln l?2011 for leglslaLlve branch operaLlons. 1hls
was an lncrease of 10 percenL over l?2010 levels. 1he l?2011 requesL for Lhe LxecuLlve Cfflce of Lhe resldenL (noL lncludlng Lhe Cfflce of
naLlonal urug ConLrol ollcy) was $333 mllllon accordlng Lo Lhe WhlLe Pouse's offlclal budgeL submlsslon Lo Congress.
2
lda A 8rudnlck, LeglslaLlve 8ranch: l? 2011 ApproprlaLlons" Congresslonal 8esearch Servlce, Aprll 28, 2010.
3
SLaff esLlmaLe.
4
aLrlck urcell, lederal Lmployees: ay and enslon lncreases Slnce 1969," Congresslonal 8esearch Servlce, !anuary 20, 2010.
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DkAI1 DCCUMLN1 (11.12.10 UDA1L)
3. Cut the federa| workforce by 10 percent (2-for-3 rep|acement rate).
S
federal workforce has cllmbed back over 2 mllllon lull-1lme LqulvalenLs (l1L).
1he governmenL's
clvlllan, nonmlllLary work force peaked ln Lhe laLe 1960s aL abouL 2.3 mllllon. ln Lhe 1990s lL
began Lo drop, reachlng a low of 1.778 mllllon ln 2000. 8ecenLly, however, Lhe slze of Lhe
6
1hls proposal would
reduce Lhe federal workforce by 200,000 by 2020.
7

under Lhls proposal, Lhe governmenL could hlre Lwo new workers for every Lhree who leave
servlce.
8

1hus Lhe blll ls noL a rlgld hlrlng freeze, buL a workforce reducLlon plan LhaL allows Lhe
governmenL Lo conLlnue brlnglng ln new workers aL a slower pace. 1o decrease Lhe lmpacL on
overall naLlonal employmenL levels, Lhls proposal would noL Lake effecL unLll 2012. All agencles
would be sub[ecL Lo Lhe hlrlng resLrlcLlons. Powever Lhe presldenL would have dlscreLlon Lo exempL
cerLaln agencles lf naLlonal securlLy were lmpacLed, as long as Lhe overall workforce LargeLs
conLlnued Lo decllne and reach Lhe LargeL of 200,000 by 2020.
4. L||m|nate 2S0,000 non-defense serv|ce and staff augmentee contractors.
9
uurlng Lhe
1990s Lhe LoLal slze of Lhe federal workforce was reduced by over 402,000 full-Llme
employees (l1L), levels noL seen slnce Lhe Llsenhower AdmlnlsLraLlon.
10
Lhere was only a marglnal lncrease ln Lhe number of conLracL [obs, produclng conslderable savlngs
for Laxpayers. ln facL, accordlng Lo aul LlghL of new ?ork unlverslLy, Lhe Lrue slze of Lhe federal
governmenL was 12,112,000 ln 2002, an lncrease of only 107,000 from 1993, almosL all conLracL
sloLs.
AL Lhe same Llme,
11

?eL, from 2002 Lo 2003, Lhe federal governmenL experlenced a marked lncrease ln Lhe number of
conLracL poslLlons. 8y Lhe end of 2003 (accordlng Lo LlghL's esLlmaLes), more Lhan 2.4 mllllon
addlLlonal conLracLors had been placed on Lhe federal payroll (more Lhan Lhe LoLal number of
clvlllan employees).
12

Whlle conLracLors provlde useful servlces - someLlmes aL a lower cosL Lhan
Lhe federal governmenL - Lhelr numbers are slmply Loo hlgh ln llghL of Lhe currenL budgeL deflclL.
under Lhls proposal, non-defense federal agencles would requlre conLracLors Lo provlde a
headcounL of how many employees are worklng on federal conLracLs, and whaL speclflc [obs Lhey
are fulfllllng. Second, upon compleLlon of Lhe lnvenLory, non-defense agencles would be requlred Lo
cuL Lhe number of conLracL sloLs by 230,000, speclflcally LargeLlng Lhose conLracLors who provlde
servlces and/or are used Lo augmenL Lhe clvlllan federal workforce. 1hls cuL could be across-Lhe-
board, or lL could be on an agency by agency basls.
13

1hls would save abouL $18.4 bllllon ln 2013.

3
SLaff esLlmaLe.
6
hLLp://www.whlLehouse.gov/omb/budgeL/fy2011
7
1he average annual federal workers compensaLlon ln 2008, lncludlng pay plus beneflLs, was $119,982 accordlng Lo Lhe unlLed SLaLes 8ureau of
Lconomlc Analysls.
8
Accordlng Lo Lhe arLnershlp for ubllc Servlce, one-Lhlrd of Lhe 1.9 mllllon member clvlllan federal workforce ls expecLed Lo reLlre or reslgn ln
Lhe nexL flve years. 1he arLnershlp expecLs over 240,000 federal employees Lo reLlre beLween 2008 and 2012.
9
SLaff esLlmaLe.
10
aul WelnsLeln & kaLle McMlnn Campbell, 8eLurn Lo llscal 8esponsblllLy ll, rogresslve ollcy lnsLlLuLe, Aprll, 2007
11
LlghL, aul, 1he new 1rue Slze of CovernmenL," new ?ork unlverslLy/Wagner School of ubllc Servlce, AugusL, 2006.
12
lbld
13
Accordlng Lo ayscale.com Lhe medlan federal governmenL conLracLor ls $62,401.
hLLp://webcache.googleuserconLenL.com/search?q=cache:C3ClC3mLLw!:www.payscale.com/research/uS/lndusLry3uCovernmenL_ConLrac
Lor/Salary/by_Lmployer_1ype+medlan+salary+governmenL+conLracLor&cd=1&hl=en&cL=clnk&gl=us
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S. Cap the number of federa| po||t|ca| appo|ntments at 2,000.
14
lnsLlLuLe a hard cap on Lhe number of pollLlcal appolnLmenLs aL 2,000, buL Lhe blll would glve Lhe
LxecuLlve 8ranch Lhe dlscreLlon Lo deLermlne how Lo reduce Lhe number of appolnLees and glve lL
unLll 2012 Lo do so. oslLlons ouLllned ln Lhe ConsLlLuLlon would noL be affecLed by Lhe blll. 1hls
opLlon would save abouL $100 mllllon ln 2013.
SenaLors 8uss lelngold (u-
Wl) and !ohn McCaln (8-AZ) have lnLroduced a proposal Lo cuL Lhe number of pollLlcal
appolnLmenLs from 3,000Lo 2,000. Speclflcally, Lhe lelngold-McCaln leglslaLlon would

lL should be noLed LhaL Lhe number of pollLlcal appolnLees has rlsen dramaLlcally ln recenL years.
Slnce 1980, Lhe number of pollLlcal appolnLees has shoL up by nearly 28 percenL. 1he proposal
would also reduce Lhe amounL of Llme Lhe AdmlnlsLraLlon and Congress would have Lo spend
wrangllng over veLLlng and conflrmlng appolnLees.

6. Cut federa| trave| budget.
1S
approxlmaLely $9 bllllon on Lravel for mlsslon-relaLed buslness around Lhe world. ln l?2006, LhaL
flgure reached [usL over $14 bllllon-an lncrease of 36 percenL.
Cne of Lhe flrsL Lhlngs companles cuL when faced wlLh budgeL
problems ls Lravel. ?eL, desplLe our record deflclLs, governmenL expendlLures for Lravel
have grown by leaps and bounds. lor example, ln l?2001, federal agencles spenL
16

Some of Lhe recenL lncreases may be due Lo flucLuaLlons ln oll prlces and Lhe demands of Lhe wars ln
lraq and AfghanlsLan. Lven so, Lhe facL remalns LhaL year afLer year, agencles conLlnue Lo spend
more on Lravel Lhan Lhey pro[ecL (boLh before and afLer 9/11). lurLhermore, Lhe facL LhaL Lravel
spendlng ls rlslng aL such a rapld pace would seem Lo be counLerlnLulLlve, conslderlng LhaL Lhe lasL
decade has wlLnessed remarkable lmprovemenLs ln LelecommunlcaLlons Lechnology (lncludlng vldeo
conferenclng, web-casLlng, eLc.) LhaL should have decreased Lhe need for ln person face-Lo-face
meeLlngs and onslLe vlslLs.

1he ueparLmenL of Lnergy (uCL) announced Lhls year LhaL lL wlll adopL Lhe suggesLlon Lo reduce
Lravel cosLs by lncreaslng rellance on vldeo Leleconferenclng when pracLlcal. 1o fund Lhe upfronL
caplLal cosLs assoclaLed wlLh Lhls efforL, uCL wlll plan Lo reduce Lravel budgeLs by 3 percenL versus
lLs 2009 Lravel expendlLures. 1he savlngs from Lhls reducLlon wlll be used Lo asslsL Lhe Cfflce of Lhe

14
ln 2000 Lhe C8C esLlmaLed Lhe average salary of pollLlcal appolnLees Lo be $89,000. MosL llkely Lhere has been addlLlonal growLh ln Lhls
number (meanlng Lhe savlngs for Lhls proposal would be greaLer Lhan pro[ecLed here) buL offlclal esLlmaLes are noL readlly avallable.
hLLp://webcache.googleuserconLenL.com/search?q=cache:x1P3zAr2l10!:www.cbo.gov/doc.cfm3llndex3u184326Lype3u026sequence
3u20+/search3lhl3uen26q3u28slLe:www.cbo.gov28cbo28232828cuLLlng28pollLlcal28appolnLees&cd=1&hl=en&cL=clnk&
gl=us.
13
SLaff esLlmaLe.
16
uanlel ulllam & Lauren 1aylor, Covetomeot xecotlve Moqozloe
hLLp://www.govexec.com/feaLures/0806-13/0806-13s6.hLm
hLLp://www.govexec.com/dallyfed/0807/082907p1.hLm
hLLp://www.govexec.com/Lop200/03Lop/Lop03s7s2.hLm
hLLp://www.govexec.com/feaLures/0804-13/0804-13s3s2.hLm

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Iedera| 1rave| Spend|ng I01 I02 I03 I04 I0S I06 I07
M|||tary 1rave| Spend|ng 56.0 56.6 58.4 58.9 510.9 59.1 59.6
Non-M|||tary 1rave| Spend|ng 53.0 53.4 53.6 54.3 54.S 5S.0 5S.2
1ota| 1rave| Spend|ng 59.0 510.1 511.9 513.2 51S.4 514.1 514.8
Chlef lnformaLlon Cfflcer ln lmplemenLlng a sLraLegy of enhanced rellance on vldeo
LelecommunlcaLlons Lo brlng down Lravel cosLs ln 2011 and beyond.
17

8y lncreaslng rellance on compuLer web cameras and oLher vldeo Leleconferenclng equlpmenL,
lncludlng lnsLanL chaLLlng, Lhe ueparLmenL wlll reduce Lhe need for some buslness Lravel. 1hls wlll
yleld savlngs noL only ln Lerms of Lravel dollars, buL also ln Lravel Llme for federal workers and
conLracLors, as well as poslLlve exLernallLles of lncreased safeLy from ellmlnaLlng unnecessary Lravel
and reduced greenhouse gas emlsslons. uCL esLlmaLes Lhls pollcy change wlll save $3 mllllon ln l?
2011.
18

Applylng uCL's pollcy Lo all federal agencles (excludlng Lhe osLal Servlce) would save $4.22
bllllon over Len years.
7. Lstab||sh Veterans Adm|n|strat|on (VA) hea|th co-pays.
19
paLlenLs pay no fees for lnpaLlenL or ouLpaLlenL medlcal care. 1hls opLlon requlres co-paymenLs for
medlcal care provlded by Lhe ueparLmenL of veLerans Affalrs Lo Lhese enrollees, savlng $0.7 bllllon
ln 2014.
1hls opLlon would lncrease ouL-
of-pockeL cosLs for veLerans ln rlorlLy Croup 3 - Lhose who do noL have servlce-
connecLed dlsablllLles and whose lncome ls below a vA-deflned Lhreshold. CurrenLly, Lhose

8. keduce unnecessary pr|nt|ng costs.
20
8eyond Lhe cosLs of mass produced governmenL publlcaLlons, lL ls esLlmaLed LhaL clvlllan federal
employees spend $1.3 bllllon annually on offlce prlnLlng, of whlch over $400 mllllon of whlch can be
consldered unnecessary."
1hls opLlon reduces unnecessary prlnLlng and
publlshlng cosLs by allowlng cerLaln documenLs Lo be released ln elecLronlc-only form. Such
documenLs already exlsL ln elecLronlc form, and prlnLed coples of Lhem ofLen go unread.

9. 1r|m the Iedera| Veh|c|e 8udget. 1he governmenL owns approxlmaLely 632,000 cars and
Lrucks, and lL spends almosL $4 bllllon annually Lo operaLe Lhem.
21
whlle Lhe cosL of operaLlng Lhe fleeL has rlsen 3.4 percenL.
Moreover, Lhe number ls
geLLlng blgger. lor example, slnce 2006 Lhe governmenL has added over 20,000 vehlcles
22

1hls proposal would requlre a 20
percenL reducLlon ln Lhe vehlcle budgeL for all agencles excepL Lhe ueparLmenL of uefense and Lhe
u.S. osLal Servlce, by requlrlng agencles Lo slow down new vehlcle acqulslLlons, decrease Lhe
number of mlles drlven, and over Llme movlng Lo a more fuel efflclenL fleeL.
10. Cther eff|c|enc|es.
23
use by puLLlng Lhe defaulL opLlon on coplers Lo double-slded, cuLLlng personal compuLer power
usage by lnLroduclng a number of energy savlng Lechnologles and pracLlces, and ellmlnaLlng paper
paysLubs. AlLogeLher Lhese pracLlces would generaLe savlngs of over $1 bllllon ln 2013.
1he AdmlnlsLraLlon has proposed a number of proposals LhaL lf applled
across agencles would produce lmporLanL savlngs Lo Lhe Laxpayer. 1hls could be
accompllshed by an execuLlve order by Lhe presldenL. 1hese reforms would reduce copylng

17
hLLp://www.whlLehouse.gov/omb/budgeL/fy2011/asseLs/Lrs.pdf
18
lbld.
19
Congresslonal 8udgeL Cfflce. 8udgeL CpLlons volume 1: PealLh Care." uecember 2008.
20
AmendmenL 4331 Lo Lhe 1ax LxLenders 8lll, lnLroduced by Sen. 1om Coburn on !une 17, 2010 and supporLed by Sen. !ohn McCaln.
hLLp://coburn.senaLe.gov/publlc/lndex.cfm?a=llles.Serve&llle_ld=d8ccab68-bc74-43a3-af6a-82bb817ea9ff
21
lederal lleeL 8eporL, llscal ?ear 2009", Ceneral Servlces AdmlnlsLraLlon.
22
lbld.
23
AmendmenL 4331 Lo Lhe 1ax LxLenders 8lll, lnLroduced by Sen. 1om Coburn on !une 17, 2010 and supporLed by Sen. !ohn McCaln.
hLLp://coburn.senaLe.gov/publlc/lndex.cfm?a=llles.Serve&llle_ld=d8ccab68-bc74-43a3-af6a-82bb817ea9ff
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CU1 CU1DA1LD, LCW kICkI1, AND UNDLk-LkICkMING kCGkAMS

11. Create a Cut-and-Invest Comm|ttee charged w|th tr|mm|ng waste and target|ng
|nvestment. 1hls proposal would creaLe a blparLlsan CuL-and-lnvesL CommlLLee Lo revlew
federal programs and make recommendaLlons Lo Congress abouL how besL Lo lnvesL
Laxpayer funds. 1he commlLLee would revlew each federal agency, look for ouLdaLed, dupllcaLlve,
under-performlng, low-prlorlLy, or unnecessary programs, and conslder changes Lo lmprove each
agency's operaLlon. AfLer lLs revlew, Lhe CuL-and-lnvesL CommlLLee would submlL a reporL Lo
Congress conLalnlng an analysls of each agency, and glve recommendaLlons as Lo whlch programs
should be reauLhorlzed, abollshed, consolldaLed, reorganlzed, or oLherwlse subsLanLlvely changed.
Congress would be requlred Lo drafL leglslaLlon carrylng ouL Lhe recommendaLlons. 1he commlLLee
would be charged wlLh flndlng dlscreLlonary program savlngs of 1 percenL below Lhe resldenL's
budgeL, or abouL $11 bllllon ln 2013.

Such a commlLLee has been recommended many Llmes, and has found blparLlsan supporL. 1he
orlglnal and arguably mosL effecLlve commlLLee exlsLs aL Lhe sLaLe level ln 1exas. 1he leglslaLure
creaLed a sunseL commlsslon ln 1977 Lo ellmlnaLe wasLe and lnefflclency ln governmenL agencles.
LsLlmaLes from revlews conducLed beLween 1982 and 2009 showed 27-year savlngs of over $780
mllllon, compared wlLh expendlLures of $28.6 mllllon. 8ased on Lhe esLlmaLed savlngs achleved, for
every dollar spenL on Lhe sunseL process, Lhe sLaLe has recelved $27 ln reLurn.

12. Merge the Department of Commerce and Sma|| 8us|ness Adm|n|strat|on |nto a s|ng|e
agency and tr|m |ts budget by 10 percent.
24
programs LhaL provlde dlrecL asslsLance, granLs, loans, and lnformaLlon Lo help buslnesses sLarL,
expand, and compeLe here and abroad. ln Lheory, Lhe S8A ls supposed Lo focus lLs efforLs on small
buslnesses. Powever Lhe ueparLmenL of Commerce has a number of programs whlch, lf comblned
wlLh Lhe S8A's would sLrengLhen Lhelr poLenLlal lmpacL. under Lhls proposal, Lhe Lwo agencles
would be merged lnLo a new ueparLmenL of Commerce and lnnovaLlon, and Lhe savlngs from Lhls
consolldaLlon would allow for a 10 percenL cuL ln Lhe new comblned budgeL, or abouL $1 bllllon ln
2013.
1he ueparLmenL of Commerce and Small
8uslness AdmlnlsLraLlon (S8A) have very slmllar mlsslons. 8oLh enLlLles have a number of

13. 1erm|nate |ow-pr|or|ty Corps construct|on pro[ects. 1hls proposal deepens Lhe cuLs Lo Lhe
Army Corps of Lnglneers LhaL have been proposed by Lhe admlnlsLraLlon. 1he
admlnlsLraLlon has recommended ellmlnaLlng hundreds of mllllons ln unrequesLed funds
Congress approprlaLes Lo Lhe Corps of Lnglneers each year on low-prlorlLy pro[ecLs, focuslng funds
on Lhe consLrucLlon of pro[ecLs LhaL provlde a beLLer reLurn on lnvesLmenL.
23

24
SLaff esLlmaLe.
Cne parLlcular program
LhaL could be ellmlnaLed ls Lhe WaLer and WasLewaLer 1reaLmenL rogram. 1he admlnlsLraLlon has
argued LhaL Lhe program auLhorlzes pro[ecLs LhaL are ouLslde of Lhe Corps of Lnglneers' mlsslon
areas, speclflcally Lhose whlch dupllcaLe efforLs made by oLher federal agencles, lncludlng Lhe
LnvlronmenLal roLecLlon Agency and Lhe ueparLmenL of AgrlculLure. LllmlnaLlon of Lhls program
23
hLLp://www.whlLehouse.gov/omb/budgeL/fy2011/asseLs/Lrs.pdf pg, 83.
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would save $129 mllllon annually.
26
1he Corps also conducLs varlous operaLlons deslgned Lo counLer
beach eroslon, Lyplcally by dredglng offshore sand and pumplng lL onshore Lo rebulld eroded areas.
1he Corps funds a porLlon of such acLlvlLles, and sLaLe and local governmenLs pay Lhe resL. 1he
operaLlons have Lwo prlmary goals: mlLlgaLlng damage (replenlshmenL helps beaches acL as barrlers
Lo waves and proLecLs coasLal properLy from severe weaLher) and enhanclng recreaLlon. Powever,
proponenLs of ellmlnaLlng Lhe program, whlch would save abouL $90 mllllon annually, argue LhaL Lhe
cosL of beach replenlshmenL should be borne by Lhose who beneflL from lL: sLaLes, locallLles, and
prlvaLe landowners.
27

1hls opLlon would reduce fundlng Lo Lhe Corps by 20 percenL, or abouL $1 bllllon ln 2013, whlch
would need Lo be achleved Lhrough Lhe ellmlnaLlon of low-prlorlLy programs such as Lhese and
oLhers. AddlLlonally, Congress has falled Lo prlorlLlze Lhe compleLlon of ongolng pro[ecLs before
beglnnlng new pro[ecLs. 1hls behavlor has resulLed ln a consLrucLlon backlog ranglng from $61
bllllon Lo more Lhan $80 bllllon followlng Lhe passage of Lhe WaLer 8esource uevelopmenL AcL of
2007.
28

Whenever posslble, Congress should seek Lo halL auLhorlzlng new Corps pro[ecLs unLll Lhe
backlog ls addressed.
14. keduce overhead cost of d|p|omat|c operat|ons.
29
Lo-day cosLs of runnlng u.S. dlplomaLlc operaLlons such as malnLenance and securlLy of embassles
and consulaLes, Lhe salarles of ambassadors, and lorelgn Servlce sLaff. 1hls opLlon would cuL Lhe
budgeL by 10 percenL. 1hls reduces Lhe raLe of growLh by Lrlmmlng overhead cosLs whlle sLlll
allowlng for slgnlflcanL growLh from l?2010, when ulplomaLlc and Consular rograms were funded
aL $8.2 bllllon.
1he admlnlsLraLlon has requesLed $9.33
bllllon for ulplomaLlc and Consular rograms (u&C) ln l?2011, wlLh plans Lo lncrease Lhls
Lo $12.3 bllllon by l?2013. ulplomaLlc and Consular rogram fundlng provldes for Lhe day-
30

1hls reducLlon ln fuLure growLh can be achleved ln many ways and can be done ln such a way LhaL
does noL [eopardlze Lhe securlLy of Amerlcans and our allles worklng ln embassles and consulaLes
around Lhe world. Cne area LhaL wlll cosL Lhe SLaLe ueparLmenL a slgnlflcanL amounL ln resources ls
any declslon Lo pay lorelgn Servlce Cfflcers servlng overseas an addlLlonal bonus called locallLy
pay." LocallLy pay ls pald Lo federal employees, lncludlng lorelgn Servlce Cfflcers who llve and work
ln WashlngLon u.C. buL noL federal employees servlng overseas. lorelgn Servlce Cfflcers have
soughL Lo end Lhls so-called pay gap" whlch Lhey clalm ls above 20 percenL.
31
1he ueparLmenL of
uefense's employees servlng overseas do noL recelve any locallLy pay elLher, buL Lhere are currenLly
no proposals Lo glve Lhem Lhls beneflL. roponenLs of Lhls beneflL clalm LhaL lL ls needed Lo address
recrulLlng and reLenLlon problems, buL Lhe forelgn servlce career fleld remalns hlghly compeLlLlve
wlLh 23,000 appllcanLs compeLlng for 300 Lo 900 poslLlons annually. 1he pay gap" was Lemporarlly
flxed ln 2009
32
and 2010
33

26

buL a permanenL flx has noL been leglslaLlvely lmplemenLed. 8ased on
hLLp://www.whlLehouse.gov/omb/budgeL/fy2011/asseLs/Lrs.pdf pg, 39.
27
Congresslonal 8udgeL Cfflce. 8udgeL CpLlons volume 2." AugusL 2009.
28
1hls number ls a comblnaLlon of Lhe backlog number lssued by Lhe naLlonal Academy of ubllc AdmlnlsLraLlon ln lebruary 2007 ($60 bllllon)
and Lhe addlLlonal pro[ecLs auLhorlzed ln Lhe WaLer 8esources uevelopmenL AcL of 2007 ($23 bllllon accordlng Lo Lhe Congresslonal 8udgeL
Cfflce).
29
Mlchael LLLllnger and Mlchael Llnden. A 1housand CuLs." CenLer for Amerlcan rogress, SepLember 2010.
30
C8S 8eporL 840693, SLaLe, lorelgn CperaLlons, and 8elaLed rograms: l?2010 8udgeL and ApproprlaLlons" lebruary 2, 2010,
hLLp://www.crs.gov/pages/8eporLs.aspx?8CuCCuL=840693&Source=cll.
31
Amerlcan lorelgn Servlce AssoclaLlon, 1he lorelgn Servlce Cverseas ay Cap," !anuary 2009, hLLp://www.afsa.org/congress/paygap09.pdf.
32
SupplemenLal 8lll Lo close pay gap for overseas dlplomaLs" !une 23
Lh
, 2009, hLLp://blogs.federalLlmes.com/federal-Llmes-
blog/2009/06/23/supplemenLal-blll-Lo-close-pay-gap-for-overseas-dlplomaLs/.
33
AlSA Annual 8eporL 2009, page 32. hLLp://www.forelgnservlce[ournal-dlglLal.com/forelgnservlce[ournal/201003/?pg=31#pg33.
!"#$
&#'*
Congresslonal 8udgeL Cfflce assessmenLs, permanenLly repeallng WashlngLon u.C. locallLy pay for
overseas SLaLe ueparLmenL workers could save $427 mllllon ln l?2013.
34

1he SLaLe ueparLmenL should also examlne all consulaLes Lo deLermlne cosL savlngs from closlng
down Lhose consulaLes LhaL may have been more relevanL ln Lhe Cold War, buL are noL longer
absoluLely necessary for Lhe u.S. Lo conducL lLs dlplomaLlc mlsslon. AnoLher area LhaL Lhe SLaLe
ueparLmenL should revlew ls lLs plans for new consLrucLlon. Many of Lhese plans have lncluded
cosLly securlLy measures LhaL may noL be necessary, or may cosL more Lhan ls [usLlfled by Lhe beneflL
Lhey wlll glve Lo Lhe unlLed SLaLes. lor lnsLance, ln krakow, oland, Lhe unlLed SLaLes plans Lo bulld
a consulaLe LhaL wlll cosL u.S. Laxpayers $80 mllllon buL wlll house only Len Amerlcan
employees.
33

1he SLaLe ueparLmenL should deLermlne wheLher expenslve securlLy measures are
approprlaLe for all counLrles. ln addlLlon lL should conslder wheLher Lhere are some consular areas
LhaL should be consolldaLed or uLlllze Leleconferenclng and Lhe lnLerneL Lo more efflclenLly perform
lLs mlsslon.
1S. S|ow the growth of fore|gn a|d.
36
asslsLance.
1he resldenL's budgeL calls for over $14 bllllon of
lncreases ln lnLernaLlonal affalrs spendlng beLween 2011 and 2013. nearly all of Lhls growLh
ls due Lo large lncreases ln spendlng for lnLernaLlonal developmenL and humanlLarlan
37

Slnce 2008, Lhe budgeL for lnLernaLlonal developmenL and humanlLarlan asslsLance has
lncrease over 80 percenL from over $17 bllllon Lo over $32 bllllon, and ls expecLed Lo grow anoLher
40 percenL Lo over $43 bllllon by 2013 - more Lhan double prevlous levels. 1hls opLlon slows Lhe
growLh of Lhls budgeL caLegory, reduclng Lhe allocaLlons 10 percenL from Lhe resldenL's budgeL,
savlng $4.6 bllllon ln 2013. A cuL of Lhls amounL wlll slow Lhe growLh over Lhe perlod, whlle sLlll
allowlng for an lncrease of abouL 30 percenL by 2013.
16. L||m|nate the Cff|ce of Safe & Drug Iree Schoo|s.
38
be proLecLed, vlolence and drug abuse are problems LhaL occur far less on school grounds Lhan
elsewhere. As C8C polnLs ouL ln Lhe 8udgeL CpLlons volume 2 reporL, chlldren are more llkely Lo be
vlcLlms of vlolence away from school, and whlle drug use ls more common Lhan vlolence, lL sLlll
occurs lnfrequenLly on school properLy. lurLher, Lhe resulLs hoped for ln creaLlon of Lhe Cfflce of
Safe and urug lree Schools have noL been demonsLraLed.
ln Lhe resldenL's budgeL, fundlng for
Lhe Cfflce of Safe and urug lree Schools ls more Lhan double Lhe allocaLlon from 2008. 1hls
opLlon ellmlnaLes Lhe offlce, savlng abouL $1.8 bllllon ln 2013. Whlle school safeLy should
39

17. L||m|nate the Lconom|c Deve|opment Adm|n|strat|on.
40
ln 2003, one analysls ldenLlfled
over 100 economlc developmenL programs wlLhln more Lhan a dozen dlfferenL agencles.
41

34
Congresslonal 8udgeL Cfflce CosL LsLlmaLe S. 3426, lorelgn Servlce Cverseas ay LqulLy AcL of 2008," november 14, 2008.

1he mulLlple dlfferenL programs wlLhln Lhe Lconomlc uevelopmenL AdmlnlsLraLlon
hLLp://www.cbo.gov/fLpdocs/99xx/doc9916/s3426.pdf.
33
Ashe, vlcLor P, Lmbassy ArchlLecLure: 1lme Lo SLop, 8evlew, and 8eLhlnk," 1he Ambassadors 8evlew, Sprlng 2010.
hLLp://www.amerlcanambassadors.org/lndex.cfm?fuseacLlon=ubllcaLlons.arLlcle&arLlcleld=193.
36
SLaff esLlmaLe based on budgeL funcLlon daLa from CM8 PlsLorlcal 1ables.
37
lnLernaLlonal affalrs spendlng ls deflned as budgeL funcLlon 130. lnLernaLlonal developmenL and humanlLarlan asslsLance ls deflned as budgeL
funcLlon 131.
38
39
C8C 8udgeL CpLlons volume 2 lncludes an opLlon Lo ellmlnaLe granLs Lo sLaLes for Safe and urug lree Schools and CommunlLles, whlch would
neL $0.3 bllllon ln 2013 savlngs. lnformaLlon on Lhe effecLlveness of such programs ls Laken from Lhls C8C opLlon.
40
hLLp://www.downslzlnggovernmenL.org/commerce/eda#_edn23
41
urabensLoLL, Mark, A 8evlew of Lhe lederal 8ole ln 8eglonal Lconomlc uevelopmenL," CenLer for Lhe SLudy of 8ural Amerlca & lederal
8eserve 8ank of kansas ClLy, May 2003.
!"#$
&(',
!"#$
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!"#$
&"'*
dupllcaLe many of Lhe 180 federal economlc developmenL programs, lncludlng S8A ulsasLer
AsslsLance Loans, S8A's PlsLorlcally underuLlllzed 8uslness Zone (Pu8Zone) program,
42
uSuA's 8ural
uevelopmenL programs, numerous 8eglonal Commlsslons, Puu's CommunlLy uevelopmenL 8lock
CranLs, uSuA's Lconomlc AcLlon rogram, Lhe new MarkeLs 1ax CredlL, PPS' CommunlLy Lconomlc
uevelopmenL granLs, and many more. AddlLlonally, accordlng Lo Lhe Congresslonal 8esearch Servlce
(C8S), expandlng program ellglblllLy and purposes follows a paLLern LhaL has allowed more areas ln
Lhe counLry Lo become ellglble for LuA asslsLance over Lhe years, even as fundlng for Lhe agency has
decllned." ln 1970, 983 areas quallfled for LuA asslsLance, by 1973, LhaL number had nearly doubled
Lo 1,818 areas. 8y 1998, approxlmaLely 90 percenL of Lhe counLles ln each year sLudled quallfled.
43

AddlLlonally, whlle LuA was auLhorlzed as parL of Lhe ubllc Works and Lconomlc uevelopmenL AcL
(WLuA) of 1963 Lo fund only publlc lnfrasLrucLure pro[ecLs lnLended Lo spur economlc
developmenL ln depressed areas, Congress has slnce lncreased program ellglblllLy repeaLedly. As a
resulL of Lhese program expanslons, some observers have expressed concerns LhaL LuA funds are
seen by many as a supplemenLal fundlng source for parochlal pro[ecLs. 1he lnspecLor Ceneral (lC)
overseelng LuA audlLed 10 granL pro[ecLs LoLallng $43 mllllon beLween 2004 and 2008 and found
LhaL, because of varlous vlolaLlons of LuA granL requlremenLs, such as flnanclal accounLlng
lrregularlLles, confllcLs of lnLeresL, and lmproper procuremenL procedures," Lhey had wasLed $13
mllllon. lour of Lhe 10 pro[ecLs were never compleLed.
44

LllmlnaLlng Lhls program enLlrely would
save abouL $300 mllllon ln l?2013.
lurLher, Lhe CovernmenL AccounLablllLy Cfflce (CAC) and oLher ouLslde experLs have crlLlclzed Lhe
LuA over Lhe years for clalms of [ob creaLlon and lnvesLmenL reLurns. A 1980 academlc sLudy of Lhe
LuA, whlch was funded by Lhe LuA lLself, found no susLalned beneflL of LuA programs Lo asslsLed
communlLles.
43
ln 1986, an LuA Lechnlcal asslsLance program clalmed lL had creaLed 3,834 [obs, buL
Lhe ueparLmenL of Commerce lnspecLor general concluded LhaL Lhe program had creaLed only 83
[obs.
46

ln 1999, Lhe CAC found LhaL an LuA sLudy clalmlng LhaL lLs granLs creaLed [obs was merlLless:
1he resulLs of LuA's sLudy are hlghly dependenL on Lhe model speclflcaLlon used and LhaL Lhe
sLudy's deflnlLlve concluslons are unwarranLed . we obLalned subsLanLlally dlfferenL resulLs LhaL
show LhaL LuA expendlLures dld noL have a slgnlflcanL effecL."
18. L||m|nate a number of programs adm|n|stered by the kura| Ut|||ty Serv|ce (kUS).
47
Lelephone and elecLrlclLy - Lo rural areas Lhrough publlc-prlvaLe parLnershlps. 1he agency
admlnlsLers loan, loan guaranLee and granL programs Lo ellglble populaLlons. ln recenL years Lhe
8uS has lncreased lLs focus on expandlng broadband access Lo rural areas, a noLeworLhy goal.
Powever, Lhe agency also runs a number of programs whlch are ouLdaLed, overlapplng, and whlch
provlde llmlLed or quesLlonable publlc pollcy beneflLs. 1hese lnclude Lhe Local 1elevlslon Loan
rogram among oLhers.
1he
8ural uLlllLles Servlce ls a dlvlslon wlLhln Lhe u.S. ueparLmenL of AgrlculLure's 8ural
uevelopmenL agency, responslble for provldlng publlc uLlllLles - lncludlng waLer, wasLe,

42
rovldes federal conLracLlng preferences Lo small buslnesses LhaL obLaln Pu8Zone cerLlflcaLlon ln parL by employlng sLaff who llve ln a
Pu8Zone (hlsLorlcally underuLlllzed buslness zones) and malnLalnlng a prlnclpal offlce ln one of Lhese speclally deslgnaLed areas.
43
8oberL Lake, 8obln Lelchenko, and Amy Clasmeler, eL al., uA ooJ u.5. cooomlc ulsttess. 1965-2000, 8uLgers unlverslLy, new 8runswlck, n!,
!uly 2004, p. 13, hLLp://www.eda.gov/ul/2004!ulyLuAandu.S.LconomlculsLress8eporL.pdf.
44
Zlnser, 1odd !., WrlLLen SLaLemenL for a Pearlng on Lconomlc uevelopmenL AdmlnlsLraLlon 8eauLhorlzaLlon AcL of 2008 8efore Lhe SenaLe
SubcommlLLee on 1ransporLaLlon and lnfrasLrucLure," lnspecLor Ceneral ueparLmenL of Commerce, SepLember 9, 2008.
43
46
47
Congresslonal 8esearch Servlce, 2010 reporL.
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19. keduce wastefu| spend|ng at the Department of Iust|ce.
48
Lo grow by nearly half from whaL lL was ln 2003 - one of Lhe sharpesL lncreases aL any agency. 1hls
opLlon would reduce fundlng for Lhe ueparLmenL of !usLlce 3 percenL below Lhe resldenL's budgeL,
or abouL $1.6 bllllon ln 2013. A cuL of Lhls amounL could be achleved, ln parL, by reduclng fundlng for
granLs
lunded aL more Lhan $20
bllllon annually, Lhe ueparLmenL of !usLlce ls Lasked wlLh keeplng our naLlon safe by
ensurlng [usLlce and prosecuLlng LerrorlsLs. 8y 2013, Lhe deparLmenL's budgeL ls pro[ecLed

20. L||m|nate certa|n reg|ona| subs|d|es.
49
governmenL provldes annual fundlng Lo Lhree reglonal developmenL agencles: Lhe Appalachlan
8eglonal Commlsslon (A8C), Lhe uenall Commlsslon, and Lhe uelLa 8eglonal AuLhorlLy. 1he A8C was
esLabllshed ln 1963 Lo promoLe economlc growLh ln Lhe Appalachlan counLles of 13 sLaLes,
sLreLchlng from souLhern new ?ork Lo norLhern Mlsslsslppl. 1he uenall Commlsslon was creaLed ln
1998, on Lhe A8C model, Lo provlde slmllar servlces Lo communlLles ln remoLe areas ln Alaska. 1he
uelLa 8eglonal AuLhorlLy, esLabllshed ln 2000, slmllarly serves 240 counLles and parlshes ln elghL
sLaLes near Lhe Mlsslsslppl 8lver, sLreLchlng from souLhern llllnols Lo Lhe Loulslana coasL. 1hls opLlon
would dlsconLlnue federal fundlng for all Lhree reglonal developmenL agencles, savlng [usL over $100
mllllon annually. 1he cenLral argumenL for ellmlnaLlng Lhese agencles ls LhaL a number of Lhelr
efforLs are dupllcaLlve of many oLher exlsLlng federal programs. lurLhermore, Lhe Lhree agencles'
programs are lnLended, among oLher Lhlngs, Lo creaLe [obs, lmprove rural educaLlon and healLh
care, develop uLlllLles and oLher lnfrasLrucLure, and provlde [ob Lralnlng. Powever, lL ls dlfflculL Lo
assess wheLher such ouLcomes can be aLLrlbuLed Lo Lhose programs raLher Lhan Lo Lhe work of oLher
governmenLal and nongovernmenLal organlzaLlons or Lo markeL forces and Lhe effecLs of general
economlc condlLlons.
ln cerLaln cases, Lhe federal governmenL LargeLs ald
and/or subsldlzes Lhe dellvery of baslc servlces Lhrough reglonal agencles or corporaLlons.
1hls opLlon would ellmlnaLe a number of Lhose enLlLles and Lhelr programs. 1he federal

21. L||m|nate the no|||ngs Manufactur|ng Lxtens|on artnersh|p and the 8a|dr|ge Nat|ona|
ua||ty rogram.
S0
whlch offer managemenL and manufacLurlng advlce Lo u.S. buslnesses. 1he 8aldrlge naLlonal
CuallLy rogram, for Lhe mosL parL, glves awards Lo companles for achlevemenLs ln quallLy and
performance. 1hose who supporL ellmlnaLlng Lhe programs suggesL LhaL Lhe federal governmenL
shouldn'L be provldlng Lhe servlces Lhese programs provlde, ln parL because slmllar programs are
provlded by Lhe prlvaLe secLor. ln facL, lL ls argued LhaL some fundlng from PML supporLs
lnefflclenL companles LhaL would oLherwlse go ouL of buslness. Also, buslnesses should already have
enough lncenLlves Lo malnLaln Lhe quallLy of Lhelr producLs wlLhouL awards from Lhe 8aldrlge
naLlonal CuallLy rogram. LllmlnaLlon of boLh programs would save over $120 mllllon annually.
AlLernaLlvely, Lhe programs could be funded Lhrough fees charged Lo Lhe beneflclarles.
1he Polllngs ManufacLurlng LxLenslon arLnershlp (PML) conslsLs
prlmarlly of a neLwork of nonproflL cenLers, parLlally funded by Lhe federal governmenL,

48
SLaff esLlmaLe based on daLa from CM8's hlsLorlcal Lables.
49
C8C 8udgeL CpLlons volume 2.
30
lbld.
!"#$
&#',
!"#$
&"'#
!"#$
&"'#

SLCUkL A 8L11Lk kL1UkN CN 1AkALk INVLS1MLN1

22. L||m|nate a|| earmarks.
S1
and are noL sub[ecL Lo accounLablllLy meLrlcs. Many of Lhese earmarks are doled ouL by members of
Congress for parochlal lnLeresLs and as currency wlLh speclal lnLeresL groups. 1hls Lype of spendlng ls
ofLen used as a means Lo make pleces of leglslaLlon more palaLable Lo speclflc members who would
oLherwlse voLe agalnsL Lhem. Some examples of parochlal earmark spendlng LhaL can be seen as
wasLeful lnclude $1.9 mllllon for a leasure 8each WaLer 1axl Servlce ln ConnecLlcuL, $1.8 mllllon for
swlne odor and manure managemenL research ln Ames, lowa, $900,000 for a program encouraglng
Cklahoma sLudenLs Lo role play how Lo make Lough cholces as members of Congress, $380,000 for
consLrucLlon of recreaLlon and falrgrounds ln koLzebue, Alaska, and $238,000 for Lhe olyneslan
voyaglng SocleLy of Ponolulu, Pawall, whlch organlzes sea voyages ln anclenL-sLyle salllng canoes,
among counLless oLhers.
1here have been slgnlflcanL sLrldes ln brlnglng Lhe sysLem of
earmarklng under conLrol and lnLo Lhe sunllghL. ln l?2010, Congress approved more Lhan
9,000 earmarks cosLlng Laxpayers aL leasL $16 bllllon. Larmarks are noL compeLlLlvely bld

23. Cut research fund|ng for foss|| fue|s.
S2
Lechnology was sLunLed. 1oday, Lhe slLuaLlon ls qulLe dlfferenL. ln addlLlon, much of Lhls federal
research dupllcaLes whaL ls belng conducLed ln Lhe prlvaLe secLor. 1he Cfflce of ManagemenL and
8udgeL has reporLed LhaL Lhe addlLlonal oll reserves whlch have resulLed from Lechnology developed
by Lhe program have been mlnlmal.
1hls opLlon would ellmlnaLe new fundlng Lo Lhe
ueparLmenL of Lnergy's applled research on fossll fuels. 1hls fundlng was creaLed aL a Llme
when Lhe prlces for Lhese Lypes of fuels were parLlally conLrolled and Lhe developmenL of
33

CuLLlng Lhls program as has been suggesLed by C8C would
save close Lo $900 mllllon ln l? 2013.
24. L||m|nate fund|ng to pr|vate sector for spacef||ght deve|opments. 1he naLlonal
AeronauLlcs and Space AdmlnlsLraLlon (nASA) plans Lo spend $6 bllllon over Lhe nexL flve
years Lo lnvesL ln prlvaLe secLor developmenL of space LransporLaLlon capablllLles, whlch
nASA plans Lo compeLlLlvely purchase once avallable.
34
LllmlnaLlng Lhls program would save $1.2
bllllon ln 2013.
SS

2S. Drop wea|th|er commun|t|es from the Commun|ty Deve|opment 8|ock Grant program.
S6
urban uevelopmenL showed LhaL fundlng under Lhe program shlfLed from poorer Lo wealLhler
communlLles as a resulL of Lhe currenL formula. 1he argumenL for havlng federal granLs go Loward
developmenL ln wealLhler communlLles ls Lhln. 1hls opLlon would flrsL change Lhe formula for
calculaLlng granLs ln order Lo LargeL needler areas and llmlL granLs Lo wealLhler communlLles. 1he
fundlng for Lhe program would Lhen be reduced by 20 percenL, savlng [usL over $300 mllllon ln 2013.

1he CommunlLy uevelopmenL 8lock CranL program allocaLes funds accordlng Lo a formula
based on a communlLy's populaLlon. A 2003 sLudy by Lhe ueparLmenL of Pouslng and

31
SLaff esLlmaLe based on esLlmaLes of earmark spendlng by Lhe Cfflce of ManagemenL and 8udgeL. hLLp://earmarks.omb.gov
32
33
lbld.
34
hLLp://www.nasa.gov/offlces/c3po/abouL/c3po.hLml
33
Savlngs esLlmaLe based on nASA budgeL. hLLp://www.nasa.gov/pdf/420990maln_l?_201_208udgeL_Cvervlew_1_leb_2010.pdf
36
C8C 8udgeL CpLlons volume 2. 1he resldenL's budgeL for 2010 lncludes a proposal Lo lmprove Lhe formula's LargeLlng of needy communlLles
buL does noL speclfy Lhe changes and lncreases ln LoLal spendlng on Lhe program.
!"#$
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!"#$
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!"#$
&"'-
!"#$
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!"#$
&"'$
1here ls also a need Lo consolldaLe overlapplng communlLy developmenL programs. 1here are many
naLlon-wlde and reglonal programs Lo ald economlc and lnfrasLrucLure developmenL, many of whlch
overlap wlLh Lhe CommunlLy uevelopmenL 8lock CranL program. Wherever posslble, Lhese
dupllcaLlve programs need Lo be consolldaLed or cuL.

26. keduce vo|untary contr|but|ons to the Un|ted Nat|ons. Accordlng Lo Lhe Cfflce of
ManagemenL and 8udgeL, Lhe unlLed SLaLes provlded over $6.3 bllllon ln Laxpayer funds Lo
Lhe unlLed naLlons ln l?2009. Less Lhan half ($2.7 bllllon) of LhaL LoLal wenL Lo assessed"
dues - paymenLs LhaL Lhe unlLed SLaLes ls charged for belng a member and for lLs share of
peacekeeplng operaLlons around Lhe world.
37

1he unlLed SLaLes ls by far Lhe largesL donor Lo Lhe unlLed naLlons ln Lerms of assessed dues.
Powever, Lhe unlLed SLaLes glves Lhe unlLed naLlons more Lhan $3.3 bllllon ln volunLary" funds
each year.
38

1hls opLlon allows Lhe unlLed SLaLes Lo remaln a member ln good sLandlng of Lhe unlLed
naLlons by conLrlbuLlng Lhe full dues LhaL wlll be assessed, buL reduces volunLary paymenLs by 10
percenL, whlch wlll save $300 mllllon per year.
27. L||m|nate adm|n|strat|ve fees pa|d to schoo|s for student a|d programs.
S9
lnsLlLuLlons can use up Lo 3 percenL of program funds Lo cover Lhe admlnlsLraLlve cosLs of
admlnlsLerlng Lhe programs, dlsLrlbuLlng Lhe funds, or boLh. under Lhe lederal ell CranL rogram,
Lhe federal governmenL pays schools $3 per granL Lo relmburse admlnlsLraLlve cosLs. lL has been
argued LhaL schools already beneflL greaLly from parLlclpaLlng ln federal sLudenL ald programs,
before recelvlng admlnlsLraLlve fees, because Lhe ald makes aLLendance more affordable.
under cerLaln
campus-based ald programs - Lhe lederal SupplemenLal LducaLlonal CpporLunlLy CranL
rogram, Lhe lederal erklns Loan rogram, and Lhe lederal Work-SLudy rogram -

28. L||m|nate the Cverseas r|vate Investment Corporat|on.
60
naLlonallzaLlon. 1he alm ls Lo supporL economlc developmenL ln some counLrles LhaL are
sLraLeglcally lmporLanL" Lo Lhe unlLed SLaLes. 1hls opLlon would ellmlnaLe new acLlvlLy by ClC,
alLhough lL would conLlnue Lo servlce lLs exlsLlng porLfollo. 1he maln raLlonale for lmplemenLlng Lhls
opLlon ls LhaL Lhe acLlvlLles of ClC may noL provlde neL publlc beneflLs Lo Lhe unlLed SLaLes. lLs
subsldles dellver beneflLs Lo forelgners and selecLed u.S. buslnesses. lurLhermore, lLs subsldles Lo
naLlons of sLraLeglc lmporLance Lo Lhe unlLed SLaLes Lend Lo overlap wlLh and dupllcaLe Lhose
provlded by Lhe u.S. Agency for lnLernaLlonal uevelopmenL and by prlvaLe lnsurance flrms. 1hey also
could hamper Lhe developmenL of local flnanclal lnsLlLuLlons and markeLs ln Lhose counLrles.
1he Cverseas rlvaLe
lnvesLmenL CorporaLlon (ClC) offers prlvaLe u.S. companles subsldlzed flnanclng for
forelgn lnvesLmenLs and lnsurance agalnsL pollLlcal rlsks Lo Lhose lnvesLmenLs, lncludlng

37
Crszag, eLer, Cfflce of ManagemenL and 8udgeL Annual 8eporL on unlLed SLaLes ConLrlbuLlons Lo Lhe unlLed naLlons," !une 7, 2010.
38
C8S 8eporL 8L33611, unlLed naLlons SysLem lundlng: Congresslonal lssues," Congresslonal 8esearch Servlce, AugusL 9, 2010.
hLLp://www.crs.gov/pages/8eporLs.aspx?8CuCCuL=8L33611&Source=search
39
60
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GL1 IULL VALUL ICk ILDLkAL kLSCUkCLS

29. Se|| excess federa| property.
61
ldenLlfled as under- and noL-uLlllzed. CurrenLly, federal agencles operaLe and malnLaln more real
properLy asseLs Lhan necessary, ofLen ralslng cosLs Lo Lhe Laxpayer. ln llghL of Lhls, Lhe resldenL
slgned a Memorandum ln l?2010 dlrecLlng agencles Lo acceleraLe efforLs Lo remove excess and
surplus properLy for a savlngs of $8 bllllon by l?2012.
1he federal governmenL ls Lhe largesL properLy owner ln Lhe
counLry, wlLh an lnvenLory LhaL lncludes 1.2 mllllon bulldlngs, sLrucLures, and land parcels.
1hls lncludes 14,000 bulldlng and sLrucLures currenLly deslgnaLed as excess and 33,000
62

30. keduce fund|ng to the Sm|thson|an and the Nat|ona| ark Serv|ce and a||ow the programs
to offset the reduct|on through fees.
63
vlslLors. 1here were abouL 30 mllllon vlslLors Lo Lhe 19 SmlLhsonlan museums and Lhe naLlonal Zoo
ln 2009. under Lhls opLlon, $223 mllllon, or less Lhan a quarLer of Lhe SmlLhsonlan's 2013 budgeL,
would be pald for by charglng vlslLors fees. noLable prlvaLe museums across Lhe unlLed SLaLes Lend
Lo charge anywhere from $10 Lo $20 per vlslLor, wlLh lower raLes for chlldren and senlors. World
class zoos ln Lhe unlLed SLaLes charge more, or closer Lo $20 or $23 per vlslLor. 8alslng $223 mllllon
ln fees would average abouL $7.30 per vlslLor.

1he SmlLhsonlan's budgeL ls pro[ecLed Lo approach
$1 bllllon ln 2013. 1hls opLlon reduces neL spendlng by charglng a fee Lo SmlLhsonlan
64

1he naLlonal ark Servlce (nS) budgeL ls pro[ecLed Lo exceed $3 bllllon ln 2013. 1he naLlonal arks
recelve nearly 290 mllllon vlslLors annually and an esLlmaLed 10 percenL of LoLal nS spendlng goes
Loward vlslLor servlces.
63
under Lhls opLlon, $73 mllllon ln 2013, or abouL a quarLer of Lhe expecLed
spendlng on vlslLor servlces, would be pald for by a small lncrease ln vlslLor fees.
66

Where vlslLor fees
have been lnsLlLuLed, Lhey vary greaLly and are ofLen anywhere from $3 Lo $23 per week. 8alslng
$73 mllllon ln vlslLor fees would average under $0.23 per vlslLor.
1hls opLlon also requlres LhaL boLh Lhe SmlLhsonlan and naLlonal ark Servlce work Lhrough
ouLsLandlng malnLenance pro[ecLs unLll Lhe backlogs are below $1 bllllon for each agency before
fundlng new pro[ecLs. ln 2007, CAC found LhaL Lhe SmlLhsonlan had a malnLenance backlog of $2.3
bllllon LhaL was causlng damage Lo hlsLorlc lLems.

1ogeLher, Lhese opLlons would save abouL $300 mllllon ln 2013.

61
An opLlon Lo sell excess federal properLy was proposed under Lhe ?ouCuL program and has also been proposed by Sen. Coburn and Sen.
McCaln. hLLp://republlcanwhlp.house.gov/?ouCuL/Week4.hLm, hLLp://georgewbush-
whlLehouse.archlves.gov/omb/pubpress/2007/061307_fed_properLy.pdf
62
resldenLlal Memorandum, ulsposlng of uneeded lederal 8eal LsLaLe, !une 10, 2010.
63
1hls opLlon ls a varlanL of one offered ln Lhe CenLer for Amerlcan rogress reporL A 1housand CuLs." Mlchael LLLllnger and Mlchael Llnden.
A 1housand CuLs." CenLer for Amerlcan rogress, SepLember 2010.
64
SLaff esLlmaLe.
63
SLaff esLlmaLe based on daLa from Lhe naLlonal ark Servlce l?2010 and l?2011 Creen 8ook.
66
SLaff esLlmaLe.
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31. L||m|nate grants to |arge and med|um-s|zed hub a|rports.
67
(Al). lederal granLs Lo alrporLs merely subsLlLuLe for funds LhaL large and medlum-slzed alrporLs
would oLherwlse ralse from prlvaLe sources such as lnvesLmenLs and passenger fees. Powever,
smaller alrporLs have more dlfflculLy ralslng such funds. 1hls opLlon would llmlL Al granLs Lo small-
slzed alrporLs only, Lrlmmlng abouL a Lhlrd of Lhe program's budgeL. 1hls would save abouL $1.2
bllllon ln 2013.
1he lederal AvlaLlon
AdmlnlsLraLlon (lAA) provldes granLs Lo alrporLs Lo expand runways, lmprove safeLy and
securlLy, and make oLher caplLal lnvesLmenLs as parL of Lhe AlrporL lmprovemenL rogram
68

32. Cut fund|ng for the Corporat|on for ub||c 8roadcast|ng.
69
has ever been. 1hls opLlon would ellmlnaLe fundlng for Lhe CorporaLlon for ubllc 8roadcasLlng,
savlng [usL under $300 mllllon ln 2013.
1he CorporaLlon for ubllc
8roadcasLlng's prlmary [ob ls Lo fund n8 and lLs member sLaLlons (and oLher publlc radlo
sLaLlons) and 8S and lLs member sLaLlons. 1he currenL C8 fundlng level ls Lhe hlghesL lL

AddlLlonally, Congress should end Lwo dupllcaLlve publlc broadcasLlng programs on resldenL
Cbama's LermlnaLlon llsL: 1he ubllc 1elecom laclllLles CranL rogram (1l) and uSuA's ubllc
8roadcasLlng CranLs program. ln recenL years, 1l has prlmarlly provlded fundlng Lo help
broadcasLers LranslLlon Lo dlglLal broadcasLs. ln l?2010, 1l recelved $20 mllllon ln
approprlaLlons. 1he resldenL has Lwlce recommended LermlnaLlng uSuA's ubllc 8roadcasL CranLs
program for Lhe same reason. 1hls program recelved $3 mllllon ln l?10 Lo provlde fundlng Lo publlc
broadcasL companles Lo converL Lo dlglLal Lransmlsslon as well - an obsoleLe Lask.
70

33. kequ|re food process|ng fac|||t|es to f|nance food safety and |nspect|on serv|ces.
71
monlLorlng Lhe processlng planLs dally adherence Lo sanlLary, lngredlenL, and packaglng regulaLlons.
lederal lnspecLlons beneflL producers and consumers allke by prevenLlng dlseased anlmals and
oLher unsafe producLs from belng sold, buL producers geL Lhe exLra beneflL of belng able Lo
adverLlse LhaL Lhelr producLs passed uSuA lnspecLlon. 1hls opLlon flnances all federal lnspecLlons of
meaL and poulLry producLs wlLh fees pald by Lhe processlng faclllLles, Lhereby maklng Lhe servlce
pald for by Lhose who use lL. lmplemenLaLlon of Lhls pollcy lncreases federal revenues by over $900
mllllon each year.
under
currenL law, one lnspecLor musL be presenL aL all Llmes Lo sample and LesL producLs when a
meaL or poulLry slaughLerlng planL ls ln operaLlon. 1hese lnspecLors are responslble for

34. Change |n|and water systems to be fu||y se|f-funded.
72
1hls opLlon would seL Lhe Lax on fuel consumed hlgh enough Lo cover all cosLs of consLrucLlon,
operaLlon and malnLenance of Lhe lnland waLerways. An opLlon llke Lhls would lncrease economlc
efflclency by encouraglng shlppers Lo choose Lhe mosL efflclenL rouLes and LransporLaLlon whlle
1he Army Corps of Lnglneers spenL
more Lhan $960 mllllon ln 2008 on Lhe naLlon's sysLem of lnland waLerways. 8evenues from
Lhe Lax on fuel consumed by LowboaLs only fund half of consLrucLlon on lnland waLerways.

67
C8C 8udgeL CpLlons volume 2. 1he $1.2 bllllon savlngs ln 2013 ls a sLaff esLlmaLe based on C8C scores. CaLo has recommended ellmlnaLlng
alrporL granLs enLlrely ln Lhelr uownslzlng CovernmenL reporL. 1he CenLer for Amerlcan rogress has suggesLed cuLLlng alrporL granLs by up Lo
half.
68
69
SLaff esLlmaLe based on daLa from an opLlon Lo reduce fundlng for Lhe ArLs and PumanlLles ln C8C 8udgeL CpLlons volume 2.
70
hLLp://www.whlLehouse.gov/slLes/defaulL/flles/omb/budgeL/fy2011/asseLs/Lrs.pdf, page 41.
71
72
lbld.
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allevlaLlng congesLlon and demand for new consLrucLlon, whlch would save abouL $300 mllllon
annually.

3S. kequ|re a|rports to fund a |arger port|on of the cost of av|at|on secur|ty.
73
Lhan alrllnes or alrporLs, responslble for screenlng passengers, carry-on luggage and checked
baggage. 1o help pay for Lhe lncreased securlLy, Lhe law auLhorlzes alrllnes Lo charge passengers
$2.30, capped aL $3 for a one-way Lrlp, each Llme Lhey board a plane. 8y lncreaslng fees, Lhe alrllnes
would be less subsldlzed Loward alrporL securlLy - a baslc cosL of alrllne LransporLaLlon, ln llne wlLh
labor and fuel cosLs. 1hls opLlon would lncrease collecLlons by $1.9 bllllon by 2013 and more Lhan $9
bllllon over flve years.
1he AvlaLlon
and 1ransporLaLlon SecurlLy AcL of 2001 was enacLed followlng Lhe aLLacks of SepLember
11
Lh
, 2001. As a means of lncreaslng securlLy, Lhe AcL makes Lhe federal governmenL, raLher

36. Charge benef|c|ar|es for the cost of the Internat|ona| 1rade Adm|n|strat|on's trade
promot|on act|v|t|es.
74
u.S. lndusLrles and operaLes Lhe u.S. and lorelgn Commerclal Servlces Lo promoLe exporLs.
CurrenLly l1A's mlsslon ls Lo creaLe prosperlLy by sLrengLhenlng Lhe compeLlLlveness of u.S. lndusLry,
promoLlng Lrade and lnvesLmenL, and ensurlng falr Lrade and compllance wlLh Lrade laws and
agreemenLs. 1he resldenL's l?2011 budgeL requesL for Lhe l1A was $334.3 mllllon, a 20 percenL
lncrease from Lhe l?2010 requesL. 1hls lncrease lncludes an addlLlonal $78.3 mllllon Lo supporL l1A's
exporL promoLlon efforLs. Servlces provlded by l1A's u.S. Commerclal Servlces and oLher ulvlslons
dlrecLly provldlng asslsLance Lo u.S. Companles should be flnanced by beneflclarles of Lhls
asslsLance. Whlle Lhe agency charges fees for Lhose servlces, lLs fees do noL cover Lhe cosLs of all lLs
acLlvlLles. AddlLlonally, lL ls argued LhaL Lhe beneflLs of Lrade promoLlon acLlvlLles are passed on Lo
forelgners ln Lhe form of decreased exporL cosLs. Accordlng Lo a sLudy by Lhe Cfflce of ManagemenL
and 8udgeL (CM8), buslnesses can recelve slmllar servlces from sLaLe, local, and prlvaLe-secLor
enLlLles. 1he C8C opLlon Lo ellmlnaLe l1A's promoLlon acLlvlLles or charge Lhe program's
beneflclarles saves $267 mllllon ln 2010 and $1.6 bllllon Lhrough 2014.
1he lnLernaLlonal 1rade AdmlnlsLraLlon (l1A) of Lhe ueparLmenL of
Commerce oversees a Lrade developmenL program LhaL monlLors Lhe compeLlLlveness of

37. keduce |and acqu|s|t|on under the Land and Water Conservat|on Iund. Annual fundlng for
Lhe Land and WaLer ConservaLlon lund (LWCl) has Lyplcally been around beLween $230
mllllon and $430 mllllon. Powever, Lhe resldenL's requesL for l?2011 ls $619 mllllon, up
from lasL year's $263 mllllon allocaLlon - a 133 percenL lncrease.
73
1he LWCl ls used almosL
excluslvely for land acqulslLlon for boLh federal and sLaLe land managemenL agencles, whlle many
argue LhaL Lhe federal governmenL and sLaLes have dlfflculLy managlng Lhe land Lhey already own.
1haL budgeL cannoL, however, be used for malnLenance. 1he federal governmenL already owns 630
mllllon acres LhaL lL has sLruggled Lo malnLaln. So whlle we conLlnue Lo experlence a malnLenance
backlog beLween $13.2 and $19.4 bllllon,
76

Congress ls seeklng Lo acqulre even more land. 8y noL
fundlng Lhls accounL unLll Lhe malnLenance backlog has been decreased less Lhan $1 bllllon, Lhe
federal governmenL wlll save [usL under $300 mllllon each year.

73
lbld.
74
lbld.
73
hLLp://crs.gov/ages/8eporLs.aspx?Source=search&rodCode=841238#_8ef223321331
76
ueparLmenL of Lhe lnLerlor: Ma[or ManagemenL Challenges," CovernmenL AccounLablllLy Cfflce, March 3, 2009.
hLLp://www.gao.gov/producLs/CAC-09-4231
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38. Create a more cohes|ve and cost-effect|ve f|re management serv|ce. 1here are numerous
flreflghLlng programs wlLhln Lhe ueparLmenL of Lhe lnLerlor (uCl) and Lhe uSuA loresL
Servlce (lS). Slnce l?2001, fundlng for Lhese acLlvlLles has nearly doubled accordlng Lo Lhe
Congresslonal 8esearch Servlce.
77
uesplLe Lhls lncrease ln fundlng, Lhree of Lhe pasL four years have
seen a record amounL of federal acreage burned. WlLhln uCl and uSuA Lhere are almosL ldenLlcal
accounLs for how funds are lnLended Lo be spenL - Lhe only dlfference ls LhaL Lhese funds are spenL
on lands managed by dlfferenL federal agencles. 1here are even dupllcaLlve research accounLs on
wlldflre research. Speclflcally, boLh agencles have Lhe followlng accounLs: reparedness, llre
suppresslon operaLlons, Pazardous fuels reducLlon, 8urned area rehablllLaLlon, and !olnL flre
sclence. ln l?2010, $973 mllllon was approprlaLed for uCl flreflghLlng acLlvlLles and $2.392 bllllon
for lS wlldflre acLlvlLles. 1oLal fundlng beLween Lhe Lwo was $3.367 bllllon ln l?2010, noL lncludlng
emergency approprlaLlons. Slnce 1999, CAC has repeaLedly found LhaL Lhese acLlvlLles should be
more coheslve and cosL-effecLlve.
78

ln 2009, CAC noLed LhaL loresL Servlce and lnLerlor agencles
had noL deflned flreflghLlng cosL-conLalnmenL goals or developed a sLraLegy Lo achleve such goals,
desplLe CAC recommendaLlons ln 2007 Lo do so. lnsLead, cosLs have conLlnued Lo rlse. 1hls opLlon
would requlre Lhe agencles Lo follow CAC recommendaLlons, and develop clear cosL conLalnmenL
plans, ln order Lo reduce Lhe yearly spendlng beLween Lhe programs by 10 percenL, or [usL under
$400 mllllon annually.

77
hLLp://crs.gov/8eporLul/8L33990.pdf
78
hLLp://www.gao.gov/new.lLems/d09877.pdf
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CkLA1ING A LLANLk, MCkL LIIICILN1 DLILNSL DLAk1MLN1

39. App|y the overhead sav|ngs Secretary Gates has prom|sed to def|c|t reduct|on.
79
$100 bllllon. 1hls lnlLlaLlve wlll lnclude reforms such as reduclng Lhe number of conLracLors provldlng
servlces Lo enLagon sLaff, llmlLlng personnel growLh ln Lhe Cfflce of Lhe SecreLary of uefense (CSu),
defense agencles, and Lhe combaLanL commands, reduclng dupllcaLlon ln uCu's lnLelllgence
communlLy, lmprovlng uCu's acqulslLlon process, requlrlng Lrade-offs beLween cosL and capablllLles
ln declslons abouL weapon sysLem requlremenLs, and consolldaLlon of lnformaLlon Lechnology
lnfrasLrucLure faclllLles.
ln May,
uefense SecreLary 8oberL CaLes announced a ma[or lnlLlaLlve Lo flnd efflclencles and
reduce overhead cosLs wlLhln Lhe ueparLmenL of uefense, wlLh a flve-year savlngs goal of
80

CurrenLly, Lhe savlngs are Lo be reallocaLed Lo force sLrucLure and
modernlzaLlon. lf Lhese savlngs were applled Lo deflclL reducLlon lnsLead, we could save $28 bllllon
ln 2013.
AddlLlonally, slgnlflcanL maLerlal weaknesses ln uCu's flnanclal managemenL and relaLed buslness
operaLlons conLlnue Lo hlnder lLs ablllLy Lo pass an lndependenL audlL of lLs flnanclal operaLlons and
acLlvlLles and dlmlnlsh flnanclal Lransparency and accounLablllLy for Lhe resources provlded Lo uCu.
Whlle uCu leadershlp has expressed commlLmenL ln Lhe pasL for flnanclal managemenL
lmprovemenL acLlvlLles and efforLs Lo obLaln clean audlL oplnlons, unLll recenLly, Lhe deparLmenL
lacked a vlable plan or accounLablllLy for achlevlng Lhese ob[ecLlves. lf Lhe ueparLmenL of uefense
can slgnlflcanLly lmprove lLs flnanclal managemenL, and achleve audlL readlness, lL can generaLe
subsLanLlal savlngs over Llme.

CurrenL uCu and mlllLary deparLmenL leadershlp have expressed Lhelr commlLmenL Lo flnanclal
managemenL lmprovemenL and audlL readlness plan ln response Lo congresslonal mandaLes, CAC
recommendaLlons, Lhe resldenL's prlorlLles, as well as demands for greaLer flscal economy and
efflclency. Powever, prlor efforLs Lo achleve flnanclal managemenL lmprovemenLs wlLhln uCu have
noL been successful, ln parL because Lhe deparLmenL lacked an lnLegraLed sLraLeglc plan and focused
and commlLLed leadershlp Lo ensure LhaL susLalned lmprovemenLs ln capablllLles were achleved.

lL ls expecLed LhaL efflclencles galned Lhrough uCu's flnanclal managemenL and audlL readlness
efforLs wlll conLlnue Lo resulL ln beneflLs, such as Lhose reallzed by Lhe Marlne Corps currenL
flnanclal lmprovemenL efforLs. 1he Marlne Corps recenLly reallzed approxlmaLely $3 for every $1 lL
lnvesLed ln lmprovemenLs Lo lLs rudlmenLary flnanclal operaLlons. CLher governmenL organlzaLlons
have also seen cosL savlngs wlLh slmllar lmprovemenLs.

79
hLLp://www.defense.gov/releases/release.aspx?releaseld=13782
80
ueparLmenL of uefense, 1ranscrlpL ress Conference wlLh SecreLary of uefense 8oberL M. CaLes, AugusL 9, 2010,
hLLp://www.defense.gov/LranscrlpLs/LranscrlpL.aspx?LranscrlpLld=4669.
uCu, 1ranscrlpL, ress Conference wlLh SecreLary of 8oberL M. CaLes and under SecreLary of uefense AshLon CarLer, AcqulslLlon lnlLlaLlves," 9-
14-10, hLLp://www.defense.gov/LranscrlpLs/LranscrlpL.aspx?LranscrlpLld=4684, AshLon CarLer, Memorandum for AcqulslLlon rofesslonals,
8eLLer 8uylng ower: Culdance for CbLalnlng CreaLer Lfflclency and roducLlvlLy ln uefense Spendlng," SepLember 14, 2010.

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40. Ireeze federa| sa|ar|es, bonuses, and other compensat|on for the c|v|||an workforce at
the Department of Defense for three years.
81
decllne. ln conLrasL, ueparLmenL of uefense clvlllan employees (along wlLh Lhelr counLerparLs aL
oLher federal agencles) have seen Lhelr wages lncrease due Lo auLomaLlc formulas ln law LhaL
provlde Lhem wlLh sLep-ln-grade and cosL-of-llvlng-ad[usLmenLs. lor example, uCu clvlllan
employees recelved a 2.0 percenL lncrease ln 2010 and a 3.9 percenL ralse ln 2009.
uurlng Lhe CreaL 8ecesslon, mosL prlvaLe
secLor employees have seen Lhelr wages frozen, and some even have waLched wages
82

1hls proposal
would lnsLlLuLe a Lhree-year uCu freeze on federal clvlllan pay, lncludlng salarles and Lhose beneflLs
llnked Lo pay ralses, Lo reflecL Lhe currenL economlc and flscal cllmaLe.
1he followlng esLlmaLe assumes for l?2012 Lhrough l?2013 a 2.3 percenL lncrease on a $74 bllllon
base.
83

I|sca| ear 2012 Ireeze 2013 Ireeze 2014 Ireeze Cumu|at|ve Annua| Sav|ngs
2012 51.7 NA NA 51.7
2013 51.7 51.7 NA 53.4
2014 51.7 51.7 51.7 5S.1
201S 51.8 51.8 51.7 5S.3
S year tota| 56.9 5S.2 3.4 51S.S

41. Ireeze non-combat m|||tary pay at 2011 |eve|s for 3 years.
84
along wlLh Lhe allowances, ls expecLed Lo grow by $9.2 bllllon from 2011 Lo 2013. A Lhree-year
freeze aL 2011 levels for Lhese compensaLlon caLegorles would save Lhe federal governmenL $7.6
bllllon ln compensaLlon and Lax expendlLures, as well as anoLher $1.6 bllllon ln less reLlremenL
accrual, or $9.2 bllllon LoLal dlscreLlonary savlngs ln 2013.
8egular MlllLary
CompensaLlon (excludlng combaL pay) for mlllLary personnel, whlch lncludes baslc pay,
baslc allowances for houslng and subslsLence, and federal lncome Lax advanLages LhaL go

42. Doub|e Secretary Gates' cuts to defense contract|ng.
8S
1hese sLaff augmenLees are only a small subseL of Lhe uefense ueparLmenL's nearly 1 mllllon LoLal
conLracLor personnel, who provlde a myrlad of servlces ranglng from flxlng weapon sysLems Lo
mowlng Lhe grass on defense bases, and cosL abouL $200 bllllon.
ln SecreLary CaLes' recenLly
launched efflclencles lnlLlaLlve, he proposes Lo cuL spendlng for conLracLor personnel who
ald or augmenL defense headquarLers sLaff by 10 percenL each year from l?2011-l?2013.
86
uCu has been parLlcularly
concerned abouL sLaff augmenLees, whlch make up abouL $20 bllllon of Lhe uefense ueparLmenL's
$134 bllllon ln conLracLor cosLs. Whlle sLaff augmenLees supporL enLagon offlces, Lhey do noL
produce a speclflc producL, and Lhelr numbers have Lrlpled ln Lhe pasL decade.
87

81
SLaff esLlmaLe.
SecreLary CaLes'
lnlLlaLlve should save abouL $3.4 bllllon ln l?2013. 1hls opLlon seeks Lo double Lhose savlngs. Whlle
Lhls reducLlon would cuL Lhese conLracLor sLaff from abouL 67,000 Lo 30,600 - more Lhan half - Lhe
82
hLLp://compLroller.defense.gov/defbudgeL/fy2011/l?11_Creen_8ook.pdf
83
lbld.
84
SLaff esLlmaLe based on daLa from Lhe Cfflce of Lhe SecreLary of uefense l?2011 Creen 8ook and CM8 daLa.
83
SLaff esLlmaLe.
86
AshLon CarLer, Memorandum for AcqulslLlon rofesslonals, 8eLLer 8uylng ower: MandaLe for 8esLorlng AffordablllLy and roducLlvlLy ln
uefense Spendlng," !une 28, 2010 clLes $200 bllllon for servlce conLracLlng, uCu, 8eporL Lo Congress requlred , !une 2010 lncludes an esLlmaLe
of 766,000 servlce conLracLor personnel cosLlng $134 bllllon, or an average of $200,000, per servlce conLracLor personnel.
87
8ased on emall from uCu.
!"#$
&$'*
!"#$
&-'!
!"#$
&$'(
LoLal number of sLaff augmenLees would sLlll be abouL 40 percenL larger Lhan a decade ago. 1hls
would decrease Lhe LoLal number of uCu servlce conLracLor personnel by abouL 4 percenL.

43. keduce procurement by 1S percent.
88
procuremenL funds, equallng more Lhan Lwlce as much as annual procuremenL, whlch has lncreased
Lhe servlce's sLock of equlpmenL.
ln lLs l?2011 budgeL, uCu esLlmaLed LhaL
procuremenL spendlng ln l?2013 would LoLal $137.3 bllllon, a doubllng ln real Lerms of Lhe
l?2000 level. Slnce l?2003, uCu has recelved an addlLlonal $214.3 bllllon ln war-relaLed
89
uCu's l?2013 budgeL does noL lnclude war fundlng. A 13
percenL cuL would reduce l?2013 procuremenL by almosL $20 bllllon Lo a LoLal of $117.3 bllllon,
sllghLly below Lhe average for Lhe pasL Len years lncludlng war-relaLed fundlng when ad[usLed for
lnflaLlon.
90

CpLlons 44-30 below suggesL speclflc procuremenL cuLs LhaL could be used Lo help reach
a 13 percenL cuL.
44. Lnd procurement of the V-22 Csprey. 1he v-22 Csprey was deslgned Lo meeL Lhe amphlblous
assaulL needs of Lhe Marlne Corps, Lhe sLrlke rescue needs of Lhe navy, and Lhe needs of long range
speclal operaLlons forces (SCl) mlsslons of u.S. Speclal CperaLlons Command. Powever, Lhe v-22
has had a Lroubled hlsLory wlLh many developmenLal and malnLenance problems, lncludlng crlLlcal
reporLs by CAC and oLhers. Speaklng on v-22 capablllLles ln a closlng sLaLemenL aL Lhe !une 23, 2009
Pouse CverslghL and CovernmenL 8eform CommlLLee hearlng, 8ep. Ldolphus 1owns sLaLed: Cur
lnvesLlgaLlon lndlcaLes we've goLLen half Lhe alrcrafL for Lhree Llmes Lhe cosL--LhaL's noL a reclpe for
longevlLy. . lL's Llme Lo puL Lhe Csprey ouL of lLs mlsery."
91

1he proposed change Lo LermlnaLe
acqulslLlon of v-22 aL 288 alrcrafL, close Lo Lwo-Lhlrds of Lhe planned buy, would subsLlLuLe MP-60
hellcopLers Lo meeL mlsslons LhaL requlre less range and speed, and could save $1.1 bllllon ln 2013.
4S. Cance| the Lxped|t|onary I|ght|ng Veh|c|e. rocuremenL of Lhe LxpedlLlonary llghLlng vehlcle was
lnlLlaLed 23 years ago wlLh Lhe goal Lo buy Lhe Marlne Corps 373 shlp-Lo-shore assaulL vehlcles for a
forclble amphlblous landlng aL a LoLal cosL of $13.6 bllllon. Concerns have been ralsed LhaL Lhe new
vehlcles, wlLh Lhelr low ground clearance, would be vulnerable Lo lmprovlsed Lxploslve uevlces
(lLus) on land and Lo long-range, shore-based, anLl-shlp crulse mlsslles LhaL could be launched
agalnsL navy's amphlblous shlps when Lhe vehlcles dlsembark 23 mlles from shore.
92
ln an Aprll 17,
2009 speech aL Lhe naval War College, Lhe SecreLary of uefense called for close examlnaLlon of
wheLher Lhe mlsslon lLself ls necessary, saylng we have Lo Lake a hard look aL where lL would be
necessary or senslble Lo launch anoLher ma[or amphlblous acLlon agaln ... ln Lhe 21
sL
cenLury."
93

CLher capablllLles may be more relevanL ln Lhe currenL asymmeLrlcal LhreaL envlronmenL, such as
deep peneLraLlon by Mv-22s, unmanned aerlal vehlcles for survelllance, and Speclal CperaLlons
forces. 1hls opLlon would cancel Lhe LxpedlLlonary llghLlng vehlcle (Llv) for savlngs of $630 mllllon
ln l?2013.
46. Subst|tute I-16 and I]A-18Ls for ha|f of the A|r Iorce and Navy's p|anned buys of I-3S f|ghter
a|rcraft. WlLh a planned LoLal buy of 2,443 alrcrafL, Lhe l-33 or !olnL SLrlke llghLer (!Sl) ls Lhe

88
SLaff re-esLlmaLes, such opLlons have appeared ln Lhe C8C 8udgeL CpLlons, ln Lhe SusLalnable uefense 1ask lorce reporL, Lhe CA reporL A
1housand CuLs," and elsewhere.
89
C8S, 1he CosL of lraq, AfghanlsLan, and CLher Clobal War on 1error CperaLlons Slnce 9/11 by Amy 8elasco, SepLember 2, 2010, p. 33.
90
1he average for procuremenL ln l?2001-l?2010 was $109 bllllon, 4 more ln real Lerms Lhan Lhe LoLal wlLh a $20 bllllon cuL ln l?2013.$117.3
bllllon ln l?2013. SLaff esLlmaLe based on 1able 8-1 ln uCu, l?2011 naLlonal uefense 8udgeL LsLlmaLes, lebruary 2010,
hLLp://compLroller.defense.gov/defbudgeL/fy2011/l?11_Creen_8ook.pdf.
91
C8S 8eporL 831384, v-22 Osptey 1llt-kotot Altctoft. 8ockqtoooJ ooJ lssoes fot cooqtess by !eremlah CerLler, uecember 22, 2009, p. 46.
92
C8S, 1be Motloes xpeJltqloooty llqbtloq veblcle (lv). 8ockqtoooJ ooJ lssoes fot cooqtess by Andrew lelckerL, SepLember 17, 2010.
93
As quoLed ln lbld, p. 6.
!"#$
&!"'"
uefense ueparLmenL's largesL weapon procuremenL program. 1hls opLlon would buy half as many as
Lhe 369 planned for Lhe Alr lorce and Lhe 311 for Lhe navy, purchaslng lnsLead Lhe currenL
generaLlon flghLer alrcrafL, Lhe Alr lorce l-16 alrcrafL aL one-Lhlrd of Lhe cosL and Lhe navy l/A-
18L/l aL Lwo-Lhlrds of Lhe cosL of Lhe l-33. 1he unlL cosL of l-33 alrcrafL ls esLlmaLed aL abouL $133
mllllon compared Lo $40 mllllon for an l-16 and $80 mllllon for an l-18L. 1he raLlonale for Lhls
change would be LhaL uCu does noL need an enLlre fleeL wlLh Lhe sLealLhy capablllLles of Lhe !Sl,
and could rely lnsLead on upgraded l-16 and l/A-18L alrcrafL for half of Lhelr fleeL, a hlgh-low" mlx.
1hls ls esLlmaLed Lo save $2.3 bllllon ln l?2013, and a LoLal of $9.3 bllllon for l?2011-l?2013. 1he
opLlon mlghL also allow Lhe servlces Lo upgrade Lhelr LacLlcal alr fleeLs sooner ln case Lhe l-33 ls
delayed because of addlLlonal Lechnlcal problems, slnce Lhe l-16 and l-18L llnes are currenLly open.
ln 2009, C8C descrlbed a slmllar opLlon LhaL would have cancelled Lhe l-33 program alLogeLher.

47. Cance| the Mar|ne Corps vers|on of the I-3S. 1hls opLlon would cancel Lhe Marlne Corps verslon of
Lhe l-33 !olnL SLrlke llghLer because of lLs Lechnlcal problems, cosL overruns, schedule delays, and
Lhe adopLlon by Lhe servlces of [olnL combaL supporL ln currenL warLlme operaLlons. 1hls would save
$3.9 bllllon ln l?2013 and $17.6 bllllon for l?2012 - l?2013. AL a LoLal cosL of $41 bllllon, uCu plans
Lo buy 311 l-338s for Lhe Marlne Corps Lo replace Lhe Marlne Corps Av-88. ln lLs recenL defense
revlew, Lhe unlLed klngdom declded Lo cancel lLs buy of Lhe Marlne Corps verslon of Lhe !Sl.
lurLher, Lhe sophlsLlcaLed capablllLles of Lhe !Sl may be less relevanL ln currenL scenarlos. under
SecreLary of Lhe navy 8oberL Workman observed LhaL greaLer use of gulded mlsslles and morLar
could end Lhe forward operaLlons LhaL would be performed by Lhe Marlne Corps !Sl because of
vulnerablllLy.
94

Also, because Lhe Marlne Corps verslon of Lhe !Sl has been responslble for mosL of
Lhe Lechnlcal, cosL, and schedule problems, cancelllng lL could acceleraLe dellvery of Lhe Alr lorce (l-
33A) and navy (l-33C) verslons.
48. Cance| the Navy's Iuture Mar|t|me repos|t|on|ng Iorce. Some defense experLs suggesL LhaL Lhe
navy's luLure MarlLlme reposlLlonlng lorce program, or sea-baslng," lnLended Lo provlde an
lndependenL capaclLy Lo LransporL equlpmenL and supplles from a Moblle Landlng laLform wlLh a
new !olnL Plgh Speed vehlcle, faces very dlfflculL Lechnlcal challenges, and LhaL Lhe ablllLy Lo
LransporL and susLaln one Marlne brlgade of abouL 4,000 may noL be worLh Lhe expense. uesplLe
Lhe lack of adequaLe porLs and lnfrasLrucLure, operaLlons ln lraq and AfghanlsLan, as well as varlous
recenL humanlLarlan efforLs, have been susLalned wlLh Lhe currenL mlx of preposlLloned shlps,
amphlblous supporL and Landlng CrafL Alr Cushlon shlps. Cancellng Lhe new program would save
$1.0 bllllon ln l?2013 and $2.7 bllllon from l?2012-l?2013.

49. Cance| the new Io|nt L|ght 1act|ca| Veh|c|e (IL1V), the Ground Combat Veh|c|e, and the Io|nt
1act|ca| kad|o. ln Lhls opLlon, Lhe Army would conLlnue Lo upgrade lLs currenL fleeL of LacLlcal
vehlcles, and Lhose vehlcles would conLlnue Lo meeL Army goals ln Lerms of years of servlce. 1he
opLlon would delay unLll afLer 2013 plans Lo develop and buy Lhe proposed new Cround CombaL
vehlcle unLll requlremenLs are beLLer deflned, Lhe !olnL 1acLlcal vehlcle unLll Lhe dupllcaLlon lssue ls
resolved, and Lhe !olnL 1acLlcal 8adlo unLll Lechnlcal problems are resolved. 1he rlsk of delaylng
Army modernlzaLlon of lLs LacLlcal vehlcle fleeL ls low because warLlme fundlng enabled Lhe Army Lo
upgrade lLs currenL LacLlcal vehlcle fleeL earller Lhan anLlclpaLed. lor l?2003-l?2007, Lhe Army
budgeLed some $86.3 bllllon ln procuremenL buL recelved $141.3 bllllon ln Lhose same years, 63
percenL more Lhan anLlclpaLed, lncludlng subsLanLlal amounLs for PMMWvs, M8As, Lrucks,
SlnCCA8 radlos, and oLher procuremenL allowlng lL Lo modernlze lLs lnvenLory sooner Lhan

94
Avlotloo week, Marlnes 8eady buL ls !Sl?" CcLober 1, 2010.
planned.
93
8ased on Lhe Army's reporL Lo Congress, Army 1ruck rogram: 1acLlcal Wheeled vehlcle
AcqulslLlon SLraLegy," Lhe Army has already reached lLs requlremenLs for l?2017 for lLs llghL,
medlum, and heavy LacLlcal vehlcles, earller Lhan anLlclpaLed because baLLle losses, malnLenance
washouLs and vehlcles lefL ln LheaLer were lower Lhan anLlclpaLed.
96
ln llghL of Lhls slLuaLlon, lL ls noL
clear why Lhe Army needs Lo buy Lhe new LlghL 1acLlcal vehlcles aL Lhls Llme. 1he Army's Cround
CombaL vehlcle program ls Lhe successor Lo Lhe Army's Manned Cround vehlcle rogram, parL of
Lhe amblLlous luLure CombaL SysLem, whlch SecreLary CaLes cancelled ln Aprll 2009.
97

1he Army
conLlnues Lo have dlfflculLy deflnlng lLs requlremenL, cancelllng lLs AugusL 2010 8equesL for
roposal, and ls faclng congresslonal skepLlclsm as well. 1he !olnL 1acLlcal 8adlo has longsLandlng
Lechnlcal problems, whlch do noL appear Lo have been resolved. 1hls opLlon would save $2.3 bllllon
ln 2013.
S0. keduce p|anned |eve|s for "Cther rocurement." 1he caLegory of CLher rocuremenL ls expecLed Lo
reach $38.6 bllllon ln l?2013. 1hls opLlon reduces LhaL amounL Lo $30.1 bllllon Lo reflecL Lhe bulldup
of lnvenLory over Lhe pasL Len years because of subsLanLlal war-Llme fundlng, and Lhe prospecL LhaL
Lhe number of u.S. deployed Lroops may decllne by 2013. 1he opLlon would seL fundlng for each
servlce aL 30 percenL above Lhe l?2000 level. 8eLween l?2001 and l?2010, uCu recelved $400
bllllon ln fundlng (ln l?2011 dollars) for CLher rocuremenL, a caLegory LhaL lncludes
communlcaLlons and elecLronlc equlpmenL (e.g., LacLlcal SlnCCA8s radlos, radars, communlcaLlons
and lnformaLlon securlLy), LacLlcal vehlcles (e.g., Plgh MoblllLy MulLlpurpose Wheeled vehlcles or
PMMWv Lrucks, armored securlLy vehlcles, Lrallers, maLerlals handllng equlpmenL, shlp supporL
equlpmenL) and oLher supporL equlpmenL and spares (e.g., nlghL vlslon goggles). Averaglng $40
bllllon a year, Lhls warLlme fundlng level ls double Lhe amounL recelved ln l?2000 ln real Lerms.
98

AlLhough one of Lhe lessons learned from Lhe Afghan and lraq wars ls LhaL much more of Lhls Lype of
supporL equlpmenL ls needed Lo carry ouL operaLlons, currenL budgeLlng assumes annual levels
would decllne sllghLly Lo $37 bllllon, close Lo Lhe $40 bllllon average of Lhe pasL Len years. 1hls plan
does noL appear Lo Lake lnLo accounL Lhe bulldup of equlpmenL lnvenLory ln Lhe pasL Len years and
Lhe llkellhood LhaL Lhe currenL level of deployed forces may decrease based on Lhe agreemenL wlLh
lraq Lo remove all u.S. Lroops by uecember 2011 and Lhe posslblllLy LhaL force levels ln AfghanlsLan
may fall ln laLer years based on Lhe resldenL's commlLmenL Lo begln Lhe re-deploymenL of u.S.
forces ln !uly 2011.
S1. keduce m|||tary personne| stat|oned at overseas bases |n Lurope and As|a by one-th|rd.
99
$8.3 bllllon ln 2013,

1he unlLed SLaLes permanenLly sLaLlons abouL 130,000 mlllLary personnel ln Lhe hundreds
of u.S. bases ln Lurope and Asla. 8educlng Lhls presence by one-Lhlrd would save around
100
whlle sLlll malnLalnlng a subsLanLlal mlllLary force on boLh conLlnenLs.
101

93
uCu budgeL daLa comparlng budgeLed and acLual by servlce, accounL, and sysLem.
1he
Army has consldered reduclng lLs four combaL brlgades ln Lurope Lo Lwo, buL presenLly Lhe budgeL
96
ueparLmenL of Lhe Army, 8eporL Lo Congress, Army 1ruck rogram: 1acLlcal Wheeled vehlcle AcqulslLlon SLraLegy," !une 2010, as requlred
by LxplanaLory sLaLemenL ln ulvlslon A of uCu ApproprlaLlons AcL, 2010 (>L. 1111-118), p. 13 and p. 18.
97
C8S, Atmy lotote combot 5ystem ()lc5) 5plo Oots ooJ CtoooJ combot veblcle (Ccv). 8ockqtoooJ ooJ lssoes fot cooqtess by Andrew
lelckerL, november 30, 2009, p. 1.
98
SLaff esLlmaLes based on 1able 6-6 ln uCu, Notloool uefeose 8oJqet stlmotes, l?2003-l?2010 edlLlons,
hLLp://compLroller.defense.gov/8udgeL2010.hLml, oLher flscal years years avallable on legacy slLe aL
hLLp://compLroller.defense.gov/8udgeL2011.hLml, for Marlne Corps, see Marlne Corps, Iostlflcotloo fot ltocotemeot, Motloe cotps, l?2003-
l?2011, hLLp://www.flnance.hq.navy.mll/lM8/02pres/8CC/MC_8ook.pdf , oLher years avallable aL Marlne Corps budgeL slLe.
99
SLaff esLlmaLe. ln 2009, !ones suggesLed closlng 20 of bases, and 8umsfeld suggesLed LhaL we could save up Lo $12 bllllon by closlng 200 Lo
300 bases alone.
100
SLaff esLlmaLe.
101
!"#$
&)'$
lncludes funds for currenL force levels, llkely Lo resulL ln a reducLlon of abouL 33,000 ln Lurope and
anoLher 17,000 ln korea. Slnce only a mlnorlLy of Lhe forces ln Lurope deploy for Lhe Afghan and
lraq wars, Lhe addlLlonal forces requlred Lo supporL overseas sLaLlonlng does noL seem cosL-
effecLlve, and Lhe servlces have sufflclenL alr and sea asseLs Lo deploy forces from Lhe unlLed SLaLes.
1hls opLlon would also reduce force levels ln korea as well as reverse Lhe uefense ueparLmenL's
currenL plans Lo bulld up Lhe lnfrasLrucLure ln korea Lo supporL dependenLs ln supporL of a new
pollcy Lo converL Lhe longsLandlng pollcy of one year unaccompanled Lours Lo a Lhree-year Lour wlLh
dependenLs. varlanLs of Lhls opLlon were supporLed ln 2009 by boLh former SecreLary of uefense
uonald 8umsfeld and naLlonal SecurlLy Advlser !lm !ones.

S2. Modern|ze 1r|care, DCD hea|th.
102
for uCu's modernlzaLlon and oLher defense needs. ln recenL years, a varleLy of proposals have been
made Lo ralse annual enrollmenL fees, co-pays and deducLlbles Lo reflecL lnflaLlon, where currenLly
mlllLary reLlrees wlLh famlly pollcles pay far below naLlonal averages, generally paylng no premlums,
and paylng deducLlbles of $130 Lo $300 a year compared Lo naLlonal averages ranglng from $600 Lo
$1,000 dependlng on Lhe Lype of plan.
SecreLary CaLes has ralsed concerns for some years LhaL
Lhe rapldly rlslng cosL of mlllLary healLh care - lncreaslng from $17.3 bllllon ln l?2000 Lo
$47.4 bllllon ln l?2010, wlLh a doubllng ln real Lerms by l?2020 - wlll crowd ouL" fundlng
103
Accordlng Lo C8C, uCu's l?2009 proposal Lo ralse
enrollmenL fees, deducLlbles and co-pays Lo ad[usL for lnflaLlon, Lhough sLlll well below naLlonal
averages, would save Lhe ueparLmenL of uefense abouL $6 bllllon ln 2013, much of lL reflecLlng
declslons by mlllLary reLlrees Lo drop 18lCA8L coverage.
104
Congress re[ecLed Lhese proposals ln
response Lo concerns ralsed by uCu's reLlree populaLlon, who make up 37 of Lhe beneflclarles and
accounL for 63 of Lhe cosL.
103

1he proposed new opLlon would ralse premlums and co-pays by
smaller amounLs Lhan ln prevlous proposals, buL would reduce cosLs for Lhe governmenL prlmarlly
by requlrlng LhaL employers relmburse Lhe governmenL for Lhe employer share of healLh care cosLs
of worklng age reLlrees who opL for 18lCA8L lnsLead of relylng on Lhe employer's pollcy. 1hls would
ellmlnaLe a subsldy by Lhe governmenL for whaL ls a normal buslness expense, and provlde Lhe
governmenL wlLh abouL $3 bllllon.
ln addlLlon, Lo lmprove uCu's managemenL of healLh care, and prevenL 18lCA8L from belng charged
for expenses LhaL could be covered by an employer plan ln cases when 18lCA8L ls Lhe secondary
payer, Lhls opLlon would requlre LhaL all beneflclarles pay a modesL enrollmenL fee for each of Lhe
Lhree 18lCA8L plans, and deslgnaLe wheLher Lhey are uslng 18lCA8L as Lhelr prlmary lnsurer or as a
wraparound pollcy. 1o reduce hlgher Lhan average usage of healLh care by famllles of servlce
members, Lhe opLlon would also ralse co-pays for offlce vlslLs from Lhelr currenL low levels closer Lo
naLlonal averages. 1o curb expanslon of beneflLs, Lhls opLlon would also requlre LhaL even Lhough
uCu's medlcal healLh care expenses are carrled ln dlscreLlonary accounLs, A?CC provlslons would
apply so LhaL any proposal Lo lncrease 18lCA8L beneflLs would have Lo be offseL by lncreases ln
premlums, co-pays, or deducLlbles.

102
Congresslonal 8udgeL Cfflce. 1he LffecLs of roposals Lo lncrease CosL Sharlng ln 18lCA8L." !une 2009,p. 3.
103
See ueparLmenL of uefense, 1ask lorce on Lhe luLure of MlllLary PealLh Care," 8eporL of Lhe 10
Lh
Cuadrennlal 8evlew of MlllLary
CompensaLlon, and C8C, 1be ffects of ptoposols to locteose cost 5botloq lo 1klcAk, !une 2009 have all presenLed ways Lo reform uCu's
18lCA8L healLh lnsurance ln recenL years, see 8eporL of 1enLh Cuadrennlal 8evlew of MlllLary CompensaLlon, all volumes,
hLLp://www.whs.mll/llbrary/doc/1enLh.pdf. and hLLp://www.defense.gov/news/C8MCreporL.pdf. C8C, PealLh CpLlons, volume l, uecember
2009, hLLp://www.cbo.gov/fLpdocs/99xx/doc9923/12-18-PealLhCpLlons.pdf, C8C, 1he LffecLs of roposals Lo lncrease CosL Sharlng ln 18lCA8L,
!une 2009, hLLp://www.cbo.gov/fLpdocs/102xx/doc10261/18lCA8L.pdf.
104
C8C, 1he LffecLs of roposals Lo lncrease CosL Sharlng ln 18lCA8L, !une 2009, hLLp://www.cbo.gov/fLpdocs/102xx/doc10261/18lCA8L.pdf.
103
C8S, 8L33337, Mllltoty neoltb cote. Ooestloos ooJ Aoswets, by uon !ansen, 3-14-09, summary and p.12.
!"#$
&,'"
S3. kep|ace m|||tary personne| perform|ng commerc|a| act|v|t|es w|th c|v|||ans.
106
acLlvlLles such as lnLelllgence, malnLenance, and combaL equlpmenL managemenL Lo commerclal
acLlvlLles such as lnsLallaLlon supporL (Lrash, flre prevenLlon), supply, LransporLaLlon, and
communlcaLlons servlces, and morale, welfare, and recreaLlon supporL. 1hls opLlon ellmlnaLes
88,000 mlllLary personnel who are performlng clearly commerclal Lypes of acLlvlLles and replaces
Lhem wlLh 62,000 clvlllans, aL conslderable per-employee savlngs.
As requlred
by Lhe lederal AcLlvlLles lnvenLory 8eform (lAl8) AcL, uCu reporLs annually on Lhe number
and Lypes of poslLlons occupled by mlllLary personnel, ranglng from clearly mlllLary
107
Cne-Lhlrd of Lhe mlllLary
poslLlons can be ellmlnaLed durlng Lhe converslon because clvlllans are noL requlred Lo carry ouL
mlllLary speclflc duLles on Lop of Lhelr commerclal duLles.
108
1hls opLlon ls slmllar Lo a uefense
8uslness 8oard proposal LhaL recommended cuLLlng 34,000 mlllLary personnel ln commerclal
acLlvlLles Lo reduce uCu overhead.
109

lnsLead, Lhls opLlon sLandardlzes Lhe share of mlllLary
performlng Lhese commerclal Lypes of work, adopLlng Lhe lowesL raLe of mlllLary parLlclpaLlon
among Lhe servlces, and converLlng Lhe number of poslLlons above LhaL level Lo cheaper clvlllan
sloLs. 1hls opLlon would save $3.4 bllllon ln 2013.
S4. keduce spend|ng on kesearch, Deve|opment, 1est & Lva|uat|on by 10 percent.
110
does noL appear Lo be conslsLenL wlLh proposals by SecreLary CaLes Lo re-orlenL uCu modernlzaLlon
Lo counLer-lnsurgency warfare wlLh, for example, an emphasls on senslng devlces and lnLelllgence
gaLherlng Lo counLer home-made lmprovlsed exploslve devlces (lLus), whlch would be expecLed Lo
be less expenslve Lhan developlng follow-on sysLems for ma[or weapon sysLems. 1hls would sLlll
leave uCu wlLh a level above Lhe peak of Lhe 8eagan years ln real sysLems (ad[usLed for lnflaLlon).
8u1&L spendlng could be reduced by slowlng ongolng pro[ecLs and cancelllng parLlcular pro[ecLs
such as Lhose assoclaLed wlLh marglnal procuremenL programs ldenLlfled above such as Lhe Marlne
Corps verslon of Lhe l-33 ($133 mllllon ln l?2013, $1.6 bllllon for l?2012-l?2013), Lhe !olnL LlghL
1acLlcal vehlcle ($128 mllllon ln l?2013, $1.1 bllllon from l?2012-l?2013), !olnL 1acLlcal 8adlo
($177 mllllon ln l?2013, $1.7 bllllon from l?2012-l?2013), as well as cancelllng fundlng for upgrades
of newly-deployed sysLems such as Lhe l-22 flghLer alrcrafL ($106 mllllon ln l?2013 and $828 mllllon
for l?2012-l?2013), and Lhe Alr lorce l-33 ($34 mllllon ln l?2012 and $334 mllllon ln l?2012-
l?2013).
1hls
opLlon would reduce Lhe uefense ueparLmenL's 8esearch, uevelopmenL, 1esL and
LvaluaLlon budgeL by 10 percenL, savlng $7 bllllon ln 2013. 1he currenLly hlgh level of 8u1&L
111

SS. keduce spend|ng on base support.
112

106
1he $3.4 bllllon 2013 esLlmaLe ls a sLaff esLlmaLe, based on Lhe work of Lhe uefense 8uslness 8oard. A slmllar opLlon has been proposed by
C8C.
1hls opLlon would reduce base supporL spendlng by
$2.0 bllllon, or 10 percenL of esLlmaLed 2013 level, by sLandardlzlng spendlng per Lroop
among Lhe servlces, whlch appears Lo be ln llne wlLh a recommendaLlon by under SecreLary
107
CAC has found LhaL mlllLary personnel cosL conslderably more Lhan clvlllans, a concluslon conflrmed by sLaff esLlmaLes, whlch Lake lnLo
accounL compensaLlon, defense healLh cosLs, and operaLlon and malnLenance supporL cosLs of mlllLary personnel, only a porLlon of whlch ls
esLlmaLed Lo decrease as wlLh fewer mlllLary personnel.
108
C8C 8udgeL CpLlons volume 2, CpLlon 030-17, 8eplace Mlllary ersonnel ln Some SupporL oslLlons wlLh Clvlllan Lmployees of Lhe
ueparLmenL of uefense, hLLp://www.cbo.gov/fLpdocs/102xx/doc10294/08-06-8udgeLCpLlons.pdf.
109
uefense 8uslness 8oard, 8educlng Cverhead and lmprovlng 8uslness CperaLlons: lnlLlal CbservaLlons, !uly 22, 2010.
110
SLaff esLlmaLe based on recommendaLlons Lo cuL Lhe 8u1&L budgeL by CaLo, Lhe SusLalnable uefense 1ask lorce, and Lhe CenLer for
Amerlcan rogress.
111
llgures from 8-2, l2011 uesctlptlve 5ommotles for 8u1&L for Army, navy, and Alr lorce 8esearch and uevelopmenL rograms, see under
each servlce, hLLp://compLroller.defense.gov/8udgeL2011.hLml.
112
SLaff esLlmaLe.
!"#$
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of uefense, AshLon CarLer Lo adopL a unlform Laxonomy for dlfferenL Lypes of servlces."
113

1hls
could encourage cross-servlclng. Servlce spendlng on base supporL (cuLLlng grass, provldlng
elecLrlclLy, eLc.) varles among Lhe servlces from a low of $10,800 per Lroop ln Lhe u.S. Marlne Corps
Lo $13,700 per Lroop ln Lhe Alr lorce ln 2011. Whlle uCu has seL common supporL sLandards and
Lhe Army and navy have seL up separaLe commands Lo admlnlsLer base supporL, Lhls appears Lo
have generally led Lo hlgher sLandards and lL ls noL clear why cosLs per Lroop should vary so much.
lncludlng savlngs ln Lhe budgeL for base supporL could encourage Lhe servlces Lo adopL besL
pracLlces and reglonallze base supporL across servlces, and use a clvlllan organlzaLlon raLher Lhan a
mlllLary command.
S6. keduce spend|ng on fac|||t|es ma|ntenance.
114
square fooLage resulLlng from Lhe compleLlon of base closures ln Lhe pasL Len years. Whlle square
fooLage fell by 21 percenL, spendlng lncreased by 18 percenL ln real Lerms. Spendlng for faclllLles
malnLenance ls now aL close Lo 100 percenL of requlremenLs, and Lhe servlces have also beneflLed
from addlLlonal fundlng provlded ln base closure funds for consolldaLlons. A lower level ls furLher
[usLlfled because Lhere wlll be addlLlonal decreases ln bulldlngs Lo malnLaln when Lhe 2003 base
closures are compleLed.
1hls opLlon would reduce faclllLles
malnLenance spendlng on bulldlngs by $1.4 bllllon or 18 percenL below Lhe $7.7 bllllon
esLlmaLed for 2013. 1he servlces have noL reduced spendlng ln concerL wlLh Lhe decrease ln

S7. Conso||date the Department of Defense's reta|| act|v|t|es.
11S
opLlon, as has been suggesLed by C8C, would consolldaLe Lhese reLall sysLems lnLo one neLwork
over a flve-year perlod ln order Lo lncrease efflclency. 1hls would save abouL $1.7 bllllon annually, lf
Lhe new exchanges ralsed prlces 3 percenL on average. lL has been suggesLed LhaL some of Lhls
savlngs could be reLurned Lo mlllLary famllles ln Lhe form of a $600 grocery allowance, whlch would
more Lhan offseL Lhe 3 percenL lncrease ln prlces. 1hls would leave over $800 mllllon ln uCu savlngs
annually. Cne argumenL agalnsL Lhe grocery allowance ls LhaL Lhe exchanges would sLlll be able Lo
offer below-markeL prlces for goods.
1he ueparLmenL of uefense
operaLes four reLall sysLems on mlllLary bases: commlssarles for grocerles, whlch are Lhe
same across all Lhree branches, and Lhree separaLe exchanges, one for each branch. 1hls

S8. Integrate ch||dren of m|||tary personne| |nto |oca| schoo|s |n the Un|ted States. 1he
ueparLmenL of uefense currenLly runs Lwo school sysLems for chlldren of mlllLary personnel
- one for chlldren of mlllLary personnel sLaLloned overseas, and anoLher, Lhe uomesLlc
uependenL LlemenLary and Secondary Schools (uuLSS) sysLem, whlch operaLes 38 prlmary and
secondary schools for 19,324 sLudenLs ln Alabama, Ceorgla, new ?ork, norLh Carollna, SouLh
Carollna and vlrglnla. 1hese domesLlc schools exlsL desplLe Lhe facL LhaL nearly all mlllLary members
llve off base and send Lhelr chlldren Lo local schools. 1he program was lnlLlally esLabllshed when
schools ln Lhe SouLh were segregaLed, however lL ls no longer clear why Lhe sysLem ls sLlll necessary,
or why Lhe uefense ueparLmenL plans Lo spend $1.2 bllllon for l?2011-l?2013 Lo rebulld Lhese
schools, ralslng Lhe cosL per sLudenL from $31,000 ln l?2011 Lo $81,000 ln l?2013.
116

113
AshLon CarLer, Memorandum for AcqulslLlon rofesslonals, 8eLLer 8uylng ower: MandaLe for 8esLorlng AffordablllLy and roducLlvlLy ln
uefense Spendlng," !une 28, 2010 .
lnsLead, Lhese
114
SLaff esLlmaLe.
113
116
SLaff esLlmaLe based on l?2011 uCuLA MlLCCn 8udgeL, excludlng fundlng for uerLo 8lco, Cuba, Cuam and Cverseas 8ases. uCu, llscal
?ear 2011, ueparLmenL of uefense uependenLs LducaLlon (uCuuL), CperaLlon and MalnLenance, uefensewlde, lebruary 2010,
LLp://compLroller.defense.gov/defbudgeL/fy2011/budgeL_[usLlflcaLlon/pdfs/01_CperaLlon_and_MalnLenance/C_M_vCL_1_A81S/uouuL_l?1
1.pdf.
!"#$
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sLudenLs could be lnLegraLed lnLo local schools and Lhe rebulldlng plans cancelled, whlch would
achleve $1.1 bllllon of savlngs ln 2013. 1o relmburse school dlsLrlcLs for Lhese addlLlonal sLudenLs,
Lhe opLlon lncludes $14,000 for an allowance Lo cover Lhe cosL of addlLlonal sLudenLs as well as
lmpacL Ald, a paymenL Lo compensaLe local governmenLs for Lhe loss of properLy Lax revenues
because of mlllLary bases. ln some cases, Lhere wlll be only a small number of addlLlonal sLudenLs.
ln oLher cases, uCu may be able Lo Lurn over schools locaLed aL Lhe edge of mlllLary bases Lo Lhe
local educaLlonal dlsLrlcL.

C8C 8udgeL CpLlons vol ll, AugusL 2009, (030-20), SubsLlLuLe uependenL LducaLlon Allowances for uomesLlc Cn-8ase Schools C8C 8udgeL
CpLlons, lebruary 2003 (030-31), LllmlnaLe Lhe ueparLmenL of uefense's LlemenLary and Secondary Schools. uCu, llscal ?ear 2011,
ueparLmenL of uefense uependenLs LducaLlon (uCuuL), CperaLlon and MalnLenance, uefensewlde, lebruary 2010,
LLp://compLroller.defense.gov/defbudgeL/fy2011/budgeL_[usLlflcaLlon/pdfs/01_CperaLlon_and_MalnLenance/C_M_vCL_1_A81S/uouuL_l?1
1.pdf

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