Blog Posts and Analysis / Revenue & Spending

Improper Payments Provide Opportunity, Challenge to Administration

In fiscal year (FY) 2010, the federal government disbursed a little more than $125 billion in improper payments to the public, up from roughly $110 billion in FY 2009. Though total improper payment dollars have increased, the federal government is getting better at preventing these wasteful disbursements. Indeed, most federal agencies are only now finalizing implementation of the Obama administration's improper payments reduction effort, which began in late 2009.

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Cloaked in Good Government Garb, Sunset Commission Would Fast Track Spending Cuts

On March 16, Sen. John Cornyn (R-TX) proposed a controversial amendment to a small business reauthorization bill. The amendment would create a so-called "sunset commission," which is designed to identify and eliminate federal programs deemed unnecessary. The commission, billed as a "good government" measure by proponents, would likely operate behind closed doors, usurping the traditional oversight role of key congressional committees and potentially eliminating important programs.

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Non-Competed Contracts Down Slightly in FY 2010

In February, the Inspector General (IG) of the Department of Homeland Security (DHS) completed an audit examining the agency's use of non-competed contracts in fiscal year (FY) 2010. The audit finds DHS significantly reduced its use of these risky contracting vehicles, lowering both the total real contracting dollars spent and the percentage of contracting dollars spent on sole-source contracts. An examination of other federal agencies' non-competed contract spending reveals a similar, though less dramatic, trend.

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Commentary: Congress's Backward Budgeting

Some in Congress are treating a recently released Government Accountability Office (GAO) report on duplicative federal programs as a recipe book for budget cutting. However, GAO's recommendations for fixes are more nuanced, and the report ultimately underscores the value of implementing effective program measurement tools and carefully calibrating federal spending to ensure that national priorities are addressed.

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Two-Week Continuing Resolution Shows No Path Forward on Funding

The federal government is currently operating under a two-week continuing resolution, the details of which are not widely known. This marks the current fiscal year's fifth continuing resolution (CR). There is little expectation of compromise on the budget for the remainder of the fiscal year, leaving funding for agencies and government programs in limbo.

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Commentary: GAO Duplicative Programs Report Shows Need for More than Spending Cuts

The Government Accountability Office’s (GAO) recent report on duplicative federal programs has caused quite a stir in Washington. Conservative lawmakers have latched on to the report as "proof" of the need to cut billions of dollars of federal spending. Whether Congress should make such cuts is debatable, but the tome-like report includes much more than an extensive list of duplicative federal programs. It also provides a list of potential cost savings that involve continued prodding and oversight from Congress and some that may even require additional spending to help reduce waste, fraud, and abuse.

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President Obama Calls for More IRS Funding in 2012 Budget

Following the freeze-but-invest theme of his fiscal year (FY) 2012 budget, President Obama is calling for the Internal Revenue Service (IRS) to receive a boost compared to the agency's FY 2010 budget. Increased investments in tax enforcement and information technology (IT) could help make the currently complex tax code fairer while streamlining bureaucracy. Additionally, these improvements would likely raise more revenue for the government and make the agency more user-friendly. The Republican-controlled House, however, will likely stand in the way of the budget request, putting the IRS's future funding in question and potentially jeopardizing these reforms.

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