Budget cuts for federal offices

We remember last year when President Obama forced the federal agencies to further cut budgets. This was a small cut of lee than two percent but you would have thought he slashed their entire budget. It has become that time again and the Obama administration sent out the first attempt as they want federal agencies to save money. The White House budget chief Jacob Lew has ordered agency heads to submit spending plans for the upcoming budget at least five percent below the current year levels. Jacob Lew wants them to propose ways to trim a total of at least ten percent of their spending. We have to applaud this as a great start to finding spending cuts and we are pretty sure they are required under the recent debt-ceiling agreement. The agreement reached did create a series of annual spending targets and would save tens of billions of dollars a year. We are not sure this will work as the American Federation of Government Employees, which represents more than 625,000 federal workers and employees of the District of Columbia in opposition they said this will equal job destruction, we would counter by is that such a bad thing. Based on the request federal agencies would need to trim will more than $1 trillion of this year’s $3.8 trillion federal budget. Lew suggests that savings can be found by eliminating unneeded programs and making agencies more efficient. This sounds great and at least the dialog is open.








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