Focus on Operating Efficiency: Illustrative Policy Options From the Report of
the National Commission on Fiscal Responsibility and Reform
Illustrative Policy Options
Deficit Reduction
in F2015E Eliminate 250,000 non-defense service and staff augmentee contractors $18 billion Eliminate all earmarks' $16 Freeze federal salaries, bonuses, and other compensation at non- $15 Defense agencies for three years Cut the federal workforce by 10% (2-for-3 replacement rate) $13 Create a Cut-and-Invest Committee charged with trimming waste and $11 targeting investment Slow the growth of foreign aid $5 Other? $22
Total Deficit Reduction F2015E
$100 billion
Note: 1) an earmark is a legislative (especially congressional) provision that directs approved funds to be spent on specific projects, or that directs specific exemptions from taxes or mandated fees. 2) Other includes eliminate NASA funding for commercial spaceflight, terminate low-priority Army Corps of Engineers programs, sell excess federal property, reduce congressional & White House budgets by 15%, reduce unnecessary printing costs and more. Source: National
KP Commission on Fiscal Responsibility and Reform, “The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform,” 12/1/10.
(@)E) www.kpcb.com
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What Might a Turnaround Expert Consider?
Focus on Expenses
Reform
Entitlement Programs
Focus on Operating Efficiency
(@E) www.kpcb.com
Focus on Revenues
Drive Sustainable Economic Growth
Consider Changing Tax Policies
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