OPERATING EFFICIENCIES SHOW HOW TO CUT $718 BILLION FROM FEDERAL BUDGET
All the federal budget cutters have failed to consider operating efficiency when trying to make cuts. Isn't it reasonable to determine the operating efficiency of each agency, to identify its waste, before making cuts? Iowalive thinks so, and as a result, used its powerful methods, algorithms, database etc. to determine the operating efficiency of each federal agency, in the following table. The percentage waste was then calculated and the cuts made in the table were based on reducing the waste by very reasonable amounts.
By cutting waste, there is no need for any bureaucrat to cut services!! Would any bureaucrat dare claim there is no waste in his organization?
Making larger cuts to the least efficient performers sends a good message to managers in the organization. The better you perform, the less your budget will be cut. This is in healthy contrast to across the board cuts which tell managers no matter how well you perform, your budget will be cut the same as the poorest performers. This lowers performance and morale in an organization.
Estimated cost to have qualified consultants perform the analysis and provide the contents of the following table is at least $50 million.
HERE'S HOW TO CUT $718 BILLION FROM THE FEDERAL BUDGET
LARGER PERCENTAGE CUTS ARE MADE IN THE LEAST EFFICIENT ORGANIZATIONS. CUTS IN THE TABLE EQUAL 5.1% OF TOTAL AMOUNT SPENT, WHICH EQUALS $718 Billion IN CURRENT FEDERAL BUDGET! THESE CUTS EQUAL 8% OF THE TOTAL WASTE. Source: Des Moines Register, New York Times and Iowalive The median household income in Iowa is about $50,400. A married couple filing jointly would have a federal tax liability of about $7,366. Here is a breakdown of how the federal government spent this typical person's taxes last year. Amount Spent Avg. Operating Efficiency % Avg. % Wasted Amount Wasted *% of Waste Cut Amount of Waste Cut Social Security payments $1,375.22 86% 14% $192.53 0.14% $1.93 Veterans Affairs $210.67 86% 14% $29.49 0.14% $0.29 Net interest payments $444.74 85% 15% $66.71 0.15% $0.67 Highway maintenance and construction $122.74 71% 29% $35.59 0.29% $0.36 Medicare $878.78 66% 34% $298.79 0.34% $2.99 Federal Emergency Management Agency (FEMA) $20.28 65% 35% $7.10 0.35% $0.07 Agriculture $49.36 60% 40% $19.74 0.40% $0.20 Defense $1,356.53 52% 48% $651.13 0.48% $6.51 National Park Service $6.01 52% 48% $2.88 0.48% $0.03 Post Office $9.37 51% 49% $4.59 0.49% $0.05 Smithsonian Institution $1.00 50% 50% $0.50 0.50% $0.01 Bailouts, currency & financial regulation 248.63 46% 54% $134.26 1.62% $4.03 Law enforcement and homeland security $161.51 45% 55% $88.83 1.65% $2.66 U.S. Army Corps of Engineers $19.22 43% 57% $10.96 1.71% $0.33 Federal prison system $12.31 42% 58% $7.14 1.74% $0.21 Native Americans $15.85 42% 58% $9.19 1.74% $0.28 Management of federal employees, buildings $93.36 41% 59% $55.08 1.77% $1.65 Small Business Administration $11.92 41% 59% $7.03 1.77% $0.21 Drug Enforcement Administration (DEA) $4.02 40% 60% $2.41 1.80% $0.07 Diplomacy and embassies $29.05 37% 63% $18.30 1.89% $0.55 Farm subsidies $36.11 36% 64% $23.11 1.92% $0.69 Social services $39.07 32% 68% $26.57 6.12% $2.39 Transportation $151.50 31% 69% $104.54 6.21% $9.41 Federal retirement, disability benefits $214.15 31% 69% $147.76 6.21% $13.30 Arts and culture $4.92 30% 70% $3.44 6.30% $0.31 Weapons and equipment procurement $201.62 27% 73% $147.18 6.57% $13.25 NASA $36.79 27% 73% $26.86 6.57% $2.42 Pell Grants for low-income college students $34.04 26% 74% $25.19 6.66% $2.27 Food stamps $137.45 25% 75% $103.09 6.75% $9.28 United Nations $2.42 25% 75% $1.82 6.75% $0.16 National Endowment for the Arts $0.35 25% 75% $0.26 6.75% $0.02 Health (not Medicare, Medicaid) $131.75 24% 76% $100.13 9.12% $12.02 Trade and economic development $18.19 23% 77% $14.01 9.24% $1.68 Medicaid $530.75 22% 78% $413.99 9.36% $49.68 Housing for elderly and handicapped $2.37 22% 78% $1.85 9.36% $0.22 Internal Revenue Service $27.27 22% 78% $21.27 9.36% $2.55 Unemployment compensation $315.50 21% 79% $249.25 9.48% $29.91 Statistics and weather $23.13 21% 79% $18.27 9.48% $2.19 Children and family services $7.83 20% 80% $6.26 9.60% $0.75 Agency for International Development $9.28 20% 80% $7.42 9.60% $0.89 Workplace safety and rights $30.29 19% 81% $24.53 9.72% $2.94 Elementary and secondary education $98.74 16% 84% $82.94 10.08% $9.95 District of Columbia $2.35 16% 84% $1.97 10.08% $0.24 Iraq and Afghanistan operations $316.50 15% 85% $269.03 10.20% $32.28 Low-income assistance $624.41 15% 85% $530.75 10.20% $63.69 Special education and rehabilitative services $40.56 15% 85% $34.48 10.20% $4.14 Environmental protection and natural resources $66.61 15% 85% $56.62 10.20% $6.79 Federal employees, retirees health benefits $13.89 14% 86% $11.95 13.76% $1.91 Environmental Protection Agency $21.24 12% 88% $18.69 14.08% $2.99 Space and science $49.86 12% 88% $43.88 14.08% $7.02 Foster care and adoption assistance $14.57 12% 88% $12.82 14.08% $2.05 Federal Housing Administration loans $11.89 11% 89% $10.58 14.24% $1.69 State Department¹s international aid programs $16.21 11% 89% $14.43 14.24% $2.31 Energy $26.31 11% 89% $23.42 14.24% $3.75 Telecommunications $18.53 11% 89% $16.49 14.24% $2.64 Housing and community planning $43.52 9% 91% $39.60 14.56% $6.34 Foreign aid $38.08 8% 92% $35.03 14.72% $5.61 Education $194.79 7% 93% $181.15 14.88% $28.98 Food and Drug Administration $4.12 7% 93% $3.83 14.88% $0.61 Head Start $14.08 6% 94% $13.24 15.04% $2.12 FBI $14.71 6% 94% $13.83 15.04% $2.21 Congress $11.36 6% 94% $10.68 15.04% $1.71 Corporation for Public Broadcasting $1.80 6% 94% $1.69 15.04% $0.27 Aviation $31.49 5% 95% $29.92 15.20% $4.79 Mass transit $25.46 3% 97% $24.70 15.52% $3.95 Community Development Block Grants $8.66 3% 97% $8.40 15.52% $1.34 White House 0.99 3% 97% $0.96 15.52% $0.15 Amtrak $4.69 2% 98% $4.60 15.68% $0.74 National Institutes of Health $64.21 2% 98% $62.93 15.68% $10.07 Peace Corps $0.68 1% 99% $0.67 15.84% $0.11 TOTAL $7,365.55 $4,668.33 $377.77 CUTTING 5.1% OF WASTE AVG. EQUALS CUTTING $718 BILLION FROM TOTAL BUDGET. *The higher the % waste, the higher the % cut, as it is Easier and Smarter to Cut Waste from the Most Wasteful--Without Cutting Services. ANYONE CLAIMING TO HAVE BETTER NUMBERS IS ASKED TO PROVIDE THEM.