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Wake Up America Reduce Govt Waste Part A

Wake Up America Reduce Govt Waste Part A

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Published by Kim Newlin
An how to manuel on how to promote and encourage a reduction in governent spending before the USA goes bankrupt.
An how to manuel on how to promote and encourage a reduction in governent spending before the USA goes bankrupt.

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Published by: Kim Newlin on Mar 31, 2012
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The United States Jaycees", A Leadet"shipTraining Organization

Sample Chairman's Planning Guide an effective petition drive. Program Description involved. Camera-ready explains

explains how to run

Public Relations Aides: Wake Up, America PSA Wake Up, America Mayor's Proclamation Wake Up, America Ad Slicks Sample News Release Waste" Bro-

why the Jaycees


• •

Petition -

for your chapter to duplicate. to explain and submit

"We Can Blow the Whistle on Government

Submission/Questionnaire Form with your signed petitions. Incentive Program Description

chure - informational brochure on wasteful spending in the federal government. • Letter from The United States Jaycees president and a letter from J. Peter Grace, chief executive officer and chainnan of W.R. Grace and Company.

Sponsored by The

u.S. Jaycees®


The United States Jaycees®, A Leadership Training Organization.

F~d~talDud9~t D~ficit

President's Letter P.eagan's Letter Externa I Policy Plan of Action Letter Writing Petition Optional-P.esource Program Explanation History of Involvement Fact Sheet Incentive News P.elease
Ad 51icl<i


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8-11 1 2-1 ~

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Space FiIIer PSA's Notional Directory

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Office of the President

Dear Jaycee


As Jaycees, we have been presented with a unique opportunity through our Wake Up, America program to show our nation that we oelleve government waste needs to be reduced. I believe that the American citizens are tired of excessive government waste causing an ever-increasing federal deficit. Your United States Jaycees Executive Board also believes that the reduction of government waste is such an important issue that the Wake Up, America program has been designated as the Community Development major emphasis program for 1986-87. I urge you and your chapter to become involved in this issue. I am asking your chapter to collect as many signatures as possible between now and August 1, 1986. All signatures we collect will be presented to Congress to demonstrate the Jaycees' concern over excessive spending. Our message is the belief that the use of a presidential line-item veto could assist in reducing government waste. America's fiscal future is a critical issue to our nation. Helping make the future solid is something we as Jaycees and as Americans will be able to take pride in as long as we live. America is crying out to us for help in making her fiscally sound again. Let's not only answer -- let's make things happen! Together as Jaycees

QPl Ken Zimmer~ 66th presi~ KZ:vdm

o~r_l_' n_g• __Arn_e_r_i_c_a_, .


The U.S. JAYCEES, A Leadership Training Organization Post Office Box 7, Tulsa, Oklahoma 74121-0007, Phone: (918) 584-2481, Telex: 293292 USJC UK

1511K Street. NW., Suite 540, washington, DC. 2CXX)5

Dear Jaycee: America is faced today with a crisis of monumental and frightening proportions. The federal deficit, swollen by a wasteful and inefficient federal government, looms over us like a black clou~--The-fime-has come for us to put our house back in order -- for our own sake, and more importantly, for the sake of our children and grandchildren. While the challenge is great, the choices are simple: We can reduce the deficit by raising our taxes, or we can eliminat~_was~~_~~~~neff~~!en~i-in our government. The latter option is the only and justifiable way to go -- especially family has seen their personal federal rate 32 times faster than their incomes reasonable, equitable, since the median income income taxes increase at a since 1948.

I believe that we can do better in America, that we can have a government that operates efficiently, and continues to provide necessary services for its people. Frankly, we should expect nothing less. The Jaycees represent some of the best and brightest young people in America. The "Wake Up America" program, designed to educate the public on the issue of waste and inefficiency in the federal government, is further evidence of the tradition of commitment and patriotism for which the Jaycees are known. Please join me, and millions of other Americans, in this most important campaign. We owe it to ourselves, to our children, and to all future generations of Americans. We need your leadership, your commitment, your labors, and your support. We must work together to avoid ever having the question, "will our children ever forgive us?" Sincerely, to answer

J. Peter Grace

United Slates JaY=' can make American citizens aware of the ~ mendo~ government waste and inefficiency through The United StaleS Jaycees Wake Up, America program. The goal of the program is to collect one million signatures from our fellow Arnericam. The signature camptign gives Americans a vehicle with which to urge Congress to reduce government waste by approvins a Presidenba1 line-item veto. The million signatures The United States Jaycees coI1ects,with the hdp of the local oommunity and youth grou~ willbe presented to Congress this year at The United States Jaycees Governmental AffaiJsLeader-sbip Seminar in SqJtember. The United States Jaycees' is oot the only organized effort bauling government waste. The President's Private Sector Survey on Cost Control (PPSS), oommonly known as the Grace ConuJmsion, presented recommendations to the President to reduce waste and inefficiency in the federal government When fully implemented, these recommendations would save the American taxpayer $424.4 billion over three years. To help make the American public aware of the problem of waste and inefficiency in government, its impact on the deficit and to promote the oo;t~vin~


opportunities suggested by the Grace Commission and various other sources. PPSS 0Iairman J. Peter Grace and nationally syndjcated cdumn~ Jack Anderson founded Citizens Against Government Waste (CAGW). As a non-profit, bi-paTtisan organization, CAGW exists to educate Americans about how their tax doUarsare being spent and wasted. . CAGW is assisting The United States Jaycees in its Wake Up, America program through CAGW National Speakers Bureau and educational materials. CAGW a1soconducts its own national petition drive and works with other b~nesses and organizations to promote Grace Commission findings. The Advertising Cowx:il (which does the Smokey the Bear and McGruff' crimefighters ads, among olbers) bas undertaken a national campaign on behalf of CAGW. The Ad Council bas developed a series of radio and 1V spots and newspapers and magaline ads (like the sample in this program kit) which are distnbuted to stations and papers aaoss America to be run as public service announcements. These ads, coupled wilb The United States Jaycees Wake Up, America program, wiDprovide eno~ publicity about the issues of inefficiency in government When promoting your Wake Up,

America program with ad slicks, 11eW5letters and PSAs included in the Wake Up, Amerial Kit. indicate your support for the Ad Cowx:il campaign. If your chapter is interested in more information about the Ad cduna1 earnptign or CAGW write: CI11ZENS AGAINST GOVERNMENf WASfE 1511 "K" Street, N.W. Suite 540 Washington. D.c. 20005 01' caD: I~USA-DEBT To conduct The United States Jaycees Wake Up, America prograni, read, study and ~ this program kit This kit oontains a variety of ideas on how to ooDectsignatures and promote the program - all ways for chapters to maximize visibility and increase membership at the same time. You can foDow the sugges.tions or create your own. The pa;sabilities are limited only by the Uru.ginArioI1s of each Jaycee member and chapter.
Your ro/e on lhe chDpter level is the key 10 this program ~ succest II is a challenge to the crmlivily and det/jctlJion of Ja~ aJ all levels. Through)'OlU efforts, The UniIRd Stales government will receive a message - retiJ«:e government MW1e by approving a Pre5identialline-item



Federal Spending is Out of Control
1976 National Debt: $605,925,000,000 Est. 1976 Deficit: $90,000,000,000 Est. 1977 Deficit: $50-$70,000,000,000
If you are concerned for your country and your children

1. Today- make a personal committment to give of your time, your talents, and your resources for as long as it takes to restore financial responsibility to your country.

3. Today-write a persona/letter to your Senators and Congressman asking them to work for a balanced budget and an amendment to the Constitution to prohibit deficit spending by the Federal government, except in emergencies. Send us a copy. 4. Today-schedule our twenty-five minute slide-cassette presentation on Federal finances, "Wake Up America;' a non-professional production; for your club, your neighbors or just a group of friends. There is no charge except return postage. Write and give us your choice of dates. 5. Send us a self-addressed stamped envelope and let us tell you our workplan to try to help bring Federal spending under control, and how you can help.

2. Today-start a petition, getting
as many signatures as possible, and send it to your senators and congressmen asking them to work for a balanced budget and an amendment to the Constitution to prohibit deficit spending by the Federal Government except in emergencies. Send us a copy.

(A Non-Profit Corporation)

Rt. #1, Box 134 A

I West

Point, Georgia 31833

Wis a


When a bill has passed both houses of Congress, it is presented to the president for his signature to make it law. If he disagrees with the bill and thinks it should not become law, he does not sign it Unl~ it is the end of a Congressional ~on, he returns it to the chamber in which the bill originated, with his objection. The bill perishes unl~ it again plSSe5with a tw~ thirds majority in each house, in which case it becomes law. This is an "override" of the president's veto.

What is a 6ne-item veto?
A line-item veto enables the president to reject specific spending provisions without affecting the entire measure. He could cut out riders and pork-barrel provisions, yet let the important aspects of a bill stand Any line-item veto is still subject to a potential override by Congr~ as pr~ vided in the United States Constitution.

What do you mean by pork-barrel
provisions or riders? When it examined the fiscal state of the federal government and the nation, the President's Private Sector Survey on Cost Control (PPSS) concluded that much of the wasteful spending it discovered was embodied in legislative"riders" attached to appropriation bills. A rider is language inserted into a bill which has no direct bearing on the main measure, and so merely "rides" along with it A prime example of this practice occurred in 1983, involving the Fanners Home Administration, an agency within the Department of Agriculture. The agency announced plans to move out of its offices to another community. The agency's appropriations bill (a bill that sets aside money for a puticular use) did not specifically bar the move. In reports

accompanying the spending measure, the House and Senate agricultural appropriations subcommittees both advised against moving the office, citing that it would not be in the best interests of area farmers and rural residents. The sutx:omminees then proposed a supplemental appropriations bill (which covers anything that has been left out previously), which added that none of the funds appropriated by the original or any other bill may be Il'iedto relocate the office of the Farmers Home Administration from its current location. Ifthe presidentbelieved that the Farmers Home Administration was right, that the office should be moved, the only way he could back them up would be by vetoing the entire supplemental appropriations bill. That would have affected essential funding for the food stamp program and also for the Departments of Commerce, Justice, State, Defense and Health and Human Services, along with the Food and Drug Administration and numerous other agencies. In effect, all were held hostage by the rider. Unl~ the president felt the move of that office was a vital matter of national interest, he had no real option but to approve the entire bill. Without presidential line-item veto authority, Congr~ had the ability to use "riders" to secure approval for insignificant programs of special interest groups. The rules of both the House of Representatives and the Senate prohibit this practice, but tha;e rules are often ignored The president's principal recourse to stop unwanted legislation is the veto. This means the president would have to veto an entire spending bill to cut one undesirable part Unfortunately, because many funding bills come up at the last minute, or are dearly necessary measures, a president must accept the riders along with the rest of the bill to keep the government afloat or avoid a major confrontation with Congr~.


TItis is the ~set intent of the riders' authors. Harry S. Truman d~n'bed this practice as a form of legislative blackmail, because the choice i<; ery simple: Swallow v hard and sign the bill or veto it and bring all the agencies and programs in it to a grinding hall These riders,often purely pork-barrel measures (a federaJ spending program. which would result in an influence of federaJ funds into a oongressional representative's home district), carry a great share of the responsibility for our everri<;ingdebt and deficit. To remedy this recurring problem. The United States Jaycees reoommends that Congress pass legislationthat gives the president line-item veto authority.

Does anyone have ~


President Reagan has incessantly urged Congress to grant him this authority. He often cites the tact that 43 of our 50 governors possess line-item veto authority and their states function quite well with it Congress has not acted favorably in this direction.

Hardly a tax, appropriation, budget or any other bill clears CongTeS.\without some items to help particular businesses, institutions or individuals within the constituency of powerful legislators. A former member of the Council of Economic Advisors once counted 67 special constituent favors in a tax bill the House smsed. This ll'iually does not stir up much controversy. However, in the case of a recent catchall spending bill, $2.38 million was provided to air ship 2.5 million tree cuttings from a specifically named nursery to a foreign country. The bill also included an item worth $3.9 million to a group of investors woo were selling the government a former railrood right of way that the Justice DefBrtment had said was worth no more than $312,000. The group maintained that they were being bullied by the government, that the Justice Department was forcing them to accept their offer - five to 10 times less than the land was worth - or go into litigation, which would cost taxpayers far more.

How can line-item veto authority be given to the president?
The Congress must pass a bill on lineitem veto into law, which confers upon the president this authority. The Wake Up, America program urges the Congress of the United States to take action to reduce government waste and inefficiency by adopting a line-item veto, which allows the president to reject specific portions of spending bills without rejecting the entire bill.

What does the Constitution dictate?
The Constitution requires that every bill be passedby the House and Senate, and shall, before it beoomes law, be presented to the president for his approval or rejection. The framers of the Constitution in th<R days envisioned the term "bill" in a far narroy,'ersen<>e than it is ll'iedtoday. In the early days of the federaJ government, each bill was concerned with a single, specific subject. clearly identified in the title. In these circumstances. presidential veto affected only that subject and not any others. Since then, Congress has enlarged the number and scope of unrelated subjects lumped within a single "bill," until today we have appropriation billsand resolutions covering dozens of programs entailing billions of dollars.


the government;'

nmning huge _

•• _

ore pIWng an •••_

•••••••• debt 00 IuIun: ••••••••••••

Whereas, the Presidents Private Sector Survey on cost control presents viable reoommendations br reduction rAgovernment waste and the defICit; Whereas, the use of line-item veto would serve to effectively and directly reduce wasteful and inefficiP.nt ~ p in government;

Therefore, be it resolved the executive board of directors rAThe United States Ja)aeS, approves Wake Up, America, a Community Development program, to educate the public on waste and how 1ine-itemveto can reduce tIm waste; and that Wake Up, America be designated as the Community Development major emphasis program for The United States Ja)UeS for 1986-87. Be it further resolved, that The United States Jaycees urges the Congress to take action to redua: government waste by approving presidential line-item veto.

e can blow the ·stle on gave entwaste!


A report to the American people about waste and inefficiency in the federal government. Based on the findings of the President's Private Sector Survey on Cost Control.

How does the goven.ment waste? Let us count the ways: Social Security paid $14.6 billion In error between 1980 ,and 1982. Delays In retrieving wrong payments cost the govemment $128 mlllion In "addedInterest expense In 1983.' 2. Foodstamp fraud. totaled $1 billIon In'


were started In tire 1970s Increased, 223% before delivery, an ad~ed charge to taxpayers of $234 billion. ._,7. Lack of competition and control In federal contracts results In the mll~ry's buying 3-cent,screws for $91, '25-cent compressor caps.for $100, 9-cent batteries for $114,

total commercial tlmber harvest that year. ,/Modestcharges for thIs firewood would generate $66 mIllion over three years. 12. Visitors to the national parks paId an average of 3.2 cents a visit In 19BJ.. This charge covered' only about 2% of the $453 million cost of maintaining the

Administration, and the Immigration and Naturalization Service. Consolidating overlapping functions would save $48 mIllion over three years. TheArmy Corps of Engineers and the Tennessee Valley Authority spent $670 million In 19BJ.to build and maintain IOCks~ " dams and channels on


10% fthl 60-cent lamps for Natlona/Park System. However, only $24 Inland waterways. :::os:~o,:"sbe;'~fIts s $51J. and 5-cent a/rMinor Increases In ,• cr;Jft simulator parts ' park entrance and million, or 3.6% of 3. More than $5 mll- for $100. Increasing 'activity fees would cut that sum was collion In community competition for spare the taxpayer subsidy lected from commerdevelopment blockparts purchases would of the system by $99 clal users. Increasing grant funds from save taxpayers $1.4 million over three ". fees to recover more the Department of billion over three ,.years. of the cost of malnHousing and Urban , years. ' TheForest Service talnlng Inland waterDevelopment went to, . The Coast Guard collected $15 million ways would generate Boston, which spent rents 'offlce trailers for In grazing fees from $601 million over $100 a week; the private livestock three ye~rs. ' It Instead on payroll an::ther unrelated Environmental Protec- owners using federal 1Z Thegovemment m ~. tlon Agency rents land In 19BJ..But It. _has 63 weather ser4. Civil setvlce and' Identical trailers for - provided $41 million In vIce offices that are military retirees co/$100 a !!!g. services, recover!ng 'performing unnecesleet three and six TheVeteransAdmln- only 3i'OA» of costs. If sary functions. In 1983 times, respectively, Istratlon takes 56 the service raIsed Its ,Congress rejected a the total lifetime pen- days longer than the fees to only half of proposal to close them, slon benefits of their private sector to prowhat private grazlng- , which would have , counterparts In,the cess a medIcal-claIm landowners charge, It savedabout $4 million. private sector. Br/ng- costing taxpayers an' would collect an add/~ I,nstead It voted more Ing these retirement added $272 million tlonal $58 million ~ver money to keep the _ plans Into line with three vears three years. unneeded offices open. those In the private over .T" sector would save " TheAgenCyfor • More than one Federally sub$58.1 billion over Intematlonal Deve/op- third, or 12,469 of all sldlzed power, seiling three years•. ment spent $3 mIllion U.S. post offices serve at one thIrd the market to buy vehicles for 100 or fewer customrate, costs Industrial Of 4,000 military 'projects In the Middle ers. ReplacIng sll~htly users only 2.45 cents Installations In the East _ these 399' Of more,than half of . a kilowatt hour In the United States, only a ,cars'and trucks, five these post offlces with Northwest. By conlittle more than '300 are missIng, 93 are equal but chea~r trast, Industries In San are consIdered s/gnlfl- used for personal altematlve sery/ces Diego pay 12.08 cents cant. Yet, since 1976, transport, 84 have would save taxpayers a kilowatt hour for Congress has blocked been Idle for up,to two $272 million over power generated1Jy tire closing of any years and uncounted three years. private utilities. SellI I id I bases. Eliminating 'ectrI -M ' unneeded ones would othe';' have been com• rncom,naa,r pas- Ing federally owned , fe' dl ' mandeered by hostsenge,s and cargo are ' e" c genelavon cut de nse spen ,ng countiY officIals. ' Inspected at tlre/r U S and transmIssion by $2 bllUon a year. ,TIleU.S. Forest ports of entry by as" facilities would save 6. Theaverage estI- Service gave away many as six federal taxpayers $19.8 bllIfJlItedcost of 25 major" $235 million worth of agencies, Including / lion over three years. weapons systems that firewood In 1981, or, tire Customs Service, Federal bureaucJ.98llFoundallo tot PPSS almost 25% of tile tile DNg Enfolcement CI'8tsdrew up spec-













If/cations for a mousetrap. Thespecs ran 700 pages and . weighed 3.3 pounds. 20. The General Services Administration employs 17 times more people and . spends almost 14 times more money to manage Its facilities than does a private flnn with comparable responsibilities. Improving federal _ management of Its real property holdings would save $62 mlllion over three years. 21. Good productivity levels for private sector maintenance workers are as much as 500A> higher than the average for comparable federal workers. Improving the produCtivity of these federal workers to the level of comparable private sector workers would cut federal maintenance costs by $1.1 ~lIl1on over three years. 22. About 600/0 of the 82 special and deputy assistant positions In the Environmental Protectlon Agency do not require performance of functions that Justlfy these titles and salaries. RestructurIng these titles would save $11 million over three years.

IIcations reviewed were not necessary ceilings were removed, 28 Overpayments In and were later ellmlthe Air Force a,one the ~nemployment .' nated. But this Is would save $96 mllInsurance program are only a fraction of as high as ,12OA», or federal publications. lion over three years. 24. In the Departan extra cost of about Improved management of Justice, . $3.7 billion In 1983.' ment would save tax-· lawyers handle legal payers $331 million chores that should be te· ~~cause. th: In; over three years. done by paralegals at ma evenue erv ce half the cost. Justice falls to enforce laws • The Department attomeys outnClmber ensuring quick deposit of Defense lacks the paralegals eight to of weekly payroll , Infonnatlon It needs to one compared with the taxes, millions o~dol- seek reimbursement private .sector's flve-to- lars In Interest are lost from private Insurers one ratio. The departeach year, according for health care that , ment's cost to carry to the General DaD gives to Indlvlduout Its legal work als. If the department . Is Increased Accounting O~ce. , 30 The Urban Mass could patients data first get that therefore, .• when are by $13 million over Transportation Admln- admitted to It d I three years. Istratlon has $25 bllhospitals, th/~ ::/d 25. According to the lion In active grants but lead to the recovery Office of Personnel has not reconciled Its of $1.2 billion over ManagemelJt, almost accounts since 1977. three years. one quarter of all Therefore, funds remain . , 34. The National federal white-collar In limbo that otheremployees are In Jobs wise could be returned Rood Insurance to the U.S. Treasury Program ,hasnot that pay at the wrong' level or the wrong to eam Interest. Imdeveloped historical title. These Incorrect proved ,,!anagement. ,data fOf a sound actuclassifications cost of UMTAs grant Infor- arlal base to estimate the government an' -- ..-,...... matlon systems..!!..ould future claims. "the extra $682 million a save $164 million OYer government did this, It year. In Washington, three years. would·save $662 mllD.C., alone, nearly . 31. The Veterans IIonovelthreeyears. one third of all federal AdmliJistration sends 35. The New York Jobs are at salary lev$15 billion a year to 'regional office of the e~s h~~h:r than they six million claimants. Department of Health s ou e. Imbedded In that sum: and Human Services 26. The Department an estimated $500 uses ten different of Energy has three million In erroneous brands of Incompatlemployees for every payments. However, ble automated data supervisor compared the extent to which systems. Improved with seven for every these and other errors _coordination and supervisor In the are c()rrected Is not Implementation of private sector. This dlf- known. Gteater efforts compatible govem23 • Usingyear-end government an the ferentlal costs to correct errors would office systems would ment-wlde aUtomated extra save the VA$1.5 bll~:,:::,n:.~::';:' of $19 million over three lion over th~ years. save $6.5 billion over federal employees, years. 32. The govemment three years. agencIes "fire" some 27. TheArmyspends has no' cost-account- 36. TIlegovemment employees for one $4.20 to process a Ing system to track' ~ulres up to four day at year-end, then payroll check versus Its total publishing ,aalS to onJe, and "rehire" them the next $1 on average paid expenses. A federal Install automated data day. In this way, the by the pr~ate sector. review of publications processing equipagencies comply with revealedtIt~ 2,000, ment. TIle ptIvate seethe/, personnel ceilIng (Con't. on IDllde Back Ccwe,) 0,16.7% of tile pubI.ot takes lea IIJaIk.

-at significant cost . This costs· an added to taxpayers. If these .$40 million a year.





half that time. Upgrad- 43. PrIvate sector Ing federal computer ,employees·pay to, system~ In a more 33% of their pensions; timely manner would civil service employsave taxpayers $4 bll- ees, 19%, and the lion over three years. military, 13%. TheDepartment 44. Federal whlteof Transportation collar workers can be placed In 18 grades, spent $28 million on outside time-sharing depending on Job services, while as requirements. The much as 80% of Its average grade tor own computers sat "these workers has Idle. Better manage- Increased more than ment of this departthree grades since 1949, frequently wIthment's computer capacity would save out added responslbll$46 million over three ltIes, 'costing about years. $8.4,bllllon In added 38. TheExport-Import salaries a year. Bank stili holds as 45. After six years at "assets" $81 million a Job, a federal blueIn loans made to Cuba collar worker eams between 1951 and 12% more than the , 1958. average private sector employee tor similar 39. Thegovemment work. This results In an added expense spent $4.7 billion of $1.8 billion over In 1983 to pay for defaulted guaranteed three years. loans. 46. It costs taxpayers 40. " federal pension about $450 million benefits were merely more a year to provide equal to those of the health-care benefits best private sector to federal employees' plans, taxpayers would than It costs private save $314 billion over employers to provide· the next ten years. similar benefits to 41. Themost com- ~ comparable group mon retirement age In of private sector civil service Is 55 and workers. In the military, 40, About 50% ~f compared with 63 In postal workers· recelvthe private sector. This Ing disability could difference costs taxperfonn some ·type of payers $8.2 billion work, according to an over three years. Assistant Postmaster 42. Between the General. Unnecessary ages of 30 and 50, govemment-wlde dlsfederal employees are ability benefits cost 50% more likely to taxpayers $1B9 million retire with disability over three years. than are private sector employees. This repre- ••• plus thousands of sents an added cost to other ways tile federal taxpayers of $500 mll- govemment wastes lion overthree yeatS. our money.


on LOst
In campaigning for the Presi. dency before the 1980 election, Ronald Reagan vowed to reduce the intrusion of the federal govenunent into the lives of the AmeriCan people. In June 1982 he created the President's Private Sector Survey on Cost Control to search for waste and inefficiency in the federal govenunent. Under the leadership of ]. Peter Grace, chief executive officer and chainnan of W.R. Grace & Co., and 160 other top executives, more than 2,000 volunteers worked on this 18-month study. They came up with 2,478 ways to cut waste and enhance revenues, thereby reducing the federal deficit. Their proposals, in 47 reports and a two-volume summary to the President, are supported by 1.5 million pages of documentation. The survey cost taxpayers nothing; the private sector donated $76 million in people; services, travel and supplies. If Congress and the executive branch act on the survey's recommendations, the ideas would save the government-and taxpayers$424.4 billion over three years.

,at is -Yate



.the· '. esident's'





The governments budgeting and accounting systems are nearly useless in controlling costs. The federal budget does not even faintly resembie a private business budget." . Federal accounting is a rrusnomer. It provides little accountability., Most officials have no idea of what's being spent or how tax dollars are being wasted. Consequently, federal spending grows like a weed in the garden of the U. S. economy. In particular: 1. The government doesn't know how much cash it has available. Therefore, itbQrrows when it doesn't have to, incurring needless intere~t expense. put government grant reCIpIents can 2. Federal funds in interestbearing accounts while the ~~ , taxpayers "finance" these ~ , words, the government investments. In other borrows the money



- .,

• '.,



it gives to grantees. Conversely, the government lets cash seized from criminals lie idle 'in noninterest-bearing accounts. 3. The government has $800 billion to $900 billion ill outstanding loans and guarantees. But it doesn't know how

1\\11 '


~, ~ ~~~ ~~ ~






usual solution:

Conventional wisdom in Washington says that spending cuts are politically unthinkable. Slow down the spending growth rate, maybe; real cuts, 00-00 .. In view of the growing deficits, why do we keep doling out huge sums to aid special interests-and let the general public go hang? Special·interest groups are wellorganized; they fight to guard their benefits. The general taxpaying public, on the other hand, is unorganized; it doesn't protect its interests. Each concession to a special interest ·group costs relatively little. But the spending pileup for these groups propels the government into consuming greater shares of the economic pie-and to increased taxation of the general public. Tax increases don't solve the basic problem of runaway spending. They focus

only on the symptom, the deficit. Tax hikes cover up rising sPending-and deficits. They are unlikely to reduce the . deficit, since additional revenues in the past have gone to finance new programs and expanded benefits. Thus, spendllg growth ~inevitably sire even greater deficits. Covering up the problem is politically' attractive. A candidate for public office can always call for more taxes on the rich . to wipe out 'the deficit. Unfortooately, this won't work. Why? Let's suppose the rich are those with taxable incomes of $75,000 or more. Let's also suppose we will tax the taxable incomes above $75,000 not already taxed under today's rules. And let's not just tax it; let's take it all. If we had done that in 1981,we would have pulled in an additional $17 billion, enough to run the government




as ~,.


far 'Onlyabaut ten days.,Obvialls1y, this is na salutian. And even if it were, such a . cleanaut wauld quickly farce peaple inta the undergraund ecanamy, already costing us $100 billian a yearin 16sttiXes. Furthermare, it wauld wipe out venture capital, which creates new campanies- ' and jabs ... ',. ff we wapt ta.raise 'sigrrifieant taxes, we"llmst go where the rrianey is: ,the lawer-. and nnddle-lI).came taxpayers. In _ the United States; taXable ii1comes up ta $35,000 a<;caunt far 90% 'Ofall ,taxable ' incame. I'." :.. ,; , . }": .~~,' ~ But these taxpayers have been ' taking it an the chin; they are already hangillg on the financial rapes. The median family incame has grawn fram $3,187 in 1948 t6 $24,lQO in 1983. 'But, meanwhile, ;th~ tax' burden an thes~' ~apIe hasswallen fraIll $9 to $2,218.· In ." ather words, while their incame has risen 7.6 times, their.incametaXes have'shat up 246.4 times. 'Ta balanc~ the federal budget (arid erase the defiCit), .the gavemment~auld have ta aln1ast dauble their taxes. ' .. ' ' . ' Or we can ignare the prabJem. We'. can let the gavernment ~antWue.to,us~ .' accaunt4'1g systems"th,athide mar~ than they shmv, are understaad by few, pravide, almqst no cantral and waUld quickJy" thraw any private, business',intd ". bankruptcy. "" ',Clearly, the prablerrl)stoo much. federal spending, npftoo little taxatian; Ignaring this spending 'Orcavering ,it up
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with higher taxe~;will nafmakethe' prablem ga away. " Wemustfix it I?aing:samething demands coUrage and sacrifice fram all 'Of us. We:must act saan'to<avaid a future with a goverhinent that spends and'spends, taxes and taXes~'and'erades alii- standard 'OfliVing-a stahdardwe hapetO'improve and preserVe far future generations~ Other Federal DraIns: LendIng ~ndBorrow/ng,
Some federal lending and borrowing practlces would give a private banker nightmares.
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Old you know: " • $6.5 billion, or 16.7% of all fede,'alloans cur. renf:lY,duewere delinquent at the end of 1982? , • The 2% minimum Interest rate on Rural Electrification AdmlnlstTatlonloans has not changed since 1944? '.. '

• DireCt-loan wrlfeoffs and 'guaranteed-loan tennlnatlons for defaults tOtaled $6.1 billion In 1983?


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• The govemment had $223 billion In direCt:loans and $625 billion In 'guaranteed and govemmentsponsored loans OutsbJn~'ng In ~~3? '...•.... • Thedelinquency rate on Fanners Home Admln-, Istratlon loans Is 29%, .or eIght times that of the private sector? ThIs happens d,spltea 2.~aver •. age Interest rate on federal','fatmer'/ loans:·'o rub , salt Into'the wound: About 70% of all these' ", ''fanner'' loa.nsgo to nonfanners .. •• Thegovemment ~rrow~d $281:blllion In 1983, or 56.5% of all the money borrowed In U.S. credit markets?' '" .
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• The govemment ''ffjrgave''·$1.2 bIllion In loans for foreign military sales In 1983 and expects to ' "forgive" another $3.9 billion by 1985? ;,
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. " • The Department of HousIng and UdJanDevelopment tries an average ,of three times to collect' delinquent accounts compared with a private lender's 24 to 36 attempts?


solution: .
Pre'sident Reagan commissioned the' , President's Private Sector SurVey on , Cost Control to suggest ways to eliininate excessive government spending. The. survey came up with 2,478 ideas to reduce federal waste, inefficiency-and over~. spending. Put into operation, these proposals would save $424.4 billion over three years alone. , . Social Security Checks With ErrorS?
You Bet! ' ,
Social Security checks have a high error rate. OverpaymentS In Supplemental Security Income alone to~!ed more than $400 million In 198~ an average overpayment of $105 a beneficiary. How could this happen?' " / , Employeetfln the Social Security Admlnlstratlon who determine eligibility labor with a manual that Is 25,000 pages long, Is as tall as some basketball players (6¥2 feet) and costs $4.4 million to print and $6.3 million to distribute. TWelvethousand pages of this manual are changed each year. To help employees become. fam!IIar with the revisions, Social Security gives the workers one hour a week, or 50 hours a year, to learn 12;000 pages of changes • .Theymust, therefore, revlf!w 240 new pages an hOllr, or four pages a minute, or one page every 15 seconds. Yes, Social Security people do make mistakes. And American taxpayers foot the bill.


,Getting ,Federal Programs To Deliver While Cutting Costs
The govetnment 'would save $160.9 billion over three years by imprQvirigits handling , of federaI subsidy, lendllg and o~her programs. . For instance: 1. In 1982 the govemInent spent' $124 billionon rn.eans'7t~stedprograms for those in need. Among the programs: ,Aid to Families With Dep~ndent Children, food stamps and Medicaid:~The sUrvey found that these 'benefits. were often not going to the truly. needy; As a result, $124 " billionreduced povelty by oruy $37.4 billion, or a mere 30 cents Out of every , . dollar spent. The study revealed ,the government would save $58.9 billion'over three years by improvmg how it rullS the ' , means-tested programs. The survey re~oII1II).ended more cQmputer matchfug (a) to verify an applicant's eligibilityfor aid, ,

(b) consolidating the administration' of federal me~s-t,est~d prograrrisand (c) , better tracking of benefi~~ by using a foqn similar to the W-2 issued to wage e~ers. This form would·list all the benefits .. each client (in~yiduaIs apdtorporatidns) receives from governm,ent -subsidizeq , programs and,' for the first time, would provide a basis from which to determine who is gettiQg what fr()m ea<;hprogram ,and whether these ,programs are meeting congressional objectives .. 2. Federal spending on health care has increased froll).$5.5 billioniri'1965 to $93.1 billion'inJ982, up 16.9 times. Sur- ' ""veyproposals would save $28.9 billion' ' over three years mainly by (a) limiting federal expansion of heal,th-care pfpgrams 'to ,increases '~.' the overall 'growth rate of in .


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.reducewaste. .....




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