draft ofm memo on budget cuts

After watching not quite one month of federal turmoil and chaos over trying to reduce the cost of the federal government and haphazard attempts to do so…I’ve decided to take my shot at the type of instructions that could have been given to federal agencies for reducing the federal budget and personnel costs associated with running a reduced size and scope of the federal mission. So, here goes…

From: Office of Financial Management

To: All Federal Agencies

Subject: Reducing the Size of the Federal Government.

Effective immediately, all federal agencies will commence a review of every facet of their organization to include their headquarters. All agencies will render a report to this office within 30 days of this correspondence.

That report will include the following:

General Guidance: The goal is to reduce the size and cost of running the federal government by 30 - 40%. There will be no exceptions for any agency or function of government, White House included. You are absolutely prohibited from coordinating or corresponding with any state, lobbyist or congressional staff or elected officials other than executive office staff in the performance of this mission.

First, agencies will identify two different courses of action. One for a cut of 30% in the overall budget and then a separate assessment of cuts that takes it to a 40% reduction. Ideally, you will look for entire functions and programs to be eliminated. Following that, reductions to functions that remain and are considered critical to the functioning of our nation.  Do not offer up “poison pill” cuts that would be considered too drastic to be accepted.

Once you have identified what those reductions are, you will do a detailed review of the absolute minimum staffing required to perform these reduced functions for every program. Ideally, you will first identify all federal personnel contracts where outside civilian contractors provide direct personnel support to your agency. All but absolutely essential civilian positions/contracts that provide staffing to your agency will be the first cuts taken to staffing requirements.

Following that, every supervisor will be required to rate their federal employees. Each will be given a number rating. 1) Essential to retain to maintain functions, 2) Potentially necessary to retain,  3) Eligible for immediate dismissal. Unions will not be part of this process and will be coordinated with by the Office of Personnel Management (OPM) at the appropriate time.

OPM will be working concurrently to prepare communications for people who will be no longer required to remain in the federal workforce. That will be provided once the President makes a final decision on the level of cuts to be accomplished. It is possible that there will be some disparity between agencies as to the level of cuts to be taken.

It is recognized that this will be a difficult assignment to be accomplished in the time provided. Your work to make this a best effort possible is greatly appreciated.

Signed….