One of President Trump’s campaign promises is to grow the military. Mr. Trump also wants to cut the budget. He can do both, but there is one basic change that needs to happen. With the use of Zero-Based Budgeting, it can be accomplished. Don’t know what that means? Then please read this article.
As Written By Allen West and David Grantham on CNS News:
Washington D.C. is all about politics, policy and procedure. The Department of Defense receives plenty of political and policy attention, but few care to look at the procedures. It’s not sexy. It doesn’t raise campaign funds. But that is precisely what needs fixing. The incoming Trump administration needs to begin shifting the defense budget away from baseline budgeting to a zero-based budgeting model.
Defense advisors recently voiced plans to rebuild the military with reallocated funds earned by cutting bureaucracy and wasteful spending within the DoD. But American Enterprise Institute defense analyst Mackenzie Eaglen rightly calls this plan a fantasy. There is simply not enough fraud, waste and abuse to yield the $55 to $60 billion per year in new money needed for Trump’s ambitious reinvestment plans, she argues. This historically inadequate snark-hunt approach to the budget process too often defines how elected officials try to balance a budget.
Zero-based budgeting is an alternative system proven to decrease expenditures and improve efficiency within private sector companies and public institutions. This budget method identifies wasteful spending and helps purge unnecessary expenses by obligating each department to justify its proposed spending each and every year. This method automatically eliminates the practice of carrying over the budget from the previous year. And that’s important since the current baseline budgeting system requires the government to set the previous year’s spending as the starting point for the next year’s budget.
Under the current system, preparers assume all of the same programs and operating procedures, and only adjust the following year’s expenditures to account for actual spending in the current year, inflation and population growth. Since inflation and population growth are almost always positive, the budget almost always rises.
This automatic carryover of expenses under baseline budgeting actually encourages spending. Defense officials regularly exhaust their funds in a period known as “use it or lose it” so as to ensure they do not lose money in future budgets. Researchers found that federal procurement spending was five times higher in the last week of the fiscal year than the weekly average for the rest of the year, and the quality of the projects was scored well below average.
Zero-based budgeting, while initially time-consuming, has saved large corporations 10 percent to 25 percent, according to independent studies. And those savings are more sustainable over a longer period than traditional cost reduction methods, such as lower level workforce reduction and outsourcing. If the DoD achieved just a 10 percent savings over the entire organization, those savings would amount to $53 billion.
The zero-based budgeting model could be tested within the DoD by applying it first to the bloated bureaucracy. The growth in civilian and staff numbers continues to exceed what is necessary, while the number of general and flag …..
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