June 8th, 2010
09:55 AM ET
5 years ago

OMB chief to announce order directing agency cuts

Orzag will also identify areas where the government believes there is significant duplication and waste.
Orzag will also identify areas where the government believes there is significant duplication and waste.

Washington (CNN) - Office of Management and Budget Director Peter Orszag will announce Tuesday morning that the Obama administration is directing agencies to cut at least 5 percent from their budgets. This comes in addition to the president's pledge to freeze spending at most agencies over the next three years.

In excerpts provided by the OMB, Orszag will address the Center for American Progress, saying "...in the budget guidance for Fiscal Year 2012 issued to agencies this morning ...We are asking each agency to develop a list of their bottom 5 percent performing discretionary programs, as measured by their impact in furthering the agency's mission.

"In addition, to ensure that we can meet the president's insistence on a freeze for non-security agencies while funding priority areas, we are asking non-security agencies to specify how they would reduce their budgets by 5 percent - which will give us the ability to achieve the overall non-security freeze even while meeting inevitable new needs and priorities."

Orszag will also identify areas where the government believes there is significant duplication and waste. Orszag will say "as stewards of the American people's tax dollars, we cannot afford to waste money on programs that do not work, that are out-dated, or that are duplicative of one another."

Orszag will point out "over 110 funded programs in science, technology, engineering and mathematics education in 14 departments and agencies; over 100 programs that support youth mentoring scattered across 13 agencies; and more than 40 programs located in 11 departments with responsibility for employment
and training. This redundancy wastes resources and makes it harder to act on each of these worthy goals."

Orszag will also highlight how the government will increase its use of information technology to become more efficient.

"Closing the IT gap is perhaps the single most important step we can take in creating a more efficient and responsive government. Indeed, it is the key differentiator between our effort to modernize and reform government and those that have come before," Osrzag will emphasize.

Updated: 11:02 a.m.

soundoff (14 Responses)
  1. Sniffit

    OH NOES!!! More big government!!! How dare big government interfere and tell these agencies to cut their budgets!!! Oh wait...

    June 8, 2010 10:18 am at 10:18 am |
  2. Chessnutz of Liverpool NY

    Too little and too Late! We need a balanced budget plan. Thirteen trillion dollars in debt and going up every second.

    The size of government and the costs of two wars is too much. A nation that is debt free is a nation that can have freedom for all.

    June 8, 2010 10:22 am at 10:22 am |
  3. Dean

    I just spent 40 million on a new widgit I don't need and probably it won't work anyway. Maybe we can have hamburgers for dinner one nigh ta month to tighten up our budget............................

    June 8, 2010 10:24 am at 10:24 am |
  4. GI Joe

    I can see it now - President Obama will approve the cuts and the GOP will fight them - just like the cuts Gates and Obama wanted, and now the GOP is fillibustering them.

    SHAME ON GOP. Hypocrits

    June 8, 2010 10:26 am at 10:26 am |
  5. Dominican mama 4 Obama

    Clean it up Mr. President! This is part of the change that you promised to deliver and ARE delivering. There is so much wastefulness and misuse, let alone misappropriations of funds within these departments. Just look at the situation with the agency that was supposed to be keeping their eye on the oil drilling industry and such.

    Shine a 2000 watt bulb on these departments and let's clean up shop!
    Don't know? Gotta go!

    Obama 2012

    June 8, 2010 10:27 am at 10:27 am |
  6. Too Late

    After throwing away billions for the uaw, cash for clunkers and all the other buddy bailouts and give away programs, now they want to cut cost and are worried about the deficit. Some economic training seminars might do some good.

    June 8, 2010 10:30 am at 10:30 am |
  7. doug

    Well, this would be the first place to cut, how can we still have this person in this job? I supported Obama but I have heard enough of his administrations BS.

    June 8, 2010 10:34 am at 10:34 am |
  8. thor

    If i give someone an extra 100 dollars to spend and then down the road take back 5dollars is what this is.If i didn't have the 100 in the first place to give but had to borrow it is even worse.This is the game this administration is playing.One of these days enough people are going to figure it out. And yes the BUSH PEOPLE SPENT TO MUCH DARN MONEY ALSO.

    June 8, 2010 10:37 am at 10:37 am |
  9. Henry Miller, Libertarian

    "as stewards of the American people's tax dollars, we cannot afford to waste money on programs that do not work, that are out-dated..."

    Then start by killing Obamacare. It's guaranteed not to work, at least in the sense of saving anyone any money or providing any service anyone actually needs.

    And then go on to Social Security and Medicare. They're predicated on three fallacies: that the benefits eligibility ages are actuarially consistent with respect to the amount of money paid into the system, that the benefits paid out are actuarially consistent with respect to the amount of money paid into the system and that inflation is effectively zero. At the moment, since the first two of these conditions aren't true, Social Security and Medicare have become just insanely expensive welfare programs. That the third isn't true and isn't accounted for by the system reflects the incompetence of the management of the system.

    June 8, 2010 10:52 am at 10:52 am |
  10. Johnny DC

    This is a single step in the right direction, after traveling about 25 light-years in the wrong direction. Hopefully there is a lot more to follow -though it's doubtful.

    June 8, 2010 11:03 am at 11:03 am |
  11. MatthewDetroit

    CUT ALL SPENDING.
    CHANGE who can get social security.
    You should have to be 75 to get it and you should have to work 30 years to qualify.
    We need to Change Medicare and Medicaid as well.
    We need to cut spending period. Everything should be cut.
    We need to kill off the 29 billion they want to give to teachers.
    TIme for a cut.
    We need to KILL off the cap and trade bill, it is a joke.
    We need tokill off the NEW health care bill. It is a joke.
    STOP SPENDING NOW. Stop recommending, stop meeting, and just stop spending. PERIOD.

    June 8, 2010 11:08 am at 11:08 am |
  12. JK Ashburn, VA

    Wow a whole 5%. I'll bet they agonized for weeks about whether to ask for such a difficult target!

    Helllllloooooo! The 2011 budget is expected to be about of balance by 40-50% from projected revenue. Bottom 5% of underperforming program? It appears that anything that isn't absolutely vital needs to canned immediately.

    Bush should have started this but didn't. Obama isn't taking this seriously either. And, it doesn't matter which party controls congress - they are incapable of making hard decisions, especially those that would piss off those who contribute to their campaigns.

    They all gotta go.

    June 8, 2010 11:13 am at 11:13 am |
  13. Rickster

    Orszag and Obama should be arrested and thrown in prison for the rest of their pathetic lives for their mishandling of the economy. Criminal intent? There has to be criminal intent. Either that or these are the two dumbest creatures ever to roam the earth.

    June 8, 2010 11:32 am at 11:32 am |
  14. Jerry - Florida

    What took you and tour BOSS so long!?

    June 8, 2010 11:45 am at 11:45 am |