Schilling Bill encourages reduced, smarter spending
Congressman Bobby Schilling (IL-17) this month introduced H.R. 3376, the Saving Over Spending Act, to incentivize smarter spending throughout the federal government. The Saving Over Spending Act encourages government agencies to spend less and to spend more wisely, complementing the 112th Congress’ record on reducing government spending.
“The 112th Congress has been focused on spending cuts, but I believe the federal government should also pursue incentives for smarter spending,” Schilling said. “As a small business owner, I know that giving employees incentives for good, efficient work is part of a successful business model. Saving money while preserving a strong level of service is common-sense.”
According to a 1980 report by the Senate Committee on Government Affairs, while “spending at year-end may be the result of legitimate, planned, and worthwhile spending intended by Congress…the Subcommittee (on Oversight of Government Management) found numerous examples in which agencies took short cuts in the last few weeks of the fiscal year that led to questionable contracts.” Furthermore, “hurry-up procurement practices resulted in the purchase of millions of dollars worth of goods and services for which there was no demonstrated current need.”
Rather than the current system which can lead to such “hurry-up spending” at the end of each fiscal year, under the Saving Over Spending Act government agencies would be incentivized to save money from their salaries and expenses. For any amounts saved by an agency at the end of a fiscal year, 50% would go to Treasury for deficit reduction. The other 50% would be saved by that agency and eligible to be spent at its discretion during the next fiscal year.
“With our national debt approaching $15 trillion, it is imperative that we take action to get our fiscal house in order,” Schilling said. “This bill presents the government with another opportunity to lead by example, asking federal agencies to get involved in our deficit reduction efforts. The American people are making sacrifices, and the government must make sacrifices as well. The Saving Over Spending Act ensures federal agencies have skin in the game, incentivizing them to spend less and spend smarter.”