GAO Saves Government Billions, Faces $50 Million Budget Cut

By DANA LIEBELSON

Congress announced plans this week to starve the goose that's laying the golden eggs--and the name of that goose is the Government Accountability Office (GAO).

Fairy tale knowledge a little rusty? Here's a refresher: once upon a time, there was a government agency that returned about $87 to taxpayers for every dollar the government fed it. In the last year alone, this agency—the GAO—laid $50 billion in golden eggs. Well, that’s what the magical goose said anyway, so take those numbers with a grain of salt. Anyways, despite the bird’s best efforts, famine struck and the government had to find at least $1.2 trillion in budget cuts or else it was going to lose the farm to sequestration. But did Congress continue to feed this industrious egg-laying goose? Not exactly.

The Huffington Post reported this week that Congress has proposed slashing the GAO’s budget by about $50 million (the agency’s total budget is $557 million.) David Walker, who headed the GAO from 1998 to 2008, told the paper: “GAO generates one of the highest returns on investments of any governmental entity in the world, and that needs to be recognized.”

These cuts would also force the watchdog agency to consider layoffs, according to Government Executive. The president of a GAO’s Employees Organization, Ron La Due Lake, told the paper that both the agency and the union were concerned about the extent of potential cuts, and he “didn’t believe anyone was expecting it.”

According to the House Appropriations Committee, the cuts won’t substantially affect the work the office does. It wrote in a press release, “this funding level will allow the continuation of the essential work of the GAO to provide Congress with accurate reporting of how taxpayer dollars are spent, while cutting spending for additional hiring, travel, support contracts, and other lower-priority activities.”

But those working closely with financial oversight issues don’t necessarily agree. Sam Rosen-Amy, a federal fiscal policy analyst at OMB Watch, told POGO that GAO does a range of investigations no other government agency covers—like the recent in-depth report they did on transparency in the Recovery Act.

“I imagine with this budget cut you’ll lose $50 million worth of investigations. If Congress is really serious about streamlining the government and saving money, it should be increasing, not decreasing, the GAO budget and also listening to their recommendations,” said Rosen-Amy.

POGO’s Bryan Rahija pointed out earlier this year that in times of fiscal duress in particular, investing in oversight is ultimately “a boon for taxpayers.” Given that the GAO has demonstrated repeatedly that its earning potential far exceeds its investment requirements, it would be a shame for Congress to further strap the GAO’s resources.

After all, if Congress is anything like the Aesop Fable, “As the farmer grew rich, he grew greedy. Thinking to get at once all the gold the goose could give, the farmer killed it only to find—nothing.”

Dana Liebelson is POGO's Beth Daley Impact Fellow.

Image via Project Gutenberg.

Comments

[brad giordani]

POGO wrote, "POGO’s Bryan Rahija pointed out earlier this year that in times of fiscal duress in particular, investing in oversight is ultimately “a boon for taxpayers.” Given that the GAO has demonstrated repeatedly that its earning potential far exceeds its investment requirements, it would be a shame for Congress to further strap the GAO’s resources.

I strongly disagree with this statement. I have vast experience dealing with GAO. GAO has agenda's like other agencies. I have been trying to get a response from GAO for over two years. When I pressed GAO for a reply, William Solis (bean counter) called the Police (FPS) about my email asking for an accounting. The GAO said FRAUD was OK and the subsititution od war orders were ok, even though the troops rejected the bait and switch. Once I get a hearing (oversight) several folks at GAO will be jailed or fired.

I am ashamed of our GAO and how they conduct their business and will sell out a small business to gain polical favortism. I can prove everything, all I need is a chance to be heard.

[Agency Employee]

As a GAO analyst, I can report that we are working under great uncertainty with the level of professionalism that Americans expect from us.

That being said, the Congress (our client), by failing to reach resolution, is damaging morale at our agency. Roughly 80% of our budget comes from salary, so a 7%-10% cut means that we will have to lay people off (or furlough, which is only a temporary solution). The fact that the numbers are so far from what we need to maintain a constant level of service--and that the workforce did not get sufficient notice to prepare--is deeply frustrating.

What is also frustrating is the knowledge that our country faces profound budget challenges, primarily due to entitlement spending, debt servicing, and the military. Cutting non-defense discretionary spending is only a distraction from the more profound challenges we face. One feels a bit like a sacrificial lamb, but I suppose Schadenfreude is the essence of the day.

[Dawson]

So I get it this is the new effort to hide the government wasteful spending from the public. Privatize everything overcharge and under deliver with no oversight.......Sounds like things worked out so well for Halliburton with their non-bid contract in Iraq and our billions of $'s just vanishing with no accountability that we need to expand this program so everyone can participate. Guess Ima gonna go get me one of them overseas p.o. boxes with a big INC. next to my name and see if I can join in the fun.