Management Matters Management MattersManagement Matters
Practical advice for federal leaders on managing people, processes and projects.

Now We Must Think

C-SPAN's Steve Scully: "You know the numbers-$1.7 trillion debt, a national deficit of $11 trillion. At what point do we run out of money?" President Obama: "Well, we are out of money now." -May 22

California Gov. Arnold Schwarzenegger: "Our wallet is empty. Our bank is closed. Our credit is dried up. We are not Washington. We cannot print money. We cannot run up trillion-dollar deficits." -June 2

From Washington to Sacramento, government has been spending an awful lot of money in recent years. Now, with the recession hammering state and federal revenues, and huge new government spending programs under way, skyrocketing budget deficits are prompting assertions like those above.

One might think such talk would dampen demand for more spending, but there's little evidence of that.

Let's take the case of the State Department. At a recent luncheon, former ambassadors Thomas D. Boyatt and Ronald E. Neumann described a zero-based budget exercise the American Academy of Diplomacy conducted last fall. The foundation-financed study concluded that the U.S. diplomatic corps was understaffed by about 20 percent, or nearly 5,000 positions. Obama's budget would add some 3,000 new positions, thus relieving the military of tasks it had taken on to compensate for the shortages of civilian personnel. But the military isn't shrinking as a consequence; indeed, it is growing by tens of thousands of troops.

I may be hopelessly naïve, but I was surprised when Boyatt said the Foreign Service was achieving these and other goals in part because of its lobbying group's political action committee. It seemed just awful to me that modestly paid public servants, some of whom undertake dangerous assignments abroad, feel they need to finance campaigns for the congressional titans who control their budgets.

Polls are showing that the public is cooling on all the deficit spending the Obama program implies. In June, Obama himself felt obliged to pledge that the costs of his sweeping health care reform would be substantially covered by wringing savings out of existing programs. Further, the president decreed that a $500 billion bill to achieve badly needed reforms in the nation's transportation funding system is too expensive to enact this year.

Pressure to curb these and other programs has grown in the wake of a June 25 Congressional Budget Office report projecting that the outlook for deficits has worsened considerably-to the point where they will consume 4 percent to 15 percent of gross domestic product during the next 25 years under currently popular spending and taxation policies. "Having spent over a decade worrying about budget deficits, I can quite honestly say that things have never looked as bad as they do now," said Maya MacGuineas, president of the Committee for a Responsible Federal Budget.

Among the ranks of the civil service and the military, people might doubt they can possibly contribute to the righting of the foundering fiscal ship. But they can-by focusing on the productivity of agency operations.

This point is documented in a new publication by McKinsey & Co., one of the nation's top consulting firms, titled "McKinsey on Government." In it, Nancy Killefer and other government consultants say huge savings, or quality advances, could come from productivity gains they estimate could reach 15 percent in the next 10 years and more in subsequent years. One chapter describes how the Air Force is working toward productivity gains of more than $5 billion, 11,000 years of air personnel time and energy savings exceeding 30 percent.

As McKinsey says, a Winston Churchill pronouncement rings true in our present pickle: "Gentlemen, we have run out of money. Now we must think."


Tim Clark served as editor in chief, publisher and president of Government Executive in the years since it was acquired by National Journal Group in 1987. He and his colleagues have built Government Executive into an essential source for federal managers, a shaper of the government management debate and a key player in the good-government movement. Clark has spent his journalistic career studying and writing about government, and is a founder of National Journal, Washington’s premier source of political insight. He also founded Empire State Report, a monthly magazine about government in New York. He is a fellow and former board member of the National Academy of Public Administration.

Close [ x ] More from GovExec

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • Sponsored by Brocade

    Best of 2016 Federal Forum eBook

    Earlier this summer, Federal and tech industry leaders convened to talk security, machine learning, network modernization, DevOps, and much more at the 2016 Federal Forum. This eBook includes a useful summary highlighting the best content shared at the 2016 Federal Forum to help agencies modernize their network infrastructure.

  • Sponsored by CDW-G

    GBC Flash Poll Series: Merger & Acquisitions

    Download this GBC Flash Poll to learn more about federal perspectives on the impact of industry consolidation.

  • Sponsored by One Identity

    One Nation Under Guard: Securing User Identities Across State and Local Government

    In 2016, the government can expect even more sophisticated threats on the horizon, making it all the more imperative that agencies enforce proper identity and access management (IAM) practices. In order to better measure the current state of IAM at the state and local level, Government Business Council (GBC) conducted an in-depth research study of state and local employees.

  • Sponsored by Aquilent

    The Next Federal Evolution of Cloud

    This GBC report explains the evolution of cloud computing in federal government, and provides an outlook for the future of the cloud in government IT.

  • Sponsored by Aquilent

    A DevOps Roadmap for the Federal Government

    This GBC Report discusses how DevOps is steadily gaining traction among some of government's leading IT developers and agencies.

  • Sponsored by LTC Partners, administrators of the Federal Long Term Care Insurance Program

    Approaching the Brink of Federal Retirement

    Approximately 10,000 baby boomers are reaching retirement age per day, and a growing number of federal employees are preparing themselves for the next chapter of their lives. Learn how to tackle the challenges that today's workforce faces in laying the groundwork for a smooth and secure retirement.

  • Sponsored by Hewlett Packard Enterprise

    Cyber Defense 101: Arming the Next Generation of Government Employees

    Read this issue brief to learn about the sector's most potent challenges in the new cyber landscape and how government organizations are building a robust, threat-aware infrastructure

  • Sponsored by Aquilent

    GBC Issue Brief: Cultivating Digital Services in the Federal Landscape

    Read this GBC issue brief to learn more about the current state of digital services in the government, and how key players are pushing enhancements towards a user-centric approach.

  • Sponsored by CDW-G

    Joint Enterprise Licensing Agreements

    Read this eBook to learn how defense agencies can achieve savings and efficiencies with an Enterprise Software Agreement.

  • Sponsored by Cloudera

    Government Forum Content Library

    Get all the essential resources needed for effective technology strategies in the federal landscape.


When you download a report, your information may be shared with the underwriters of that document.