Tightening The Federal Belt One Small Notch

I have an idea to help reduce the Federal budget, at least a little, in just three years.

As this will be an unpopular idea with most people in my own situation (I work for the Government) I will share a little background as to my limited budget experience before laying out the plan. I don't claim to be some financial wizard, I just remember words my father (Love You Dad!) told me one day when we observed a picket line of workers whom were all smoking. He explained that while these workers were standing outside picketing for an extra $0.25 an hour, they earned nothing. They also could likely make the extra $10.00 per week this strike might generate - if they just quit smoking. It was all about choices and what are we willing to give up to live within our means and without escalating costs - but I'll get back to that.

During my years of Active Duty Service I had the opportunity to work in the Pentagon, largely doing analyses for Navy budget formulation. Several months after I transitioned from the Navy (retired), I was blessed to accept a position serving the Navy as a civilian, this time working budget planning and execution (spending) at a much lower level than in Washington D.C.

In my current position I help manage roughly $50 Million dollars per year, which I would love to have myself, but when compared to the defense budget, or larger yet the federal budget, the amount we operate with is truly "budget dust" ... a term used often in my Pentagon days for programs budgeted at less than $200 Million.

All that said - I am not a qualified or designated "Financial Analyst" or a "Comptroller". I am a program analyst with logistics and operations research experience, who has had to build, track and review spending for one small but significant part of the Navy's overall logistics capabilities.

It may also be important to note - at home my beautiful wife Maureen (I love you Babe!) manages our finances and laughs at me when I attempt to assist her.

Anyway - what can we now do to help reduce the country's federal deficit? As you see I am no expert, but giving up something without getting something in return seemed a reasonable approach to a solution in the cigarette story above.

So I propose that in addition to all the government debates on where to cut, tax, save, etc., ... let all of us who work for the government lead by example; Let the Government reduce our salaries by 10% over the next three years.

I can hear the arguments now - Whoa there my friend - that hurts - I just renewed my cell phone contract, and this bill, and that mortgage, etc., etc., and I donate to this charity, and that church, and my brother, sister, cousin, friend, neighbor or homeless person, whomever - needs my financial assistance. How can I possibly live on 10% less? Besides "they" can't do that - "they" can't reduce salaries because it is (for those civil servants out there you know what comes next) a "negative personnel action" ... so if "they" try it "they'll" get sued. It'll never happen!

Unfortunately I agree it will probably never happen - but if it did, think about the effect. We spend what we earn, and earning more means spending more. If we earn less, will it reduce things we spend on now? Perhaps, or we may become more thrifty and stretch our incomes. Nothing is wrong with more couponing (which is quality family time if you do it right and a full time job if you have the time).

Back to my plan - if you are a civilian employee of the government, please don't think "they" can't do this. You, Me, all of us ... We are "they"! "We" can do this. The others we call "they" are the government we elect and work as part of, and "they" can do this if we let them. Why can't we change laws and make a decision to reduce salaries?

Heck, if it helps lessen our economic issues - reduce my salary. Take more actions to reduce the costs that cause me to want a higher salary. Yes it will hurt my wallet and I will have to delay buying some things. I may not be able to afford to spend on some other things. I will be forced to plan better and to live within my means. Maybe I am being simple, but my budgetary self improvement wouldn't necessarily be a bad thing with respect to how I contribute to the National Economy.

Take 3% in 2012, 3% more in 2013 and the final 4% in 2014. Just tell me that is what is going to happen - give me 6 months to plan for the reduction. If I want more money I'll move on (if I can find a job that pays what I want). If I want to keep my job, because I have obligations, bills and medical needs etc., then I will find a way to live with less income, or find other ways to increase my overall income. But some will ask - Won't I get mad if they reduce my pay? Probably, but I'll get over it. I will ultimately be thankful for what I have.

It is time to lead by example - cut every federal employee's salary by 10% over the next 3 years ... do not raise any federal salaries for at least 2 more years ... and pass legislation to prevent the time and resource consuming lawsuits that would otherwise come from me and my fellow government employees who won't like my idea.

I trust in God and the USA, and firmly believe we would all get by and be better for the experience. We would also set an example to all Americans that tightening the belt can reduce costs right now.

Now for some bad news - When searching the web for the overall cost of Federal Employee's salaries, I found one estimate that we are only talking about $260 million per year (in 2010). Therefore my proposed 10% cut, after the 3 years, would fall in the realm of "Budget Dust" at a nominal $26 Million per year.

This would be just a minor impact on the Deficit and as I said before it is not likely to happen. So, why should I even talk about it?

I talk about it because it reduces costs without having to fire anyone, no jobs lost by this plan. Some may get mad and quit out of spite - but that provides opportunity for others to enter government service. Theoretically it would be simple and there would be little or no additional cost to implement. I assume a series of mass pay actions each January to reduce salaries vice increasing them for the cost of living, would cost no extra and require no new technology. It would also be a visible reminder to those of us in the government that our jobs should be more about providing "service" to the people of the United States than the paychecks we earn.

My parents (Love you Both!) taught their ten children how to live within our means and plan for when times are tight or when they are plentiful. We have all had our lows and highs - but we always seemed to get by with what we had.

My Service in the Navy took me around the world to places that do very well with much less than we have here in America. For any people who would argue that we cannot do with less - in either the Federal Government or the entire population - please be truthful to yourselves ... we can do with less.

I have rambled long enough - If this idea should ever get to Congress - I hope they vote yes quickly and decisively. I'll probably complain a little ... but I will do my part to cut the deficit. I don't want a cut, but sometimes we just need to be told the right things to do!

The price of Gas ... and other issues with America

I don't know why we pay so little for gas. I am as gluttonous as the next (as far as wanting to drive when and where I want), but believe raising the price of gas is overdue.

Raising gas prices, in order to bring in tax revenue, is a reasonable accommodation for Americans. One Wikipedia web page (dated 2008) sites that many western countries pay 3 to 4 times the prices we pay in America ... with roughly 75% of the cost resulting from Taxes. This same practice would surely help alleviate the deficit. We pay so-called "sin" taxes on cigarettes and alcohol ... why not gasoline?

I believe the unintended consequences would also be more positive than negative. For example; Raising prices would likely increase the use of alternatives to driving, including mass transportation and non-fossil fuel travel alternatives. That would in turn have positive environmental impacts. Think about the innovations that budding entrepreneurs would come up with if the average American was disgruntled over excessive gas prices? I suggest there would be many initiatives to help us adjust while reducing fuels consumption.

The US is in debt. We all need to pay more for what we use, without complaining, and learn to genuinely cut back.

Cry or Whine ...

For all of you who believe in unsolicited commentary ... here is today's thought:




I believe there is a significant difference between Whining and Crying - - basically crying is a method of satisfying a need (food, diaper change, release of sorrow, letting others know of the need, etc.,) while whining is an attempt to satisfy a desire (Better job, more money, me - me - me, letting others know what you want, etc.,).




Wouldn't we all be better off if we could stop whining and start crying? Seems to me that a Town Crier is one of the most noble professions ... spreading various news of importance. Who among us really would respect a Town Whiner? If we focus our attention to try and hear all the crying ... through and despite all the whining ... might we all be better able to satisfy the needs of others vice our selfish desires?




Just a thought from this "on again - off again" whiner, who hopes we all find the time to cry a little more.




One final thought - - a good book to read which I feel is germane (and is fun to read) - Larry Winget's "Shut Up, Stop Whining, and Get a Life". It is one of my favorites.