Resolution in Support of End-of-Year Fiscal Responsibility

Policy Status

  • Type: Model Resolution
  • Status: Final
  • Date Introduced: December 4, 2020
  • Date Finalized: January 8, 2021

Issues

  • State Budgets

    • Task Forces

  • Tax and Fiscal Policy

    • Tags

  • SNPS 2020
  • SNPS 2020 Policy

    • Summary

    This Resolution expresses state support for reforming spending limits in federal administrative agencies. The current “use it or lose it” policy enables widespread waste of taxpayer dollars. Requiring agencies to maintain a constant rate of spending, rather than encouraging end-of-year spending sprees, will improve the effectiveness of agency resources and increase the efficiency of federal tax dollars.  
    Draft

    Resolution in Support of End-of-Year Fiscal Responsibility

    WHEREAS: Waste, fraud, and abuse occur frequently in agency budget processes

    WHEREAS: Congress has the responsibility to ensure agency waste, fraud, and abuse is minimized and taxpayers are protected from agency mismanagement

    WHEREAS: In the last quarter of the fiscal year (Q4), federal agencies spent 25.4% more than previous months on average, according to the Report on Budget Execution and Budgetary Resources

    WHEREAS: Many purchases made in the last quarter of the fiscal year are unrelated to agency mission, like entertainment and luxury goods

    WHEREAS: The federal government incentivizes this practice by eliminating unspent funds from future agency budgets. To maintain current budgets, or to encourage a greater allocation, agency administrators spend the remainder of all budget funds before the end of the fiscal year, even if increased spending is not needed.

    WHEREAS: The federal debt exceeds $27 trillion, and reforms must be made to bring spending under control

    WHEREAS: Reforming agency spending rules to prevent bureaucrats from making end-of-year spending sprees would save over $144 billion annually, according to the National Taxpayers Union Foundation

    NOW, THEREFORE, LET IT BE RESOLVED: [State] supports requiring federal agencies to practice end-of-year fiscal responsibility. Agency spending during the last two (2) months of the fiscal year must not exceed average per month spending during the previous ten (10) months of the fiscal year, except in the case of a national crisis or a conflict with other laws.