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Earlier this week, I held my first Cabinet meeting and sent a clear message: cut what doesn’t work. Already, we’ve identified substantial savings. And in the days and weeks ahead, we will continue going through the budget line by line, and we’ll identify more than 100 programs that will be cut or eliminated.
But we can’t stop there. We need to go further, and we need an all-hands-on-deck approach to reforming government. That’s why I’m announcing several steps that my Administration will take in the weeks ahead to restore fiscal discipline while making our government work better.
First, we need to adhere to the basic principle that new tax or entitlement policies should be paid for. This principle – known as PAYGO – helped transform large deficits into surpluses in the 1990s. Now, we must restore that sense of fiscal discipline. That’s why I’m calling on Congress to pass PAYGO legislation like a bill that will be introduced by Congressman Baron Hill, so that government acts the same way any responsible family does in setting its budget.
Second, we’ll create new incentives to reduce wasteful spending and to invest in what works. We don’t want agencies to protect bloated budgets – we want them to promote effective programs. So the idea is simple: agencies that identify savings will get to keep a portion of those savings to invest in programs that work. The result will be a smaller budget, and a more effective government.
Third, we’ll look for ideas from the bottom up. After all, Americans across the country know that the best ideas often come from workers – not just management. That’s why we’ll establish a process through which every government worker can submit their ideas for how their agency can save money and perform better. We’ll put the suggestions that work into practice. And later this year, I will meet with those who come up with the best ideas to hear firsthand about how they would make your government more efficient and effective.
And finally, we will reach beyond the halls of government. Many businesses have innovative ways of using technology to save money, and many experts have new ideas to make government work more efficiently. Government can – and must – learn from them. So later this year, we will host a forum on reforming government for the 21st century, so that we’re also guided by voices that come from outside of Washington.
We cannot sustain deficits that mortgage our children’s future, nor tolerate wasteful inefficiency. Government has a responsibility to spend the peoples’ money wisely, and to serve the people effectively. I will work every single day that I am President to live up to that responsibility, and to transform our government so that is held to a higher standard of performance on behalf of the American people.
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