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Marketplace: It's Use-It-Or-Lose-It Season in Washington

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It's Use-It-Or-Lose-It Season in Washington

By Nancy Marshall-Genzer 
September 18, 2018 
 
Congress is making some progress on spending bills for fiscal year 2019, which starts October first. But, while lawmakers fight over next year's budget, federal agencies are still struggling to  spend all the money they got this year, because what they don't use by the end of the month, Congress takes back. So cue the September spending spree, which has become so routine, many agencies plan for it. Up to a point, anyway. 
 
"They have a set of supplies and equipment that they may put off their purchases until the latter half of the fiscal year or the latter part of the fiscal year so that they can increase the order and get more money out the door," said Ryan Alexander, president of Taxpayers for Common Sense.
 
But as of August, eight of the 10 biggest spenders, like the Pentagon and Justice Department, weren't getting that money out the door fast enough. As a group, they had worked through less than 40 percent of their budgets, or roughly just $240 billion of more than $1 trillion.
 
That's partly because Congress didn’t pass the budget until March, leaving agencies only six months to shop. 
 
"This is very late" to be getting a budget, Alexander said.
 
And, because spending caps were lifted, even more money needs to go out the door. The Pentagon, for instance, is looking at an extra $80 billion. And no one wants to spend everything early on, or they could end up short. This doesn’t always make for smart shopping, one reason agencies don't like to talk about what's left in their wallets. Last year, they dropped $50 billion in the last week of September, around five times what they burn through in a normal week. They bought furniture and computers.  
 
"You can buy cars, vehicles, motorcycles, bikes and scooters," said Adam Andrzejewski, CEO and founder of OpenTheBooks.com, a website that tracks government spending. "You can buy bombs, bulk explosives and grenades. You can buy fidget spinners, snow boarding equipment and booze for your liquor cabinet."
 
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dirk schluter
mansfield ohio, OH
9/25/2018 05:21 AM
 

  Heres an idea? Why doesn't gov't give federal agencies the chance to bank 10% of all unspent dollars in a fund to spend later on anything they need with no time limits. Give them the money to invest and grow in a fund that they control. Instead of incentivizing them to spend it all, incentivize them to save! In ten years they would have a whole years budget in the fund + compounding interest!