White House Memo Directs Agencies to Cut Budgets

A June 8 memo from White House Office of Management and Budget Director Peter Orszag directed all non-security Executive Branch agencies to reduce their budgets by five percent for FY 2012.

The memo called on agencies to “restructure their operations strategically” rather than to reduce spending across the board.  Eliminating low-priority programs and activities, reorganizing processes, and focusing on “high-priority performance” goals are all suggestions that were listed.

This initiative comes on the heels of intense scrutiny of the President and congressional Democrats regarding government spending, and an announcement by President Obama in January that he seeks to freeze federal spending for the next three years in order to reduce the deficit.

Budget submissions are due to the Office of Management and Budget on September 13.

The memo is available in its entirety here.