Travel restrictions and cuts have saved $2B so far, says OMB

Originally posted by  on Fierce Government

Efforts to reduce travel and increase oversight in travel and conference  spending have saved the federal government roughly $2 billion from fiscal 2010  to fiscal 2012, says Daniel Werfel, controller at the Office of Management and  Budget.

Speaking at a House Oversight and Government Reform subcommittee hearing  Wednesday, Werfel said agencies expect to save another $1 billion by the end of  fiscal 2013. Efforts to save money include general travel cuts, limits on  conference expenditures, conducting training in-house and increased use of  technology such as webinars and teleconferencing to replace travel.

Werfel says OMB's goal is to reduce spending by as much as 20 percent below  2010 levels by the end of 2013 and maintain that level of spending through  fiscal 2016. This includes a 30 percent reduction in travel funds. Werfel noted,  however, that military travel is not subject to this 30 percent reduction  because OMB wanted to provide the Defense Department with as much flexibility as  it could.

He said that since the scandal around a 2010 General Services Administration  Las Vegas convention, OMB has seen "an enormous amount of attention that's  generating very important and positive results" for administrative expenses even  beyond travel and conferences.

In response to the scandal, Cynthia Metzler, chief administrative services  officer at GSA, told the hearing that agency policy now says travel and  conferences "can only be approved when all other alternatives, including video  conferences and webinars, have been considered." Through travel limits and uses  of alternatives she says GSA saved $28 million through the end of fiscal  2012.

In addition, Werfel said the Agriculture Department has reduced travel costs by $125 million in fiscal 2012 and is on track to reduce costs by an additional $90 million in fiscal 2013, when compared to 2010 levels. Werfel also noted that the Labor Department has cancelled more than 100 conferences and the Defense ended one Air Force technology conference that would have cost $1.7 million alone.

However, Chairman Blake Farenthold (R-Texas), said that in fiscal 2012 there were more than 750 conferences that cost more than $100,000--a threshold where agencies are now required to get senior management approval and which must be reported to the public--with a total cost of $250 million to $300 million. Werfel said that between 130 and 140 of these conferences cost more than $500,000 apiece.

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