Sequester Cuts Are Unbalanced

Nowhere to Cut?

• In 2011, the federal government wasted $115.3 billion of taxpayers’ money in improper payments: money paid in the wrong amount, to the wrong person, or for the wrong reason. Most of these excess payments—$107 billion, or 93 percent—were in just 10 programs, including Medicare fee-for-service ($28.8 billion), Medicaid ($21.9 billion), the Earned Income Tax Credit ($15.2 billion), and Unemployment Insurance ($13.7 billion). Implementation of updated computer systems and fraud detection methods and stricter documentation requirements would reduce payment errors.
• Federally subsidized Amtrak lost $84.5 million on its food and beverage services in 2011, and $833.8 million over the past 10 years. It has never broken even on these services.
• The Government Accountability Office (GAO) identified 34 areas in which federal agencies or initiatives have overlapping goals or duplicative services, which cost taxpayers billions of dollars each year. There are:
• More than 80 economic development programs operating out of four different agencies: the Departments of Agriculture, Commerce, and Housing and Urban Development, and the Small Business Administration;
• More than 100 economic development programs spread across five agencies within the Department of Transportation;
• Seven federal agencies, including the Departments of Education, Health and Human Services, and Housing and Urban Development, which have more than 20 programs addressing homelessness;
• 44 employment and training programs in the Departments of Education, Health and Human Services, and Labor; and
• 82 programs on teacher quality run through the Departments of Defense, Education, and Energy, as well as NASA and the National Science Foundation.
• In 2008 and 2009 alone, the Department of Justice spent (DOJ)$121 million to host or participate in 1,832 conferences. 
• At one conference, petite Beef Wellington made the hors d’oeuvres menu, at a cost of $7.32 per serving.
• An internal audit found DOJ did not keep costs to a minimum, despite federal guidelines. The most expensive conference reviewed in the audit was held in Istanbul, Turkey, and cost $1.18 million.
• The General Services Administration (GSA), which is responsible for managing federal buildings and helping to cut costs, held a conference costing $822,751 in Las Vegas. At more than $2,500 per employee, it included $44-per-person breakfasts and commemorative coins for conference participants that cost $6,325.
• In fiscal year 2010, the federal government spent nearly $1.7 billion to maintain 77,700 underused or unused buildings.
• Eliminating both the New Starts and Small Starts transit grants programs would save taxpayers $5.6 billion over the next five years and $16.3 billion over 10 years. It would get the federal government out of the business of subsidizing high-cost, low-value local transit projects, such as $900 million for a 10-mile extension of the Bay Area rail system in San Jose and a $1.6 billion grant to construct a Honolulu rail line.
• The Department of Agriculture’s Office of the Chief Information Officer funded a $2 million intern program. Only one intern was hired full time as a result.
• Fifteen federal agencies are involved in administering 30 food safety laws, resulting in fragmented food safety oversight.
• The U.S. Navy bought 450,000 gallons of biofuels for $12 million, or almost $27 per gallon, to conduct exercises to showcase the fuel and bring it closer toward commercialization. It is the largest biofuel purchase ever made by the government.
• The Internal Revenue Service stored 22,486 items of unused furniture in a warehouse at an annual cost of $862,000. 
• An Inspector General audit found that the Department of Energy cannot locate $500,000 worth of “green energy” manufacturing equipment that was bought with stimulus money.
• The Bureau of Indian Affairs funded a fish hatchery that never saw a fish hatch for fourteen years, continuing funding even after the land had been converted to office space. Taxpayers spent $46.1 million in fiscal year 2012 to operate the national fish hatchery system.
• The Department of Agriculture endorsed the “Meatless Monday” initiative and then a few weeks later announced plans to purchase $170 million worth of meat from drought-stricken livestock producers.
• The Labor Department spent $495,000 in stimulus money on 100 television commercials to advertise the Obama Administration’s Jobs Corps Initiative for green jobs.
• The Department of Veterans Affairs spent $6.1 million, or $3,389 for each of the 1,800 employees that attended two training conferences last year in Orlando, Florida. The agency Inspector General’s office is investigating the conference organizers for possible ethics rules violations. The department also spent nearly $50,000 to make a video parodying General Patton that was shown at the conferences and $98,000 on promotional items. The items included pens, highlighters, hand sanitizers, and USB flash drives with VA’s logo.
• The State Department began a Diplomatic Culinary Partnership program in 2012. Over 80 American chefs have been inducted into the American Chefs Corps and will support the State Department by preparing food for visiting officials and traveling around the world to engage in “culinary diplomacy.”
• The Department of Veterans Affairs spent $221,540 on an 11-day conference at a resort—enough to pay annual disability compensation for six totally disabled combat veterans.
• Department of Agriculture and Department of Energy officials approved a $76 million grant for a wood-to-ethanol plant in Soperton, Georgia, despite concerns among the project’s researchers and other officials. The plant closed within a year of receiving the loan guarantee, without producing any ethanol. 
• The Rural Business Enterprise Grant Program gave $55,660 to a New York State dairy farm to package its butter in smaller, eight-ounce containers.
• A grant totaling $25,000 was used to transcribe a Maldivian love ballad.
• Taxpayers funded a National Institutes of Health study costing $55,382 in 2011, and $170,000 over three years, to study the hookah smoking habits of Jordanian university students.
• The Department of Agriculture’s Market Access Program spends $200 million a year to help U.S. agricultural trade associations and cooperatives advertise their products in foreign markets. In 2011, it funded a reality TV show in India that advertised U.S. cotton.
• The Environmental Protection Agency awarded a $141,450 grant under the Clean Air Act to fund a Chinese study on swine manure and a $1.2 million grant to the United Nations for clean fuel promotion.
• The Government Accountability Office (GAO) found that some people are double-dipping from unemployment and disability benefits programs. This lack of coordination among government agencies is costing taxpayers $850 million annually. GAO found one individual who drew $62,000 from unemployment insurance and disability insurance at the same time she was working and earning an additional $7,000 in income.
• In 2011, the top 20 percent of farm subsidy recipients received almost 80 percent of all premium subsidies. Twenty-six farm businesses each collected over $1 million worth of subsidies.
• Taxpayer losses from the failed solar cell manufacturing company Solyndra, which received a federal loan guarantee, totaled $528 million. Beacon Power and Abound Solar, two other failed alternative energy companies, cost taxpayers $46.5 million and $73.1 million, respectively.
• A Congressional Research Service report revealed that among individuals earning $1 million or more, 2,840 received unemployment benefits in 2008 and 2,362 received the benefits in 2009.
• The Conservation Reserve Program pays farmers $2.1 billion annually not to farm their land for a period of at least ten years. 
• Sources include Congressional Budget Office and Government Accountability Office reports, Wastebook 2011 from the Office of Senator Tom Coburn (R-OK), and news articles from various media outlets, all of which are on file at The Heritage Foundation.