Gramm-Rudman, Proposition 13, and cutback management
Cox, James Crawford, Jr.
McCaffrey, Jerry L.
Evered, Roger D.
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The Gramm-Rudman Act mandated the sequestration of over 11 billion previously approved FY-1986 budget dollars. DoD financial managers then found themselves with tough decisions in order to fulfill missions with less resources than expected. The fiscal environment facing DoD organizations resembled that faced by local governments in California following the passage of Proposition 13 in 1978. A survey of DoD financial managers was conducted to determine how these managers were reacting to their reduced budgets. Responses were compared to actions taken by California managers subsequent to Proposition13 to gauge the potential of the strategies now being employed to cope with Gramm-Rudman. This study indicates that DoD managers have begun cutting back, but have not yet made the fundamental shift from maintaining their previous organization to embracing a new, leaner one which can function with significantly fewer resources.
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