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Sen. Paul Introduces Sequester Alternative Plan: The Sequester Without Layoffs

Feb 22, 2013

Sen. Rand Paul today unveiled the following plan to offset the anticipated layoffs of employees following the automatic spending cuts set to take place next month as a result of the sequester agreement. Below is a detailed look at cost-saving initiatives that, if implemented, would offset the impending sequester cuts, with a total savings of $85.75 billion annually.

The Sequester Without Layoffs

•·         Stop Hiring New Federal Employees: $6.5 billion saved annually 

•o   Every year, thousands of federal employees retire or leave their jobs. In 2011, roughly 62,000 people ended their careers with the government. Estimates vary, but allowing a federal bureaucrat to retire without replacing that person with another employee can save anywhere from $60 billion to $200 billion over 10 years. This provision estimates to save $6.5 billion in one year.

•·         Bring Federal Employee Pay in Line With Private Jobs: $32 billion saved annually 

•o   According to the Congressional Budget Office, the average compensation of a federal employees is 16 percent more than their private equivalents. By reducing salaries to align more with their private counterparts, this provision could save as much as $32 billion a year.

•·         Reduce Federal Employee Travel by 25 Percent: $2.25 billion saved annually

•o   The latest data provided by the General Services Administration suggested that the federal government spent $9 billion on travel. Reducing the federal travel budget by at least 25 percent can reduce the budget by $2.25 billion a year.

•·         Focus Military Research on Military Needs: $6 billion saved annually 

•o   According to research done by the staff of Sen. Tom Coburn (R-Okla.), found that the Defense Department spent $6 billion on research that had nothing to do with military or military-related health inquires.

•·         Require Competitive Bidding for Government Contracts: $19 billion saved annually 

•o   The Davis-Bacon prevailing wages law requires federal projects to pay the employees higher wages. This would repeal this requirement and allow the government to save money by making pay competitive to all government employees. The Heritage Foundation estimates that this will save $9 billion a year. Also, many contracts in the federal government are provided to companies without requiring a competitive bid - or the opportunity for the government to contract work at the lowest price possible. This provision would require the government to competitively bid all contracts. This provision would save an additional $10 billion a year.

•·         Cut 50 Percent of Foreign Aid: $20 billion saved annually

•o   We spend more than $40 billion a year on foreign aid. When we're dealing with a budget crisis here at home, it's only responsible to bring this money home. This provision would eliminate half the foreign aid budget. 

Last night, Sen. Paul discussed this plan with Greta Van Susteren on Fox News Channel. Below is video of that discussion.



Contact Senator Rand Paul at One of his Offices

Bowling Green - Main State Office
1029 State Street
Bowling Green, KY 42101
Phone: 270-782-8303

423 Federica St, Ste 305
Owensboro, KY 42301
Phone: 270-689-9085

Crescent Springs
541 Buttermilk Pk Ste 102
Crescent Springs, KY 41017
Phone: 859-426-0165

771 Corporate Dr, Ste 105
Lexington, KY 40503
Phone: 859-219-2239

600 Dr. Martin Luther King Jr. Pl,
Rm 1072B
Louisville, KY 40202
Phone: 502-582-5341

1100 S. Main St, Ste 12
Hopkinsville, KY 42240
Phone: 270-885-1212

Washington, DC
124 Russell Senate Office Building
Washington DC, 20510
Phone: 202-224-4343