Memorandum on Cost Reduction in the Federal Government

Memorandum for the Heads of Departments and Agencies

If Federal agencies were still operating at their 1964 level of efficiency, my 1966 and 1967 budgets would have to be $3 billion higher. These savings mean that we are getting more value for our tax dollars. It means the American people are $3 billion better off.

This makes clear why I consider cost reduction so important. It explains why I want every Government employee to think hard about opportunities for cost reduction, and why I want the best ideas publicized for all to use. A good idea from one agency should not stop there, but must be made known throughout the Government.

Some time ago I asked the Budget Director to develop a system of exchanging information about cost reduction among Federal agencies. He has prepared the pamphlet which is attached--the first issue of a series of "Cost Reduction Notes."

"Cost Reduction Notes" describes imaginative actions which have produced savings in one agency and which carry promise of applicability throughout the Government. The ideas vary widely, but they were chosen as ones likely to be useful to agencies with differing responsibilities. By bringing the ideas together in a pamphlet which will be circulated throughout the Federal Government, we are seeking to multiply the savings already achieved.

I want "Cost Reduction Notes" to be read widely in every agency, both in Washington and in the field. I want each idea to be considered carefully. I hope that many of them can be put to use.

LYNDON B. JOHNSON