Memorandum on "June Buying" by Federal Departments and Agencies.

[ Released May 20, 1965. Dated May 18, 1965 ]

Memorandum for the Cabinet and Heads of Agencies:

I am grateful for your cooperation, assistance and leadership in our determined and increasingly successful efforts to eliminate waste from our Federal programs, and to translate the experience, enterprise and initiative of Federal employees into effective savings for the taxpayers.

In accomplishing what has thus far been achieved, many old and ill-considered habits have been responsibly re-examined and successfully challenged to the constructive benefit of more efficient management and operation throughout the Executive Branch. In this context, I want to raise with you the matter of end-of-year spending, commonly referred to as "June Buying."

When an agency speeds up spending in the last few weeks of the Fiscal Year, in the absence of clear and compelling reasons, the practice looks like an attempt to use up funds which otherwise would lapse. We cannot expect our employees to believe that cost reduction efforts are serious if they see evidence of opportunistic spending in the last days of the Fiscal Year. I see nothing at all wrong in returning unused appropriation balances to the Treasury. Last year, we turned back $805 million when the Fiscal Year ended and I hope that this practice may be the rule, rather than the exception.

I do not want "June Buying" to become a way of circumventing our cost reduction efforts. "June Buying" may be an ancient practice--but that does not justify it or excuse it. Accordingly, I hope that each of you will personally take whatever steps are necessary to insure that in your Department or agency--

--Orders for supplies, materials, and equipment are kept to the minimum needed to carry on essential, approved programs.

--Inventories are held to normal levels.

--New contracts for future services and advance payments to contractors and vendors are made only in accordance with established plans.

I regard each Department and Agency Head as responsible for maintaining a close personal watch to prevent unjustified or uneconomical purchasing at the end of the Fiscal Year--and I am sure that you will cooperate to the fullest.

LYNDON B. JOHNSON