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Statement by the President on Cost Reduction Programs by Civilian Agencies.

September 07, 1965

I THINK you all know one of my most insistent goals is cost reduction. Ever since November 1963, I have instructed the heads of every department and agency to be imaginative and relentless in their pursuit of savings. I have required them to report to me periodically on cost reduction actions underway and planned.

I have just received a report from the Budget Bureau on civilian agency accomplishments during the 18-month period from January 1964 through June 1965. I am most impressed and pleased with the results. I think they show what happens when cost reduction becomes the personal goal of each Federal employee--from the President on down.

From January 1964 through June 1965, the civilian agencies of the executive branch took actions that saved over $1.1 billion. These savings have been achieved through thousands of separate cost reduction actions over the entire 18-month period. They have involved many agencies. Some were large savings; many more were small. But in total they add up to a major dividend for the American taxpayer--both in terms of his pocketbook and better program quality.

Let me give you three recent examples of what makes up this total. They are typical of what is being achieved in hundreds of cases throughout the Federal establishment:

--By doing some shopping in the excess property catalog, the Forest Service of the Department of Agriculture has avoided spending $28 million on equipment required for its various programs. By maintaining a sharp lookout for equipment no longer needed by other Government agencies, Forest Service managers have been able to put to work excess road graders, tractors, portable buildings, bedding, cooking utensils, and similar equipment.

Many other agencies are doing the same thing.

--By improved processing procedures, the Patent Office was able to increase its productivity by 35 percent in 1965 over 1964.

--The Census Bureau, by saving $1.8 million in its 1963 censuses of business, manufacturers, mineral industries, and transportation, will not need to request funds for these censuses in 1966.

These civilian agency efforts are in addition to the impressive results Secretary McNamara has achieved in the Department of Defense. As you know, he has announced savings in his budget of $4.6 billion in fiscal year 1965--$2.1 billion more than previously estimated.

Although we can take pride in what we have accomplished, we have much more to do. There is always room for further improvement. I mean to step up our current efforts. I think we have only seen the beginning of what we can achieve.

Note: The statement was released at Austin, Tex.

Lyndon B. Johnson, Statement by the President on Cost Reduction Programs by Civilian Agencies. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/240630

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