Open Recommendations Actions Could Raise $200 Billion – MeriTalk

A recently published Government Accountability Office (GAO) report estimates that the government could realize benefits and savings of $106 billion to $208 billion if federal agencies implemented about four percent of the agency’s unimplemented recommendations.

The GAO regularly issues recommendations—about 1,200 per year—for actions by federal agencies aimed at cutting costs and increasing revenue. In its most recent report, the GAO calculated that about 75 percent of these recommendations are ultimately implemented.

The agency said that 5,480 of its recommendations were still “open” – meaning they had yet to be implemented – as of March 2024 and estimated that “implementing some of these recommendations could provide measurable financial benefits of $106 billion to $208 billion.”

To determine this range, GAO used computer simulations to identify 19 recommendations from nine agencies and Congress—each with a potential financial benefit of $1 billion or more. The open-ended recommendations used in the calculation represent about four percent of the total number of recommendations.

According to GAO, the potential financial benefits from open recommendations are higher in 2024 than in 2023.

“We most recently reported in April 2023 that authorities need to implement hundreds of our open recommendations to find permanent solutions to 37 high-risk areas, and that in some cases legislation is required,” the report said, adding that 39 percent of the open recommendations relate to public safety and order, 26 percent to business processes and management, and 16 percent to public insurance and benefits.

Among the larger benefits that could result from GAO’s recommendations is Congress’s equalization of Medicare payment rates for physician visits for evaluation and treatment, which could save $141 billion over 10 years, according to GAO.

Other recommendations included that the IRS document how it manages risks associated with COVID-19 employer tax credits and implement compliance activities to recover money from ineligible claims, which GAO said could save “tens of billions” over two years.

The report also says that reauthorizing FirstNet, a national broadband network for first responders, could save $15 billion over 15 years.

GAO used data on past recommendations and performance from two internal systems to create computer simulations to estimate possible outcomes. Bootstrapping and Monte Carlo methods were used to create the simulations, using the existing data and random sampling to generate multiple possible outcomes.

“We have previously reported that the country is on an unsustainable fiscal path due to a structural imbalance between spending and revenues,” the GAO said, stressing that Congress must create a sustainable long-term budget plan to maintain or reduce the debt-to-GDP ratio. “Implementing our recommendations can help reduce the deficit, although these actions alone are not enough to address the country’s fiscal imbalance.”

“To fully realize these savings and other potential benefits, Congress and agencies must work together,” the report said.

In addition to the specific financial benefits, GAO identified six areas of more general benefits, including: public safety and order, business processes and management, public insurance and benefits, program efficiency and effectiveness, procurement and contract management, and tax justice.