What is DOGE really doing—and why is it so controversial? The answer lies in an esoteric if straightforward concept that began in the world of budgeting: Zero-basing.
As a general rule, most organizations, businesses, agencies, and even households building budgets start by asking themselves a simple question: What did we spend last year? To answer, they compile a list of expense categories and the amounts spent in each one. Next, they look ahead to the coming year to see which categories will require a bump up and where they can cut. Finally, they look at projected revenues to see whether they can expect to cover planned spending.
In such a process, last year’s budget serves as the “baseline” for this year’s budget.
That’s a perfectly reasonable approach if the goal is performance more-or-less on par with last year’s. An entity displeased with past performance and contemplating major reforms must take a radically different approach.
“Zero-Based Budgeting” rejects using last year’s budget as a baseline. Instead, it sets the baseline for each category at zero. It then considers each contemplated expenditure, one at a time, and asks whether current circumstances can justify it or require it. If so, it gets added to the budget. If not, it’s rejected.
“Welcome to the real world, Neo”. Zero based budgeting is perhaps the best way to bring the state spending under control again. We are past the point where we can just coast along on continuing resolutions that do nothing but bump up the budgets every year. Zero based budgeting makes those departments and employees vindicate their being there. If they cannot vindicate themselves, they are gone, but the current employees and departments are shocked that the real world can intrude on their plushy, cushy little area of life. Perhaps it is time to reintroduce them to the real world of employment.