IT Too Big for Obama Budget Cuts

Federal IT managers can breathe a sigh of relief. President Obama's proposal to trim $100 million from the federal budget is unlikely to affect ongoing IT projects, according to Deniece Peterson, principal analyst at market research firm INPUT in Reston, Va. She said the relatively small dollar figure means officials are likely to look elsewhere for savings.

"I think there are other ways to cut spending a lot quicker," Peterson said. "DHS said they could save $52 million over five years just by buying office supplies in bulk. I think there are simpler approaches to finding $100 million."

Peterson said if the dollar figure escalates, then IT funding could be cut. But as of now she views the reduction as largely a symbolic move.

"My sense is it was a peace offering. There's a lot of pressure about spending on TARP and the stimulus," she said. "I think this was a symbol that [the Obama administration] is taking the first step, asking the government to do the same thing they've said the public needs to do, which is be more fiscally responsible."

While it's certainly admirable for the administration to want to cut federal spending by identifying waste and duplication, it makes you wonder how they came up with the $100 million figure. Was this number chosen arbitrarily since it's round and sounds like a lot, or does it mean they already have some programs in mind for the chopping block? As Peterson pointed out, the government could easily save $100 million by just re-scoping one project out of the thousands currently in place.