Economy, finance and labor

Executive Order 12837: Deficit Control and Productivity Improvement in the Administration of the Federal Government

President: Bill Clinton

Directed agencies to reduce administrative costs against a fiscal 1993 baseline over a multi-year budget period, with OMB overseeing implementation.

Status: Completed/expired.

Is Executive Order 12837 still in effect? No. Time-limited administrative-cost program completed.

What does Executive Order 12837 do?

EO 12837 instructed executive agencies to reduce administrative costs from a fiscal 1993 baseline over the following four fiscal years. OMB was to define administrative expenses and review agency budget requests. GAO found that OMB instead estimated the expense base and that the effects of the reductions could not yet be determined.

Administration position: The order projected that lower administrative costs would improve productivity and deficit control. GAO later examined the assumptions and tracking behind those estimates.
SignedFebruary 10, 1993
BaselineFiscal year 1993 administrative costs
Lead officeOffice of Management and Budget

Before and after

Before the order

Administrative spending was developed through the regular budget process without this government-wide reduction schedule.

After the order

OMB applied the required percentages to an estimated expense base, and agencies revised budget requests. GAO said the effects on program operations could not yet be determined.

Who had to do what

Agency / officeActionTiming / position
Executive agenciesSubmit administrative-expense budget requests with scheduled reductions against the adjusted fiscal 1993 baselineFiscal years 1994–1997
OMB DirectorIssue instructions, review plans and monitor resultsEach covered budget cycle
Agency headsAllocate reductions while carrying out statutory missionsCovered fiscal years

What happened next

EO 12837 signed.

GAO published its implementation assessment, finding that OMB had estimated rather than defined administrative expenses.