Coercive deficiency

In United States federal government finance, coercive deficiency is a process by which budget holders can allow themselves to run out of money prior to the end of a fiscal period, on the assumption that Congress will then feel morally obligated to supply the missing funding in order to prevent cessation of services or breach of contracts.[1]

The phrase was coined by American political economist and historian Lucius Wilmerding, Jr.[2] in his 1943 book The Spending Power: A History of the Efforts of Congress to Control Expenditures.[3]

The first attempt to control for coercive deficiency requests to Congress was the Anti-Deficiency Act of 1870, which prevented agencies from obligating more funds than had been appropriated by Congress.[4][5] Historians have documented examples of coercive deficiencies at the U.S. Post Office in 1879 and 1947 and at the Defense Department.[3]

References

  1. ^ Jensen, John E. (2006). Quick reference to federal appropriations law (2nd ed.). Vienna, Virginia: Management Concepts. p. 149. ISBN 1567261760.
  2. ^ "Paid Notice: Deaths Wilmerding, Lucius Jr". The New York Times. 20 August 2002. Retrieved 1 October 2013.
  3. ^ a b Kiewiet, D. Roderick; McCubbins, Mathew D. (1991). The logic of delegation: congressional parties and the appropriations process. Chicago: University of Chicago Press. pp. 213–249. ISBN 0226435318.
  4. ^ Rabin, Jack, ed. (2003). Encyclopedia of public administration and public policy. New York: Dekker. pp. 101. ISBN 0824709462.
  5. ^ Wildavsky, Aaron (1980). How to Limit Government Spending. Berkeley: University of California Press. pp. 98. ISBN 0520042271.
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