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GSA scandal continues to hurt meeting market
In the wake of the GSA scandal, the US Office of Management and Budget in a memo has proposed cutting travel budgets for government agencies by 30% every year through 2016. That is 10% deeper than previously ordered cuts.
"Other parts of the memo allow federal travel to continue to take place but with added oversight and internal controls," according to Meetings Focus.
These include requiring deputy secretaries to review any conference where the agency spending could exceed $100,000; prohibiting agencies from spending over $500,000 on a conference unless the agency’s secretary approves a waiver; and requiring agencies to post publicly each January on the prior year’s conference spending, including descriptions of agency conferences that cost more than $100,000.
The directive comes a few weeks after the US House and Senate passed separate bills to cut and freeze for the next five years some federal travel and meeting spending. That move was in response to a controversial 2010 GSA event held in Las Vegas that resulted in several congressional hearings and the resignation of GSA administrator Martha Johnson.
US Travel is concerned about the proposed cuts, noted Roger Dow, president and CEO, in a written statement to the industry.
"We will continue to monitor this issue closely," he said, "and work with the administration to mitigate any adverse impacts to travel."
By David Wilkening
David
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