What is often a consequence of allowing departments to keep a portion of their savings?

Allowing departments to keep a portion of their savings can lead to a risk of poor service levels because it may create a disincentive to spend appropriately on necessary services. When departments know they can retain savings, they might prioritize reducing costs over providing quality services, potentially resulting in underfunded programs or initiatives. This practice can incentivize departments to cut corners or avoid essential expenditures in order to achieve savings, thereby negatively impacting the quality and availability of services they provide to the public.

In contrast, focusing on improved fiscal management, higher service levels, and better spending control typically requires a balance between budget discipline and the provision of adequate resources for services. These alternatives aim to enhance accountability and effectiveness in budgeting, but when departments are incentivized solely to save money, the overall service delivery can suffer as a consequence.