Eric,
My proposal for the cut has to be tied to the entire idea of acting like the private sector - You will propose your cut, you will do it now, and if you don't carry through you will be gone. What happens when a business department head gets an order and doesn't do it ... He is gone! It keeps happening until someone meets the goals.
However, in gov. you have to deal with politicians, unions and feel good spin doctors, so anyone that tries to improve efficiency and productivity will be the bad guy and dragged through the courts.