Except that for those in government service who have experienced decreased budgets over several successive fiscal years already have cut administrative costs (i.e. personnel) to the bone. The state of Texas has been under a hard hiring freeze for over 2 years.
Sure, you still need people. But, do you need as many people per capita as you did in 1960 for delivering the same service? I'm not saying we can go ahead and cut more people because Skynet will fill the gap; I'm just saying having an historically lean government bureaucracy isn't an indication in itself that service is reduced.
The things you need to inspect and regulate grow faster than you can incorporate new technology to make the regulation job more efficient. i.e. derivatives, genetically modified foods, imported everything, interstate online commerce, drilling and fracing, energy commodity trading, monitoring half-way house convicts and parolees you can't incarcerate, international trucking, industrial nuclear material and waste, etc etc etc
I would prefer that they just cut/get rid of the disgustingly bloated pension plans for federal employees (INCLUDING congressmen)