We have suggested that Agriculture, Commerce, Labor, Housing and Urban Development, Transportation, Energy, and Education could all "go south." We argue that farmers would farm in the absence of a Department of Agriculture, trains, trucks, and planes would travel without a Department of Transportation, local districts would run schools, etc. You get the idea.
On the other hand we absolutely believe in the regulatory function of government. Government is our referee in the game of life, think of black and white striped shirts blowing whistles and throwing flags. That means we support the necessity of anti-trust legislation and control, drug approval via the FDA, requiring airlines to be safe via the FAA, keeping our air and water clean via the EPA, etc. We need the Bernie Madoffs caught and imprisoned.
The regulatory aspects of the former departments could be collected into a smaller number of streamlined units. Furthermore, I see no reason why the Department of Defense shouldn't handle what is now the function of the Department of Veterans' Affairs. In short, we believe the federal government could be substantially smaller and less costly.