One of the common problems that plague many government agencies and departments on local, state and federal level, is that they have the mind set of spending what they’ve been allocated instead of being financially responsible and cutting spending.
Years ago, my dad worked for a utility that is one of the few in the nation that was actually a government agency. One of his duties as a foreman was to drain, repair and re-surface the irrigation canals in the Phoenix metro area. As a government agency, they are allocated a certain amount of money to maintain the canals. During the annual ‘dry up’ the normal routine was to re-do about half a mile of canal.
My dad, who was always fiscally responsible came up with a way to re-do a mile to mile and half in the same amount of time and save the company $1 million in the process. His reward for a job well done was one of the worst job related butt chewings he ever had. His bosses weren’t upset with the actual work, but that he didn’t spend the full budget and they were afraid the next year’s budget would be less.
This is the same mindset that plagues many of our politicians. In a recent report, Kellan Howell with Circa.com reported that many federal agencies spend up to a quarter of their budget in the last two months of the fiscal year that ends September 30 each year. Worst yet, many of those same departments spend tons of money on the last day of the fiscal year because of the ‘use it or lose it’ mentality.
In her report, she stated that our federal government spent over $9 billion in the last week of September. On the 30th, the last day of the fiscal year, the federal government spent at least $2 billion.
You may be asking what they spent it on. According to Howell’s report:
“Some of the purchases included $400,000 worth of toilet paper, over $65,000 on booze, nearly $40 million on furniture and over $45 million on cars.”
“‘The fiscal year-end at the federal government doesn’t just have the appearance of being a big party. It, in fact, is a big party,’ said Adam Andrzejewski, founder of OpenTheBooks.com.”
With that type of mentality, no wonder the US is facing a $19.5 trillion debt that it can never repay. According to the US Debt Clock.org, federal spending is up 119%. At the time of this writing, the federal government has tax revenue of $3.378 trillion (up 66%) compared to spending of $3.868 trillion (up 119%). Spending 13% more than they are taking in.
What would happen if you ran your household like our politicians run our nation? The average family income in America is around $52,000. What would happen if your spent $58,760 a year? You would have creditors burning up your phone minutes, sending you nasty letters and knocking at your door. It wouldn’t be long before you would be forced to either drastically cut your spending and/or declare bankruptcy. This is what’s facing America if our politicians are allowed to continue operating with the ‘use it or lose it’ mentality that if bankrupting our nation.
It’s time we elect financially responsible people and demand that they kill the ‘use it or lose it’ mentality that plagues our city, state and federal governments. Take time to check out the candidates that will appear on your ballots in November and demand that they be fiscally responsible. American cannot afford to keep spending the way they have been.