Just and ExampleSubmitted by DuaneK36 on Tue, 04/02/2013 - 12:17
This is just one example of government spending that cannot be cut.
Years ago, I did a lot of work at a Federal Building through my father. My father was ex military. A buddy of his from the Army had become the head GSA and was in charge of all maintenance for that building.
There was a $10,000 dollar a month budget for general maintenance. It was the buddy system and my father's relationship with the head GSA guy that gained us all of the contracts for maintenance work there. And of course, the GSA head always made sure to spend their entire $10,000 a month, even if it was doing a whole lot of nothing.
That $10,000 a month was the small potatoes. Money for larger projects or maintenance was allotted differently. There was a constant stream of other contruction type contract work there.
Each independent government agency that occupied space in the building had their own Federal or State budget. Each of their annual budgets was deteremined in part by the previous year's spending. Come budget year end, every agency was dumping money in order to keep their budgets up; many unnecessary construction projects were put to bid, just to dump the rest of their budgets and insure no budget cuts for their department. All of those projects were handled through the GSA. Waste on top of waste. Sometimes we would remodel the same offices annually, just moving walls around for no good reason other than to get rid of tens of thousands of dollars.
Furthermore, because of the personal relationship between my father and the GSA officer, we had the inside track to bids. Construction projects which "by law" required public posting and competetive sealed bids, well....simply publicize the bid, open the bids, and have your guy bid a little bit less to get the job...all in private. Viola! Of course the government guy would get a little cut in the action.
The work itself was work done in accordance with the "prevailing wage" or "Davis Bacon Act". The pay scales are much higher than what is normally paid in the private sector. Typically the payroll was upwards of $35/hr for "skilled" labor + company profits. And don't forget the expense of the "department of labor" that oversees that payroll is being met.
This is just one example of how detrimental cuts in government spending would be (sarcasm). Imagine the scams and waste that go on with the multi million and billion dollar contracts!