It seems like every day I read about how government wastes money so I thought I would record them. Since I began this blog, I have been stunned by the amount of waste, fraud, and mismanagement I have found. I recognize that some government is necessary for any society to exist but without the "profit incentive" that we have in private enterprise, government continues to grow like a cancer and along with it the potential for abuse. If you ever needed a reason to limit government, just read some of the following posts.

Saturday, May 5, 2012

Farm Subsidies

The Washington Post has identified more than $15 billion in wasteful, unnecessary and redundant spending:
  • The largest annual subsidy, called direct and countercyclical payments, is given to farmers regardless of what crops they grow — or whether they grow anything at all. The Post found that, since 2001, at least $1.3 billion was paid to landowners who had planted nothing since 2000. Among the beneficiaries were homeowners in new developments whose backyards used to be rice fields.
  • For the 2005 corn crop, the federal government spent about $4.8 billion to compensate farmers for low corn prices. That was $3.8 billion more than needed to give them the government-guaranteed price. The program has cost taxpayers $29 billion since 1998.
  • A 2002 program aimed at helping those facing a serious drought gave $635 million to ranchers and dairy farmers who had moderate or no drought. Some ranchers got money because they lived in counties declared disaster areas after debris fell to earth from the space shuttle Columbia. 
  • The government spent billions to expand crop insurance coverage and eliminate the need for annual disaster payments. But taxpayers spent about $9 billion for disaster payments anyway — often to the same farmers. Big beneficiaries of the program were 16 private insurance companies.
  • The multibillion-dollar farm subsidy system often is touted by Congress as a way to save small family farms. Instead, those policies are helping to accelerate their demise, because owners of large farms receive the most subsidies and often use the money to acquire more land. 
  • Federal rules limit the total amount that farms can receive from the three primary farm programs to $180,000 annually. But for the 2004 crop year about $817 million was sent to farms that had already reached their limits.
Click here for more info.

Friday, May 4, 2012

Overpriced Helicopter Parts

The Office of Inspector General (OIG) reports that Sikorsky Aircraft Corporation overcharged the Department of Defense (DOD) $11.8 million for spare parts.  Some examples of spare parts purchased for prices higher than what is "fair and reasonable" include:
  • A charge of $284.46 per item for a flush door ring that should have cost $8.37, that resulted in $195,276 in overcharges.
  • A charge of $7,814.48 per item for a rotor that should have cost $1,536.65, that resulted in $686,293 in overcharges.
Moreover, OIG found examples of items that the DOD procured through Sikorsky Aircraft Corporation that were already in the military warehouses, including 34 of the rotors that the Defense Logistics Agency had already purchased at the lower price.

Senator Tom Carper stated that "We have known for years that the Department of Defense is unable to audit its books and is woefully behind in meeting Congress' requirement that it be audit-ready by 2017. Further compounding this significant problem is the fact that the Department of Defense's inventory system is just as dysfunctional as its accounting system, resulting in a minimum of a billion dollars worth of inventory that the Department doesn't need being on order at any given time".

California's Proposition 29

Proposition 29 is another example of how government's seemingly noble intentions wind up doing more harm than good and leads to one more bureaucracy that increases regulation and taxes while wasting taxpayer's money.  Here are some articles that offer insight into what will happen if this legislation is passed...
You would think that given California's current financial crisis, they would have learned from previous such actions.

Government Jobs

Here's an excerpt from article by John Stossel on government jobs...

How good is a government job? We all know that government workers get generous pensions, job security and health benefits.

Now a USA Today analysis reports that it's almost impossible to lose a federal job. Federal Employees who work at the Environmental Protection Agency, the Small Business Administration, or more than a dozen other government agencies "are more likely to die of natural causes than get laid off or fired...."

Death is the "primary threat" to their job security.

The federal government fired only about one-half of one percent of its entire workforce last year. In the private sector, the percentage of workers who get fired for "poor performance" is 5 times higher.

How much do you get paid with that kind of job security?  Twice as much as private sector counterparts.

Thursday, May 3, 2012

Where Did The Stimulus Money Go

Click here to see where the $825 Billion stimulus was spent over the past three years.  Was this the best way to create meaningful, long lasting jobs and build the infrastructure of the country or a way for politicians to curry favor with special interest groups who would support their re-election.

Wednesday, May 2, 2012

"Free" Wheelchairs

Here is an excerpt from an article by John Stossel on "Free" Wheelchairs:

Medicare is going broke, but almost no one wants to cut any of it.  In my Fox Business show on "Government Healthcare Gone Wrong," I reported how tax money is generously given to people who buy power wheelchairs. Commercials say you can get them at "little or no cost to you!" It's true. And about 170,000 people did last year!

But of course there is a cost, and taxpayers pick up the tab--about $700 Million last year.

Not all of them really needed a $3000 power wheel chair. Fraud and overspending has been a problem for the past decade. According to the US Inspector General, more than half of people who got the power chairs in 2007 never proved a need for them.

Click here for the full report.

"Porker of the Month" Hall of Shame

"Porker of the Month" is a dubious honor given to lawmakers, government officials, and political candidates who have shown a blatant disregard for the interests of taxpayers.  Click here to see a list of past recipients prepared by the Citizens Against Government Waste.

City Comptroller Steals $53 Million

Federal prosecutors say in an indictment that a former financial officer for the city of Dixon in northern Illinois stole millions more than an initial investigation had uncovered.

Tuesday's indictment accuses Rita Crundwell of stealing more than $53 million from the city since 1990. In an initial criminal complaint filed upon her April 17 arrest, prosecutors had accused her of siphoning $30 million in public funds to a secret account she controlled.

Crundwell is accused of using the money to fund her successful horse-breeding operations and a lavish lifestyle that included expensive jewelry and luxury vehicles.

Senator Coburn's Wastebook 2011

Here is the Table of Contents to Senator Tom Coburn's Wastebook 2011...
  1. Politicians Partying on the Taxpayer Dime – (Presidential Election Campaign Fund) $35.38 Million
  2. Mangled Mango Effort Could Hurt Farmers It Meant to Help – (Pakistan) $30 Million
  3. Poor Planning Hobbles Air Force Green Energy Effort – (Department of Defense) $14 Million
  4. Subsidy Program for Small Airports Fails to Help Most Recipients Achieve Sustainable Air Service – (Federal Aviation Administration) $6 Million
  5. Paying for Pancakes – (Washington, D.C.) $765,828
  6. The Super-Bridge to Nowhere – (Alaska) $15.3 Million
  7. Dead Federal Employees Continue to Get Benefits Checks – (U.S. Office of Personnel Management) $120 Million
  8. Extreme Home Makeover: Federal Highway Funds to Transform Abandoned "Rock House" into Visitors Center - (Oklahoma) $529,689
  9. Video Game Preservation – (New York) $113,277
  10. Millions In Foreign Aid to… China? – (Department of State & U.S. Agency for International Development) $17.80 Million
Click here for the full report.

Million Dollar Wasteland

The federal government’s largest housing construction program for the poor has squandered hundreds of millions of dollars on stalled or abandoned projects and routinely failed to crack down on derelict developers or the local housing agencies that funded them.

Nationwide, nearly 700 projects awarded $400 million have been idling for years, a Washington Post investigation found. Some have languished for a decade or longer even as much of the country struggles with record-high foreclosures and a dramatic loss of affordable housing.
  • Local housing agencies have doled out millions to troubled developers, including novice builders, fledgling nonprofits and groups accused of fraud or delivering shoddy work.
  • Checks were cut even when projects were still on the drawing boards, without land, financing or permits to move forward. In at least 55 cases, developers drew HUD money but left behind only barren lots.
  • Overall, nearly one in seven projects shows signs of significant delay. Time and again, housing agencies failed to cancel bad deals or alert HUD when projects foundered.
  • HUD has known about the problems for years but still imposes few requirements on local housing agencies and relies on a data system that makes it difficult to determine which developments are stalled.
  • Even when HUD learns of a botched deal, federal law does not give the agency the authority to demand repayment. HUD can ask local authorities to voluntarily repay, but the agency was unable to say how much money has been returned.
Click here for more information.

The Pork Report

Senator Tom Coburn, MD has an excellent web page titled the "The Pork Report" which lists how politicians, bureaucrats, and lobbyists are spending your tax dollars. Here's an example from the March 7 edition identifying at least $70,224,110 in wasteful Washington spending:
  • $1 million lottery winner who bought a new home and car receiving food stamps; “I thought that they would cut me off, but since they didn’t, I thought maybe it was okay because I’m not working.click here to read more
  • Part of an $11 million grant intended to provide business attire to 400 low-income job-seekers helped only two people click here to read more
  • Congressional staff receive pay bonuses click here to read more
  • Detroit paying city employees overtime to go on a spending spree with federal cash; The city has accumulated nearly $70 million in unspent community development and if it isn’t spent, the city risks not get as much money in future years click here to read more
  • Party in the USDA: Agriculture Secretary kicks off department’s 150th anniversary the commemoration and USDA field offices across the country will celebrate all year click here to read more
  • Massachusetts anti-poverty agency misspent up to $224,110 in federal grants, including pay to top exec who spent afternoons playing video poker and card games at casino click here to read more
  • USDA rural development grant paying for a gateway arch at the entry of an Oregon town with less than 10,000 residents click here to read more
  • Naked Cow Dairy receives USDA grant to promote its cheese even though it doesn’t even have the equipment to make cheese on a commercial scale click here to read more
  • Federal funds pay to give store fronts and building facades in Texas a facelift click here to read more
Click here for more examples.

Tuesday, May 1, 2012

NOAA’s $300K “Love Boat”

Senator Scott Brown is demanding an investigation into abuses at NOAA, the National Oeanic and Atmospheric Administration.

At the heart of the NOAA scandals is the corruption of the agency’s Asset Forfeiture Fund. As chronicled by the Commerce Department’s Inspector General, senior NOAA staff failed to maintain adequate controls over the millions of dollars that passed through this fund.

For example, NOAA employees manipulated and evaded purchasing controls so they could obtain a $300,000 luxury fishing boat that was used to conduct weekend getaways, alcohol·fueled parties, and other joy rides. Senior NOAA fisheries leadership authorized the purchase of this party boat despite the written warnings of a NOAA procurement attorney. Incredibly, NOAA employees chose to mislead the Inspector General when questioned about the use of the boat by family and friends.

But NOAA employees were not content with spending fishermen’s fine money on a party boat. They also used those fines to take trips to exotic locations like Kuala Lumpur and Norway. These conferences were attended by the government contractors who set the fines that financed the NOAA employees’ travel. Some of these trips included the very judges who approved those fines. These contractors have refused to answer questions about whether their own travel was paid for out of the fines they set.

Click here for more information.

Waste, Fraud & Mismanagement in California

California, like the U.S. government, is having major financial problems.  Here is a list of some questionable spending for 2010 put together by the California Taxpayers' Association:
  • City of Bell Leaders Padded Salaries With Money Intended for Low-Income Housing (October '10)
  • More Than $69 Million in State Welfare Benefits Drawn Out of State, Including on Cruise Ships (October '10)
  • Government Workers' Massive Compensation Packages Detailed (September '10)
  • Irvine District Spent $800,000 More Than Necessary for School Construction, Court Finds (September '10)
  • Small Southern California City Pays Attorney $500,000 Annually (August '10)
  • Los Angeles Transportation Department Wasted $855,000 on Unused Equipment, City Controller Reports (August '10)
  • Teacher Cheats on Student Achievement Tests (August '10)
  • City Officials Resign After Salary Scandal Breaks, Investigation Launched by Law Enforcement Officers (July '10)
  • State Spends $2.6 Million to Rent Vacant Building for Two Years (July '10)
  • Stockton School District Asked to Repay Nearly $1 Million in Unapproved Spending (July '10)
  • Welfare Benefits Being Withdrawn at Strip Club ATMs (July '10)
  • Auditor Says Lax Oversight of Recycling Program Cost State Nearly $2.2 Million (June '10)
  • Los Angeles County Probation Workers Escaped Discipline Because of Missed Deadlines (June '10)
  • In Orange County, Government Lobbyists Spent $1.1 Million to Lobby Other Government Officials (June '10)
  • During Budget Crisis, University of California Adds to Ranks of Highly Paid Senior Officials (June '10)
  • Audits Reveal Waste in L.A. County Departments (May '10)
  • UC Planning to Cut $500 Million of Administrative Waste (May '10)
  • Audit Says San Francisco Transit System Could Save $3 Million a Year by Managing Employees Better (May '10)
  • Audit Shows City of Los Angeles Misplaced 45 Percent of Purchases (May '10)
  • More Than 33 Percent of San Francisco City Employees Paid Over $100,000 (April '10)
  • San Francisco "Premium Pay" Rewards Cost $86 Million (April '10)
  • Consultants Find Millions of Potential Savings at UC Berkeley (April '10)
  • State Wasted $13 Million on Prison Drug Program, Auditor Says (April '10)
  • Districts Spending Millions on Error-Filled Math Textbooks (April '10)
  • Rocklin Gives Early Retirement Deals to City Managers, Then Rehires Them (March '10)
  • Orange County Spent $842,450 on Failed Information Technology Plan (March '10)
  • Teachers’ Union Sues to Get School District to Pay Teacher for Five Days at Family Reunion (March '10)
  • Taxpayers Pay for Failed Waterless Urinal Experiment at Environmental Protection Agency (February '10)
  • Los Angeles County Has Been Buying $40 Pens, Wasting $162,000 a Year (February '10)
  • Employment Development Department Mismanagement Costs $53 Million (February '10)
  • Dead People Received IHSS Benefits, Controller Reports (February '10)
  • Error by the Department of Corrections and Rehabilitations Costs Taxpayers $7 Million (January '10)
  • City Spends Big on Sculpture, Then Spends Again to Have it Removed (January '10)
  • Despite Budget Problems, San Diego Assessor and Treasurer Accept Raises (January '10)
  • CalTrans Buys New Vehicles That Sit Idle (January '10)
Click here to view details on the above.

Disability Payments: The Latest Example of Government Waste

Around 1,500 federal employees may have improperly received Social Security benefits, according to a new report from a government watchdog obtained by ABC News.

One beneficiary was a Transportation Security Administration screener who worked in California. In 1995, she was approved for disability payments for mood and anxiety disorders. Fast-forward eight years to when she began full-time employment as a screener, but failed to report the disqualifying change in employment status to Social Security. According to the report, SSA requested a Work Activity Report in 2005 and got no response, but continued to make payments. She continued receiving payments to the tune of $108,000 over 19 years and currently lives in a house that is listed for sale at about $1.8 million.

In another case, a postal worker who receives $23,000 in disability benefits for mood disorders is shown carrying her heavy mail bag and unloading it onto a table. This particular worker was awarded Disability Insurance beginning in 2006 for a brain tumor. Although she returned to work in 2007, she did not report her change in employment status to SSA. When the agency investigated and discovered the beneficiary had in fact been dishonest about her working status, she was informed she would be required to pay back $19,000 in benefits. She agreed to pay $100 a month. She admitted she will probably be dead before she pays back all she owes.

In all, the 1,500 federal employees cited in the report received approximately $1.7 million a month in payments -- 1,097 of them from the Disability Insurance program, 306 from the Supplemental Security Income program, and the remaining 87 from a combination of the two.

In 2008, the Disability Insurance program paid out around $104 billion in financial benefits to some 9 million beneficiaries, with the Supplemental Security Income program giving $38 billion to about 7.5 million recipients.

Green Energy Loan Failures

Because green energy companies cannot attract enough willing investors, politicians force the rest of us to “invest” (via subsidies) in them.  Here's a partial list of their track record to date:
  • SunPower, after receiving $1.5 billion from DOE, is reorganizing, cutting jobs.
  • First Solar, after receiving $1.46 billion from DOE, is reorganizing, cutting jobs.
  • Solyndra, after receiving $535 million from DOE, filed for bankruptcy protection.
  • Ener1, after receiving $118.5 million from DOE, filed for bankruptcy protection.
  • Evergreen Solar, after receiving millions of dollars from the state of Massachusetts, filed for bankruptcy protection.
  • SpectraWatt, backed by Intel and Goldman Sachs, filed for bankruptcy protection.
  • Beacon Power, after receiving $43 million from DOE, filed for bankruptcy protection.
  • Abound Solar, after receiving $400 million from DOE, filed for bankruptcy protection.
  • Amonix, after receiving $5.9 million from DOE, filed for bankruptcy protection.
  • Babcock & Brown (an Australian company), after receiving $178 million from DOE, filed for bankruptcy protection.
  • A123 Systems, after receiving $279 million from DOE, shipped some bad batteries and is barely operating. It cut jobs.
  • Solar Trust for America, after receiving a $2.1-billion loan guarantee from DOE, filed for bankruptcy protection.
  • Nevada Geothermal, after receiving $98.5 million from DOE, warns of potential defaults in new SEC filings.
Government continues to think that it can do a better job of predicting the future than private enterprise and the free market but as John Stossel says "No, They Can't".

Lastly, it appears that the majority of the green energy companies that received government subsidies were major contributors to the party in power - another example of politicians using taxpayer money to stay in office.