Many families keep a meticulous budget of their household finances. They track how much the working residents earn, where the dollars and cents are going, and what spending can be eliminated to improve the fiscal house. This type of thinking should be adopted by public officials, correct? Despite the perpetual handwringing about better financial management in Washington, nothing changes – and it remains to be seen if the Department of Government Efficiency (DOGE) can be America’s money savior.
$7 Trillion in Spending – But What Does It Buy?
The US government is poised to spend more than $7 trillion in fiscal year 2025. According to the Congressional Budget Office (CBO), federal outlays will exceed $10 trillion by 2033. The public is aware of the headline figures, such as $4 trillion in programs like Social Security and Medicare or $1 trillion in net interest payments. But what about the nitty-gritty? Nobody knows, says a new report.
The Government Accountability Office (GAO), a congressional research arm, recently published its annual Financial Report of the US government in collaboration with the Treasury Department and the Office of Management and Budget (OMB). The yearly overview of federal finances examines assets, costs, revenues, and sustainability by auditing financial statements.
It concluded that the federal government needs to combat “serious deficiencies” in fiscal management and return to a long-term sustainable fiscal path. The GAO highlighted four areas to address: “Serious financial management problems at the Department of Defense,” “Problems in accounting for transactions between federal agencies,” “Weaknesses in the process for preparing the statements,” and “Inadequate support for the cost of Small Business Administration and Department of Education loan programs.”
“The federal government has again come up short in managing its finances and achieving a clean audit due to challenges in adequately supporting its costs, revenues, assets and liabilities,” said US Comptroller General Gene Dodaro in a statement. “These serious financial management weaknesses and [the] unsustainable long term fiscal path further underscore the need for urgent attention, accountability, and transparency.” […]
— Read More: www.libertynation.com
A few years back while serving on the Finance Board in Bristol, CT, I discovered and investigated a mismanagement of the retirement funds for the city workers including the police and firemen. It was determined that the city’s longtime, well-connected treasurer has been conspiring with the longtime retirement fund financial management company, John Bierne, to avoid outside independent audits and the legitimate bid processes for roughly 15 years. This resulted in a loss of investment opportunity of roughly $230 million.
The Democrat controlled city officials couldn’t sweep my findings under the rug fast enough! I quit soon after that blatant disregard of our hardworking tax payers.
It seems Biden’s 10%, McConnell’s 10%, Murkowski’s 10% adds up in a hurry.