Posted by: coastcontact | December 5, 2013

Spend Today – Let Tomorrow be Someone Else’s Problem

I am exhausted by government mismanagement.  It’s not about Obamacare.  It’s about foolish spending at the state and local levels.

Here in California the EDD (Employment Development Department),  that is the department that pays unemployment insurance, they decided to implement a new computerized check paying system.  California paid Deloitte Consulting $62 million to develop EDD’s new computer system.  An estimated 148,000 people have experienced delays of up to four weeks in receiving their payments due to computer glitches.

The Los Angeles DWP implemented a new billing system in October of this year.  Thousands of people received bills that were double their normal charges.  Some received bills one half their normal charges.  When those receiving incorrect overcharges refused to pay they were threatened with shutoff notices.

A retired DWP construction worker volunteered his retirement benefit to me, $6,000 per month.  Stunned, I said nothing.  The DWP has a powerful union.

Meanwhile Chicago officials, as they often do, turned to borrowing to relieve the financial pressure. This time they used taxable bonds with high interest rates, making the ultimate price tag even bigger.  A $12 million bill related to disabled parking will be paid off in 2039 for at least $30 million.  The Chicago Tribune found that the mayor’s boasting of tough choices amounts to selling taxable bonds to cover day-to-day expenses.  Long after he is gone the bill for retirement benefits will come due.  With a declining population (in the 1950s it was 3.5 million people, today the population is 2.5 million) this city may be the next Detroit.

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Responses

  1. When the government started outsourcing to corporations, whose only mission is to ‘make money’ and make lots of it, that is where our government went very wrong. There is a reason that its best to not allow our government to outsource, as the government does not have to pay CEO’s or satisfy stock holders. Just my thoughts on the subject.


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