And The Wasteful Government Spending Just Keeps On Coming

By Bruno Korschek|

One of the promises from the Republican party leadership after their big election wins this past Tuesday was the pledge to reduce the size and budget of the Federal government and to finally start cleaning up the wasteful spending of taxpayer dollars. They may want to consider the following recently reported samples of government waste as a starting point:

– An Associated Press article on October 28, 2010 investigated the widespread misuse of taxpayer dollars in the many “dysfunctional” housing authorities across the country. The result of their investigation uncovered the following:

* The head of the Philadelphia housing authority, the fourth largest in the country, maintained a secret slush fund of $900,000 to pay off a sexual harassment problem without the oversight board of the housing authority knowing about it.

* And Philadelphia was not even designated a problem housing authority by the department of Housing And Urban Development (HUD).

The Department currently maintains a list of 146 housing authorities across the country that were in a troubled condition, a list that does not include Philadelphia.

* Some housing authority contracts are signed and approved without bidding.
The New Haven housing authority in Connecticut had no written contracts at all. The Associated Press found that Federal housing money designated for one purpose is often used for a totally different purpose.

* Some housing authority boards of directors do not meet on a regular basis and many times when they do meet, meeting minutes are not kept.

* Many housing authority executives have little or no financial management or accounting experience, often resulting in deep financial problems before anyone notices, including the Federal government.