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Sad, but I was right 22 May, 2009

Posted by David Anderson in Uncategorized.

My concerns about the spending spree of local and state governments have come to fruition. Since 2001, I have been steadily showing how this problem would one day cost us. It has cost us the last couple of years in increased electric rates and fees in the City along with this year’s painful furloughs which will ensure elimination of some policing programs downtown. Even so the city is better managed than most governments in this state.

At the county level, we are going to have a tax increase as if on cue after the election. Proposed reforms by Commissioner Eric Buckson were not adopted even though they would have avoided a tax increase on an already hurting population.

At the state level, we have a crisis. While most of the attention has gone to huge proposed pay cuts, senior centers are facing a loss of a third of their funding, and taxpayers are facing significant increases. As Sussex County showed, not going wild in the good times means that you can not panic in the bad. With governments at all levels raising taxes in the next couple of years, the state has a responsibility to use our money wisely. It is not.

The Delaware Financial Management System has been shown to be highly inefficient to say the least. It may very well be siphoning 10% of our tax money through its inefficiencies. Its inability to pay vendors in a timely, but quick system is costing us more in fees. Its incomprehensibility is costing us unnecessary paperwork. Learning the system is like learning a foreign language. Its bulky nature is forcing workers to do expensive work arounds. Its inefficient structure is so burdensome that the cost of writing a check is estimated to be $50 by comparison it is $6 or less in the private sector. The dealings with vendors alone have been documented to cost $200,000,000.00 a year by the Wilmington News Journal. A patch on the vendor portion was suggested in 2004 and it will not go live until 2010. That is 1.2 billion dollars tossed away,

A financial management system is designed to save money not cost more money. This system has literally cost us Billions of dollars. DFMS is Bernie Madoff of financial accounting. The best budget reform legislation that anyone could introduce would be a joint resolution to establish a commission to find a new financial management system. Whenever I hear a hybrid approach being discussed, I get concerned. Let’s study this and see if we can go world class instead of poverty class.



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