nrb
Active Member
Take it from someone who work in the government. Savings are not that hard to find but Senior managers are very good at protecting their perks and budgets.
Example:
If I'm the government and I give you a budget of 1B$ for this year to run you department, how would you use your resources to maximize your productivity? In the private sector, you would try your best since any surplus can be used for further investments to grow your business, cash flow, bonuses etc... Government doesn't work that way at all!!!.
-If you're a senior manager in public service and that by March 28th you only used 90% of the budget, do you know what you will do as all your fellow managers does?
You will spend everything that's left of it before the end of the fiscal year. Why?
-Because if they don't, the money is not carried over to next year's budget...It must be returned to treasury Board. What happens if it does?
You trigger a review from Treasury board who will likely reduce your budget. No managers wants that, so they spend it all and ask for more the following year.
They all do it. When politicians wants to find efficiencies, they usually mean it but who knows a department better than it's senior director? A minister? Not a chance. That's why the Harper government asked the Private sector to audit some of the departments. Politicians knows that senior public managers (deputy ministers) do it. After the multiple audits, Harper's government ended up getting rid of a lot of them and replaced them with their own people.
Every end of fiscal year is the same. I've seen crazy things being purchased by managers just to burn the cash that's left hence all those facility request pilling up near the end of the year to reconfigure, redecorate an office, buy new furniture, electronics etc...
The real question is, will Hudak be as efficient as Harper was?
It's a fair analysis of how departmental budgets are set but it's not every year or even every department that has excess funds before the end of the fiscal year. In fact it's fairly rare. And one of the motivations for keeping the budget from being cut because of a especially lean year is that it's likely you'll need the room next year anyway. It's a long-term issue that requires planning more than one year ahead of time.
The problem with funding transit with reallocating existing funds is that it's not sustainable. You might have the money one year and have a bad year the next, in fact you probably will, and then it's a disaster. We're talking about 20-25 year projects that require multiyear construction. We need sustainable funding that is solid and in place so we don't end of with aborted tunnels when suddenly the economy becomes especially bad and the government finds itself with a huge loss in revenue.