No Runny Eggs

The repository of one hard-boiled egg from the south suburbs of Milwaukee, Wisconsin (and the occassional guest-blogger). The ramblings within may or may not offend, shock and awe you, but they are what I (or my guest-bloggers) think.

A way to reduce the deficit with NO pain!

by @ 17:15 on March 29, 2008. Filed under Miscellaneous.

But it will require some intelligence!

Saw this article today talking about an agency that was hired to provide assistance payments to Katrina victims.  

Now, other than a smarmy “You’re doing a great job Brownie!”, I won’t take the easy path and denigrate the stupidity of yet another bureaucracy.   Nor will I call into question their intelligence when they managed to pay the maximum payout of $150,000 to people who didn’t qualify at all for the program.   I also won’t cast aspersions on their integrity just because the only way this “leaked” out was that they had to put out a contract to hire a collection firm to help them get the money returned.

I will give them the benefit of the doubt because they had a

“sense of urgency in paying Road Home applicants, and ICF knew applicants might eventually have to return some money.”

Here however is the money line of the article:  

Brann pointed out that 5,000 collections cases would represent a 4-percent error rate for the Road Home that is “quite good for large federal programs.”

Let’s see, the current Federal budget is $3.1 trillion dollars.   If 4% of that is just “error”, we have $124 Billion we should be able to take out of the budget just by hiring a few people that are smarter than your average fifth grader!   Of course Brann thinks 4% is “quite good”, probably representing an “A” or “A-” in government speak.   If that’s so, the average error rate is probably more like 6% – 7% or around $200 Billion dollars.

The current budget deficit is estimated to be around $400 Billion. I think we’ve just found a way to cut that in half!

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