Waste of the Day: Billions in Federal Use-It-or-Lose-It Waste

Topline: The General Services Administration spent $5.3 billion on grants and contracts this September, according to OpenTheBooks’ review of federal disclosures. It was the agency’s most expensive month for such purchases since at least 2007, and presumably in history.

The GSA and its extravagances

The number includes $1.27 billion spent in the three-day span from Sept. 25 to Sept. 27, an extreme example of “use-it-or-lose-it” spending at the end of the fiscal year.

Key facts: The GSA supports all federal buildings and office space with supplies, transportation and more.

The offices should be well-stocked after the agency spent $4,727 on foot rests and $2,875 on an 85-inch, “ultra-HD” Samsung TV in September.

Another $17,600 went toward iPhone 13 screen protectors. 

To support the Army’s “musical instrument project,” the GSA also spent $7,000 on saxophones and $10,000 on piccolos, complete with carrying cases, cleaning brushes, “cork grease” and more.

The GSA spent $1.8 million on gloves of all varieties: disposable, leather, anti-vibration and more.

Calendar purchases were just as varied. $1.9 million went toward wall calendars, desk calendars and dry-erase calendars.

Another $56,000 was spent on liquid hand soap. Scents included cranberry, honeysuckle and “rainwater.”

Other supplies included $708,000 for toilet paper rolls and dispensers, and $1.8 million worth of batteries.

September purchases also included $14.6 million for new chairs, $17.6 million for filing cabinets and $1.4 million on sofas — even though only 6% of federal employees actually show up for in-person work.

Another $32.7 million went toward “elevator modernization” in Texas, Colorado, Minnesota, North Dakota and more.

Search all federal, state and local government salaries and vendor spending with the AI search bot, Benjamin, at OpenTheBooks.com. 

The use-it-or-lose-it abuse

Background: Congress funds federal agencies based on how much money they spent the previous year. If an agency does not use its entire budget, Congress assumes it needs less funding and appropriates less — “use-it-or-lose-it.”

To maintain their funding, agencies make sure to spend their entire budget before the fiscal year ends on Sept. 30. That often includes absurd purchases like flatscreen TVs and lobster dinners: anything that gets the money out the door.

The Department of Defense is typically responsible for a large portion of use-it-or-lose-it spending, though its data from September has yet to be published as of Dec. 13.

Federal agencies besides the DoD spent $150 billion on grants and contracts this September.

Summary: Unneeded funding should be returned to taxpayers, not used for extravagant purchases. At least GSA employees have new foot rests to recover from the hard work of spending the public’s money.

The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com

This article was originally published by RCI and made available via RealClearWire.