On 10/6/06, Haim <email@example.com> wrote: > Today, I offer as yet more evidence a remarkable item from the New York Times. Seems that NYC has been squandering $20-$40 million every year, for decades. Gentle friends, such a thing is not possible in a regime of scarcity. Such a thing is possible only when bureaucracies lack any perception of a need for fiscal control and supervision. They can lack this perception only because they are wallowing in an ocean of taxpayers' money. >
You make it sound like $20-40 million is a lot. The $20 million (estimated, projected) savings -- could be more or less -- is only 2% of the transportation budget:
> Deputy Chancellor Kathleen Grimm, who oversees the system's finances, said she could not give an estimate of the number of students expected to decline bus services. The $20 million figure was a projection and actual savings could be higher or lower, Ms. Grimm said. The city has budgeted $1.06 billion for student transportation this fiscal year.
I feel like a huge organization that's only wasting 2% of its budget is probably pretty efficient. And this sounds like it was one of the areas where the most savings was possible -- otherwise, presumably, the consultants would have highlighted some other category of spending? So overall less than 2% is wasted. I'm very impressed. If this $40 million is all, that's out of about $15.7 billion ...
Does anyone have similar numbers about the % cut in budget that was achieved when a similar team of consultants was hired for cost reduction purposes at a large business? I strongly suspect that the cuts would end up a lot larger than 2% (or really 1/4 of a %, using the $40 million figure out of the total school budget), but I have no evidence for that.