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Shooting the messenger


By John Bebow - August 13, 2009

The Michigan Auditor General's office estimates it returns $8 to $10 in savings and improved government operations for every dollar spent on the agencies auditors and investigators, according to a story in the Gongwer News Service this week.

Think about that for a minute. Where can you, as an individual investor, get a 800 percent return on your investment?

Auditors are at work every day in state agencies, going through file cabinets, balance sheets, and computer records in an effort to assure that taxpayers' money is well-spent. Unfortunately, the auditors find dozens of examples every year of sloppy business practices, areas for improvement, and, sometimes, outright fraud.

Even more unfortunately, the auditors are completely outnumbered — and they're growing less prominent every year. As Gongwer reported, the Auditor General's staff has reduced by almost 25 percent in recent years.

This year, the Auditor General will spend a total of $12 million on field operations. That's 14 cents out of every $100 spent in the general fund budget. The Legislature's response is to cut even more — another 10 percent cut planned in the next year. FOR A GOVERNMENT PROGRAM THAT PROVIDES A DIRECT RETURN OF ABOUT EIGHT BUCKS FOR EVERY DOLLAR SPENT!

In effect, the Legislature is turning its back on about $10 million in program savings elsewhere in state government by imposing across-the-board spending cuts on all programs.

That's the problem with budget cuts based on across-the-board program reductions. There isn't enough money left to continue with this gutless approach. The Legislature must become more strategic in its budget priorities.

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