Out of Control Policy Blog

Gov. Schwarzenegger Cuts Unfilled Vendor Contracts to Cut Spending

We've all heard how government tend to spend like crazy at the end of a fiscal year in order to meet their budget and avoid cuts in the following year. One of the chief ways they do that is by buying lots of equipment and supplies through their vendor contracts.

Gov. Schwarzenegger has wisely ordered state agencies to terminate most such contracts to avoid a year end spending spree.

Note the insanely absurd comments by the state worker unions at the end of the article.  Yeah, these contracts are bad because contracting costs more that state workers.  So the examples in the article, providing peanut butter and computer consultants could be better done by state workers?  On what planet? These are contracts for buying goods and services from the market, done right, with competition, they are a key way to keep costs down.  But reigning in the year end spending spree is still a good idea.

Adrian Moore is Vice President, Policy


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Comments to "Gov. Schwarzenegger Cuts Unfilled Vendor Contracts to Cut Spending":

JaydenP | June 10, 2009, 4:01am | #

Bail out fund has been the typical remedy to restore the normal growth of the economy. The fund doesn’t guarantee that it could really be the sure fire impedes the recession. Hopefully it will be worth risking the money for economic development. Part of fighting against recession was to make cutbacks on government spending. Defense Secretary Robert Gates unveiled an idea to replace defense contractors entirely, with the budget providing for hiring 13,000 civil servants to start with. Granted, part of the cash advance loans of the stimulus was to create jobs, but this creates and takes away simultaneously. Part of the budget is an additional $5 billion for jets, and more funding for the withdrawal from Iraq and increasing activity in Afghanistan. After we heard so many promises to cut government spending, we now are on the hook for more cash advance loans in the defense budget.

dahilde isleme izin belgesi | July 20, 2009, 2:58am | #

great posted is sir
thanks.

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Jeff Paul Forum | November 15, 2009, 4:41pm | #

Great work! What is discuss here is one side of the coin, what about social media, isnt it a challenge to google

Wealthy Women Debts | November 19, 2009, 1:18pm | #

Its very intresting and Informative stuff. Women finds it difficult to manage their cost, save $1 a day and you can see the difference it makes



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