Waste, Fraud & Mismanagement:
Your Tax Dollars at Work

San Diego City Agency Spending Millions Without Budget Approval. The San Diego Data Processing Corporation, a quasi-city agency supplying the city with data, has not had its budget approved by the city, as required, since 2001. The agency has spent millions during this period.

The board is appointed by the mayor, and 93 percent of its revenue comes from the city. According to Anorea Tevlin, the City Council's budget analyst, the agency's budget, according to the operating agreement with the city, must be approved each year by the City Council.

Mayor Jerry Sanders criticized this year's Data Processing Corporation $46 million budget for including $597,000 for employee raises and bonuses at a time when the city itself is cutting back.

Jay Goldstone, the mayor's chief operating officer, said he is not sure why the corporation's budget stopped coming before the City Council for approval.

In 2004, before Mr. Sanders was mayor but after the corporation's budget stopped coming before the council for approval, auditors found that agency executives misspent public money on meals, parties, alcohol, retreats and travel.

Councilman Carl DeMaio said this situation is indicative of a larger problem of holding independent city agencies accountable. (Source: San Diego Union-Tribune, April 19.)

Cal-Taxletter, April 24, 2009

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