Spending At OMB Like “Bottomless Pit”

It seems that junket to Hawaii was just a tiny glimpse into the financial activities going on at the Office of Management and Budget (OMB). 

After we reported on OMB Director Debra Gottlieb’s trip to Hawaii, (for a conference), and some of the office redecorating expenses, we received additional information that, according to one of our sources, paints the spending habits as like the money is coming from “a bottomless pit.” 

The individuals who provided this information wish, understandably, to remain anonymous but said they felt it was important to come forward because “people need to know what’s going on in there (at OMB).” 

For a start, we were told, since the most recent hiring freeze, seven employees have been added to the OMB payroll, at salaries ranging from $80k to $35k, for a total payroll salary addition of $364,000. 

Three of those new employees, whose salaries average $56k each, were hired to implement a “Performance Based Budgeting (PBB) initiative currently being promoted by the Director,” one of our sources stated.  The department reportedly paid $175k to Valerie Richardson, of Treywyn and Associates, to train OMB staff and agencies in the approach, plus an additional $75k on training space and meals at the Palm Court and other locations. On its face, this budgeting approach may be a good idea – but our sources point out one big hitch in the plan. 

“Performance Based Budgeting means you look at the budget results from one year to help set the budget for the next year,” one source said. “But we’ve been directed to tie all the agencies into a fixed budget plan for the next five years, so we won’t be able to use a performance based approach.” 

“What this means is that we’ve hired three people and trained others on an approach they aren’t going to be able to use.”  

Next, we were told, that during this period of fiscal decline, the department was able to purchase three new vehicles, bringing the number in their fleet up to five. Vehicle use, including use by the Director,  appears to have crossed the lines of appropriateness as one individual stated “ It is so much abuse that the Director did a “stay vacation” where she was staying out East End in a hotel, but guess what was park up at the hotel? OMB1. “ 

The conversation then turned to the office renovations, which one source estimates will total around $1.5 million.

“We know that OMB had items in there for the past 18 years, but you know these things were still in good condition when Ms. Wheatley from Taxi Cab Commission jump on them to outfit her office,” the source stated.  “So it started with a $40,000 dollar paint job. Then came the new cubicles, new office furniture and the new carpets.  Next came the new telephone system.  Of course, electrical work and wiring had to be done.  The new computers have not been put up yet, but purchased.  Two flat screen TVs were purchased and installed costing $3,000, and there is long, long list of other expenses.” 

But where, we asked, is all this money coming from? 

“The Director is claiming it is encumbered funds,” one source stated. “So what if the money had been set aside from a previous fiscal year, as she (Gottlieb)  knows the fiscal situation, would it not have been the smart thing to leave the money in the VI Treasury and renovate when the Government could afford it?”  

Frustration is running high, and the concern is that there seems to be no end in sight for this pattern of spending. 

“Money is being spent like there is a bottomless pit at OMB,” another source added. “A company was hired and paid over $20K to come and train the staff on Microsoft Office, training that is provided (free) to government offices by the Division of Personnel.  The same company was brought back to train the staff on Access and Project, the only problem is the office did not even have the software installed…so we ask the question, was it really needed?” 

We’d all like an answer to that question.

Efforts to contact Ms. Gottlieb were unsuccessful. We were told she is on vacation.

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