State waste: Millions of your dollars uncovered

HARRISBURG, Pa. — Students get grades for their performance in school, but in the real world, there are checks and balances in place to serve as a report card, and for Pennsylvania, it's the Pennsylvania Department of the Auditor General handing out grades for how Commonwealth leaders are spending your money.

Auditor General Eugene DePasquale is up for re-election in year and following his first four years in office CBS 21 anchor Robb Hanrahan went to him for a report card on how much government waste he's uncovered.

The amount, more than $100 million, wouldn't solve the current state budget crisis, but DePasquale said it could put a dent in it, especially when it comes to education.

"It's about understanding how these departments are run and how we can make them more efficient," DePasquale said of his job.

Much of the current state budget arguments over the past four years have been over state funding for education.

This most recent budget impasse, now entering month eight, isn't all that different.

DePasquale said his office is keeping an eye on how school districts are spending their money, with at least one school district standing out during Hanrahan's recent one-on-one interview.

The auditor general said that distinction belongs to the Pittsburgh Public Schools. If an audit hadn't been released when it was, there could have been a tax hike, DePasquale said.

"We announce the audit that they have the largest surplus in the state. A board member comes up to me and says 'We have a tax increase vote tonight, but we didn't know we had this surplus,'" DePasquale said. "So we saved that district a tax hike."

As to how a school district can lose track of that much money, DePasquale says it comes down many times to poor book keeping.

"So for example Pittsburgh didn't know it had this $125 million. Us coming out with the audit that day prevented a tax increase," DePasquale said.

DePasquale's office says it's found approximately $103 million in misspent or recoverable state funds.

School district's account for nearly $26 million; corporate tax return over payments about $45 million; liquid fuels nearly $17 million; and city pensions, children and youth services, and tobacco settlement fund making up the rest of about $13 million.

FULL INTERVIEW:Auditor General Eugene DePasquale talks about wasteful spending in the Commonwealth

When his office finds these funds, DePasquale says his office checks back with the next audit.

"We follow up and every time we go out for the next audit. The number one thing we look at are our previous recommendations," DePasquale said.

DePasquale promised a complete overhaul of his own office in his 2012 campaign promise, and so far through that overhaul, the savings have been impressive.

He has cut his office's state vehicle fleet from 241 to 31, modernized his human resources department and reorganized and consolidated department bureaus. He has also reduced leased offices and parking, while saving money on printing and postage efficiencies.

In total, it comes to nearly $3 million a year.

"It gives us more credibility when we're out there criticizing wasteful spending," DePasquale said.

When it comes to education, the $26 million weighs have on his mind, DePasquale says.

"How many teachers could that have paid for, how many text books for poor kids could that buy," DePasquale said.

DePasquale said his policy of checking up and re-auditing department is a crucial part of getting rid of government waste, and keeping it that way.