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That's not universally true, it varies over time, from administration to administration, state to state and department to department. I work for a local city-gov, and we've consistently (3 times in 10 years) won placement on the nationwide "Best Place to Live" list.. while simultaneously drastically cutting budgets and laying off staff and closing programs citizens voted as lower-priorities. That's not to say there's ZERO WASTE... of course there is inefficiency in any human endeavor, but to say "most of it is wasted" is probably hyperbole. (IE = if governments threw away 90% of the money they got, then you'd be right). From what I've seen at a municipal level, most employees genuinely understand the power of keeping money local, and go out of their way to support local businesses and volunteer for local projects. (helping build a sense of "community").