Good question. I don't think the system has the ability to pull back - they sincerely don't know what's important and what isn't - a hard problem even in smaller orgs that can't print their own money. Collapse of various universities much more likely than slimming down.
"Community spending is stretched to the limit" is a lie like "in these times of decreasing budgets". Taxes go nowhere but up and they put more and more friction in economic activity every year but it's been barely outpaced by inventing tech specifically to route around the dmg