During lunch, the director of Streets and Parkways of Thor City made the following comment: “For the past 10 years, I deliberately overstated my labor and equipment needs by 20 percent when preparing my budget request. I figure that the City Council will cut it by 10 percent and I can use the other 10 percent as slack. If there is money left over, I can always find a way to spend it.” Do you consider this behavior to be ethical? If not, what steps might you, as budget director, take to cut down on this “padding”?