Joe,

Do you understand the concept of organizational maintenance?  Budgets are not only estimates of spending and revenue but can become a means of expanding a managers importance (and therefore power and salary).  It makes sense that the manager of a 10 million dollar budget should be paid more than the manager of 1 million.  Doesn't It? or Does it?   Or by padding you can make your budget objectives easier to meet.  I'm not saying that any of this is going on, just that there may be many more motives in the numbers than just finance.  The reasons for why and how budget numbers are is never a simple 'how much should it be'.