You are absolutely right. Local agencies are simply drowning in Homeland Security $$. There are counties in rural Wisconsin who have the most unbeleiveable equipment you can imagine. Mobile command posts, portable decontamination units. You name it, they have it or will.
If they ain't got it, it's because they haven't asked. I'm not saying a lot of the equipment wasn't needed. I know departments that just retired thirty year old rescue tools that used caustic hydraulic fluid. BUT, the point is, money is being distributed as quickly as NEEDS CAN BE VERIFIED. They aren't just throwing it at the wall (or down some Rat contributor's pocket).