Looks like a witch-hunt to me: if they want more funds it means they're wasteful (and greedy), if they don't want more funds it means they're wasteful (and extravagant).
Not that either can't be true, but you can't take both A and non-A as positive evidence for the same particular thesis. Your post would require you to endorse the statement "if they wanted more funding, that would suggest that they are not wasteful".
First of all, the study doesn't claim that the high-level bureaucrats don't want more funding, just that they want smaller increases than the general public. That fits in with the theory that bureaucrats want to expand their domains. However, I suspect that high-level bureaucrats have better incentives to be efficient than (a.) the public, or (b.) the politicians who actually create budgets. They are more likely to understand how much funding their group already has and more likely to be fired or criticized for inefficiency.
It's pretty widely known that po...
Jerry Pournelle's "Iron Law of Bureaucracy" implies that leaders of bureaucratic organizations will seek to maximize the power and influence of the organization at the expense of its stated goals - but is that true in the real world?
Julie Dolan of Macalester College examined surveys of government administrators and found that, surprisingly enough, high-ranking federal bureaucrats tended to prefer less government spending than the general public, even on issues that their own departments are responsible for.
Here is the abstract from her paper, "The budget-minimizing bureaucrat? Empirical evidence from the senior executive service" that was published in the journal Public Administration Review:
I was able to read the paper here for free, but I had to register first.
See also: The Case FOR Bureaucracy