I had to rat on someone for the first time ever

My father inlaw works for the state. He's no peon and is constantly amazed and frustrated at the nonsense he observes up and down the chain. Regardless of his race, the behavior of your co-worker is indicative of widespread waste and corruption throughout government.

Whether he's stealing office supplies or time that he's being paid for, he's a thief - plain and simple. The fact that he's being paid for a job that he seems unqualified for (aside from the fact that he doesn't do his job) is another matter but that goes back to the sloppiness of government bureaucracy. It's like once you're in, you're in. Getting rid of someone who is dead-weight and doesn't belong can be very difficult (thanks, in part, to unions). My father inlaw was complaining recently about how upper management in his department will eliminate a job because of some budgetary concern and then turn around and higher someone less qualified at a higher salary. It doesn't make sense.

You did the right thing. We need more whistle blowers. Whether someone up the food chain hears the whistle and cares enough to do anything about it is another matter.