Ever wonder about the mechanics of how to spend over $800 billion? Well, so did the authors of a new report from the Recovery Accountability and Transparency Board, the group charged with Recovery Act oversight, a report which looks at staffing levels in federal agencies in the wake of the Act's passage. And the results aren't good. The report warns that "Recovery Act funding has substantially increased the workload of most agencies receiving these funds," and that as a result, many agency programs are reporting drastically inadequate staffing levels for their workloads.
The report, prepared by the Commerce Inspector General, who sits on the Recovery Board, surveyed 29 federal agencies receiving Recovery Act funding, representing hundreds of Recovery Act programs. Surprisingly, the survey found that 41 percent of the programs in large agencies (defined in this report as the Departments of Defense, Health and Human Services, and the Interior) reported inadequate staffing levels. On top of that, another 45 percent reported that while they were adequately staffed, doing so required taking staff away from non-Recovery Act duties. The other agencies reported similar numbers, with only 24 percent of programs in these agencies saying they have adequate staffing levels with minimal impact on non-Recovery Act work. And this is despite agencies detailing some 22,000 staffers to work on Recovery Act grants and contracts.
The consequence of this understaffing is fairly predictable. Crucial work will not get done, and overall work quality will suffer. The report says that because of the overload "the awarding of contracts and grants is being delayed-as is other work; employees are working overtime; and the oversight and monitoring of awards-especially non?Recovery Act contracts and grants-are expected to decline, as many agencies attempt to implement Recovery Act requirements while carrying out their ongoing programs and operations." The report also warns that the impact on work quality may be exacerbated by a dearth of qualified contracting personnel in the agencies.
To be clear, the understaffing problem is not due to the reporting requirements of the Recovery Act which we here at OMB Watch are so fond of. The agencies are under enormous political pressure to spend the $275 billion of Recovery Act discretionary funds as fast as possible, thanks to the Obama Administration's dedication to funding "shovel-ready" projects. But spending money quickly without creating absurd amounts of waste, fraud, and abuse requires large staffs. And thanks to the all the attention that these programs are getting, both from Congress and from the public, agency heads are far more likely to pour resources into Recovery Act projects than other programs, regardless of whether such allocations make sense policy-wise. As the report notes, "to ensure timely completion of Recovery Act work, agencies are prioritizing their Recovery Act workload, hiring additional personnel, and shifting and/or reassigning staff."
That said, I'm sure the transparency requirements of the Act are at least contributing to the strain on the agencies. For instance, agencies are tasked with helping their grant, loan, and contract recipients understand how to report back on the use of their funds, a somewhat confusing process for those who have never reported before. Responsibilities such as these, while they are incredibly important from a transparency perspective, do take up staff time, since they involve communicating with thousands of recipients scattered across all fifty states. I'm disappointed the Recovery Board's report does not specifically address this issue.
Unfortunately, at the end of an otherwise great report, the Board whiffs on providing solid recommendations for how to fix the staffing problem. The report simply finishes by saying "we recommend that agencies continue to closely monitor their staffing of both Recovery Act and non?[Recovery Act] work, and make adjustments as necessary to ensure that all contracts and grants are properly awarded and monitored." Well, if they won't say it, I will: the agencies need to begin channeling more resources to hire and train contract officers, and Congress needs to increase agency funding by the requisite amount so that the program funding levels are not adversely affected. End of story. You cannot simply dump billions of dollars on already-stretched agencies and expect them to deal with the new funding quickly and easily.
It's reports like this that make discretionary caps such as the ones proposed in President Obama's budget patently absurd, since they severely limit the government's ability to react to new situations.
Image by Flickr user Stewf used under a Creative Commons license.
(Sam Rosen-Amy 03/15/10; 0 comments)The Environmental Protection Agency (EPA) has announced it is taking another small step increasing transparency by providing free access to a key database that lists every chemical in commerce. Well…almost every chemical. Of the more than 84,000 chemicals on the Toxic Substances Control Act (TSCA) Chemical Substance Inventory, the identities of almost 17,000 are kept secret because the manufacturers allege the information is confidential business information (CBI). Such CBI claims are widely abused by manufacturers, and with the EPA's acquiescence, large amounts of information are inappropriately withheld from the public.
The EPA has acknowledged that CBI claims under TSCA are a problem and has taken additional steps to curtail the abuse. In January the agency announced it would reject a manufacturer's claim that the chemical identity is secret if the chemical identity already appears publicly in the inventory. This was a sensible move, and it shows that there likely are many other common sense actions the agency can take to improve the public's access to crucial information that should not be kept secret.
Comprehensive TSCA reform legislation is expected to be introduced in Congress any week now (it's been expected any week now for the last several months) and that might help the problem even more. However, EPA's toxics program is not the only program that sees abuses of CBI claims. For example, pesticides are regulated under a different law and illegitimate CBI claims infect that program too, impeding the public from learning what poisons are being applied near them or near sensitive ecosystems (like your drinking water source). EPA gathers information from businesses under a variety of regulations, and the public's right to know about a range of potential harms is impaired by illegitimate and exploitative trade secrets claims.
Before today's action, the list of chemicals was only available for a fee from the Commerce Department. Now the data are available for free in multiple formats from www.data.gov or from the EPA website.
EPA also announced it is planning additional steps to open up the chemical regulatory process. The agency will add TSCA facility information and the list of chemicals manufactured at the facility to the Facility Registry System (FRS). FRS is a database of the thousands of facilities covered by numerous EPA regulations. According to EPA, "The addition of TSCA facility and chemical databases to FRS will provide the public with information on the facilities in their communities using industrial chemicals." No time frame was provided for this action.
(Brian Turnbaugh 03/15/10; 0 comments)James Madison’s birthday is an exciting time for open-government wonks. Madison, the father of our Constitution and fourth president, was an outspoken advocate of open government. This is why we dedicate an entire week to heightened public advocacy of transparency issues through public events, legislative initiatives, and op-eds. This year offers several opportunities for public participation.
This week, our blog will be highlighting some basic ways to access government information such as how to use the Freedom of Information Act, how to access government data, and to know what information is already available to you as a citizen.
The week kicks off nationally today, March 15, with the 2010 National Freedom of Information Day Conference at the First Amendment Center. The theme of this year’s conference is to assess the current state of government openness and then to look forward to what we can expect in the near future. Concluding the week’s events will be a tri-panel webcast on March 19 sponsored by OpenTheGovernment.org and hosted by the Center for American Progress. For more events during the week, see the Sunshine Week calendar here.
There are a number of activities going on at the regional, state, and local levels as well. For more information about these events you can look up your local coordinator here and contact them.
Today, the DC Circuit court reissued an opinion in Public Citizen v. OMB that rejected the agency’s use of exemptions 2 and 5 of the Freedom of Information Act (FOIA). OMB had attempted to withhold information from Public Citizen that detailed which agencies submit materials to Congress without clearance by OMB. This court case adds an important legal support to the FOIA practice of discretionary disclosure.
Exemption 2 of the FOIA allows agencies to withhold information concerning internal personnel rules and practices while exemption 5 applies to inter- and intra-agency materials that are pre-decisional and deliberative. However, the DC Circuit found that the records have nothing to do with OMB’s internal practices. Further, for exemption 5 to apply the records must be both pre-decisional and deliberative which do not apply in this instance. Therefore, neither exemption can apply to these records in full.
This case is an important one in that it limits the way these specific FOIA exemptions can be used by agencies to withhold information from the public. Government openness advocates have long argued that these exemptions are applied too broadly by agencies.
Although the Obama administration has attempted to better define the applicable uses of these exemptions, advocates have not seen a decline in their actual assertions. The Office of Information Policy at the Justice Department released a memorandum last May that instructed agencies to exercise greater discretion to release information under both of these exemptions if there would be no reasonably foreseeable harm from release. Far too often, agencies will use exemption 5 to withhold records in their entirety when only part of the information in an entire document might actually fall under that exemption. Further, agencies usually take vast liberties to apply exemption 2 broadly and withhold information that could inform the public in regard to activities of the government. Hopefully this case will help push agencies to better comply with executive branch FOIA policy.
The Senate Judiciary committee held a hearing tilted, "We the People? Corporate Spending in American Elections after Citizens United." During the hearing opponents of the ruling argued that the case exemplified that the Roberts Court has abandoned judicial restraint. Conversely, witness Bradley Smith, described the responses to the Citizens United decision as "hysteria." Smith also caused hysteria during the hearing when he referenced Vermont legislators as "freaking out" about the decision. This incited a heated exchange between Smith and Chairman Patrick Leahy (D-VT). Leahy interrupted Smith, disagreeing with the characterization of Vermont legislators.
Substantially, the panelists somewhat agreed that it will be very difficult to pass any major legislative changes. Any new campaign finance law is likely to face a legal challenge.
According to BNA Money and Politics ($$), Democratic senators maintained that the decision "represents a major boost to corporate influence in American politics, which is deeply unpopular with their constituents."
In addition, the House Financial Services subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held a hearing which primarily focused on the issue of whether corporations should have to report their expenditures to shareholders. A member of the committee, Rep. Mike Capuano (D-MA), has introduced the Shareholder Protection Act of 2010, (H.R. 4790) requiring shareholder approval of corporate expenditures and boards of directors would have to vote on political spending over $50,000.
Again, any legislation is sure to face an uphill battle and possible future litigation. The expected measure from Sen. Chuck Schumer (D-NY) and Rep. Chris Van Hollen (D-MD) after the release last month of a summary of their proposals has yet to be introduced. CQ ($$) reports that the lawmakers are "sorting through the concerns of labor unions, nonprofit organizations and lawmakers as they try to write legislative language and line up cosponsors from both parties."
(Amanda Adams 03/11/10; 0 comments)The Obama administration is nearing completion of a major federal regulation of greenhouse gas emissions for the first time in U.S. history. The Environmental Protection Agency and Department of Transportation will jointly issue a rule regulating vehicle emissions by mandating increases in fuel efficiency over the coming years.
Tuesday, EPA and DOT’s National Highway Traffic Safety Administration submitted a draft final rule for review by the White House Office of Information and Regulatory Affairs (OIRA), the last step in the rulemaking process before publication. The rule must be published by April 1 in order to give automakers enough time to comply with the rule’s requirements for model year 2012 vehicles.
In the proposed rule, EPA estimated the standards would reduce climate changing greenhouse gas emissions by 950 million metric tons and 1.8 billion barrels of oil for cars sold in the model years covered (2012-2016).
The environmental gains aren’t the only benefits worth noting; drivers’ budgets will benefit too. Under the proposed rule, DOT estimated fuel cost savings of more than $150 billion.
The joint rules have the support of both environmentalists and the auto industry who came to an agreement in May 2009. Environmentalists persuaded the administration to use California’s vehicle emissions program, which had never been implemented, as a model for the federal regulations. Even though automakers had objected to the California plan, they signed on because they wanted one standard applied to all 50 states.
(Matthew Madia 03/11/10; 0 comments)The Chronicle of Philanthropy ($$) details the President's Advisory Council on Faith-Based and Neighborhood Partnerships' new report offering suggestions for the government in its work with charities. The panel provided a 164-page document which included recommendations to ensure that religious charities use government money only for secular activities.
The panel was split on whether houses of worship should be required to set up separate organizations to receive federal money. The report also suggests the federal government "clarify how the constitutional separation of church and state applies to charities that receive government grants and contracts." Charities are not allowed to use direct government money for "inherently religious activities" but, the council proposed that wording be changed to "explicitly" religious activities.
One of the report's recommendations dealt with the proposed Partner Vetting System (PVS), a program that OMB Watch has opposed. PVS would require grant applicants to submit detailed personal information on "key individuals" to be shared with intelligence agencies and screened against terrorist watch lists. The panel rightfully advises that the government work with nonprofits to create an alternative to PVS. "PVS as currently designed would significantly harm partnerships with local communities and compromises the safety of U.S. PVO [private voluntary organizations] personnel."
(Amanda Adams 03/11/10; 0 comments)
You can always tell when the appropriations season is approaching because, somehow, earmarks, the shadowiest part of the appropriations process, always find a way of sneaking back into the political discourse. True to form, as we wait for Congress' budget resolution, today saw both the Democrats and Republicans announcing their own earmark reform plans. The House Democrats, through Congressman David Obey, chairman of the Appropriations Committee, announced that they would be forbidding earmarks to for-profit organizations. At the same time, House Republican Leader John Boehner announced that his caucus was considering an outright ban on earmarks from House Republicans.
Both actions seem like an overreaction. While there was indeed earmark abuse, all for-profit entities were not abusing them, and the House Democrats' actions seem to be punishing those who were following the rules. Also, as a recent New York Times article on the Congressional Black Caucus Foundations suggested, not all non-profits are perfect angels. And banning all earmarks completely won't get rid of corruption or influence-peddling; the most famous recent such scandal, involving Jack Abramoff, wasn't about earmarks.
We at OMB Watch don't take a strong stance either way on earmarks, so we're not going to endorse either party's proposal. What we care about is transparency. As long as everything is transparent and above-board, we're okay with it. But right now, the earmark process could be a lot more transparent.
The problem is that it can be difficult to tell who requests which earmark. In 2009, Congress mandated that Members disclose their earmark requests online. This should have solved the transparency problem, but instead of providing the data in one place, the new rule left it up to each Member to post their earmarks on their individual websites. This meant that there were now 535 different websites listing earmark requests.
To help fix this new problem, Obey's announcement banning earmarks for for-profits also included a promise to provide a "one-stop" link to all Members' earmark requests. While it's not clear what how this promise will be executed (one page with every Member's earmark requests, or one page with links to each Member's website which lists their requests?), we're hopeful it's similar to the principal behind a petition OMB Watch just signed onto. The petition calls on Congress and the Obama administration to make public all earmark information, in one place, in a data-readable format. This information, the "who, what, when, where" of every earmark, could be used by everyone from journalists to advocates to ordinary citizens to actually make the earmark process transparent. It's a great idea, and getting support for the petition is important. Even if Obey releases all earmark information in one place, we still need the Senate data, since Obay's power is only over the House appropriations bills. So go sign the petition, and help bring transparency to the earmark process.
Image by Flickr user johnmuk used under a Creative Commons license.
(Sam Rosen-Amy 03/10/10; 0 comments)In a report released yesterday, Citizens for Tax Justice (CTJ) critically examined the tax policies proposed recently in Rep. Paul Ryan's (R-WI) budget alternative, titled conventionally, "A Roadmap for America's Future." Claims of the proposal "balancing the budget" and "reforming entitlements" have already been thoroughly debunked, but CTJ has contributed a valuable analysis of the young Republican's tax policies, which will actually cost the government "$2 trillion over a decade even while requiring 90 percent of taxpayers to pay more" than they already do in taxes.
How does Ryan, the ranking member on the House Budget Committee, accomplish this stunning feat? Steve Wamhoff, the report's author, argues that Ryan's proposal reduces federal receipts and outlays to recklessly low levels, while pumping money into the pockets' of the nation's wealthiest citizens. Ryan, according to Wamhoff, structures this disaster of a budget proposal around four main tax policies: extension of all Bush Tax Cuts; introduction of a "simplified" tax as an alternative to the personal income tax; elimination of the estate tax; and replacement of the corporate tax with a value-added tax (VAT).
I know we're just beginning to see signs of an economic recovery, but that doesn't mean that it's time to start providing tax relief to those making over $250,000 a year. Extension of the Bush Tax Cuts for the wealthiest Americans makes little sense when you examine the cost to government in the form of lost revenue and the unsustainability of claims that rich people use most of their money to create jobs. In light of Ryan's other regressive tax policies in the proposal, though, I suppose we should be grateful that he just didn't reverse President Obama's plan and only extend the Bush Tax Cuts for those making over $250,000.
The effects of Ryan's "simplified" income tax competing with the traditional income tax make the proposal, according to Wamhoff, anything but simple. The plan reduces taxes for all but the poorest Americans and takes more money from you the wealthier you are, but the benefits of the system are extremely regressive compared to the current income tax structure. Moreover, the competition of the "simplified" tax would actually complicate matters as people tried to shift from one system to the other depending on which one required the least amount of tax liability.
I have exhaustively chronicled how elimination of the estate tax would benefit only the wealthiest of Americans and drastically hurt the government's bottom line, all while discarding one of the only checks on the accumulation of wealth – and, therefore, power – in this country. Replacement of the corporate tax with a consumption or VAT for business would create a regressive tax that would overwhelmingly hurt the poor and middle class, as businesses would be able to shift what was once a tax on them onto consumers.
Critics have been beating up on Rep. Ryan's budget proposal since he released it back in February, but, as Matt Yglesias noted earlier today, it's important to consider that in the not-too-distant future, Ryan could be writing budgets for a GOP majority, "presumably animated by the same moral principles that led him to this idea." That is a scary thing.
Image by Flickr user Juan Nosé used under a Creative Commons license.
(Gary Therkildsen 03/10/10; 1 comment)The Recovery Board, via the Office of Tax Analysis, has a new set of snazzy charts and graphs breaking down Recovery Act tax obligations, from March to December 2009. There isn't anything particularly newsworthy in these charts, since we've known the relative sizes of the expenditures for a while now, but they are very useful in seeing the expenditures over time, which is a new trick. I added part of one of the more interesting charts below; just be aware that more current estimates place the tax expenditure amount obligated closer to $120 billion.
The main take-away from the chart is that thus far, the Making Work Pay credit is far larger than any other single credit, with only all business tax credits combined coming close to it. This should continue for the rest of the Act's life.
Speaking of charts, I have to admit that the Board has been pretty good about putting up visual guides to the Recovery Act. Each new release of recipient data is accompanied by a set of charts showing the composition of the current release, and comparing it to earlier quarters. But the Board has an almost bewildering amount of data at its disposal, and I'd love to see them do more with it. For instance, it would be great to see a set comparing the federal agencies by project status. The site has an excellent set of charts on the late reporters, showing them by funding type (grant, loan, or contract) and by recipient type (prime or sub), but what if they expanded it out to include by agency or by state? I know ideas like these are why the Board made the recipient reports available for public download, so that groups like OMB Watch can take the data and do interesting things with it, but while we're working, why can't the Board take a crack at it itself?
(Sam Rosen-Amy 03/09/10; 0 comments)