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Home :  Federal Budget & Tax : 
Federal Budget & Tax:      News     Blog     Background    



Friday, September 28, 2007

OMB-OMB Watch Collaboration Improving Results?

Got a email from the nice folks over at OMB this morning about my blog post last week on the release of new PART scores and some of the shortcomings of the PART website. The email was surprising for two reasons: first, they read the BudgetBlog. (ok, so that's not so surprising as we all know everybody who is anybody reads the BudgetBlog.) Second, and perhaps more surprising, they have changed the spreadsheet that lists all PART scores that you can download from ExpectMore.gov to include a column for "Last Year Assessed." Now anyone can easily tell when the last assessment was done for each program. Fantastic! Way to go OMB! (I feel slightly more influential today than I did yesterday, which really wasn't very influential at all.)

OMB also reported they are working to improve the search engine on the site so the most recent review links are returned when searching for programs. This is also excellent news, with one caveat: I'd still like to have access to the links to the older reviews available when I search, just not as the first items that are returned from the search engine. Instead of removing those links entirely from the search results (or from the site altogether), it would be better to list the reviews chronologically. Then users can tell when each assessment happened and allows them to compare between assessments to see what has changed. When I searched for our old friend - the Administration on Aging (AoA) - this afternoon, the search returned links to the 2007 review pages, but do not list those conducted in 2003. The links for the 2003 reviews no longer work.

Since I suspect that OMB may read this and was very responsive in taking a previous suggestion of mine, perhaps I'll try it again. Here's what I'd like to see (click the image to enlarge):

    1) Expand the posting of "Last Year Assessed" data to the summary view for each program, in addition to listing it in the assessment details page and raw data in spreadsheets.

    2) Links to older assessments from previous years (where applicable) on the most recent summary view for each program. So for the AoA, you would be able to click on a link in the 2007 review that took you to all past reviews.

So a big thank you to OMB for incorporating some user suggestions to their website, and here's hoping we can keep improving it. If this works, I'm asking for the out-year discretionary spending details from the President's budget - those always seem to get leaked eventually, but it would be nice to have them upfront. Who knows how far this might go...





Posted by Adam Hughes, 05:15:01 PM



Webb-McCaskill Contracting Commission Passes!

Good news- the Webb-McCaskill Wartime Contracting Commission amendment passed the Senate last night, too! Here's the press release. It got unanimous approval.

However, according to the Richmond Times-Dispatch, the amendment was water down to get approval. Most importantly, the commission wouldn't have subpoena power under this draft.

Now it's on to the House. Rep. John Tierney (D-MA) has introduced a bill that set up a commission, too.



Posted by Matt Lewis, 12:02:34 PM



Thursday, September 27, 2007

Privatization: Is It All About Accountability?

Prof. Ellen Danin has an interesting paper arguing that much of the debate about privatization is really about accountability, in one form or another. Here's the abstract:

The popular view is that the debate on privatization is about cost and efficiency. This was true at one time when most of the discussion involved battling theories concerning markets versus social and economic justice issues. At the extreme, those who advocated privatization argued that markets and competition could always be relied upon to provide the highest quality services at the lowest cost. They preferred letting individuals decide how best to meet their own needs, rather than ceding that role to politicians or bureaucrats. Unions and those concerned with economic and social justice issues often took a "just say no" approach to contracting out.

Today, it is easier to see that arguments for or against privatization are actually about accountability. This is not to say that markets, cost, efficiency, individual liberty, and social and economic justice are issues absent from today's discussions; rather, it means that they are most often ways of talking about accountability. Those who prefer markets argue that markets best provide meaningful accountability. Those concerned about social and economic justice believe that those values are better protected by public rather than private methods of accountability. That this was the case has been somewhat obscured by the fact that the battleground over privatization has most often been on turf defined by the language, thoughts, and values of economics.

If this insight is correct, the central issue for privatization is accountability. That is, issues of accountability may subsume all arguments about the merits and wisdom of privatization. What, then, are the accountability arguments made by proponents and opponents of privatization? What do private and public sector methods for ensuring accountability tell us about the allocation of providing services? Does public accountability have a deeper function than merely ensuring that value for money is received? If public provision and public accountability are part of the fabric of a participatory democracy, what then is the impact of removing those functions from public provision?

In the paper, Danin also challenges the assumption that markets provide sufficient pressure to hold contractors accountable. Privatization promoters often argue that the market is essentially a cost-free way of making service providers perform efficiently, while governmental "red tape" is a costly way of doing the same thing to government workers. There's a trade-off between accountability and efficiency for government workers, but not for private sector workers.

But without proper contract management and administration, Danin shows that contractors have been found to perform inefficiently. So if "red tape" is necessary to hold contractors accountable for cost containment, perhaps the trade-off isn't quite so large, or in some cases, non-existant. The cost-savings to privatization cannot be taken for granted.

And quick tangent: it looks like Josh Marshall of Talking Points Memo is getting into cost issues vis-a-vis military contractors. Awesome!



Posted by Matt Lewis, 04:18:53 PM



Wednesday, September 26, 2007

Contracting Commission Bill On The Floor!

The Senate is now debating the wartime contracing commission bill as an amendment to the defense authorization act. Check out C-SPAN now (it's 1:45) and call your Senators!

Posted by Matt Lewis, 01:49:04 PM



Tuesday, September 25, 2007

A Correction and an Explanation

We were contacted over the weekend by the Administration on Aging (AoA) in response to my posting last Thursday about the newly released round of PART scores. Saadia Greenberg, Director of the Office of Evaluation at the AoA correctly points out that I was in error when I said it was strange OMB cited the AoA during this release of new scores because it was evaluated by the PART in 2003. In fact, the AoA was reassessed this year (2007) and you can see the results of the reassessment. I apologize for the error. Now I certainly don't want to pass the buck here, but this mistake wasn't really my fault. If you put "Administration on Aging" into the search engine on the ExpectMore.gov website, all you get is information on the program's evaluation from 2003, not 2007. See the screen capture I took this morning:

This brings up two important points about the PART:


Keep Reading About the Two Points...

Posted by Adam Hughes, 10:22:34 AM



Thursday, September 20, 2007

White House Releases Next Round of PART Scores

The White House released the next round of PART scores yesterday (the 2007 PART scores), adding an additional 40 new programs that had never before been assessed to the docket and 75 programs that were reassessed at the request of agency staff. The full gambit of PART scores can be found at ExpectMore.gov, but it is difficult to identify the newly assessed programs or the ones that were reassessed.

There isn't much new to report with this latest release. OMB's releases (see here and here) show that overall, programs are getting better scores on the PART. The releases don't elaborate if this means the programs are actually getting better results, or if program staff are just getting better at taking the test.

OMB does cite two examples of improved programs, saying the High Intensity Drug Trafficking Areas (HIDTA) program dismantled 149 more drug trafficking organizations for $4,000 less per organization, saving the taxpayers a whopping $596,000, and the Administration on Aging served 20,000 more elderly people between 2003 and 2005. While the savings to the HIDTA program are small, they are savings nonetheless, and I think we can all agree that serving more elderly folks in need is certainly a good thing. (Despite this, there was no information given concerning if the elderly received similar services or if the program received additional funds between those years. It's also strange that AoA was cited because it was assessed by the PART in 2003, not this past year. Check out the HIDTA and AoA PART assessments.)

While loyal BudgetBlog readers will know we have some pretty serious concerns with the PART, OMB does seem to be continually improving the transparency and access to information on the ExpectMore.gov website. They have added the option to browse programs by either type of program (block grant, credit, research and development, etc.) or by topic (education, transportation, law enforcement, etc.). They've also added an agency summary section for each agency that includes links to the agency's budget justification documents, strategic plans, and nice breakdowns of the ratings received for all programs in the department and how much money is spent on each type of rated program (i.e. $X million spent on moderately effective programs or ineffective programs).



Posted by Adam Hughes, 06:49:55 PM



OMB Watch Supports Wartime Contracting Commission

The Senate is now debating and amending the Defense Department authorization act. Sens. Jim Webb (D-VA) and Claire McCaskill (D-MO), along with all the other Democratic freshman Senators, are pushing an amendment that would set up a commission to investigate wartime contracting.

In light of the Blackwater scandal, we need a comprehensive review of military contracting. The public deserves answers for why so many contracts have gone wrong. We need to know whether contractors work efficiently, and if the military holds contractors to appropriate standards. We hope this commission would set in motion reforms of the contracting system, in the military and in general.

See our letter of support for more information. Also see the Project on Government Oversight's letter.



Posted by Matt Lewis, 05:31:46 PM



FedSpending.org Adds New Data, Features

FedSpending.org has launched a new version today, with updated data from parts of FY 2006 and FY 2007, new features and search functionality, greater accessibility for people with disabilities, and a few bug fixes in the site. The site now contains contracting data through the second quarter of FY 2007 and federal assistance data through the first three quarters of FY 2006.

In addition, users now have the ability to narrow contracting searches by using contractor characteristics, such as "minority owned business," or "8A firms," just to name a few. This function is called "Contractor Type" and can be found in all the advanced searches on the contracts side of the database.

Read the OMB Watch press release, or check out the site for more information on the new version.



Posted by Adam Hughes, 01:37:14 PM



Tuesday, September 18, 2007

Take the BudgetBlog Reader Survey

We here at the BudgetBlog would like to know what you think of our blog. Please take a moment to fill this short reader survey and give us your thoughts.



Posted by Craig Jennings, 12:40:45 PM



Monday, September 17, 2007

Lobbying and Ethics Bill Enacted

On Friday, President Bush finally signed the lobbying and ethics reform bill. OpenCongress has the story.



Posted by Matt Lewis, 01:13:44 PM



Wednesday, September 12, 2007

Medicare's Auditing Priorities

There was an interesting article in the NYT about Medicare overpayments to insurance companies, many of which are a part of the Medicare Advantage plans that the House proposed to trim.

In 2003, Medicare audited 49 of the 220 organizations participating in the program. Auditors found significant errors at 41 companies, but Medicare officials took no action on the findings. As a result of the errors, the auditors said, insurers kept "$59 million that beneficiaries could have received in additional benefits, lower co-payments or lower premiums." The report did not identify the companies.

While Medicare isn't pursuing cases of overpayment that its own auditors identify, it is aggressively pursuing Medicare beneficiaries who owe premiums to insurance companies.

In separate action, the Bush administration is vigorously pursuing money that it says is owed to insurance companies by Medicare beneficiaries. The Medicare agency has sent letters to more than 135,000 people saying they still owe premiums for prescription drug coverage provided in 2006. In most cases, the premiums were supposed to have been withheld from monthly Social Security checks, but the government withheld the wrong amounts or nothing at all.

This inconsistency is not unlike how the government audits the largely low-income people who get the Earned Income Tax Credit. They're audited almost twice as often as the wealthiest are. But audits on EITC returns get a return of nearly 1/20th the size (check out the IRS Databooks to see for yourself)

The IRS could go after more wealthy taxpayers who don't pay. But instead of Congress giving them the resources they need to do that, they hired private debt collectors to track down taxpayers who owe small debts to the IRS, people who are typically low to middle income.

These are conservative good government principles in action: pick on the little guy and let the big guys off, while the public is left holding the bag.



Posted by Matt Lewis, 10:29:15 AM



Thursday, September 06, 2007

Another Strike Against IRS Private Debt Collection

Does anyone really like the IRS' private debt collection program except the folks who are making money off of it? Apparently not. Yesterday, the Taxpayer Advocacy Panel, an independent federal advisory panel made up of taxpayers from every state, released recommendations that the IRS "abandon all plans to outsource any taxpayer debts and restrict collection activities to properly trained and proficient IRS personnel." It's pretty clear where they stand on the program.

The Taxpayer Advocacy Panel also stressed other concerns about the program, particularly that private collection agency staff had different values and attitudes in approaching debt collection, which hurt customer satisfaction and service:

The collection agency staff did not share the same values and partnership attitudes that were practiced by the employees of the selling organization. Over time, the function of managing the contractor's collection activities became more time consuming than handling the function internally.

Add yet another group to those fighting against this program. Let's hope its days are numbered.



Posted by Adam Hughes, 10:41:40 AM




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