Category Archives: Census Budget Issues

Budget Deja Vu: Guard The Piggybank!

Posted on February 27, 2012 | Comments Off

by Terri Ann Lowenthal

Were you getting ready to burrow underground for a while, census fans? (Didn’t the groundhog see his shadow?) Not so fast! President Obama’s Census Bureau budget request [PDF] for Fiscal Year 2013 (FY2013) compels us to shake off early-in-the-decade cobwebs and convince lawmakers that a modest increase in funding for the agency will not break the federal bank.

In fact, it just might save the Treasury significant money in the foreseeable future, as successful testing of electronic response options for ongoing surveys could reduce costly door-to-door data collection in the 2020 Census, and continuous updating of the national address list and digital map could eliminate universal pre-census address canvassing, which also comes with a high price tag. But I’m getting ahead of myself.

The president proposed a total budget of $970 million for the Census Bureau, a 3 percent rise over the Fiscal Year 2012 funding level of $942 million. Truth be told, Congress pretended to give the Census Bureau $942 million last year, but in the light of day, it appropriated only $887 million, directing the agency to use $55 million from the now well-known, much-maligned Working Capital Fund (WCF) to make up the difference.

The top program priorities in 2013 will be the Economic Census and continued planning for the 2020 Census. Next year (which starts October 1, 2012) marks the peak of a six-year planning and implementation cycle for the 2012 Economic Census ($112 million), as the Census Bureau gathers information from 3 million business enterprises across the country (using 4.6 million forms, in case you’re into numbers). It’s worth remembering that this quinquennial measure of the nation’s economic health almost came to a screeching halt last year when House appropriators reduced (whacked!) the bureau’s budget request by a quarter. Lawmakers came to their senses after economists kindly pointed out that the nation needs data from this census to produce key indicators such as Gross Domestic Product.

As 2010 Census activities wind down with final evaluations and data products, planning for the next decennial enumeration is on its cyclical upswing. We aren’t talking big money yet, but the 2020 Census budget request ($131.4 million) is nearly double the FY2012 funding level ($66.7 million), a bump appropriators might find hard to swallow unless there’s a good reason. Fortunately, there are several.

It seems like a no-brainer but Congress has been known to ignore the obvious, so it’s worth repeating. The Census Bureau must invest resources early in the decade to ensure cost-effective, successful implementation of census operations down the road. The pace of technological change and rapid evolution of communication modes make ongoing research and testing essential. Similarly, keeping up with changes in the nation’s housing stock and roads could save hundreds of millions of dollars (now that’s real money!) during census preparations in 2018-19, allowing the bureau to confine final address checking to areas in frequent transition. And steps the agency takes now to improve large acquisition and contract management for the census could help it avoid billion dollar (literally) mistakes later.

Overall, the president’s funding request for the Census Bureau appears to be reasonable and responsible, taking advantage of cost savings whenever possible and investing prudently in programs that will yield, both directly and indirectly, savings for the agency and the nation in the future. For example, American households can answer the American Community Survey electronically starting in January 2013, saving an estimated several million dollars a year. The Census Bureau will try again to update its Supplemental Poverty Measure, an important policy building block that the bureau couldn’t pay for in FY2012.

Let’s hope legislators can resist the urge to dip into the WCF piggybank again, as funding caps continue to shrink. I’m not holding my breath though. (Have I mentioned recently that Senate appropriators helpfully encouraged the Census Bureau to spend less on the 2020 Census than it did on the 2000 count, without adjusting for inflation? I’m still chewing on this.) Census officials haven’t ignored congressional hand wringing over the lack of transparency in WCF practices; the agency is seeking outside expertise to help it improve performance measures and business models.

When you think about it, the bones of the census funding story haven’t changed, but it seems like it’s getting harder to get lawmakers to listen. So dust off those winter blues, census gurus, and start reminding your elected representatives that they can’t do their jobs without the rich store of data the Census Bureau produces. The bureau’s budget is a drop in the bucket when compared to the value of the public and private sector decisions that ride on its work, day in and day out.

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Posted in Census 2020, Census Budget Issues, Congressional Oversight, Economic Census

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New Year’s Worries

Posted on January 17, 2012 | 1 Comment

by Terri Ann Lowenthal

Now that the holidays have come and gone, I have a lot on my mind in the new year. The next census will start in eight years; the dress rehearsal is only six years away; local governments will start reviewing address lists in five years, when the Census Bureau, by law, must submit 2020 Census topics to Congress … oh my, where has the time gone?

And the fun really never stops. In a few weeks, the president will send his Fiscal Year 2013 budget to Congress; legislators will declare the proposal dead-on-arrival, retreat to their partisan corners of the ring for nine months, and fail to pass their own version of a spending plan before the fiscal year actually starts on October 1.

Oh sure, they’ll take a stab at passing funding bills. For the last two fiscal years, and at the eleventh hour, Congress dipped into the Census Bureau’s once-obscure Working Capital Fund (WCF) to meet reduced budget targets for the appropriations account covering commerce, justice and science programs, which includes the Census Bureau. In the uncertain world that is Congress, two years a trend does make. This has me very worried.

Historically, the Census Bureau has been a sitting duck for appropriators in the early years of a decade. With decennial census fatigue setting in when a year ending in “1″ rolls around, lawmakers seem to catch a collective case of indifference, helping themselves to significant chunks of the agency’s budget in order to meet tight federal spending limits and pay for other favored programs.

Once Congress discovers a large pot of money not on the radar of letter-writing, phone-calling constituents, it is likely to go to that well as many times as it can plausibly defend. Generally, that means until The New York Times, The Wall Street Journal, or The Washington Post editors point out how ludicrous the budget cut is. That’s what happened with the inconspicuous Economic Census, which might have been cancelled after House appropriators slashed the Bureau’s Fiscal Year 2012 budget request by a quarter. (A 11/16/11 Huffington Post headline trumpeted, “Census Budget Cuts Eliminate Data on Job Creators.” A bit of an embarrassment for lawmakers in a recession marked by high unemployment.) Then Congress finds another way to reduce spending that turns out to be so difficult to explain, the funding bill is law before anyone has a chance to wrap their head around the consequences.

And regrettably, those consequences are not entirely clear at first blush. Census stakeholders from businesses, to advocates for the poor, to local governments can easily explain how a loss of reliable data hampers their ability to understand the communities they serve and allocate their fiscal and human resources prudently. (The real challenge is getting anyone in Congress to listen.) But the bureau’s Working Capital Fund, which (as GAO explains in a recent report, GAO-12-56) is a form of that exciting financing mechanism, an intergovernmental revolving fund? Not so much.

Cutting the WCF gives Congress some cover; it can say it didn’t take funds from important data collection programs, such as the American Community Survey (ACS), or research activities, such as testing an Internet response option for the 2020 count. But is that really the case? You can only cut shared overhead costs and capital investments so much before the foundation gets shaky and the building starts to crumble. Updated computers and enhanced security systems (for an agency with data privacy at its core)? They might sound like luxuries in today’s fiscal climate, but a business can only go so long without investing in operating improvements. Rent to GSA? The bureau’s National Processing Center in Jeffersonville, Indiana? Can’t do without a roof over your head and someone to tabulate all of that information you collect. So how to make up for the WCF losses of $55 million in FY11 and $50 million in FY12? Census Bureau program managers will have to tighten their belts once again, shedding activities that arguably fall lower on the priority list. Do you miss the beloved Statistical Abstract yet? Well, hang on to your statistical seats; more surveys, research and data products inevitably could fall by the wayside if the trend of cutting funds for essential shared services continues.

One more thing that’s bothering me about this new chapter in census budget-raiding history: Lawmakers who have a bone to pick with the Census Bureau could prune the Working Capital Fund to make a political point, without so obviously putting a specific program beloved by stakeholders at risk. Maybe a senator is unhappy with a staff appointment, or the population number for their state, or their inability to access a data set to which they aren’t entitled? I’m just saying.

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Posted in Census 2020, Census Budget Issues, Congressional Oversight

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Raiding The Census Piggy Bank

Posted on November 28, 2011 | Comments Off

by Terri Ann Lowenthal

With the smell of turkey and sweet potato pie in the air, Congress finally approved funding for the U.S. Census Bureau for the fiscal year that started seven weeks earlier. The so-called “mini-bus” appropriations bill — encompassing three of 12 federal appropriations accounts — allocates $943 million for the nation’s largest number-crunching agency (H. Rpt. 112-284).

Well, sort of. The bureau actually will receive $888 million in direct appropriations. Congress decided to dip into the little-known Working Capital Fund (WCF) for the remaining $55 million the Census Bureau needs to pull off the 2012 Economic Census, albeit a scaled-down version. More on that in a moment.

Not familiar with the WCF? For starters, it’s not really a fund. Rather, it’s a revolving account that is used to manage many of the Census Bureau’s core functions. Half of the account represents money from other federal agencies for reimbursable work, such as surveys. In other words, it’s not the Census Bureau’s money. The other half pays for what can loosely be termed “overhead” — that is, basic but essential operations that support all programs. Things like IT systems; the budget, human resources and communications offices; and salaries for the director and other managerial staff.

Appropriators decided that the Census Bureau could spare $55 million from this pot of money, so they wouldn’t have to find more discretionary funding to pay for essential census and survey activities. Last year, Congress permanently torpedoed $50 million of the WCF and pretended it had reduced federal spending by that much. Does anyone else detect a pattern here?

I worked in Congress for 14 years. It is with utmost respect for those who toil in legislative obscurity that I say, “People, the Working Capital Fund is not an appropriator’s piggy bank.” Yes, I am aware of the new Government Accountability Office report (GAO-12-56) suggesting that the Census Bureau allow more sun to shine on the WCF and establish operational performance measures to promote efficiencies. The congressional auditors also noted that dramatic fluctuations in spending on the decennial census require the bureau to save money in the WCF for a rainy day through an operating reserve. Which is now $50 million smaller.

But really, what part of its overhead should the Census Bureau sacrifice to come up with this large sum? The communications office annual budget is less than half that amount. Shut down its congressional liaison activities? Ditch the press releases that inform the media and stakeholders about data products? Congress doesn’t seem to grasp the connection between Census Bureau data and the myriad policy decisions the public and private sectors make on a daily basis, so why bother? Cut back on protecting confidential information from 40,000 daily cyber attacks? Better yet, why not shut down the website entirely, thereby negating the expense of maintaining an Internet presence and defending against hackers — a sort of two-for-one reduction?

Frankly, given the country’s dire economic straits, I think we need to be really creative. Why don’t we furlough the entire senior Census Bureau staff (including the director), and then bring them all back in five years so Congress can blame the agency for not trying hard enough to design a simplified, less costly 2020 Census. Speaking of which…

Have I mentioned that Senate appropriators smartly challenged the Census Bureau to take the 2020 census for the same amount of money it spent on Census 2000, without adjusting for inflation? I’m all for saving money. The Census Bureau must bring the per-household cost of the decennial enumeration under control. In fact, the census director took the unusual step of announcing the closure of half of the bureau’s 12 regional offices, without a nudge from Congress, in a preemptive move to bring costs down.

But to go from spending $13 billion (in current dollars) to take the 2010 census, to counting 10 percent more people for a third of that amount eight years from now? I’m not feeling it yet.

But I digress. Things could be worse for the Census Bureau. It could be languishing under a temporary spending measure (the insufferable Continuing Resolution) with the many agencies that couldn’t get on board a little bus to 2012 funding certainty. House appropriators proposed cutting 21 percent from the bureau’s budget request, potentially dooming the quinquennial detailed measurement of the nation’s economic activity. Cooler congressional heads prevailed in the final hour, offering enough money to proceed with core Economic Census functions. But the Survey of Business Owners is on the chopping block — the only source of data on business ownership by people of color, women and (yes!) veterans.

As for the rest of the bureau’s programs, I suspect managers spent the holiday weekend scouring their budgets for additional expendable activities. The agency can’t cut $55 million from overhead and function effectively, so programs such as 2010 census evaluations and data products, 2020 census planning, the American Community Survey, and other periodic functions must absorb some of the pain.

The real problem is that, in order to yield savings anywhere near the magnitude of those money-green sugarplums dancing in lawmakers’ heads, the Census Bureau must invest modest but consistent resources now to research and test forward-looking methods that will expand response options for increasingly complex household structures. Cutting the agency’s budget to the bare bones won’t generate the level of scientific foresight necessary to tackle the depth of challenges inevitable in a society as culturally, ethnically and politically diverse as ours.

Memo to Census Director Robert Groves: Hold on tight to that piggy bank next year!

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