Tag: budgets

A Fine Kettle of Budget Fish

by Terri Ann LowenthalTerri Ann Lowenthal

Last spring, the census world was in turmoil.

First, the venerable House Committee on Appropriations voted (H.R. 5326) to slash $92 million from the Census Bureau’s FY2013 budget request ($970.4M), most ($85.9M) of which would affect core programs — including the American Community Survey (ACS), decennial census planning and the quinquennial (I love saying that word!) Economic Census — in the Periodic Censuses and Programs account. Then, the full House of Representatives decided Americans could “just say no” to the ACS by making response optional instead of mandatory. This seemingly innocuous change would reduce mail response by 20 percent (more for some population subgroups) and boost survey costs by more than a third ($60-$70 million), according to a 2003 test. (For the benefit of legislators with short-term memories, it was Congress that mandated the test.)

But wait, to heck with having a choice, lawmakers said; let’s just scrap the whole survey! And while we’re at it, let’s cut an additional $24 million from Periodic Censuses… which left the Census Bureau to wonder if it could pull off the 2012 Economic Census and ACS (even if Congress let it) at all.

Now, I’ll be the first to admit that Congress can make some dubious decisions. But talk about biting the hand that feeds you! According to a Brookings Institution analysis, lawmakers allocated $416 billion in federal grants, direct payments and loans based on data derived directly or indirectly from the ACS. Call me obtuse, but how would Congress distribute that money if the data suddenly disappeared? Throw darts at a map of states and counties? Hold a highway-money lottery? (And don’t tell me that not allocating those funds is a golden opportunity to reduce federal spending; when was the last time a member of Congress turned down funds to pave a highway or assist firefighters in his or her district?)

Over in the “gentleman’s club” (clear throat), appropriators managed to stay calm, proposing a FY2013 funding level in line with the president’s request. The full Senate couldn’t quite muster the strength to take up the Commerce, Justice, and Science Appropriations bill (S. 2323) before lawmakers raced home for the November elections. But House and Senate negotiators are now working to set final budget numbers for the Census Bureau before a temporary FY2013 funding bill (the Continuing Resolution, which extended agency operations at FY2012 funding levels) runs out on March 25. Let’s hope House members awake from a nine-month slumber with renewed sagacity and see the error of their penny-wise, pound-foolish ways.

Meanwhile, the president will send his FY2014 budget blueprint to Congress no earlier than March 4, at least one month later than a toothless law requires. But not to worry, there’s lots of intervening excitement brewing. The so-called “sequester” of the FY2013 budget — the product of legislators’ failure to actually agree on budget numbers for the fiscal year that started many moons ago — will take effect on March 1 unless Congress… well, agrees on something. If it doesn’t, federal agencies will have to cough up $85 billion, amounting roughly to a 5 percent across-the-board cut for non-defense domestic discretionary programs.

This week, President Obama challenged Congress to avoid that consequence by specifying funding cuts (coupled with revenue increases, which Republicans aren’t eager to embrace, but I’m not here to argue fiscal policy) before the budget coach turns into a pumpkin. What will happen between now and then is crystal-ball material, but Commerce Department Inspector General Todd J. Zinser had some wise observations for Congress at a Senate hearing last summer: “[T]he Census Bureau must analyze the 2020 decennial [census] design alternatives and make a decision by the end of fiscal year (FY) 2014… Decisions made during this decade’s early years will be critical for setting the course for how well the 2020 count is performed and how much it will ultimately cost.” With the Economic Census off the launch pad, the remaining two core programs — the ACS and the 2020 census — will feel the greatest budget squeeze absent sufficient funding for the Census Bureau. And the nation will be headed for a data vacuum or an expensive, incomplete decennial count, or both.

Are you still with me? Good, because it seems like we’ve gone from last spring’s mess to complete budget disarray. Good luck trying to keep up with this winter’s mayhem!

* * *

Correction: My last blog post mentioned a Census Dress Rehearsal in 2018. Historically, the Census Bureau has conducted a dry-run in two or three locations in the year ending in “8,” to evaluate operations in a census-like environment. But alas, there will be no such walk-through this decade. Former Census Director Robert Groves significantly retooled the planning phase of the census for 2020, in order to contain costs and take advantage of other opportunities (including using the American Community Survey as a test bed) to evaluate and tweak components of the census design. I apologize for the error — maybe I’m just getting nostalgic?

The Responsibilities of Being American

by Terri Ann Lowenthal

Three lawmakers argued unmindfully,
“We view government surveys unkindly.
Census law shouldn’t force
Us to be a data source,
And we’d rather make policy blindly!”

Okay, maybe I have too much time on my hands. (Plus, I’m trying to get in the St. Patrick’s Day spirit.)

But at a hearing last week, a House subcommittee considered a bill (H.R. 931) to make response to the American Community Survey (ACS) voluntary. The consequences for the collection and publication of useful data about the nation’s economic and social conditions and progress could be catastrophic. And, I would venture, not well considered by the idea’s proponents.

Granted, the millions of Americans not surrounded daily by the wonders of census data are probably saying, “Well, that makes sense!” Who wants to answer a survey with 50+ questions about themselves and their families, their homes and incomes, and their commuting habits? (Most households will never have the honor; the survey is sent to only 3.5 million addresses a year. Even over a five-year period, fewer homes must answer the ACS than were required to answer the census long form it replaced starting with the 2010 Census.)

For starters, all public witnesses at the hearing made strong cases for keeping ACS response mandatory, in order to maintain the quality and usefulness of the vital data we get from the survey. We’re talking about representatives from the conservative American Enterprise Institute, the business-oriented National Association of Realtors and the nonprofit Greater Houston Partnership (the bill’s sponsor is from the Houston area).

I visited Houston’s website. The city boasts a “thriving business economy” and directs people interested in Houston’s business and trade to the Partnership. The economic development group’s lead researcher testified [.pdf] that business decisions “are now data driven” and called the ACS “one of the most important tools in our kit” to attract business investment from around the globe. And why must response to the survey remain mandatory? Because, as the Partnership and other stakeholders pointed out, mail response to a voluntary survey would drop dramatically; to gather enough responses to maintain data quality, the Census Bureau would have to increase the sample size (more households would get the darn survey) and spend more money (30 percent more, tests have shown) to collect data by telephone and in-person visits.

Did someone say more money? Didn’t Congress just whack the Census Bureau’s budget the past two years? Without that unlikely additional funding, economic development agencies across the country can kiss their useful toolkits goodbye. That doesn’t sound like a very pro-business and pro-economic growth strategy to me.

Committee Chairman Darrell Issa (R-CA) and Subcommittee Chairman Trey Gowdy (R-SC) questioned the constitutional authority for gathering any information beyond the number of people in a household, used to divvy up seats in the House of Representatives after each decennial population count. Let me make this easy: Article I, §2, giving Congress responsibility for taking a census “in such Manner as they shall by Law direct,” combined with Article I, §7, giving Congress the authority to make laws.

Laws such as Title 13, U.S.C., §141(a), in which Congress authorized the Secretary of Commerce to conduct the census “in such form and content as he may determine, including the use of sampling and special surveys … the Secretary is authorized to obtain such other census information as necessary” and the related §141(g), defining the ten-year census as one covering “population, housing, and matters relating to population and housing” (all emphasis added). And §182 of the same title (known at the “Census Act”), allowing the Commerce chief to conduct surveys producing “annual and other interim current data” between censuses. Don’t forget §221, requiring people to respond to the census and to annual and interim surveys.

Then there are the hundreds of federal laws allocating almost half a trillion dollars a year (yes, you read that correctly) based directly or indirectly on data from the ACS, to states and localities for education, road improvements, mass transit, physical and mental health services, rural businesses and farm labor housing, affordable housing for the elderly and people with disabilities, economic development, and energy improvements. Did I mention outreach to disabled veterans? (Yes, I’m shameless. But I didn’t pass these laws. Congress did.)

Rep. Ted Poe (R-TX), sponsor of the voluntary ACS bill, is a former judge and prosecutor with a deep interest in preventing and addressing the terrible consequences of crime. In 2008, he noted that the government spends billions of dollars on the criminal justice system. “The cost of crime is not cheap,” the congressman said, “… [but] the price is worth it to ensure order, safety, and appropriate punishment for those who fail to follow the law.” That year, the State of Texas received $32 million in federal taxpayer dollars to help keep communities safe — based on ACS data alone.

Are Chairmen Issa and Gowdy suggesting that Congress made all of these laws, and that the Census Bureau (and its historical equivalents, some of which were temporary committees Congress established every 10 years to oversee the enumeration) gathered information similar to the content of today’s ACS in violation of the Constitution since the first census in 1790? Boy, I sure hope not! Quelle horreur!

Speaking of French, Canada decided to do something similar a few years ago, relegating its census long form to a voluntary survey. The country’s head statistician resigned in protest.

Finally, the privacy concerns. I understand the objection: Government shouldn’t have a right to request personal information. Except maybe our income, which we are required to report to the IRS annually. But the Census Bureau doesn’t have a right to ask about it … anyway, as I was saying … Rep. Gowdy said ACS data might be useful, but Uncle Sam “does not have an overriding state interest to force people to divulge their private matters.”

Fortunately, the Census Bureau does not want a dossier on every American. It does not do anything with your personal answers. It takes our responses and turns them into a statistical portrait of our nation, our states, our cities and communities. To help us understand collectively where we came from and where we are going. If we’re headed into a ditch, I want to know in advance. You know, to prepare. And maybe turn in a different direction.

Yes, we Americans have a right to privacy. But we also have responsibilities. We have a shared history and will have a shared future. I don’t want to live in a country that drifts along without transparent, objective benchmarks to guide it. I want to know that my elected officials have a reason for making the decisions they do. I want my tax dollars aimed at neighborhoods that need and deserve the assistance. I want my city and county to have data that will attract new investment and job opportunities.

I want information that lets me hold my national, state and local government officials accountable. To me, that’s the best part about being an American. But I can’t do that if I don’t do my part. And my neighbors don’t do theirs.

New Year’s Worries

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.