Senate Appropriators Discuss Census Funding Concerns with Commerce Secretary

By Howard Fienberg, director of government affairs, Insights Association

“Not only did the Government Accountability Office add the 2020 Census to its high-risk list, but a critical computer system was recently discovered to have surpassed its budget by $309 million. As the 2020 Census approaches, such news does not instill confidence in the Department’s preparation for this constitutional requirement.”

Senator Richard Shelby (R-AL) opened discussion about the Census Bureau at a recent hearing reviewing the Department of Commerce’s FY2018 budget proposal with a bunch of concerns about the decennial Census and how to fund it. Shelby chairs the Senate Appropriations CJS Subcommittee, which determines funding for the Census Bureau.

The 2020 Census “is very important to this committee,” Shelby continued, “because this is a very expensive item” with a “ballooning cost.” He asked Secretary of Commerce Wilbur Ross to prioritize “activities to reduce overall cost.”

”How,” Shelby asked, “does the 2020 budget request keep the budget on track to ensure that the 2020 census remains at or below the cost of the 2010 census,” and “are changes planned for the upcoming year that will affect current cost projections?”

Secretary Ross started with the resignation of Census Bureau Director John Thompson. “We have appointed a temporary replacement for him and are actively seeking a new permanent director of the census. We hope to have that completed as soon as we possibly can.”

The Census Bureau has “been a great concern” for Ross, specifically “making sure we do accurately count every person where that person normally lives” and doing so “as economically as we can.” He continued:

“Census as you know undertook a very large technological change in the way the Census is taken. Their hope in that is to preserve the accuracy and yet reduce the budgetary cost. My concerns about it have been the complexity of what they’re trying to do and the number of moving parts that have to be brought together at the right time under the right cost. I’m particularly concerned that many of the key contracts are on a time and material basis and that is a very dangerous way to do contracting in that it has an implied incentive for the contracting partner to perhaps use more time than one might if it were on a fixed-cost basis.”

In response, the Commerce Department finance staff have partnered with OMB staff “to do a crash review of what has been going on and why there was suddenly this 47% surprise overrun, what are the implications for the relationships between the census department and these contractors going forward, and what may be the maximum possible cost we could encounter should we continue with the full technological effort underway, or should there be some modification.”

Ross indicated that he did not “have a high degree of confidence in the budget” request from the White House for FY18, but he promised the subcommittee “that when we come back, it will be a number we can stand behind.”

For more background, see the Insights Association 1-pagers on Census funding and the American Community Survey (ACS).

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This article was originally posted on the Insights Association’s website on June 20.

Limping Along the Road to 2020

Terri Ann Lowenthalby Terri Ann Lowenthal

So where were we, census fans?

As we rub the sleep out of our post-government shutdown eyes, and revel in data on the re-opened Census Bureau website, we are faced with the prospect that the uphill climb to Census 2020 just got a little steeper. Okay, maybe a whole lot steeper.

Let’s consider the good news first. The federal government is open for business. Surveys are in the field again. Economic indicators are, well, lagging, but the Census Bureau will publish them in due time. Small-city, county, town and neighborhood data from the American Community Survey will be late, but we’ll have them before year’s end.

Now the gloomy news. The federal government is running on last year’s gas tank. That ramp-up in funding to complete decennial census research and testing? Fuhgeddaboudit. With sequestration and across-the-board cuts, the Census Bureau’s budget was already 11 percent below the request for FY2013. That fiscal year has come and gone, but the ghost of budgets past will linger for at least a few more months in the form of a Continuing Resolution that expires on January 15. Not only is there no modest, yet vital, funding boost into the second quarter of FY2014, there is no way to dig out of the 2013 hole yet. Budget uncertainty plus inadequate funding equals increased risk of cut-corners and missed savings opportunities.

What’s at risk? The bureau has already pushed back a critical milestone — to select the 2020 Census design framework — by a year, to the end of FY2015. The National Content Test will be a year late, too, in 2016. That doesn’t leave much time to scrub the results before the legally-required content submission to Congress by April 1, 2017.

Now comes word that the Census Bureau is suspending work on several 2020 research and testing projects. It has “temporarily” reassigned 86 employees to other divisions because the money just isn’t there, and won’t fill a similar number of vacancies for 2020 Census planning unless it gets a sufficient funding boost for FY2014. People, this is not a promising sign of robust progress towards fundamental census reform. Congress can twiddle its thumbs while the fiscal clock ticks away, but the Census Bureau cannot defer the day of reckoning — April 1, 2020.

The Census Director says the agency will be able to complete the most critical 2020 Census activities planned for the current fiscal year. So why am I still tossing and turning at night? The Government Accountability Office (GAO) has identified IT management as a “long-standing” decennial census shortcoming. But thanks to sequestration and other budget cuts, acquisitions and systems development for 2020 will start a year later than planned. Let’s hope the bureau doesn’t have to cut corners when it comes to integrating and perfecting IT and field infrastructure.

Then there are promising strategies for maximizing electronic self-response on the front end and increasing follow-up efficiency on the back end. But is cyber-response the antidote to Congress’s census sticker-shock nightmare? Consider phishing scams, NSA-fueled privacy jitters, and finicky rural Wi-Fi connections before you answer. Can you imagine inviting scores of millions of households to participate online and not fully load-testing the system? Can you say healthcare.gov?

Maybe lawmakers should repeat Cyclical Program Ramp-up 101, before the 2020 Census is back to paper, postage and pencils — for twice the price.