Chapter 14

1. Chapter 14 The Federal Bureaucracy

2. Definition A bureaucracy is typically defined as a the whole body of unelected and non-appointed government officials in the executive branch who work for presidents and their political appointees.

3. Definition • Bureaucrats (federal employees) number around 2.7 million. • 6 Major Departments: Army, Navy, Air Force, Veterans Affairs, Homeland Security and the U.S. Postal Service. • (25% of all Fed. Civilians work in Defense Departments.)

4. Other definitions • These public or private organizations are large and hierarchical, with each employee accountable to a superior through a chain of command. • Each employee has a defined role or responsibility. • Exist to provided predictability and efficiency and to minimize the arbitrary practices that so often characterized rule under dictators.

5. Federal Govt. • The Department of Defense employs more than 600,000 civilian employees and 1.4 million uniformed personnel. • Department of Education employs 5000 civilians.

6. Federal Govt. Categories • Four broad categories: • Departments • Independent agencies • Independent regulatory commissions • Government corporations

7. Departments Tend to be the largest federal organization of all and have the broadest missions. 15 Departments of govt. employ 70% of all federal civil servants and spend 93% of all federal dollars. Nearly all of these departments are headed by the various secretaries appointed by the President.

8. Independent Agencies A government entity that is independent of the 3 branches of government and tends to be smaller and more focused responsibilities. Roughly 60 “agencies” exist today: • EPA • CIA • NASA

9. Independent Agencies Although the independence increases each agency’s ability to focus on its mission, independence also weakens its willingness to cooperate. This also can increase confusion as to who is responsible for what in the Fed. Govt.

10. Independent Regulatory Commissions Similar to agencies but are designed to be free from partisan control. These are often the groups criticized by the American Public for being too involved in the daily lives of the citizens. ( But this overt attention to the public was the rationale for starting this commissions)

11. Independent Regulatory Commissions Examples: • Consumer Product Safety Commission • Securities and Exchange Commission • Federal Election Commission • Federal Communications Commission • Federal Trade Commission • Federal Reserve Board • Nuclear Regulatory Commission

12. Independent Regulatory Commissions Although the commissions may be small in budget and employees, their decisions can have a large influence over American life. ( Federal Reserve Board Chairman is considered the 2nd most influential person in making economic policy. )

13. Government Corporations Designed to operate much like private businesses rather than government departments and agencies. They are designed to make money through the sale of services such as rail tickets or stamps. ex. USPS Amtrak Corp. for Public Broadcasting

14. Bureaucratic leadership • Each department of the fed. Bur. Is headed by a Presidential appointee (confirmed by Senate or Presidential authority) • 600 Administrative positions requiring Senate confirmation • 2400 who simply needed presidential approval (NASA’s head was picked by Obama in 2009) • These officers “serve at the pleasure” of the President and often leave office when that President does.

15. Spoils vs. merit • The “spoils” system was set in place in 1800’s when Andrew Jackson rewarded political supporters with Federal-level positions (regardless of talent) • Merit system came about due to Pendleton Act (after 1881) in which a testing program would be used to evaluate candidates for federal employees. • Today the OPM (Office of Personnel Management) administers civil service laws, rules and regulations.

16. Myths about bureaucracy • Only 15% of civilian employees work in the D.C. area. • More than 25% of the civilian employees work for one of the Defense agencies. • More than 30% work for the USPS. • Although a sizable portion of U.S. budget goes towards welfare, fewer than 10% of bureaucrats work in these areas. • Federal employees are more representative of the nation as a whole than legislators.

17. Regulating Civil Service • Hatch Act (1939) • Neutralize the danger of a federal civil service being able to shape, if not dictate, the election of presidents and members of Congress. ( permit fed. Employees to vote but not take a directly active role in politics or elections ) • Overhauled in 1993 (Clinton administration) • Allowed for more involvement by Civil Service members in the political arena. • Does specify which agencies are still barred from partisan activities (CIA, FBI, Secret Service and some IRS jobs)

18. Government employee unions • Since 1962, federal civilian employees have had the right to form unions or associations that represent them in seeking to improve government personnel policies. • About 1/3 of the employees have joined the unions • Unlike private sector unions, these members are not allowed to strike and are not able to bargain over pay and benefits.

19. “Regulations” • Rules designed to convert laws into actions • Tells people what they can and cannot do, as well as what they must or must not do. • Agriculture Department rule tells meat and poultry processors how to handle food • Environmental Protection Agency rule that tells auto makers how much gasoline mileage their cars must get. • A Social Security Administration rule tell Americans how long they must work before they are eligible for a federal retirement check. • Federal Register (1946) • Requires that all rules are made visible to the public by being published in this federal document.

20. Spending and Accountability Total receipts for 2009 are $2.7 trillion • $1.21 trillion Individual Income Tax • $949.4 billion Social Security and other payroll taxes • $339.2 billion Corporate income tax • $68.9 billion Excise taxes • $29.1 billion Customs duties • $26.3 billion Estate and gift taxes • $47.9 billion Other

21. Spending and Accountability Mandatory spending: $1.89 trillion • $944 billion - Social Security • $408 billion - Medicare • $224 billion - Medicaid and the State Children's Health Insurance Program (SCHIP) • $360 billion - Unemployment/Welfare/Other mandatory spending • $260 billion - Interest on National Debt

22. Discretionary spending: $1.21 trillion • $515.4 billion – DEPT. of Defense • $145.2 billion(2008*) - Global War on Terror • $70.4 billion - DEPT of Health and Human Services • $68.2 billion - DEPT of Transportation • $45.4 billion - DEPT of Education • $44.8 billion - DEPT of Veterans Affairs • $38.5 billion - DEPT of Housing and Urban Development • $38.3 billion - State and Other International Programs • $37.6 billion - DEPT of Homeland Security • $25.0 billion - DEPT of Energy • $20.8 billion - DEPT of Agriculture • $20.3 billion - Department of Justice • $17.6 billion - NASA • $12.5 billion –DEPT. of the Treasury • $10.6 billion - DEPT of the Interior • $10.5 billion - DEPT of Labor • $8.4 billion - Social Security Administration • $7.1 billion – Environ. Protection Agncy. • $6.9 billion - National Science Foundation • $6.3 billion - Judicial branch (federal courts) • $4.7 billion - Legislative branch (Congress) • $4.7 billion – U.S. Army Corps of Engineers • $0.4 billion - Executive Office of the Pres. • $0.7 billion - Small Business Administration • $7.2 billion - Other agencies

23. Spending and Accountability • Federal Government sends out Soc. Security checks to more than 35 million people. • Purchases military equipment for current wars as well as U.S. training. • Makes grants to state governments and research universities.

24. Spending and Accountability • Most of the spending is termed “uncontrollable” • Payments required to automatically be paid to any American who qualifies. (Soc. Security / college loans for poor students / victims of natural disasters / Can also be defined as costs for programs that require more federal spending each year automatically through cost-of-living increases or interest on the national debt.

25. Spending and Accountability The largest share of the uncontrollable spending comes from Social Security and Medicare which are payments guaranteed to any American who has paid taxes into the program for enough years. The aging population means that more older people that ever will qualify for these programs (equating to an increase in the uncontrollable spending over the next Few decades.)

26. Spending and Accountability Entitlements: Programs such as unemployment insurance, disaster relief, or disability payments that provide benefits to all eligible citizens. These programs cost the federal government more than $800 Billion in 1999-2000 (more than ½ of the Fed. Govt. budget)

28. Successes of Bureaucracy • Poverty levels among older Americans has decreased • African American voting rates have increased each election • Air and water quality has improved • More women are graduating from college and competing in collegiate sports • Food and drugs have become safer • More poor children are getting a head start in preschool • Air traffic control system is handling record amounts of air traffic at a high success rate. • Americans are living longer • Crime rates have fallen