Chapter 13- The Federal Bureaucracy

1. Chapter 13- The Federal Bureaucracy • (1). Define what a bureaucracy is, and summarize its key characteristics and its nature. • (2). Examine the structure, organization, roles and tasks of the Federal Bureaucracy. • (3). Examine the President’s Cabinet and discuss their key departmental responsibilities. • (4). Contrast the diverse functions of the Executive Departments, Independent Regulatory Commissions, Government Corporations, andIndependentAgencies. • (5). Contrast the key tasks of rule administration, rule making, and rule adjudication. • (6). Examine the development & growth of the Bureaucracy’s power and responsibilities. • (7). Outline how the Federal Personnel System has evolved and changed, and discuss the spoils system, patronageand the Civil Service System and its attempted reforms. • (8). Examine the Federal Bureaucracy'spolitical character, goals, and resources. • (9). Outline the ways that Congress, the President, Interest Groups, and other agencies place constraints on the Federal Bureaucracy. • (10). Explain the "iron triangle" theory and contrast it with the rise of issue networks. • (11). Assess the recent efforts to reform or "reinvent" the Federal Bureaucracy.

2. Hierarchy What is a Bureaucracy? Gov. agencies that implement Government policies Professionalization Weber’s Five Characteristics of Bureaucracy Formality Record-keeping Specialization

3. Structure & Tasks of Federal Bureaucracy(TheExecutive Branch) Executive Departments (The Cabinet) Homeland Security

4. Types of Federal Agencies • Executive Departments • Cabinet appointed by the president • Confirmed by Senate with its advice & consent • Independent Regulatory Commissions • Small commissions w/greater independence • Fix terms – can only be fired “for cause” • Government Corporations • Government companies that serve Public for fee • Suppose to be self supporting (example?) • Finance, energy, insurance • Independent Agencies • Not part of Executive Department w/sub-cabinet rank* • NASA, EPA, *(Exception: CIA) • All heads serve at Pleasure of President

5. Executive Departments What kind of Departments or Agencies are these? Treasury Defense Justice State Agriculture Commerce Labor Interior Health & Human Svs Housing & Urban Dev. Transportation Energy Education Veterans Affairs Homeland Security

6. Independent Agencies What kind of Federal Agencies are these? FEMA GSA EPA CIA* Peace Corps SBA NASA National Archives & Records *Exception: Cabinet Rank (Since Clinton Administration)

7. Independent Regulatory Commissions What kind of Federal Agencies are these? FCC Federal Reserve EEOC OSHA SEC Nuclear Regulatory Commission Federal Trade Commission FEC Consumer Product Safety

8. Government Corporations What kind of Federal Agencies are these? Postal Service AMTRAK Export- Import Bank FDIC Inter- America Foundation TVA Corp. for National & Community Service

9. Federal Departments & Agencies (summary)

10. The Tasks of the Federal Bureaucracy • Bureaucracies Perform Three Functions: • 1. Rule Administration • Administer the rules of public policy • Core bureaucratic function • 2. Rule Making* • Put general principles into Federal Regulations • Develop new rules as required • 3. Rule Adjudication • Determine if & when the rules have been followed or broken

11. Federal Government Rule Making (1940-2004)

12. Development of Federal BureaucracyConstitutional Foundations • Role of Congress & the President • Shared powers to devise & operate Bureaucracy • President’s power to appoint & ensure laws executed • Federal Bureaucracy => Constitutional hybrid • Created by Congress • Directed by the President • Accountable to both • Has the Federal Bureaucracy grown over the years? • Answer: Yes and No*

13. Civilian Federal Employees 1820-2003

14. Federal Government Growth (1820-2003):Per Capita Spending vs. People Employed

15. Growth of the Federal Bureaucracy • Chart (Figure 13-4)* illustrated (from 1890): • Steady Federal growth to 1945 highpoint (3.8M) • Steep growth began between 1931=> 1945 (why?) • Per capita growth & spending (Figure 13-5)*shows: • As US population grew (now at about 300 Million) => • Federal spending per person grew significantly, while… • Federal Bureaucrats employed declined • Bottom Line: • Federal Bureaucracy now spending & doing more per person (per capita) w/less federal employees to do it

16. Expanding Functions of the FederalBureaucracy • Four major categories of Federal functions: • National Maintenance • Clientele Services • Regulation of Private Sector • Income Redistribution Let’s look at these major Federal functions in greater detail.

17. National Maintenance • Early Federal Government Functions & Responsibilities primarily limited to: • Collect tax revenue • Defend the Nation • Conduct foreign relations • Enforce Federal laws • Promote internal communications • Which Government Departments & Agencies administered these functions?*

18. Early Federal Departments & Government Responsibilities State Department Treasury Department War Department Attorney General Post Office

19. Clientele Services(mid-19th century) • Serve special needs of influential Interest Groups • Agencies created to serve clients’ special interest Department of Agriculture Bureau of Labor Bureau of Labor => later: Dept of Commerce and Labor

20. Client Service Needs of 20th Century • 1930s=> Great Depression=> FDR’s New Deal: • Federal Activism and Bureaucracy expands: Department of Health, Education, and Welfare 1960s=> War on Poverty=> LBJ’s Great Society: Department of Housing and Urban Development

21. More Government Bureaucracy Created during the 20th Century • All formed to address other client’s needs Department of Energy Department of Transportation Department of Education Department of Veteran’s Affairs Latest edition to Federal Bureaucracy?*

22. Department of Homeland Security

23. Regulation of Private SectorExpanding Federal Responsibilities More: • Responsibility or regulating American economy • Federal Agencies established: • ICC, Federal Reserve, Federal Trade Commission • 1960s=> Regulate Society (Social Regulation) • Examples: EPA, OSHA • Social Regulation entails what kind of Federal function?*

24. Income Redistribution • Agencies formed to re-distribute economic benefits • Shift $$$ either directly or indirectly • Direct payments made to poor individuals: • Social Security (elderly) & AFDC (minors) • Some programs even transfer $$$ to wealthy: • Dept of Agriculture programs (wealthy farmers) • Social Security payments to wealthy retirees • Not always a one way street (i.e. from rich to poor)

25. Federal Bureaucracy’s Personnel SystemA History of Change… “Government by Gentleman” Political appointees were generally recruited from the educated elite class. (A Calling or Duty in service to the Nation)

26. Changes in Fed Bureaucracy’s Personnel System (2) The “Spoils System” Appointees of the President replace the previous President’s appointees. Government jobs =“spoilsof war” Spoils Systemfirst associated with whose Administration? Spoils System is also known as?*

27. Patronage The practice of rewarding partisan supporters with government jobs. (AKA:spoils system) Strong support for PatronageorSpoils Systemlasted until late 1800s when what happened? Congressional reaction? Pendleton Act of 1883(from 10% - 80+%) => Signaled beginning of what systembased on what?

28. Civil Service& “Merit” • Competence for job stressed • Political affiliation & political loyalty not a requirement for getting hired • “What you know” is more important than “who you know” Civil Servants ranked and paid IAW “General Schedule Classification System” or “GS” rankings

29. Civil Service Reform Act of 1978 • President Carter initiated major reforms • Reorganized agencies that oversee civil service in order to eliminate previous conflicts of interests: • Office of Personnel Management • Merit System Protection Board • Also created the Senior Executive Service(SES) • Allows high level civil servants to move into other vacant policy making positions. • Remains a “work in progress” (Homeland Security)

30. Politics of the Federal BureaucracyTheory versus Reality • Theory: political neutrality & competence • (Based on 19th century social theory of Max Weber) • Bureaucracy mechanically implement laws & policies • Always act in Public’s best interest • Above theory is the traditional (mythological) view of how the Government Bureaucracy works as illustrated in the following model*

31. Traditional View of Government Bureaucracy President Congress Formulate Policy Role of Bureaucracy? Bureaucracy Implements the Policy

32. Political Character of the Federal Bureaucracy- The Reality: • Reality:Inherently political institutions • Translate principles & goals=> concrete programs • Take board policies & laws => detailed regulations • Range of Discretion => and conflicting guidance • President vs. Congress intentions often compete • Result: Bureaucracy serves two masters • Can Play one off the other (depending on own agenda) • Exercises discretion => freedom to shape own rules • Usually made consistent with their own best interests • With Belief: what’s good for them is good for the USA

33. Goals of the Federal Bureaucracy Two Goals: Mission Goals Survival Goals The policy objectives that justify the creation and existence of an agency The desire bureaucrats have to see the agency they work for grow and prosper

34. Potential Threats to those Goals • Potential threats=> • Conflict & competition with other political actors: • Congress & The President (EOP) • Other Federal Agencies & Interests Groups • State & local governments • “Lifeblood” of bureaucracy? • Power ( A zero/sum game in Washington arena) • Constant competition for power, influence, & growth • What are the Political Resources available to the Federal Bureaucracy to counter these threats?

35. Administrative Discretion Political power throughrule makingprocedures.The use of rules to reflect an agency’s view of the public good. Power how to shape & administer policy (EPA=> strict or lax enforcement of regulations)

36. Clientele Support Clientele are the recipients of the services a government agency's programs provide. The power an agency exercises depends heavily on the power of its clientele. • Example: DOD versus DOS=> who’s most likely to win? • Domestic vs. foreign clients & the captive agency

37. Agency Expertise Agencies gain power from the expertise their employees develop. Expertise isspecialized knowledgeacquired through work experience or training and education. Critical factors affecting value of expertise: Extent that agency is only one with the expertise Size of the knowledge gap with other “experts” Example: NASA versus DOS & foreign policy

38. Assessment:Effect of differences in Agency Power • Mission & survival goals affected by all three • Strong clients, great expertise, more knowledge = • More say & therefore more power = • Expanded mission & bigger budget ($$) • More likely to survive at other agencies’ expense • All affect status & pecking order in Washington • DOD more powerful than DOS • Both more powerful than DOT & DOE • And so on down the Cabinet “pecking order”

39. Political Constraints On Federal Bureaucracy Congress Other Agencies The Courts The President Interest Groups Examine in greater detail*

40. Political Constraints on the Federal Bureaucracy: The Congress • Congress=> Article I: enumerated powers: • Create => implies: modify or abolish • Determine Bureaucracy’s structure & responsibility • Appropriate funds to accomplish responsibilities • Congress implied powers: • Oversight (GAO & CRS) • Committee & Sub-committee’s role • Budget authorization & appropriation for programs • Interest Group's influence on Congress • Can be significant=> motivating Congress to act

41. Political Constraints on the Federal Bureaucracy: The President • President => IAW interpretation of Article II: • In addition to Enumeratedalso hasimplied powers • Key examples: • See that all laws are faithfully executed • Appointment powers=> influence who heads agency • Shape how policies are implemented • Can offer Budget proposals & legislation to Congress • Power of the veto threat • Power to reorganize structure & reassign functions • OMB=> clear all new agency regulations

42. Political Constraints on the Federal Bureaucracy: Interest Groups, The Courts & Other Agencies • Interest Groups=> options available for relief: • Turn to President (EOP), Congress, or The Courts • Other Agencies=> overlapping responsibilities • On-going competition for power & influence • FBI vs. CIA vs. DOS vs. DOD • Impact: check & balance power of the other • The Courts=> can placelegal constraints • Politically immune during deliberations • Determine if rules exceed authority or not lawful

43. Alliances and the Federal Bureaucracy • Iron Triangles* (Figure 13-6)* • Effective when interest & impact are very narrow • Downside: narrow interests that benefit the few • Taxpayers (Public) pay for these special benefits • Highly undemocratic => last minute riders on Bills • Issue Networks => (offset above influences) • Create range of competing positions on an issue • Tends to offset narrow interests of iron triangles • Agency & Congress respond to all potential voters • Result: dampens special interest’s influence

44. Iron Triangles

45. Reinventing the Federal Bureaucracy • Americans negative perception of federal government • Wasteful & inefficient (Red Tape) • Politicians efforts to change government red tape • Clinton & Gore (National Performance Review) • Previous commissions created in past to do same thing: • Grace Commissions (Reagan Administration) => result? • Recent post 9/11 trend: organizational changes: • Homeland Security established (Effectiveness? – control of FEMA?) • Usual result? (mixed at best) => why? • Conflicting demands & objectives for all affected: • Agency’s survival goals& bureaucratic self interest • Interest Group (Public & clients) demands (often in conflict)

46. Next Assignment • Text- Chapter 14: The Courts • Review Article III of Constitution • Continue to prepare for Test II: Key Terms • Review Key Terms in context of Chapters 11-14 Learning Objectives • Note: possible Quiz next Wednesday on Key Terms • Test II administered a week from next Monday • Bring SCANTRON 50/50 & #2 pencil

47. Chapter 13: Key Terms • Advice and consent: Refers to the provision in Article II of the Constitution that requires the president to gain the Senate’s approval of appointees to a variety of government positions. • Bureaucracy: In general usage, the set of government agencies that carries out government policies. The bureaucracy is characterized by formalized structures, specialized duties, a hierarchical system of authority, routine record keeping, and a permanent staff. • Bureaucrats: A term used generally to identify anyone who works within a large, formal organization. More specifically, it refers to career civil service employees of the government. • Cabinet: An informal designation that refers to the collective body of individuals appointed by the president to head the executive departments. The cabinet can, but rarely does, function as an advisory body to the president. • Civil service: The method by which most government employees have been hired, promoted, and fired since the 1880s. Personnel decisions are based on merit, or the competence of the individual to do the job, rather than the individual’s political loyalties. • Clientele: The recipients of the services a government agency’s programs provide. • Expertise: Specialized knowledge acquired through work experience or training and education.

48. Chapter 13: Key Terms(2) • Iron triangles: The alliance of a government agency, congressional committee or subcommittee, and political interest group for the purpose of directing government policy within the agency’s jurisdiction to the mutual benefit of the three partners. • Issue networks: A loose collection of groups or people in and out of government who interact on a policy issue on the basis of their interest and knowledge rather than just on the basis of economic interests. • Patronage: The practice of rewarding partisan supporters with government jobs. Also known as the spoils system. • Rule adjudication: Determining whether an agency’s rules have been violated. • Rule administration: The core function of the bureaucracy—to carry out the decisions of Congress, the president, or the courts. • Rule making: Formulating the rules for carrying out the programs a bureaucratic agency administers. • Spoils system: The method used to hire and fire government employees during most of the 1800s. Government employees of the new president’s choosing would replace those a previous president had appointed. Government jobs were the “spoils” (or rewards) of the electoral “wars.” This system was also known as patronage.