Unit IV: Institutions

1. Unit IV: Institutions Ch. 15: The Bureaucracy

2. Review: Structure of the American Bureaucracy Executive Branch Agencies: • White House Office: president’s closest assistants, can be hired and fired at will • Executive Office of the President: agencies that report directly to the President, top positions appointed by president and approved by Senate, can be fired at president’s discretion • main agencies: OMB, DNI, CEA, OPM, US Trade Rep • The Cabinet: not in Constitution (authority in Article II, Section 2), heads of 15 executive departments, appointed by President and confirmed by Senate, can be fired at president’s discretion • Independent executive agencies: • organized much like Cabinet departments, but lack Cabinet status (ex. NASA, SSA) • President appoints members and confirmed by Senate, agency heads serve fixed terms and can only be removed for cause • Government corporations • Created by Congress to carry out various business operations. Directors appointed by President, confirmed by Senate, serve fixed terms. • Ex: USPS, FDIC, TVA

3. 6. Independent Regulatory Commissions • Created by Congress to regulate important aspects of the nation’s economy. • Generally, the decisions of these are beyond presidential control, though commissioners are appointed by the President with Senate consent • Commissioners serve long terms (5-14 years) • Only a bare majority can belong to the same party • Terms are staggered • Commissioners can be fired by the President only for causes that Congress has specified. • Have quasi-legislative power: rules and regulations (published in the Federal Register) have the force of law (“policy implementation”) • Have quasi-judicial power: can settle disputes in their fields • Some important regulatory commissions: Federal Reserve Board, FCC, FEC, NLRB, SEC, FTC

4. I. Distinctiveness of U.S. Bureaucracy • Political authority over the bureaucracy is shared by the President and Congress • Federal agencies further share responsibility with state and local governments (federalism!) • Adversarial culture of the bureaucracy leads to defense of rights and lawsuits and political action as challenges to bureaucratic decisions

5. II. The Growth of the Bureaucracy • Early controversies: • Presidential appointments were to be confirmed by the Senate, but only removable by the president alone. Congress has the power to fund and investigate. • Development of the civil service system • Up to late 19th century, spoils system used to fill federal jobs • Pendleton Act (1883) created a civil service (exam-based) merit system to fill government jobs. Civil Service Commission (now OPM) administered exams. • Today, over 90% of federal employees are civil service workers • Under 10% of top-level federal jobs are still filled by presidential appointment (political appointees).

6. III. The Federal Bureaucracy Today • Size: • There are about 3mn. Civilian federal employees • Number has been fairly constant since 1950. • Result of more efficiency? • Or, result of more federal money being transferred to state and local governments to administer federal programs? • Power of the bureaucracy: • Discretionary authority: agencies have the power to choose various courses of action when Congress writes broadly-worded laws that allow for bureaucratic interpretation. • Primary areas of delegation: • Subsidies • Grant-in-aid programs • Enforcement of regulation • Other areas: helping draft legislation, advice to the WH, settling disputes • Reasons for growth of power: • National growth, technology, international crises, once created-hard to kill

7. Trend of Federal Civilian Employment 1994 - 2004

10. IV. Influences of Bureaucratic Behavior • Recruitment and retention • Most bureaucrats are appointed by civil service exam (merit-based, administered by OPM) • As system decentralizes agencies hire as needed. The “excepted service” employs more than half federal workers still using OPM standards • Legal exceptions: presidential appointees, Schedule C appointments, NEA jobs • The buddy system: name-request jobs can circumvent process • Firing a bureaucrat: most cannot be fired with the exception of the SES. • Agency’s Point of View • Many bureaucrats have a “loyal” or “agency” point of view • System assures continuity and expertise in policies and procedures among many bureaucrats • Agency managers must cultivate support of subordinates

11. Influences… E. Demographic Attributes F. Constraints • Low and mid-level bureaucrats are fairly representative of American people on basis of race, sex, religion… • Upper-level bureaucrats are not: mostly middle-aged, white males with college degrees from advantaged backgrounds • Surveys show bureaucrats tend to be more liberal than general public, especially those who work in “activist” agencies (EPA, FTC…) than those who work in “traditional” agencies (Justice, Defense, Treasury…) • Only 10% live in D.C. • ~30% work in a defense agency • Less than 15% work in a welfare agency • Most are white collar workers • Legal: • Administrative Procedure Act (1946) • Freedom of Information Act (1966) • Hatch Act (1939) • National Environmental Policy Act (1969): impact reports • Privacy Act (1974) • Open Meeting Law (1976) • Affirmative action hiring guidelines • Organizational: • Size of agencies make action difficult • Red tape • Lack of monetary incentives to take action

14. V. Controlling the Bureaucracy: Presidential Influences A. Powers B. Checks • To appoint top-level bureaucrats • to fire top-level bureaucrats • To propose reorganization of executive branch • To propose agency budgets • Appointment of SES personnel • “central clearance” • OMB oversight • Senate confirmation for top-level appointees • President cannot fire vast majority of bureaucrats • Reorganization must go through Congress • Agency budgets must go through Congress • SES has had little impact on accountability

15. Congressional Influences A. Powers B. Limits • Appropriations of agency budgets • Standing committee oversight, investigations, hearings • GAO • Reorganization • Appointment confirmation • Sunset laws Congress may not want to check power of the bureaucracy: • Members profit politically from the existence of federal programs within their states/districts • Easier for Congress to pass broadly-worded legislation and have experts in bureaucracy fill in the holes

16. Other Influences A. Interest Groups B. Media • Lobbying • Revolving door • Client groups • Iron triangles/issue networks/policy networks (subgovernments): • Congressional committee, relevant agency, related interest groups. (Hugh Heclo) • Scrutiny of agency behavior • Use of “whistle blowers” (Snowden) • Releasing “leaks” from government officials (WikiLeaks).

17. VI. Bureaucratic Pathologies A. Public Opinion B. Criticisms • General attitude is negative, but specific attitude is more favorable • Some believe bureaucrats are lazy and ineffective, yet also believe they are too powerful • Viewed as scapegoats by politicians when things go wrong • Red tape • Agency conflicts • Duplication • Waste • Excessive growth (imperialism) • Increase in rules and regulations over last 50 years • Lack of incentives for bureaucrats to increase efficiency and productivity • “permanent government” unresponsive to people

18. Published by the Office of the Federal Register, National Archives and Records Administration (NARA), the Federal Register is the official daily publication for rules, proposed rules, and notices of Federal agencies and organizations, as well as executive orders and other presidential documents. Published daily.

19. VII. Reforming the Bureaucracy A. In defense of bureaucracy B. NPR (Nat’l Performance Review 1993) • Correcting red tape would mean more red tape • Reducing agency conflicts and duplication would require Congress to set priorities • To reduce waste would require more regulations (red tape) • To reduce excessive growth, Congress would have to set priorities (political price) • Some agencies have shrunk, some have been eliminated • Public is inconsistent • Comparatively, US system is efficient • Designed to reinvent government • Emphasizes customer satisfaction by bringing citizens in contact with agencies • Innovation and quality: • Less-centralized management • More employee initiatives • Customer satisfaction