BUREAUCRACY

1. BUREAUCRACY The bureaucracy is one of the most criticized parts of the U.S. government by most Americans at one time or another. Their power is felt in almost all parts of our lives and yet bureaucracies are barely mentioned in the Constitution. These agencies are created and funded by Congress, but most report to the President who supervises them as he executes the powers of Article II Section 3 of the Constitution. This dual responsibility to Congress and the President is an indication of how complex the federal Bureaucracy

2. It is a large, complex organization of appointed, not elected, officials. • They exist in many countries in many areas of life • Corporations • Universities • Local and state government Bureaucracy in Modern Government

3. Our federal bureaucracy shares common characteristics with others, but it does have its own characteristics. • 1. Divided supervision • Congress has the power to create, organize, and disband all federal agencies. Most of them are under the control of the President, although few of them actually have direst contact with him. • The bureaucracy have two masters. Political authority over them is shared, then, according to the principles of separation of powers and federalism. • On the national level, both Congress and officials in the executive branch have authority over them. • This divided authority encourages bureaucrats to play one branch against the other, many agencies have counterparts at the state and local level. The American Federal Bureaucracy

4. 2. Close public scrutiny • Government agencies in this country operate under closer public scrutiny than they do in most other nations. • The emphasis in American political culture on individual rights and their defense against abuse by government. • 3. Regulation rather than public ownership • Government agencies regulate privately owned enterprises, rather than operate publicly owned ones. • Regulation over ownership.

5. The Constitution makes little mention of a bureaucracy other than to make the President responsible for appointing public officials. (Article II, Section 3) • No provisions mentioned departments or bureaus, but Congress created the first one during GW presidency. • The Bureaucracy started in 1789 when Congress created the State Department. GROWTH OF THE FEDERAL BUREAUCRACY

6. In 1829 Andrew Jackson employed a spoils system to reward party loyalists with key federal posts. • He believed that such rewards would not only provide greater participation by the middle and lower classes, but would also insure effectiveness and responsiveness from those who owed their jobs to the President • This ensured that with each new President came a full turnover in the federal service. PATRONAGE

7. Late in the 19th century the spoils system was criticized • Allowed people with little knowledge and background to be appointed to important positions • Presidents were accused of selling positions or using them as bribes to get support for their election. • James Garfield assassinated in1881led to Congress passing the Act. • Merit system for appointing federal offices • Civil Service Commission supervised a testing program to evaluate candidates • Control of the federal service • Federal employees were selected and retained according to merit not party loyalty. Pendleton Act

8. With the establishment of the civil service an attempt by the U.S. Government during the industrial Era to regulate the economy and care for the needy brought on the modern administrative state. • The bureaucratic system became filled with qualified experts and they served across administrations to create a continuity and expertise

9. As the federal government began to legislate on business and corporations • Interstate Commerce Act 1887 (1st regulatory commission) • Enforce laws regulating train travel and products traveling across state lines. Under progressives led by Teddy Roosevelt Department of Labor and Commerce (later split into two departments Pure Food and Drug Act 16th Amendment(tax income) helped the bureaucracy expand.

10. In the early 20th century the U.S. faced two wars and the great depression that led to a new view of government’s administrative role. • New Deal programs gave government more responsibility and worked to strengthen the Democratic Party in ways the Pendleton Act meant to prevent. • The act only placed a part of the federal civilian workforce under an examination system. • Leading federal officeholders were still wrapped up in politics

11. Congress passed these statutes in 1939-40 the law distanced federal employees, as well as state employees paid with federal funds, from politics. • Prohibited federal workers from being directly involved in federal political campaigns. • Law was softened because it interfered with 1st Amendment rights. • Federal Employees Political Activities Act 1993 HATCH ACT

12. The size and scope of the bureaucracy increased during the 60’s and 70’s as laws were passed to ensure the equal rights of minorities and women • Justice department established the Office of Civil Rights , Equal Employment Opportunity Commission • Congress created the Consumer Product Safety Commission • Establishment Environmental Protection Agency.

13. President Carter promised to reform the bureaucracy • Civil Service Reform Act • Altered how a bureaucrat is dismissed, limited perferences for veterans to help balance the genders in federal employment, and put upper-level appointments back into the President’s hands. • Senior Executive Service • Put more emphasis on a bureaucrat’s skills and experiences than on the job. • The administration paid the recruited and incoming senior executives a standard salary, but the president had the right to move these officials • These reforms increased managerial flexibility and gave political leaders the tools to carve and mold the senior civil services. 1978 Reforms

14. The President oversees the executive branch through a structured system • State Department • Treasury Department • Defense Department • Department of Interior • Agriculture Department • Justice Department • Commerce Department • Department of Labor • Department of Health and Human Services • HUD • Department of Transportation • Department of Education • Department of Energy • Department of Veterans Affairs • Department of Homeland Security Departments

15. The departments contain agencies that divide the department’s goals and workload. They are also known as divisions, bureaus, offices, services, administrations, and boards. • Homeland Security • Border Patrol • Coast Guard • Transportation Security Administration • There are hundreds of agencies and the President appoints the head of each agency AGENCIES

16. FBI • Law enforcement agency of the Department of Justice • Immigration violations, national banking, and antitrust violations • Interstate crimes-transporting stolen property, bank robbery, fraud schemes • Today the FBI works with state and local law enforcement to find America’s most wanted, help track and uncover terrorist organizations.

17. Internal Revenue Service • After the 16th Amendment allowed Congress to tax individuals income Congress established this agency to collect taxes. • Internal Revenue Service was its original name • Under the Treasury Department • Mission is to help Americans understand and fulfill their tax responsibilities and to enforce the tax code • They also prosecute those that evade their taxes.

18. They have unique duties and an independence from others in the executive branch • NASA • Some independent agencies have a regulatory capacity. Congress has vested regulatory authority in agencies to oversee or regulate particular industry. • They can make narrow, industry- specific rules, and they can adjudicate violators. Independent Agencies and Commissions

19. Interstate Commerce Commission • Authority under the commerce clause, Congress created it to oversee the expanding interstate trade. • Wanted to remove political influence, and the president appoints the commission, but the appointed commission did not have to please the president. • Commission has an odd number of seats to avoid a tie, and their membership is meant to be balanced according to party. • They have fix terms and are staggered to create continuity in a government that overlaps presidential administrations.

20. Federal Trade Commission • Prevent overly powerful corporations from engaging in unfair business practices • Jurisdiction over consumer protection laws, regulate telemarketing. • Federal Elections Commission • They monitor elections • Federal Reserve • The board is made up of seven “governors” appointed by the president and approved by the Senate for 14 year staggered terms. • They set monetary policy by buying and selling securities, regulating money reserves required at commercial banks, and setting interest rates. • 12 Federal Reserve Banks serve as the intermediaries for money traveling from the government printing to the commercial banks

21. They are hybrid of a government agency and a private company. • They were created when the government wants to overlap with the private sector. • FDIC, Amtrak, TVA, Corporation for Public Broadcasting. • They all receive funding from Congress and the private sector. • Amtrak • Annual appropriation from Congress, passengers buy tickets • NPRPBS • Member stations raise funds and pay an annual fee to receive PBS and NPR programs. Government corporations

22. He was one of the first people to think seriously about the importance of bureaucracy. • He created the classic conception of bureaucracy as a well-organized machine that is a rational way for a modern society to organize its business. • He had several characteristics of a Bureaucracy • 1. Hierarchical authority structure a chain of command that is top bureaucrat has ultimate control. • 2. Task specialization a clear division of labor in which every individual has a specialized job. • 3. Extensive rules Clearly written, well-established formal rules that all in the organization follow • 4. Clear Goals a clearly defined set of goals that all people in the organization push toward. • 5. The merit principle hiring and promotion; no granting of jobs to friends or family unless they are the best qualified • 6 Impersonality job performance that is judges by productivity Max Weber’s Bureaucracy

23. Securities and Exchange Commission • Primary responsibility is enforcing the securities laws, proposing securities rules, and regulating the securities industry. • Nation’s stocks and options exchanges, and other activities and organizations including the electronic securities markets in the U.S. • Protect investors • Maintain fair, orderly and efficient markets • Facilitate capital formation

24. Federal employees cannot engage in political activity while on duty • They can express opinions about candidates, contribute to a campaign fund, join political parties, and attend political functions after hours. Federal Employees Political Activities Act

25. By the 1950s the merit system had grown to cover about 90%of all federal employees, and in 1978 the functions of the Civil Service Commission were split • 1. The Office of Personnel Management • Administers civil service laws, rules, and regulations Administers exams • It is in charge hiring for most agencies • General Schedule Rating • Senior Executive Service • 2. Merit system Protection Board • Protects the integrity of the federal merit system and the rights of federal employees • Hears charges of wrongdoing and employee appeals against agency actions and other disciplinary actions against employees. Modern Bureaucracy

26. Includes those jobs that require some type of exam or competitive service. • These are the merit based jobs created by the Pendleton Act • Foreign Service officers, the state department workers must pass a test. • The excepted service includes all the others, providing hiring options when the competitive service is not practical Competitive Service

27. The Constitutional basis for any bureaucratic department or agency stems from Congress’s power to create and empower them. • Congress must create, define, guide, and fund each department and agency. • The level of power or influence that any executive branch agency has is determined by it discretionary authority. • The agency’s ability to make decisions and take a course of action. • Justice Department prosecutor –decide to prosecute Rules

28. Congress has given the executive branch significant authority in three areas. • 1. created agencies to pay subsidies • Farmers, Social Security recipients. • 2. Distribute federal funds to the states • Grants in aid (federalism) • 3. federal offices the ability to devise and enforce regulations for various industries or issues. • Quasi-legislative power enables the FCC to determine what can be said on TV • EPA emission standards for factories.

29. As laws are made in a public manner, the agency rulemaking process and schedule must also be available to the public in advance to allow those groups that are effected to take part in the rulemaking. • Congress or other groups can submit arguments or appear and testify before a commission. • Commissions and boards can make rules or enforce the laws • Acting as a court the bureaucracy has quasi-judicial authority • Impose fines or other punishments (industry) Enforcement

30. It is hard to determine who is responsible for a bureaucratic decision. • Congress creates laws and regulations • President shapes the staff • Interest groups try to influence the bureaucracy. • With so many groups interacting with these executive branch sub-unites, it is hard to tell to whom the bureaucracy are beholden. Interaction

31. Bureaucratic agencies interact with other governmental offices and nongovernmental organizations. In trying to follow prescribed law, these executive branch groups still face political constraints and challenges. • Cabinet secretaries serve at the pleasure of the president but have to please many others, they report to congress/ funding decisions.

32. Departments and agencies have to compete with each other for funding and the president’s ear. Similar departments and agencies compete to attain the same or overlapping goals. • They contend that with more funding they could better fulfill their mission. • Sometimes the different beliefs or approaches can cause issues between departments when the government must state a position or make a decision • State Department v. Defense Department • Foreign policy Interaction within the Executive Branch

33. Cabinet Secretaries are often picked by presidents to shake up the agency or put it on a new course, but it is very hard to alter an agency that is staffed by career bureaucrats who know and understand the policies and procedures of the agency more than the new secretary. • Competition among agencies rises when they have similar goals • Law enforcement agencies will work together to find criminals but they are protective of their methods and desire credit causes dissention. • Lack of information sharing among intelligence agencies causes issues (911)

34. Loyalties

35. Removal

36. Congress has a wide authority over the departments and agencies • Assigning their jurisdiction • Congress checks up on them (investigate) • Determines funding • Sometimes constrain agencies • Most interaction between them is at the committee level, standing committees parallels the agencies • Senate Committee on Agriculture, Nutrition, and Forestry oversees the National Park Service • Committees and subcommittees receive reports from directors and call for them to testify. Congressional Oversight

37. With the power of the purse, Congress can determine the financial state of an agency and its success when it allocates money. • An agency cannot spend public funds until a committee or subcommittee first passes authorization of spending measures. • State the maximum amount the agency can give on a certain program. • The distribution of money defined in such an authorization may be a one-time allotment or it could be a recurring annual allotment. • The agency will not receive the funds until each house’s appropriations committee also approves the spending. (typically part of the federal budget)

38. Congress and agencies share a good deal of authority. This sharing has created an unclear area of jurisdiction. • Committee Clearance • Procedure that has developed to sort out any overlap. • Some Congressional committees have secured the authority to review and approve certain agency actions in advance. • Where these actions are not spelled out in law, few executive branch leaders will ignore Congress’s request, knowing the same committee determines its funding.

39. Congress established legislative veto in the 1930s to control agencies. • It is a requirement that certain agencies decisions must wait for a defined period of either 30 or 90 days. • Used during the Vietnam War as a tool to control executive excesses. • Is the Legislative Veto a violation of the Separation of powers? • INS v. Chadha • Supreme Court said yes. Legislative Veto

40. Jagdish Chadha born in Kenya (Indian descent) immigrated to the US in the 1960s (school) • When his visa expired, neither country would accept him, so he applied for permanent residency in the U.S. • Immigration and Naturalization Service approved his application. • Two years later the House rejected it • Chadha sued • 1983 SCOTUS ruled that the legislative veto was a violation of separation of powers.

41. The traits and operation of government bureaucracies create a unique culture. • Professionally trained • Educated bureaucrats hold the higher levels of government. • Each agency has developed its own persona based on influential directors and the goals of the organization. • The culture and processes define the administration and help shape public impressions. Bureaucratic Culture and Contemporary issues

42. The structure, rules and overlapping jurisdiction seem an inevitable byproduct of government. • Career bureaucrats and the strong leaders who rise to the top of the executive hierarchy are instrumental in setting the tone throughout their organization. • Duplication • Congress has a hard time establishing clear laws and clear goals, it creates multiple entities to manage or oversee important activities with only marginal differences. (competition jurisdictional issues)(redundancy expands government cost) • Rare that an agency has exclusive authority over a particular area. • FBI and Drug enforcement Agency • CIA and NSA

43. Red Tape • The vast amount of paperwork, procedures, forms, and formal steps citizens must take to accomplish a government mandated task. • Governmental restrictions on agency decisions and purchases contribute to slowing down bureaucratic decision making. In many cases, agencies must meet contingencies before they can move ahead with projects • Congress mandates that government contracts must be with American firms. • The government institutes targets and guidelines to encourage companies to work with minority owned businesses. • Hire prolabor firms and pay prevailing wages • Major construction require impact studies to determine the project’s effect on the environment/local economy before they can use public money

44. Inertia (concern for the operation of the Bureaucracy is accountability) • Presidents and their subordinates have ordered performance reviews and assessments. • Problem is trying to enhance responsiveness and effectiveness while seeking to boost efficiency has at times been counterproductive. • A government of laws is one that avoids arbitrary rule, but the more an agency is held accountable, the more forms, guidelines, and systems are required. Accountablity increases red tap decreases responsiveness.

45. President Carter’s reform • Congress created the Office of Internal Regulatory Affairs to enforce the Act. • Created many obstacles for agencies issuing regulations. • Decreased the flow of paper by increasing regulations on the bureaucracy itself. • FEAM/Hurricane Katrina • Public Impression of the Bureaucracy. • Bashing the Bureaucracy has been done by Presidents which has taught the people to distrust the bureaucracy (scapegoat) • Politicians and commentators have primed citizens to focus their resentments on the bureaucracy. Paperwork Reduction Act of 1979

46. Many presidents and congress have tried to improve their administration, organization, and structure the bureaucracy. • Presidents have created commissions to streamline the executive branch • Congress at times has merged, split, or dissolved agencies. • Both branches have focused reforms to improve representativeness and responsiveness. • Freedom of Information Act • Sunshine Act (requires most federal agencies to hold their meetings in publicly accessible places) • Whistlebower Protection Act Modern reforms

47. Volcker Commission (1980’s) • The report confirmed the suspicions about an erosion in the quality of American public service. • Clinton and Reinvention • He promised to address government inefficiency. • He said the problem in large administration came not from the bureaucrats but rather from the outdated systems and inefficient institutions. • Clinton and Gore wanted to reinvent rather than dismantle the bureaucracy system.

48. National Performance Review • In 1993, Clinton announced a six-month review of the federal government. • Organized to identify problems and offer solutions and ideas for government savings. • Focused on diminishing the paperwork burden and placing more discretionary responsibility with the agencies. • Report made about 400 recommendations designed to cut red tape, put customers first, empower employees, and produce better and less expensive government.

49. One report characterized the federal government as an industrial-era structure operating in an information age. • The bureaucracy had become so inundated with rules and procedures, so constrained by red tap, that it could not perform the way Congress intended.

50. Although interests groups have no formal control over agencies, the informal ties between them may greatly influence the implementation of policy. • Interests groups provide agencies with valuable information they need to execute policy, and they may pressure bureaucrats to interpret policy in ways that are favorable to the interest of they represent. • Bureau chiefs recruit interest groups as allies in pursuing common goals, they often share common views that more money should be spent on federal programs run by the bureau BUREAUCRACY AND INTEREST GROUPS