Executive Branch – Federal Bureaucracy Unit III – Part 5

Definition of Bureaucracy Departments, agencies, commissions, and/or people responsible for the implementation of government policies

Influence and importance Major role in shaping policy Administration of policies Initiation of many bills enacted into law by Congress Providing of “expert” advice on government and government policies Handling of day to day operations of the nation’s government

Selection of bureaucrats Examples prior to the 20th century Under Geo. Washington Character, competence, loyalty to the constitution Under Andrew Jackson Reward for party loyalty – spoils system Government jobs in return for support –patronage Belief in job rotation and the suitability of anyone for any position Assessment of campaign contributions from appointees

Selection of bureaucrats Under Chester Arthur Need for efficient, fair, and politically neutral bureaucracy in a larger and more complex government Passage of Pendleton Act (1883) Creation of Civil Service Commission Use of examinations to determine 10% of government bureaucrats Expansion of percentage of Civil Service employees by future presidents

Examples of changes in the bureaucracy in the 20th century Under the Progressives Interest in nonpartisan government Need for specific expertise Extension of Pendleton Act Establishment of additional gov’t agencies Dept of Commerce and Labor Unites States Forest Reserve Federal Reserve Commission Federal Trade Commission Reactivation of the Interstate Commerce Commission

Under FDR’s New Deal Creation of more independent commissions NLRB, FCC, SEC Creation of government corporations FDIC, Federal Crop Insurance Corporation, Tennessee Valley Authority Controls on the bureaucracy Executive Reorganization Bill (1939) Hatch Act (1940) Prohibition on electioneering activity by federal employees Administrative Procedure Act (vetoed ‘39 – passed ’46) Regulations on agencies Public hearings to elicit input Right to appeal agency decisions in the courts

During the postwar era Modernization of the War now Defense Dept Rapid expansion of national and state bureaucracies Management of War on Poverty Programs Management of consumer and environmental issues Office of Consumer Affairs Council on Environmental Quality Environmental Protection Agency National Highway Safety Administration Occupational Safety and Health Administration Consumer Product Safety Commission

During the postwar era Passage of agency regulatory measures Freedom of Information Act (1966) Right of individual citizens to access information Privacy Act (1974) Limitation on revealing information about someone to others Government in the Sunshine Act (1976) Open meetings of most regulatory agencies

Reorganization of the Civil Service System Civil Service Reform Act (1978) Replacement of Civil Service Commission with two agencies Office of Personnel Management Duties Recruitment and hiring of federal employees Classification of jobs with salaries and benefits Practice of sending three qualified people to be interviewed for a position Training of employees Membership Appointment by the president with Senate approval

Reorganization of the Civil Service System Civil Service Reform Act (1978) Replacement of Civil Service Commission with two agencies Merit Systems Protection Board Duty Protection of merit principle in bureaucracy’s hiring and promotion policies Membership Three member board Joint appointment by president and Senate

Current staffing of the bureaucracy 70% of employees in white collar positions 85% of employees under Civil Service protection Critical Concerns Job security Compensation Comparable pay to private sector with 1990 pay raise

Organization of the Bureaucracy Executive Departments – Cabinet Level Advice to the president in area of expertise Creation of Cabinet Department of State (1789) Advising on formulation and execution of foreign policy Dept of the Treasury (1789) Formulation of economic, financial, tax, and fiscal policies Manufacturing of coins and currency Dept of the Interior (1849) Control of public lands and natural resources

Department of Commerce (1913) Dept of Labor (1913) Dept of Justice (1870) Advice on legal matters Dept of Agriculture (1889) Formulation of policies to maintain farm incomes and expand markets for goods Department of Commerce (1913) Promotion of trade and technical advancement Dept of Labor (1913) Formulation of policies promoting the welfare of wage-earners Dept of Health, Education, and Welfare (1953) Currently Dept of Health and Human Services (1979) Formulation of policies protecting the health and welfare of all citizens

Dept of Housing and Urban Development (1965) Formulation of policies concerning housing needs and community development Dept of Transportation(1966) Formulation of national transportation policies Dept of Energy (1977) Formulation of national energy plan Dept of Education (1979) Formulation and administration of federal assistance to schools Dept of Veterans Affairs (1989) Formulation and operation of programs to benefit veterans and their families

Organization of the Bureaucracy Organizational style – managerial orthodoxy Hierarchical Clear lines of authority and responsibility Written rules for standard operating procedures at all levels Limitations Massive red tape Lack of flexibility Problems Conflict between good advice to pres and needs of dept Average term of Cabinet heads – 22 months Limited access to the pres with additions to the White House Staff

Independent executive agencies Executive organizations without Cabinet level affiliation Examples NASA, EPA, CIA, General Services Administration Organization Top administrator Hierarchical line of authority under administrator Membership Appointment by pres without Senate approval Accountability Congressional restrictions through budget and oversight

Independent regulatory agencies Creation Congressional formed bipartisan agencies without Cabinet level affiliation Administratively independent of the president and Congress Examples Interstate Commerce Commission (ICC) FCC, NLRB, SEC, FTC Nuclear Regulatory Commission Consumer Product Safety Commission Federal Maritime Commission

Independent regulatory agencies Duty Holding hearings to determine any violations Powers Executive – administration of programs and enforcement of laws Legislative – enactment of rules and regulations clarifying laws Judicial – final decisions on disputes under authority Membership Bipartisan board Long and staggered terms Appointment by the pres with Senate approval

Independent regulatory agencies Accountability General congressional guidelines Requirements of Administrative Procedures Act Problems Denial of principle of separation of powers Influence of special interest groups Vast number of rules and regulations on aspects of the economy Difficulty of removing board members

Regulatory agencies Executive organizations with Cabinet affiliation Examples FDA, OSHA, IRS, Federal Reserve System Duty Regulation of economic activity Membership Appointment by pres without Senate approval Accountability Congressional restrictions through budget and oversight

Public Corporations Creation by legislative charters Examples First Bank of the United States (1791-1836) FDIC (1933), TVA (1933), Export-Import Bank (1934) United States Postal Service (1970) Independent establishment of the executive branch Organization Board of Directors to create policy General manager to implement policy Membership Appointment by the president with Senate approval Accountability Budget appropriations by Congress Government ownership of stock