UNIT 10UNIT 10

The BureaucracyThe Bureaucracy

The “4th Branch” of GovernmentThe “4th Branch” of Government

I. I. WHAT EXACTLY IS THIS WHAT EXACTLY IS THIS “BUREAUCRACY” THING?“BUREAUCRACY” THING?

A. A. The large and The large and complex organization complex organization ofof UNELECTEDUNELECTED (hired (hired & appointed) officials & appointed) officials of the Executive of the Executive branch who are branch who are charged with running charged with running the day-to-day the day-to-day operations of gov’t.operations of gov’t.

B. B. Bureaucracy’s SizeBureaucracy’s Size • Total number: 2.9 million people Total number: 2.9 million people

(30% of these work for DoD and (30% of these work for DoD and 25% work for the USPS) 25% work for the USPS)

- 1.4 million people serve in the - 1.4 million people serve in the military but are not considered military but are not considered to be bureaucrats.to be bureaucrats.

The Bureaucracy’s Size The Bureaucracy’s Size (cont)(cont)• The federal workforce composes ~2% of the The federal workforce composes ~2% of the

total U.S. workforce.total U.S. workforce.• The size of the civilian bureaucracy The size of the civilian bureaucracy shrank as a shrank as a

% of the population from the 1970’s to 2004% of the population from the 1970’s to 2004, , but grew again under Bush Jr. (homeland but grew again under Bush Jr. (homeland security reasons) and Obama (domestic issue security reasons) and Obama (domestic issue reasons) reasons)

- 1970 U.S. population was 240 million- 1970 U.S. population was 240 million Bureaucracy size: 2.8 million = 1.2% of populationBureaucracy size: 2.8 million = 1.2% of population - 1990 U.S. population was 281 million - 1990 U.S. population was 281 million Bureaucracy size: 2.4 million = .85% Bureaucracy size: 2.4 million = .85%

- 2011 population was 308 million - 2011 population was 308 million Bureaucracy size: 2.9 million = .94% of Bureaucracy size: 2.9 million = .94% of

populationpopulation

II.II. Bureaucratic Bureaucratic AdministrationAdministration

TheThe Bureaucracy is Bureaucracy is HierarchicalHierarchical

A. The largest units of the Executive branch are the 15 cabinet departments each organized hierarchically and headed by a Secretary (except DOJ which has an Attorney General) who manages a specific policy area.

• Each dept has an Assistant Secretary as well as numerous Deputy and Under Secretaries who are supported by thousands of high & mid-level managers.

Bureaucratic UnitsBureaucratic Units

The bureaucracy is also composed of 50+ independent The bureaucracy is also composed of 50+ independent agencies and over 2,000 other administrative units based agencies and over 2,000 other administrative units based on mission or clientele served:on mission or clientele served:

- services- services (U.S. Secret Service)(U.S. Secret Service)

- offices- offices (Office of Management and Budget) (Office of Management and Budget)

- administrations- administrations (Social Security Administration) (Social Security Administration)

- bureaus- bureaus (Bureau of Indian Affairs; FBI)(Bureau of Indian Affairs; FBI)

- agencies- agencies (NASA; FEMA)(NASA; FEMA)

- boards- boards (National Labor Relations Board)(National Labor Relations Board)

- commissions- commissions (Federal Trade Commission; ICC)(Federal Trade Commission; ICC)

B.B. Cabinet: The Primary Cabinet: The Primary BureaucracyBureaucracy

• Created by Congress Created by Congress and expanded over and expanded over time at various time at various presidents’ request.presidents’ request.

• Serves as a key policy Serves as a key policy “sounding board” and “sounding board” and creates policy in creates policy in various areas to various areas to advance the advance the President’s ideological President’s ideological agenda.agenda.

• Builds policy coalitions Builds policy coalitions with interest groups, with interest groups, Congress, and the Congress, and the opposition party.opposition party.

C. Cabinet CompositionC. Cabinet Composition

- Members are appointed based on experience, diversity, or patronage (close friends, political donor, loyal party member)

- Not all cabinet officers or other appointed bureaucrats are experts in their dep’t…

they must rely on career bureaucrats for advice and knowledge.

D. D. Bureaucrats are “turf” orientedBureaucrats are “turf” oriented

Try to increase their own agency’s budget at Try to increase their own agency’s budget at the expense of the others.the expense of the others.

Promote own organization’s prestige and Promote own organization’s prestige and roles by pushing high visibility programs. roles by pushing high visibility programs.

Resist change and outsider interference.Resist change and outsider interference.- Their loyalty is often split between their

departments and the President!- Politicians use the bureaucracy as a - Politicians use the bureaucracy as a

“scapegoat” to assign blame for public “scapegoat” to assign blame for public policy failures or cost overruns (it may just policy failures or cost overruns (it may just be bad law).be bad law).

E.E. Government Government CorporationsCorporations• Government entities that are a cross between a

government agency and a private business. They provide a service that could be done by the private sector, but are better left for the government to do.

• They are self-They are self-supporting in that they supporting in that they are expected to make are expected to make money to run their money to run their operations from the operations from the services they provide to services they provide to the public, like the Post the public, like the Post Office, the largest one.Office, the largest one.

Other Government Corporations Corporation for Corporation for

Public Broadcasting Public Broadcasting (CPB)(CPB)

Federal Deposit Federal Deposit Insurance Corp. Insurance Corp. (FDIC)(FDIC)

AMTRAKAMTRAK

Tennessee Valley Tennessee Valley Authority (TVA)Authority (TVA)

F.F. Independent AgenciesIndependent Agencies

• Independent regulatory agency

An organization that has broad An organization that has broad “watchdog” powers to “watchdog” powers to implement and regulateimplement and regulate key key parts of the economy and are parts of the economy and are largely independent of control by largely independent of control by the President. (e.g. stock the President. (e.g. stock market, transportation, food and market, transportation, food and drugs, environment).drugs, environment).

- Examples: SEC, FAA, EPA, FDA - Examples: SEC, FAA, EPA, FDA These agencies have powers to These agencies have powers to

enforce laws and punish enforce laws and punish violators.violators.

Independent Agencies Independent Agencies (cont’d)(cont’d)

Each independent agency is Each independent agency is run by a chairman with a run by a chairman with a Board of Commissioners.Board of Commissioners.

Examples: FEC, FCC, NRC, FRBExamples: FEC, FCC, NRC, FRB - The President appoints - The President appoints Board members and Senate Board members and Senate confirms them.confirms them.

- Their terms of office vary - Their terms of office vary (3-14 yrs) and overlap (3-14 yrs) and overlap congressional and presidential congressional and presidential terms to protect against terms to protect against undue influence and political undue influence and political firings.firings.

G. The Armed Forces

• Top levels of military Top levels of military control are in the hands of control are in the hands of civilians. Military policy is civilians. Military policy is jointly developed by the jointly developed by the military and top civilian military and top civilian leaders.leaders.

• The Secretary of Defense The Secretary of Defense oversees the military oversees the military bureaucracy day-to-day.bureaucracy day-to-day.

- He reports directly to - He reports directly to the President who is the C-the President who is the C-in-Cin-C

• Each military branch has Each military branch has its own Secretary who its own Secretary who reports directly to the reports directly to the SecDef.SecDef.

Each military service is headed by a senior uniformed officer called a service chief and a

Chairman who make up the Joint Chiefs of StaffJoint Chiefs of Staff who report to the Sec’y of Defense.

Chairman

Army

Air Force

Navy

Marine Corps

H. The Civil Service

Created in 1883 by the Pendleton Act to rid gov’t office seekers from using patronage. What caused this?

The Civil Service is the means by which career bureaucrats enter and are promoted within the federal bureaucracy.

- Makes lists of job openings - Hires and promotes based on

competitive merit. - Investigates corruption,

incompetence, whistle-blowing.

III. Law and Policy III. Law and Policy Implementation Implementation

“I’m just a bill!”

I’m just a bill, but wait until you see how

I’m implemented!

A. Bureaucrats work in a A. Bureaucrats work in a conflicting environment … conflicting environment …

• Bureaucrats can interpret the intent of Congressional laws (discretionary authority) and write the necessary rules and regulations to put those laws into effect (implementation) even though they work for the Executive branch. It’s called: “quasi-legislative” power.

Implementation Is Difficult

Those who are to be controlled often oppose regulation (e.g. oil companies, cigarette companies, auto manufacturers, unions) and make excuses as to why they can’t comply with regulations imposed on them.

Special interest groups try to weaken implementation by lobbying Congress.

Resulting conflict can destroy policy effectiveness through legislative loopholes favorable to such groups (over 1,400 exemptions to OBAMACARE given to date!)

Quasi-Judicial PowersQuasi-Judicial Powers

• Independent regulatory agencies are Independent regulatory agencies are often given the power to punish (fine, jail, often given the power to punish (fine, jail, or shut down) those who break the laws.or shut down) those who break the laws.

• Those regulated or Those regulated or punished can appeal punished can appeal to the courts for relief to the courts for relief by suing to overturn by suing to overturn laws or trying to limit laws or trying to limit authority of authority of regulators.regulators.

Quasi-Judicial Enforcement Aggressive enforcement,

when supported by the President or Congress, can be effective in making the laws work by punishing violators.

But, a lack of significant enforcement, or weakened requirements, will often result in non-compliance by those regulated.

INCREMENTALISMINCREMENTALISM

Bureaucrats and Congress are often forced Bureaucrats and Congress are often forced by changing circumstances, public opinion, or by changing circumstances, public opinion, or political opposition to modify existing law political opposition to modify existing law rather than make wholesale departures from rather than make wholesale departures from them. This leads to…them. This leads to…

Policy-making that is characterized by a Policy-making that is characterized by a series of decisions, each instituting modest series of decisions, each instituting modest change, bit by bit and step by step, over time.change, bit by bit and step by step, over time.

B. B. Presidential ControlsPresidential Controls

• President is head of bureaucracy in his role as Chief Executive. But, he often has LESS control over it than Congress does. - Bureaucracies are permanent,

presidents are temporary.

Two, 4-year Two, 4-year termsterms

Unlimited Unlimited serviceservice

Presidential Controls Presidential Controls

Appointment and promotion:Appointment and promotion: President can fire President can fire most political appointees or civil service bureaucratsmost political appointees or civil service bureaucrats

Executive orders:Executive orders: to force complianceto force compliance

Exercise economic powers: Exercise economic powers: alter department and alter department and agency budgets,agency budgets, but Congress does the actual but Congress does the actual appropriatingappropriating

Reorganize the bureaucracy:Reorganize the bureaucracy: creation of new creation of new agencies, deletion of old ones, or combining missions agencies, deletion of old ones, or combining missions (e.g. Homeland Security Dept required other (e.g. Homeland Security Dept required other executive departments to give up “turf”, $, and people)executive departments to give up “turf”, $, and people)

Congressional ControlsCongressional Controls

• Change jurisdictionChange jurisdiction of agenciesof agencies• Alter budgetsAlter budgets of agencies and of agencies and

departmentsdepartments• Deny presidential appointmentsDeny presidential appointments to to

bureaucratic posts bureaucratic posts • OVERSIGHT!OVERSIGHT! Compel agencies to

interpret and apply laws as Congress intended by holding hearings, investigating bureaucratic failures, rewriting legislation.

Congressional Controls (cont’d)

• Committee ClearanceCommittee Clearance The ability of ccongressional committees to review and approve agency decisions in advance without the need to change previous laws or pass additional laws.

IVIV..

A. An alliance of mid-level bureaucrats, outside interest groups, and staff members of congressional committees formed to promote common causes.

• GoalGoal: Create or change laws that may be seen as outdated, unfair, or prohibitive to businesses or government policies (client politics).

How to Build an Iron TriangleHow to Build an Iron Triangle

ISSUE NETWORKSISSUE NETWORKS

• Networks of interest Networks of interest groups, media groups, media outlets, academic outlets, academic institutions, institutions, congressional staff congressional staff members, and private members, and private think tanksthink tanks that meet that meet to advocate public to advocate public policies.policies.

• Such networks are ideologically driven vs. interest driven like iron triangles.

V. REFORMING THE V. REFORMING THE BUREACRACYBUREACRACY

A. A. PrivatizationPrivatization

1. The government 1. The government outsources federal federal programs through bidding to a private programs through bidding to a private company to administer those programs company to administer those programs (e.g. running federal prisons, food (e.g. running federal prisons, food service, housing, building security, service, housing, building security, etc). etc).

2. Purpose: 2. Purpose: toto encourage competition encourage competition and job creation in the private and job creation in the private business sector while reducing business sector while reducing costscosts to the government. to the government.

3.3. It’s controversial It’s controversial because…because…

• The motivation for the private sector is PROFIT! - Take over and run an established gov’t entity for profit by cutting overhead and operating costs. • The bureaucracy isn’t supposed to run gov’t services for a profit unless it’s a government corp.

Privatization (a negative viewpoint)Privatization (a negative viewpoint)

B. DEREGULATIONB. DEREGULATION

- The reducing or ending of gov’t regulations on businesses and the economy by allowing the market to police itself as to behavior and prices.

- Those in favor believe freedom in the market place is best way to achieve economic growth.

- Those opposed see deregulation as a failure of government to protect consumers, environment, society, etc.

C. C. The Hatch Act (1939)The Hatch Act (1939)

► Enacted to ensure political neutrality of civil service employees in carrying out laws and policy.

► PROHIBITED BUREAUCRATS FROM:: running for officerunning for office making political speechesmaking political speeches managing political campaignmanaging political campaign using their office to affect election using their office to affect election

outcomeoutcome soliciting campaign contributions from soliciting campaign contributions from

subordinates subordinates

D. Revised Hatch Act D. Revised Hatch Act (1993)(1993)

It upheld a bureaucrat’s right to:It upheld a bureaucrat’s right to: votevote assist in voter registrationassist in voter registration make voluntary campaign make voluntary campaign

contributionscontributions join political partiesjoin political parties display partisan advertising display partisan advertising campaign for policy changes, laws, campaign for policy changes, laws,

etc.etc.

E.E. Other Bureaucracy Reforms Other Bureaucracy Reforms

More recent bipartisan attempts have had More recent bipartisan attempts have had limited success at reform:limited success at reform:

1. Government Performance and Results Act:

- Requires each agency to annually identify - Requires each agency to annually identify goals, adopt a performance plan, and have goals, adopt a performance plan, and have a system in place to measure performance a system in place to measure performance in meeting its objectives.in meeting its objectives.

- Are better management techniques key to - Are better management techniques key to actually solving the country’s problems?actually solving the country’s problems?

2.2. CIVIL SERVICE REFORM ACT (1978)CIVIL SERVICE REFORM ACT (1978)

RestructurRestructured how the Civil Service was ed how the Civil Service was run and allowed managers to make and run and allowed managers to make and implement policy decisions at lower implement policy decisions at lower management levels.management levels. Made it easier to hire, fire, and reassign Made it easier to hire, fire, and reassign bureaucrats. Enacted “whistleblower” bureaucrats. Enacted “whistleblower” protections.protections. Created Senior Executive Service (SES)Created Senior Executive Service (SES) Allowed cash bonuses for meritorious Allowed cash bonuses for meritorious performance.performance.

3. 3. National Performance ReviewNational Performance Review

Carried out during Clinton’s first Carried out during Clinton’s first term in 1993-95; overseen by term in 1993-95; overseen by “Mr. Global Warming”, Al Gore.“Mr. Global Warming”, Al Gore.

Among Washington insiders Among Washington insiders NPR was popularly referred to NPR was popularly referred to as as “Reinventing Government”.

Bureaucracy believed to be too Bureaucracy believed to be too centralized and turf-oriented, too centralized and turf-oriented, too rule-bound and not caring about rule-bound and not caring about program results or their effects.program results or their effects.

National Performance ReviewNational Performance Review Emphasized “customer satisfaction” within the Emphasized “customer satisfaction” within the

bureaucratic systembureaucratic system - Rewarded employee initiative - Rewarded employee initiative - Eliminated many restrictive rules and - Eliminated many restrictive rules and

excessive paperworkexcessive paperwork Less centralized managementLess centralized management

- Better purchasing practices initiated- Better purchasing practices initiated - Reduce duplication & waste among agencies- Reduce duplication & waste among agencies - Made it easier to fire a bureaucrat- Made it easier to fire a bureaucrat RESULT:RESULT: Marginal change as bureaucrats Marginal change as bureaucrats

resisted turf changes and burrowed further into resisted turf changes and burrowed further into their rules & regulations. WGOF!their rules & regulations. WGOF!

4. Reducing “Red Tape”• Red tapeRed tape is the complex is the complex

rules and regulations that rules and regulations that must be followed to get must be followed to get the bureaucracy to do the bureaucracy to do something on an issue.something on an issue.

• Often involves endless Often involves endless paperwork, clearances, paperwork, clearances, or long drawn out or long drawn out procedures and decision-procedures and decision-making that overwhelms making that overwhelms citizens trying to get citizens trying to get anything done.anything done.

END OF UNIT 10END OF UNIT 10

THE THE BUREAUCRACYBUREAUCRACY