[Budget of the United States Government]
[V. Investing in the Common Good: Program Performance in Federal Functions]
[10. Restoring Trust in Government]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page   159]]


[[Page 161]]

 
                   10.  RESTORING TRUST IN GOVERNMENT

  ----------------------------------------------------------------------




  When I became President, I knew we had to change old policies and old ways of doing things . . . the American
people had a very low level of confidence in the Government . . . We wanted to change all that. We knew it was
important for our economy . . . We knew it was important for the integrity of our democracy.
                                      President Clinton
                                      January 1999


  ----------------------------------------------------------------------
  Americans believe that Government can deliver better results and 
improve their quality of life and the lives of their families. A 
generation ago, when the University of Michigan's Institute for Social 
Research asked ``Do you trust the Federal Government to do the right 
things most of the time?'' 76 percent of Americans expressed confidence 
in the Federal Government. By 1994, that number had declined to only 21 
percent. Analyses of the underlying causes of distrust of Government by 
The Pew Charitable Trusts, the Council for Excellence in Government, 
leading universities and other groups suggest there is a key link 
between confidence in Government and Government's performance.
  President Clinton and Vice President Gore recognized this and set 
about improving the responsiveness and performance of the Federal 
Government. The success of these efforts is reflected in the significant 
changes in the way Government does its business and the new confidence 
on the part of the American public. In the second term of this 
Administration, public trust in the Federal Government nearly doubled in 
the course of only four years, reaching 40 percent when last measured by 
the University of Michigan in 1998 (see Chart 10-1).
  Recent studies show that many people base their decisions about how 
much they trust their Government on their assessment of how well they 
believe Federal agencies perform. When Governments work for the people--
when citizens receive good basic services and have faith in the 
Government that is providing them--a large measure of stability and 
community naturally follows. In the past seven years, President Clinton 
and Vice President Gore have made substantial efforts to improve 
Government performance with demonstrable results. 


  Any organization that seeks to perform at a high level must have clear 
expectations, along with the necessary resources, the flexibility, and 
the management capacity to improve performance and get results. In 1993, 
Congress passed the Government Performance and Results Act (GPRA) which 
established a framework to set expectations, measure the progress toward 
meeting these goals, and report on results. For the first time this 
year, agencies will report upon these results in light of the 
performance goals they established in their 1999 plans. Later in 2000, 
agencies will update their strategic plans to cover activities for the 
next three to five years. Each year, agencies are more and more making 
performance measures a key part of their basic decisions, resulting in 
better budgeting and better programs.

The Administration's Stewardship is Making a Difference

  In 1993, President Clinton and Vice President Gore launched the 
longest running management reform effort in the Federal Government's 
history, the Reinventing Government initiative. This effort has created 
a Government that works better, costs less, and gets results Americans 
care about. In the past seven years, the Administration has streamlined 
the work force, eliminated obsolete programs and agencies, empowered its 
employees to cut red tape, and used partnerships to get results.

[[Page 162]]

  Between 1993 and 1999, the Administration reduced the size of the 
Federal civilian work force by 17 percent, or 377,000 full-time 
equivalent employees. As Chart 10-2 shows, this is the smallest Federal 
work force in 39 years. This reduction has been accomplished almost 
entirely through voluntary separations. Almost all of the 14 Cabinet 
Departments and large independent agencies have reduced their work force 
(see Chart 10-3). For example, the Office of Personnel Management 
reduced its work force by 55 percent during this period. And the growth 
in the Justice Department's work force, running contrary to the overall 
trend, specifically reflects the Administration's commitment to 
expanding the fight against crime and drugs, while the Commerce 
Department has hired additional employees on a temporary basis to meet 
the demands of the decennial census.
  To enable agencies to downsize and restructure so that they can better 
achieve their overall goals and missions, the Administration proposed 
and Congress enacted legislation in 1999 authorizing agencies to target 
offers of voluntary, early retirement to particular segments of the work 
force. The Administration will seek Government-wide authority to offer 
such voluntary separation incentives (buyouts) where justified through 
cost benefit analysis and will also continue to support agencies needing 
separate buyout authority to restructure their work force. 




The Administration is Improving Performance

  While reducing costs and cutting red tape are important management 
objectives, the highest priority objective is for Federal agencies to 
deliver results that Americans care about. Studies show that high 
performing organizations use a balanced set of measures to determine how 
they are doing in achieving ``bottom line'' mission results, maintaining 
strong employee morale, and satisfying their customers. These three 
elements are related. Research shows that when employee satisfaction 
grows, so too does the satisfaction of the customers they serve. This, 
in turn, contributes to improved mission (or operational) results. 
Together, such results-ori

[[Page 164]]

ented measures give a more comprehensive picture of how programs are 
performing and prevents managers from making improvements in one area at 
the expense of another.

  Customer satisfaction: In 1999, the Administration sponsored the 
first-ever Government-wide survey of the customers of agencies that deal 
the most with the public. The Government-wide American Customer 
Satisfaction Index was 68.6 on a 100-point scale. With an index of 
nearly 72, private sector services are in a similar range. In fact, 
certain Federal agencies do as well or better than the private sector in 
a number of areas. For example, Federal customers receiving earned 
benefits rated their agencies at 77 while the comparable private sector 
area had the same rating. Similarly, Veterans Health Administration 
outpatient services ranked 79; private sector hospitals ranked 70. As 
might be expected, there is considerable variation between agencies that 
provide benefits or services and those that collect taxes or regulate. 
The activities of regulatory agencies benefit the public at large, but 
may not be perceived as benefiting those subject to the regulation. 
Chart 10-4 shows customer satisfaction with selected Federal services 
compared to average satisfaction for private sector services. For 
details, see the website www.npr.gov. In addition, 60 percent of those 
surveyed thought service had improved in the past two years. Each 
participating agency has committed to improve its customer satisfaction 
in the coming year. The agency plans are available at the website 
www.customersurvey.gov. In 2000 and 2001, agencies will repeat the 
survey and expand the services covered. 


  Employee satisfaction: A second 1999 Government-wide survey--of the 
Federal work force--showed that job satisfaction in Federal agencies is 
similar to the private sector. It also showed a dramatic leap in the 
number of Government employees who see customer service as an essential 
component of their jobs. Today, this is true for 72 percent of Federal 
Government employees. Less than a decade ago, shortly before this 
Administration came to of

[[Page 165]]

fice, only 36 percent of supervisors considered customer service to be 
important. In addition, the survey showed that employees in 
organizations where reinvention has been a priority were twice as 
satisfied with their jobs, felt they were more empowered to serve their 
customers, and faced less red tape than other employees.
  To recognize that Federal employees are the key to effective 
Government performance, and to enable the Government to attract and 
retain a high-quality work force, the President proposes to enhance the 
current compensation package. First, the President proposes a 3.7 
percent pay raise for civilian employees, an increase greater than the 
recent wage growth in the private sector. Second, the Administration 
will request that Congress reverse action taken last year to delay into 
2001 the last 2000 paycheck of many Federal employees and to repeal, 
effective January 2001, the higher retirement contributions required of 
Federal employees by the Balanced Budget Act of 1997. Third, the 
President will enable Federal employees to pay their annual health 
insurance premiums out of pre-tax income, a benefit already available to 
most employees in the private sector and State and municipal 
Governments.

  Getting Results: The commitment of the President and the Congress to 
balance the budget--and keep it in balance--has rightly prompted 
increased focus on the allocation of resources to programs that advance 
each agency's mission. Therefore, agencies are increasingly justifying 
funds for programs in terms of performance. The Executive Branch and the 
Congress are asking the key questions: ``What are we getting for what we 
are spending?'' and ``How will we know if we are successful?''
  The bottom line for Government organizations is their mission: the 
goals and outcomes that can indicate success. For example, a major 
performance goal for the Environmental Protection Agency is to reduce 
air toxics emissions. The Department of Education's Student Financial 
Assistance Program has a major goal to ensure that low- and middle-
income students will have the same access to post- secondary education 
that high-income students do. The Social Security Administration seeks 
to deliver customer-responsive world-class service.
  Often performance is examined only across single organizational units, 
such as a Department or agency. In Chapters 11 (National Security) 
through 27 (General Government) that follow, program performance is 
described according to budget functions. The functional presentation 
reflects comprehensive coverage of the major accounts in the budget, 
grouping together similar programs to show the interrelationships among 
their goals. The chapters include illustrative accomplishments in 1999 
and other recent years, and also highlight performance goals for 2001. 
Additional detail will be available when the agencies distribute their 
2001 performance plans and their first-ever annual performance reports 
assessing operational results for 1999.
  The material that follows, together with Section III, ``Sustaining Our 
Economic Prosperity,'' constitutes the third comprehensive Government-
wide Performance Plan. Together these sections, which highlight fiscal 
performance and operating performance, contain an integrated view of the 
measures and descriptions of program activity contemplated by the GPRA.
  In addition, OMB is separately submitting its third Report to Congress 
on the Costs and Benefits of Federal Regulations. This report is 
required by Section 638(a) of the 1999 Omnibus Consolidated and 
Emergency Supplemental Appropriations Act. The report updates 
information on the costs and benefits of Federal regulations in the 
aggregate, by agency and agency program, and by major rule. It also 
presents an analysis of impacts of Federal regulation on State, local, 
and Tribal governments, small business, wages, and economic growth. 
Finally, the report provides recommendations for reform of specific 
regulations.

[[Page 166]]



                                    Table 10-1. FEDERAL RESOURCES BY FUNCTION
                                            (In billions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                         Estimate
          Category               1999    -----------------------------------------------------------------------
                                Actual       2000        2001        2002        2003        2004        2005
----------------------------------------------------------------------------------------------------------------
NATIONAL DEFENSE:
  Spending:
    Discretionary Budget          288.1       294.1       306.3       310.1       316.4       324.1       332.4
     Authority..............
    Mandatory Outlays:
      Existing law..........       -0.6        -0.5        -0.9        -0.8        -0.8        -0.7        -0.7
  Credit Activity:
    Direct loan               ..........          *   ..........        N/A         N/A         N/A         N/A
     disbursements..........
    Guaranteed loans........          *           *   ..........        N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............        2.1         2.1         2.2         2.2         2.2         2.2         2.2

INTERNATIONAL AFFAIRS:
  Spending:
    Discretionary Budget           41.5        23.9        22.8        23.2        23.5        24.1        24.6
     Authority..............
    Mandatory Outlays:
      Existing law..........       -4.3        -4.8        -4.1        -3.7        -3.7        -3.7        -3.7
  Credit Activity:
    Direct loan                     2.8         1.8         1.4         N/A         N/A         N/A         N/A
     disbursements..........
    Guaranteed loans........        9.5        12.8        12.5         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............       14.4        15.6        16.7        17.0        17.6        18.8        20.1
    Proposed legislation....  ..........        0.1         0.2         0.1           *          -*          -*

GENERAL SCIENCE, SPACE, AND
 TECHNOLOGY:
  Spending:
    Discretionary Budget           18.8        19.2        20.8        21.2        21.5        22.1        22.5
     Authority..............
    Mandatory Outlays:
      Existing law..........          *         0.1         0.1           *           *           *           *
  Tax Expenditures:
    Existing law............        3.6         2.9         5.2         5.7         5.1         4.8         3.9

ENERGY:
  Spending:
    Discretionary Budget            2.9         2.6         2.9         3.3         3.1         3.2         3.3
     Authority..............
    Mandatory Outlays:
      Existing law..........       -2.2        -4.5        -3.8        -3.9        -3.7        -4.0        -4.0
  Credit Activity:
    Direct loan                     1.1         1.7         1.6         N/A         N/A         N/A         N/A
     disbursements..........
    Guaranteed loans........          *         0.1         0.2         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............        1.9         1.9         1.9         2.0         1.3         1.4         1.4
    Proposed legislation....  ..........  ..........        0.2         0.4         0.7         1.1         1.6

NATURAL RESOURCES AND
 ENVIRONMENT:
  Spending:
    Discretionary Budget           23.8        24.0        24.9        25.1        25.4        26.0        26.5
     Authority..............
    Mandatory Outlays:
      Existing law..........        0.3         0.5         0.6         0.7         0.9         0.8         0.8
      Proposed legislation..  ..........  ..........       -0.2        -0.1        -0.5        -0.4        -0.3
  Credit Activity:
    Direct loan                       *           *           *         N/A         N/A         N/A         N/A
     disbursements..........
    Guaranteed loans........  ..........  ..........        0.1         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............        1.5         1.5         1.6         1.6         1.7         1.8         1.8
    Proposed legislation....  ..........  ..........          *           *         0.1         0.2         0.3

AGRICULTURE:
  Spending:
    Discretionary Budget            4.5         4.5         4.6         4.6         4.5         4.7         4.7
     Authority..............
    Mandatory Outlays:
      Existing law..........       18.4        26.1        14.3         9.8         9.7         7.6         6.6
      Proposed legislation..  ..........        0.7         3.4         3.3   ..........  ..........  ..........
  Credit Activity:
    Direct loan                    10.0        12.2        10.6         N/A         N/A         N/A         N/A
     disbursements..........
    Guaranteed loans........        2.6         6.6         6.6         N/A         N/A         N/A         N/A

[[Page 167]]


  Tax Expenditures:
    Existing law............        0.9         0.9         1.0         1.0         1.0         1.1         1.1

COMMERCE AND HOUSING CREDIT:
  Spending:
    Discretionary Budget            3.8         7.2         3.5         3.3         3.3         3.2         3.3
     Authority..............
    Mandatory Outlays:
      Existing law..........       -0.9        -1.6        -0.8        -1.0        -1.5        -1.3        -0.7
      Proposed legislation..  ..........  ..........       -0.1        -0.1        -0.1        -0.1        -0.1
  Credit Activity:
    Direct loan                     2.1         1.8         2.0         N/A         N/A         N/A         N/A
     disbursements..........
    Guaranteed loans........      306.6       264.0       273.9         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............      227.9       235.6       247.1       255.3       264.4       274.7       284.4
    Proposed legislation....  ..........  ..........        0.3         0.5         0.5         0.7         0.8

TRANSPORTATION:
  Spending:
    Discretionary Budget           13.7        13.3        14.5        14.5        15.0        15.6        16.3
     Authority..............
    Mandatory Outlays:
      Existing law..........        1.9         2.4         2.1         1.6         2.0         1.9         1.9
      Proposed legislation..  ..........  ..........          *           *           *           *           *
  Credit Activity:
    Direct loan                     0.2         1.0         0.9         N/A         N/A         N/A         N/A
     disbursements..........
    Guaranteed loans........        1.8         2.8         0.9         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............        1.9         2.0         2.1         2.2         2.3         2.5         2.6

COMMUNITY AND REGIONAL
 DEVELOPMENT:
  Spending:
    Discretionary Budget           11.0        11.5        12.3        12.3        12.5        12.8        13.1
     Authority..............
    Mandatory Outlays:
      Existing law..........         -*        -0.5        -0.6        -0.8        -0.9        -0.9        -1.1
      Proposed legislation..  ..........  ..........       -0.1           *         0.1         0.2         0.2
  Credit Activity:
    Direct loan                     1.7         2.1         2.8         N/A         N/A         N/A         N/A
     disbursements..........
    Guaranteed loans........        1.6         2.4         2.9         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............        1.3         1.4         1.5         1.4         1.2         1.1         1.1
    Proposed legislation....  ..........  ..........        0.1         0.5         1.0         1.3         1.6

EDUCATION, TRAINING,
 EMPLOYMENT, AND SOCIAL
 SERVICES:
  Spending:
    Discretionary Budget           46.6        44.4        61.5        61.6        62.3        63.4        64.6
     Authority..............
    Mandatory Outlays:
      Existing law..........       11.3        11.3        15.4        14.0        15.5        16.2        17.2
      Proposed legislation..  ..........       -0.1        -2.8        -0.2        -0.2        -0.2        -0.2
  Credit Activity:
    Direct loan                    18.1        14.7        15.8         N/A         N/A         N/A         N/A
     disbursements..........
    Guaranteed loans........       21.9        25.3        26.5         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............       34.1        36.0        37.6        38.7        41.2        42.4        44.7
    Proposed legislation....  ..........        0.1         1.4         3.7         3.8         5.0         5.5

HEALTH:
  Spending:
    Discretionary Budget           30.2        33.8        35.0        34.8        35.2        36.1        36.8
     Authority..............
    Mandatory Outlays:
      Existing law..........      114.1       123.3       132.3       143.2       155.1       167.5       181.3
      Proposed legislation..  ..........  ..........        1.1         2.8         5.3         8.1         9.8
  Credit Activity:
    Guaranteed loans........  ..........        0.1         0.1         N/A         N/A         N/A         N/A

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  Tax Expenditures:
    Existing law............       82.9        89.3        95.2       101.7       107.4       114.2       122.0
    Proposed legislation....  ..........  ..........        0.1         1.3         2.8         3.9         4.7

MEDICARE:
  Spending:
    Discretionary Budget            2.8         3.1         3.0         3.0         3.0         3.1         3.2
     Authority..............
    Mandatory Outlays:
      Existing law..........      187.7       199.5       218.3       223.7       241.9       255.4       277.5
      Proposed legislation..  ..........  ..........       -0.7         2.6        -2.7         6.5         6.1

INCOME SECURITY:
  Spending:
    Discretionary Budget           32.7        29.8        41.3        41.3        41.8        42.9        43.8
     Authority..............
    Mandatory Outlays:
      Existing law..........      197.8       207.4       217.2       229.7       240.9       251.1       263.3
      Proposed legislation..  ..........        2.2        -1.6         0.9         1.5         3.0         3.1
  Credit Activity:
    Direct loan                       *           *           *         N/A         N/A         N/A         N/A
     disbursements..........
    Guaranteed loans........          *         0.1         0.1         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............      140.3       147.7       153.1       159.3       165.6       172.1       178.8
    Proposed legislation....  ..........          *         2.6         4.6         7.9        10.4        16.4

SOCIAL SECURITY:
  Spending:
    Discretionary Budget            3.2         3.2         3.5         3.5         3.5         3.6         3.7
     Authority..............
    Mandatory Outlays:
      Existing law..........      387.0       403.3       422.2       443.0       465.3       489.7       516.2
      Proposed legislation..  ..........  ..........  ..........        0.1         0.1         0.1         0.2
  Tax Expenditures:
    Existing law............       23.3        24.5        25.8        27.3        29.0        30.8        23.3

VETERANS BENEFITS AND
 SERVICES:
  Spending:
    Discretionary Budget           19.3        20.9        22.1        22.1        22.3        22.9        23.4
     Authority..............
    Mandatory Outlays:
      Existing law..........       23.8        25.1        25.6        26.3        27.6        28.4        31.0
      Proposed legislation..  ..........        1.8        -1.5         0.8         1.0         1.5         2.0
  Credit Activity:
    Direct loan                     1.7         2.0         0.7         N/A         N/A         N/A         N/A
     disbursements..........
    Guaranteed loans........       43.1        32.1        29.5         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............        3.1         3.3         3.4         3.5         3.7         3.9         4.1

ADMINISTRATION OF JUSTICE:
  Spending:
    Discretionary Budget           26.5        26.6        29.0        30.0        30.1        30.3        30.9
     Authority..............
    Mandatory Outlays:
      Existing law..........        0.9         1.5         1.5         0.8         0.7         2.1         2.2
      Proposed legislation..  ..........  ..........  ..........  ..........  ..........       -1.5        -1.5

GENERAL GOVERNMENT:
  Spending:
    Discretionary Budget           13.7        12.6        14.7        14.5        14.6        14.8        15.0
     Authority..............
    Mandatory Outlays:
      Existing law..........        3.3         1.7         1.4         1.3         1.3         1.6         1.4
      Proposed legislation..  ..........          *           *         0.4         0.4         0.4         0.4
  Credit Activity:
    Direct loan               ..........          *           *         N/A         N/A         N/A         N/A
     disbursements..........
  Tax Expenditures:
    Existing law............       63.0        65.8        68.3        70.8        73.8        77.0        80.3
    Proposed legislation....  ..........  ..........          *         0.3         0.3         0.3         0.4


[[Page 169]]


NET INTEREST:
  Spending:
    Mandatory Outlays:
      Existing law..........      229.7       220.3       208.3       198.6       189.2       177.4       163.6
      Proposed legislation..  ..........  ..........          *           *         0.1         0.1         0.1

  Tax Expenditures:
    Existing law............        1.0         1.1         1.1         1.2         1.2         1.3         1.4

ALLOWANCES:
  Spending:
    Discretionary Budget      ..........  ..........       -0.2        -0.2        -0.3        -0.3        -0.3
     Authority..............

UNDISTRIBUTED OFFSETTING
 RECEIPTS:
  Spending:
    Discretionary Budget      ..........  ..........       -0.2        -0.2        -0.2        -0.2        -0.2
     Authority..............
    Mandatory Outlays:
      Existing law..........      -40.4       -43.1       -45.7       -49.1       -47.3       -46.9       -48.6
      Proposed legislation..  ..........  ..........        0.3         0.3         0.3         0.3         0.3

FEDERAL GOVERNMENT TOTAL:
  Spending:
    Discretionary Budget          583.1       574.7       622.2       627.7       637.5       652.1       667.5
     Authority..............
    Mandatory Outlays:
      Existing law..........    1,128.1     1,167.4     1,203.2     1,233.5     1,292.3     1,342.3     1,404.2
      Proposed legislation..  ..........        4.6        -2.1        10.7         5.3        18.1        20.0

  Credit Activity:
    Direct loan                    37.7        37.3        35.8         N/A         N/A         N/A         N/A
     disbursements..........
    Guaranteed loans........      388.2       348.3       354.1         N/A         N/A         N/A         N/A
----------------------------------------------------------------------------------------------------------------
* $50 million or less.
N/A Not available.

