[Analytical Perspectives]
[Special Analyses and Presentations]
[11. Strengthening Federal Statistics]
[From the U.S. Government Publishing Office, www.gpo.gov]


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                  11.  STRENGTHENING FEDERAL STATISTICS

  Our economy's complexity, growth, and rapid structural changes demand 
that public and private leaders have unbiased, relevant information on 
which to base their decisions. Data on real Gross Domestic Product 
(GDP), the Consumer Price Index (CPI), and the trade deficit, for 
example, have a major impact on government spending, budget projections, 
and the allocation of Federal funds. They also are critical inputs to 
monetary, fiscal, trade, and regulatory policy. Economic data, such as 
measures of price change, have as well a significant influence on 
interest rates and cost-of-living adjustments that affect every American 
who runs a business, saves for retirement, or mortgages a home.
  Similarly, timely, comparable data on the characteristics of the U.S. 
population are essential to monitor societal changes. Of great import in 
2001 will be the delivery of Census 2000 data used to apportion 
congressional seats among the States, redistrict at State and local 
levels, and allocate locally each year nearly $200 billion in Federal 
funds. In 1999 and 2000, our Nation invested the resources necessary to 
plan and implement the most extensive effort ever to count every 
American. Greater understanding of the value and importance of accurate 
and complete Census 2000 data has been realized through local 
partnerships established nationwide and through an ambitious advertising 
and promotion program.
  The American Community Survey (ACS) is a revolutionary initiative of 
the statistical system that will provide community profiles similar to 
those from the decennial census on a far more current basis. For 
geographic areas with populations greater than 65,000, these profiles 
will be produced every year. For smaller areas, the ACS will accumulate 
or average data over several years to obtain annual estimates similar in 
quality and reliability to those currently available only once each 
decade. Thus, every jurisdiction ultimately will have annual information 
that illuminates change over time. (The official counts of the 
population will continue to come from the decennial census and the 
intercensal estimates program.) Because the American Community Survey 
will provide essentially the same information as the current decennial 
census long form, the Census Bureau plans to eliminate the long form in 
the 2010 Census, thereby focusing that effort on counting the 
population. In 2001, continued development of the Master Address File 
will be a key component of this longer-term strategy.
  Under the aegis of the congressionally-mandated Interagency Council on 
Statistical Policy (ICSP), the principal statistical agencies continue 
to extend their collaborative endeavors to improve the overall 
performance and efficiency of the Federal statistical system. For 
example, the ICSP is supporting FedStats (www.fedstats.gov), the ``one-
stop shopping'' Internet site for Federal statistics that permits easy 
access via an initial point of entry to the wide array of statistical 
information available to the public from 70 Federal agencies. In 1999, 
FedStats increased from 28 to 40 the number of agencies whose data 
series are indexed there, developed a Kid's Page to foster improvements 
in statistical literacy by linking to agency Web pages especially 
designed for children in elementary through high school, and launched an 
interactive map-based application to access State and county data.
  The statistical system is also working effectively to enhance the 
quality of the data agencies produce. For example, last year the 
Administration actively supported House passage of the Statistical 
Efficiency Act of 1999 (H.R. 2885) that will permit limited sharing of 
confidential data among selected agencies solely for statistical 
purposes. Enactment of this legislation will create the framework for 
statistical agencies to compare and improve the quality of their data. 
Senate passage of this legislation, and congressional action on a 
companion Treasury Department proposal that would make complementary 
changes to provisions set forth in the ``Statistical Use'' section of 
the Internal Revenue Code, continue to be top priorities of the 
Administration.
  Despite these accomplishments, rapid changes in our economy and 
society, and funding levels that do not enable statistical agencies to 
keep pace with them, can threaten the relevance and accuracy of our 
Nation's key statistics. Any growing inability of our statistical system 
to mirror accurately our economy and society, including the 
unprecedented growth of electronic commerce, could undermine core 
government activities, such as the accurate allocation of scarce Federal 
funds. Fortunately, the most serious shortcomings of our statistical 
infrastructure would be substantially mitigated by five proposals set 
forth in the Administration's budget. In particular, these initiatives 
would:
     develop an integrated statistical base for analysis of the 
          effects of E-business across our Nation's products and 
          industries, including changes in the structure of investment, 
          pricing, and distribution practices (Bureau of Economic 
          Analysis and the Bureau of the Census);
     support the tabulation, analysis, and dissemination of 
          Census 2000 data and related evaluations of their accuracy and 
          coverage in order to reap the benefits of Census 2000 
          investments (Bureau of the Census);
     improve coverage of the construction and service sectors in 
          the Producer Price Index (which may also produce 
          methodological techniques that further improve the Consumer 
          Price Index) and en

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          hance coverage of the service sector in BLS productivity 
          estimates (Bureau of Labor Statistics);
     continue the phased implementation of the American 
          Community Survey program to produce far more timely data for 
          States and local areas that will be used for various purposes, 
          including the distribution of nearly $200 billion in Federal 
          funds annually (Bureau of the Census); and
     provide new statutory authority for the limited sharing of 
          data among designated Federal agencies solely for statistical 
          purposes. The proposed changes would permit these statistical 
          agencies to manage information in many important respects as 
          if they were part of a single agency, thereby increasing the 
          accuracy of statistical estimates and the efficiency of 
          Federal data collection.
  Taken together, statistics produced by the Federal Government on 
demographic, economic, and social conditions and trends are essential to 
inform decisions that are made by virtually every organization and 
household in our Nation. The U.S. Federal statistical system comprises 
some 70 agencies that collect, analyze, and disseminate information for 
use by governments, businesses, researchers, and the public. 
Approximately one third of the funding for the statistical system 
provides resources for ten agencies that have statistical activities as 
their principal mission. (Please see Table 11-1.) The remaining funding 
is spread among some sixty agencies that carry out statistical 
activities in conjunction with other missions such as providing services 
or enforcing regulations. The following highlights elaborate on the 
Administration's proposals to strengthen the programs of the principal 
Federal statistical agencies.

  HIGHLIGHTS OF 2001 PROGRAM CHANGES FOR PRINCIPAL STATISTICAL AGENCIES

  Bureau of Economic Analysis: Funding is requested to develop new data 
sources and methods to measure rapidly growing E-business activity and 
to incorporate that information into BEA's economic accounts. In order 
to account for the impact of E-business on the economy, BEA will work 
with other statistical agencies to: (1) ensure that E-business, 
including related investment, is captured in our estimates of Gross 
Domestic Product and other economic accounts data, and (2) develop 
estimates of the impact of E-business across products and industries, 
including investment, prices, and distribution.
  Bureau of Justice Statistics: Funding is requested to: (1) develop an 
ongoing statistical program that provides systematic and recurring 
information on criminal victimization of persons with disabilities; (2) 
develop and monitor statistical measures designed to examine concerns 
about racial discrimination in the administration of justice; (3) gather 
administrative data from law enforcement agencies on the content and 
consequences of police-initiated stops of motorists for routine traffic 
violations; (4) begin converting existing paper-based collections of 
administrative data from State and local units of government to 
Internet-based, paperless collection programs; (5) gather information on 
changes over time in the incidence and prevalence, costs and 
consequences, and prosecutions, convictions, and sentencing of computer 
crime offenses; (6) produce consistent annual measures of the incidence 
of hate crimes; and (7) develop a tribal data collection program to 
collect data on the types and characteristics of criminal justice 
agencies operating in these jurisdictions.
  Bureau of Labor Statistics: Funding is requested to: (1) extend 
Producer Price Index (PPI) coverage for the first time to the 
construction sector of the U.S. economy, and enhance coverage of the 
service sector in the PPI and in BLS productivity data; (2) begin a new 
survey to measure how Americans spend their time in order to improve 
assessments of national well-being and production, and produce diary 
estimates of time spent in market work to evaluate existing estimates of 
hours of work; (3) provide technical guidance for a new Federal-State 
cooperative employment projections program to enhance the comparability 
of data among the States, and between State and national projections; 
(4) increase the scope of labor market information for States and local 
areas, and improve the statistical quality of local area unemployment 
statistics used to allocate Federal funds; (5) deploy and operate a 
comprehensive and sound information technology security environment 
(through a central Department of Labor appropriation); and (6) contract 
with the National Research Council (NRC) to develop improved methods to 
measure discrimination in labor markets and employment relationships.
  Bureau of the Census: Funding is requested for Census 2000, for Census 
Bureau economic and demographic programs, and for renovation of the 
Bureau's headquarters at the Suitland Federal Center. For Census 2000, 
funding is requested to: (1) tabulate and disseminate data; (2) complete 
field work associated with the Accuracy and Coverage Evaluation (ACE) 
follow-up operations; (3) close out data capture centers and field 
offices that remained open longer as a result of increased work loads; 
(4) deliver to the President, by December 31, 2000, the data that will 
be used to apportion congressional seats among the States; (5) deliver 
local population counts to the States for redistricting by March 31, 
2001; (6) compare data from the American Community Survey (ACS) with 
Census 2000 results; and (7) begin to evaluate census operations. For 
Census Bureau economic and demographic programs, funding is requested 
to: (1) measure E-business; (2) conduct an annual Survey of Minority-
Owned Business Enterprises (SMOBE); (3) increase the coverage of export 
data; (4) continue planning for the 2002 Economic Censuses and Census of 
Governments; (5) improve measurement of economic well-being; and (6) 
redesign samples for household surveys. Funding is also requested to 
under

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take planning to renovate the aging, inadequate, and failing building 
systems at the Suitland Federal Center.
  Bureau of Transportation Statistics: Funding is requested to: (1) 
establish a statistical consulting service to assist department-wide 
statistical activities and provide support for improving data quality 
and timeliness for departmental GPRA-related data; (2) develop measures 
of risk versus measures of exposure to improve the quality of 
transportation safety data; (3) continue work with the Federal Highway 
Administration to combine and coordinate the Nationwide Personal 
Transportation Survey with the American Travel Survey; (4) manage 
development of the congressionally mandated Intermodal Transportation 
Data Base, an Internet-based data access and dissemination tool that 
enables quick response to data-related questions; (5) improve data 
analyses on patterns of passenger travel and goods movements; (6) 
initiate development of a comprehensive National Spatial Data 
Infrastructure by integrating road network data developed at State and 
local levels; (7) improve statistical tools for geo-spatial data 
analyses and promote their use in transportation applications; and (8) 
undertake analyses as directed by Congress in the Transportation Equity 
Act for the 21st Century (TEA-21), including the International Trade 
Impact Study and other studies related to international transportation.
  Economic Research Service: Funding is requested to: (1) analyze the 
effects of changes in the structure of the food and agriculture sectors 
on the competitiveness and efficiency of food and agricultural markets; 
(2) undertake research and outreach programs on international issues 
affecting the U.S. food and agriculture sectors and on alleviation of 
causes of global food insecurity; and (3) support an initiative on 
economic incentives for carbon sequestration and trace gas emissions 
control in agriculture. The decrease in ERS total funding reflects the 
proposal to return funds ($12 million) for the evaluation of domestic 
food assistance programs to the Food and Nutrition Service.
  Energy Information Administration: Funding is requested to: (1) 
overhaul the natural gas and electricity surveys and data systems to 
recognize and accommodate the changes in the natural gas and electricity 
industries brought on by deregulation and restructuring; (2) update 
EIA's 20-year-old energy consumption surveys; (3) enhance EIA's 
international analysis capabilities in order to assess carbon 
mitigation, permit trading, and other global climate change issues; (4) 
reverse the deterioration in data quality and accuracy in crude oil, 
diesel, gasoline, and natural gas production surveys; and (5) continue 
development and integration of energy survey data collection and 
processing to reduce the costs and improve the timeliness of energy 
data.
  National Agricultural Statistics Service: Funding is requested to: (1) 
establish a computer security architecture to strengthen NASS's 
cybersecurity in light of the market sensitivity of the reports 
released; (2) conduct a monthly hog survey to provide information 
covering the 17 largest hog-producing States, which account for 92 
percent of the U.S. inventory; and (3) collect additional pesticide use 
information for an expanded list of field crops to address gaps in data 
needed for accurate chemical risk assessments under the Food Quality 
Protection Act. The net decrease in the Census of Agriculture program 
reflects the completion of the Agricultural Economics and Land Ownership 
Survey that is conducted once each decade.
  National Center for Education Statistics: Funding is requested to: (1) 
continue redesign of the Integrated Postsecondary Education Data System 
(IPEDS) for a new web-based system; (2) improve dissemination of 
consumer information on college costs and prices; (3) support the 
Longitudinal Surveys Program, including the new Educational Longitudinal 
Study of 2002; (4) continue work on the Birth Cohort of the Early 
Childhood Longitudinal Study; (5) support Institutional Census Surveys 
for the Common Core of Data and Libraries programs; (6) improve the 
Statistics Research and Development Program; and (7) enhance the 
National Assessment of Educational Progress' research capabilities in 
Longitudinal Research and Exceptional Children Exclusion Research.
  National Center for Health Statistics: Funding is requested to: (1) 
continue work with States to improve the vital statistics system, 
including movement toward implementing new model birth and death 
certificates, and helping to develop electronic birth and death 
registration systems; (2) proceed with the sample redesign for the 
National Health Interview Survey, part of a government-wide redesign of 
household surveys following the decennial census; (3) continue the field 
operations for the National Health and Nutrition Examination Survey; (4) 
make further improvements to surveys for monitoring the health care 
delivery system, including organizational and financial arrangements of 
providers, as part of a public/private effort to address major data gaps 
in this area; and (5) make data more readily available to users by 
improving timeliness and access through use of automated systems and the 
Internet.

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                   Table 11-1.  1999-2001 BUDGET AUTHORITY FOR PRINCIPAL STATISTICAL AGENCIES
                                            (In millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                      1999 actual   2000 estimate  2001 estimate
----------------------------------------------------------------------------------------------------------------
Bureau of Economic Analysis........................................       43.1            43.8            48.9
Bureau of Justice Statistics.......................................       25.0            25.5            33.2
Bureau of Labor Statistics.........................................      398.9           413.4           453.6 \1\

Bureau of the Census...............................................    1,384.8         4,753.3           719.2
  Periodic Censuses and Programs...................................    1,238.7         4,613.3           545.4
  Salaries and Expenses............................................      146.1           140.0           173.8

Bureau of Transportation Statistics................................       31.0            31.0            31.0
Economic Research Service..........................................       65.0            65.4            55.4 \2\
Energy Information Administration..................................       70.2            72.4            75.0
National Agricultural Statistics Service \3\.......................      104.0            99.4           100.6

National Center for Education Statistics...........................      108.0           108.0           126.5
  Statistics.......................................................       68.0            68.0            84.0
  Assessment.......................................................       36.0            36.0            38.0
  National Asessment Governing Board...............................        4.0             4.0             4.5

National Center for Health Statistics..............................       94.5           105.0           110.0
  PHS Evaluation Funds.............................................       67.8            71.7            76.7
  Budget Authority.................................................       26.7            33.3            33.3
----------------------------------------------------------------------------------------------------------------
\1\ Increase includes a new transfer of $20.7 million from elsewhere in the Department of Labor to centralize
  the preparation of labor market information.

\2\ Decrease reflects the proposal to return the 2000 transfer of $12 million for the evaluation of domestic
  food assistance programs to the Food and Nutrition Service.

\3\ Includes funds for the periodic Census of Agriculture and Special Studies of $23.6, $16.5, and $15.0
  (million) in 1999, 2000, and 2001, respectively.

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