- NOMINATIONS FOR THE DEPARTMENT OF COMMERCE AND DEPARTMENT OF TRANSPORTATION

[Senate Hearing 108-1000]
[From the U.S. Government Publishing Office]

S. Hrg. 108-1000

NOMINATIONS FOR THE
DEPARTMENT OF COMMERCE
AND DEPARTMENT OF TRANSPORTATION

=======================================================================

HEARING

before the

COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE

ONE HUNDRED EIGHTH CONGRESS

SECOND SESSION

__________

MARCH 4, 2004

__________

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Transportation

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SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

ONE HUNDRED EIGHTH CONGRESS

SECOND SESSION

JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska ERNEST F. HOLLINGS, South
CONRAD BURNS, Montana Carolina, Ranking
TRENT LOTT, Mississippi DANIEL K. INOUYE, Hawaii
KAY BAILEY HUTCHISON, Texas JOHN D. ROCKEFELLER IV, West
OLYMPIA J. SNOWE, Maine Virginia
SAM BROWNBACK, Kansas JOHN F. KERRY, Massachusetts
GORDON H. SMITH, Oregon JOHN B. BREAUX, Louisiana
PETER G. FITZGERALD, Illinois BYRON L. DORGAN, North Dakota
JOHN ENSIGN, Nevada RON WYDEN, Oregon
GEORGE ALLEN, Virginia BARBARA BOXER, California
JOHN E. SUNUNU, New Hampshire BILL NELSON, Florida
MARIA CANTWELL, Washington
FRANK R. LAUTENBERG, New Jersey
Jeanne Bumpus, Republican Staff Director and General Counsel
Robert W. Chamberlin, Republican Chief Counsel
Kevin D. Kayes, Democratic Staff Director and Chief Counsel
Gregg Elias, Democratic General Counsel

C O N T E N T S

----------
Page
Hearing held on March 4, 2004.................................... 1
Statement of Senator McCain...................................... 1
Prepared statement........................................... 1
Prepared statement of Hon. Bill Frist, U.S. Senator from
Tennessee.................................................. 6

Witnesses

Buttrey, W. Douglas, Memphis, Tennessee.......................... 26
Prepared statement........................................... 26
Biographical information..................................... 27
Cochran, Hon. Thad, U.S. Senator from Mississippi................ 2
Combs, Linda Morrison, Nominee for the Position of Assistant
Secretary for Budget, Programs, and Chief Financial Officer,
U.S. Department of Transportation.............................. 17
Prepared statement........................................... 17
Biographical information..................................... 18
Dole, Hon. Elizabeth, U.S. Senator from North Carolina........... 4
Ford, Jr., Hon. Harold E., U.S. Representative from Tennessee.... 5
Keenum, Rhonda N., Senior Advisor to the Under Secretary,
International Trade Administration, U.S. Department of Commerce 8
Prepared statement........................................... 9
Biographical information..................................... 10
Mulvey, Frank, Staff Director, U.S. House of Representatives,
Committee on Transportation and Infrastructure, Subcommittee on
Railroads...................................................... 33
Prepared statement........................................... 35
Biographical information..................................... 36
Oberstar, Hon. James L., U.S. Representative from Minnesota...... 3
Wicker, Hon. Roger F., U.S. Representative from Mississippi...... 3

NOMINATIONS FOR THE
DEPARTMENT OF COMMERCE
AND DEPARTMENT OF TRANSPORTATION

----------

THURSDAY, MARCH 4, 2004

U.S. Senate,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Committee met, pursuant to notice, at 2:35 p.m. in room
SR-253, Russell Senate Office Building, Hon. John McCain,
Chairman of the Committee, presiding.

OPENING STATEMENT OF HON. JOHN McCAIN,
U.S. SENATOR FROM ARIZONA

The Chairman. This hearing will come to order. We'll have
the hearing come to order, please.
We will hear from our panel: Ms. Rhonda Keenum, Senior
Advisor to the Under Secretary for International Trade
Administration, U.S. Department of Commerce; Dr. Linda Combs,
Advisor to the Secretary, U.S. Department of Transportation;
Mr. W. Douglas Buttrey, of Memphis, Tennessee; and Dr. Frank
Mulvey, Staff Director, U.S. House of Representatives,
Committee on Transportation and Infrastructure, Subcommittee on
Railroads, but first we would like to hear from our
distinguished colleagues from the Senate and the House, who are
here on behalf of the nominees.
And we always try to begin with the oldest----
[Laughter.]
The Chairman.--and it's pretty obvious. But he's not here.
[Laughter.]
The Chairman. Actually, if it's agreeable, we'll begin with
our colleagues from the House, if that's OK, since they--oops,
here he is, the oldest.
[Laughter.]
The Chairman. Senator Cochran, we appreciate you being here
today. I know you're here on behalf of the nominee, Ms. Keenum,
and we know how busy your schedule is, so if you would please
proceed--we're honored to have you here.
[The prepared statement of Senator McCain follows:]

Prepared Statement of Hon. John McCain, U.S. Senator from Arizona
Good afternoon. The Commerce Committee meets today to consider the
qualifications of four individuals who have been nominated by the
President to serve the Nation in very important posts.
This Committee takes its advice and consent role seriously. It is
our responsibility to ensure that the nominees fully understand their
duties and are capable and committed to fulfilling the mission
requested of them. I note that each of the nominees has responded in
detail to the Committee's requests for biographical and financial data.
I intend to move your nominations in the near future.
Today's nominees include Ms. Rhonda Keenum, nominated by the
President to serve as Assistant Secretary and Director General of the
United States and Foreign Commercial Service with the Department of
Commerce. If confirmed, Ms. Keenum will be responsible for overseeing
and implementing the export promotion activities of the U.S. Commercial
Service within the International Trade Administration.
Dr. Linda Combs has been nominated by the President to serve as
Assistant Secretary for Budget and Programs and Chief Financial Officer
for the Department of Transportation. If confirmed, Dr. Combs will
advise the Secretary on the development, review, and presentation of
the Department's budget resource requirements, and on the evaluation
and oversight of the Department's programs.
Finally, we have Mr. Douglas Buttrey and Dr. Francis Mulvey, who
have been nominated by the President to serve as Members of the Surface
Transportation Board (STB). The STB's primary function is to oversee
the economic regulation of the Nation's freight railroads. The Staggers
Rail Act of 1980, which partially deregulated the freight railroads,
has produced positive benefits overall, but there is a perceived lack
of regulatory relief available to shippers at the STB. Last year,
during Committee consideration of legislation to reauthorize the STB,
an amendment sponsored by myself and Senator Hollings was adopted to
direct the STB to issue expedited procedures for small rate cases
within 180 days following enactment.
For the past year, the only confirmed member of the Board has been
Chairman Roger Nober, who has been reluctant to initiate major
rulemakings acting alone. I hope my colleagues will confirm these
nominees quickly so that longstanding shipper issues can finally be
addressed by the Board.
I thank the nominees for being here today. I know your nominations
are a great honor, and that your families are very proud. Please feel
free to introduce any family members who are present here today before
you begin your remarks.

STATEMENT OF HON. THAD COCHRAN,
U.S. SENATOR FROM MISSISSIPPI

Senator Cochran. Mr. Chairman, thank you very much. I
appreciate the opportunity to be here in your Committee today.
I'm here to recommend, to the Committee, Rhonda Keenum, for
confirmation as Assistant Secretary of Commerce and Director
General of the United States and Foreign Commercial Service. I
have known the nominee for 15 years. In the spirit of full
disclosure, I must tell you, she is a close friend of mine, and
her husband, Mark Keenum, is my chief of staff. I also know her
as a very talented marketing and public relations manager, with
skills that will enable her to do a superb job in this
important office.
She has a strong sense of responsibility and
accountability. Her proven management capabilities will be very
useful as she works to discharge the responsibilities of this
office. I can attest to her good character, her capacity for
hard work, and her willingness to expend whatever energy is
required to accomplish a goal.
I hope you can approve this nomination expeditiously. The
Department of Commerce will benefit greatly from her immediate
assumption of the duties of this important office.
Thank you, Mr. Chairman.
The Chairman. Thank you very much, Senator Cochran. And we
know you have a busy schedule. I know Ms. Keenum and the rest
of us appreciate you being here. Thank you, sir.
Since we are giving great appreciation to Ms. Keenum, we
might as well let Mr. Wicker speak on her behalf. I remind you
of the words of my dear and beloved friend, Morris Udall, who
said, ``Everything that can be said on the subject has been
said, only not everyone has said it.''
[Laughter.]
The Chairman. Welcome, Congressman Wicker. Thank you for
coming here on behalf of Ms. Keenum.

STATEMENT OF HON. ROGER F. WICKER,
U.S. REPRESENTATIVE FROM MISSISSIPPI

Mr. Wicker. It may be, Mr. Chairman, that Ms. Keenum's
future title will be longer than my testimony.
[Laughter.]
The Chairman. Thank you.
Mr. Wicker. I simply would echo the recommendation of
Senator Cochran. I've known her 10 years, and what I can add is
that she actually was a member of my staff when I first came to
the House of Representatives in 1995. She is a joy to work
with. I can say--both from the staff that we organized during
that first Congress, and also from the constituent standpoint--
I think she will serve the public well, she'll be a credit to
the Administration, and she has my highest recommendation.
And I thank you.
The Chairman. Thank you very much, Congressman Wicker, and
thank you for your continued outstanding service to the people
of Mississippi. Thank you.
Mr. Wicker. Thank you.
The Chairman. Congressmen Oberstar?
Mr. Oberstar. Thank you, Mr. Chairman.
The Chairman. And then Senator Dole, I think, would be
next, if that would be all right.

STATEMENT OF HON. JAMES L. OBERSTAR,
U.S. REPRESENTATIVE FROM MINNESOTA

Mr. Oberstar. Thank you for the opportunity to come to this
Committee, and thank you for hearing the nomination of Frank
Mulvey, as well as others; in Frank's case, for the Surface
Transportation Board.
My acquaintance with Dr. Mulvey goes back to the mid-1980s,
when I chaired the Investigations and Oversight Subcommittee in
the House, and we were doing a great deal of work on aviation
safety and maintenance, security, but also other transportation
issues, and turned to the General Accounting Office to do basic
research work for our--in preparation for our hearings, and to
determine, in many cases, whether there was a justification to
hold a hearing. And I can say that, at the time, Newt Gingrich
was the ranking Republican on the Subcommittee. He and I spent
a great deal of time working together and benefiting from
research that was done under Dr. Mulvey's direction, or by him
personally and directly.
He has a Ph.D. in railroad economics from the University of
Washington State. He did his undergraduate work at NYU
University, and a master's degree in economics from Berkeley.
But the work that he did for us ranged over an
extraordinary breadth of issues--airline CRS competition
problems that we were inquiring into, airline alliances in the
earliest stage to see whether the public was getting its due
benefit from these airline alliances, and code-sharing among
airlines, domestic and foreign, again to see whether there
really was competition. He directed the first study on the
safety effects of the 55 mile-an-hour speed limit on highway
safety and speed laws. He spent a great deal of time on inner
city bus competition and unfair practices, which led to
hearings that our Subcommittee conducted; highway safety, high-
speed ground transportation work that was done in early 1994,
laying the groundwork for legislative language that we included
in ISTEA and TEA-21; he did an extensive inquiry into the
structure, continuity, and viability of our transportation
trust funds; he also did work for us on inter-urban helicopter
services; and during a time when there was a great failure in
one of the locks on the St. Lawrence seaway, his team at GAO
did an inquiry into the intermodal impacts of Great Lakes-St.
Lawrence seaway season extension work.
I consider Frank Mulvey's work on our Committee staff at
the Committee of Transportation Infrastructure for the last 4
years as truly a renaissance man in transportation, with a
remarkable sweep of intellect, as well as intellectual
curiosity. He is the kind of person the Surface Transportation
Board needs to handle those complex issues where competition
and the public interest clash often with interests of the
corporate sector, and Frank is the kind of independent,
objective mind that we need to bring to bear on those issues.
He can render for the Congress and for the traveling public a
fair judgment.
The Chairman. Thank you very much, Congressman Oberstar.
Those are high praises, indeed. And thank you for coming over
today. Thank you.
Mr. Oberstar. It's been a pleasure working with you, Mr.
Chairman, for many years on----
The Chairman. Thank you, sir.
Mr. Oberstar.--transportation issues.
The Chairman. It's a pleasure to welcome Senator Dole.
Thank you, Senator Dole.

STATEMENT OF HON. ELIZABETH DOLE,
U.S. SENATOR FROM NORTH CAROLINA

Senator Dole. Thank you, Mr. Chairman.
And I'm pleased today to introduce a fellow North
Carolinian, Linda Combs, who's been nominated by President Bush
to be Assistant Secretary for Budget Programs and Chief
Financial Officer of the Department of Transportation.
Linda Combs has an impeccable record of public service that
is as diverse as it is impressive. She has served in management
roles at the Department of Education, Environmental Protection
Agency, Veterans Affairs, and the Department of the Treasury.
Mr. Chairman, as the former Secretary of Transportation, I
understand the unique qualifications required for this
position. A candidate must possess experience not only in
management, but also an adept ability to practice sound fiscal
responsibility. As the first Chief Financial Officer at the
Department of the Treasury and, most recently, the Chief
Financial Officer at the Environmental Protection Agency. Dr.
Combs is extraordinarily well prepared to meet this challenge.
She has answered the call to public service, and she
understands this service to be a noble endeavor with many
challenges.
Throughout her career, Linda Combs has demonstrated the
highest standards of honesty, fairness, and integrity, and I'm
very proud to call her a dear friend.
Mr. Chairman, this fine North Carolinian will join an
outstanding team at the Department of Transportation, and serve
Secretary Mineta and President Bush with honor and dignity.
Thank you for the opportunity to introduce Linda Combs today,
and for your consideration of her nomination.
Thank you.
The Chairman. Thank you, Senator Dole. And thank you for
taking the time from your busy schedule to be here in behalf of
this highly qualified person.
Senator Dole. Thank you.
The Chairman. Thank you very much.
Now, I'd like to ask our nominees, Ms. Rhonda Keenum--oh,
certainly we are pleased to welcome the Honorable Harold Ford,
of the U.S. House of Representatives famous junketeers with us
today.
[Laughter.]
The Chairman. Congressman Ford?

STATEMENT OF HON. HAROLD E. FORD, JR.,
U.S. REPRESENTATIVE FROM TENNESSEE

Mr. Ford. Mr. Chairman, thank you. I'm delighted to be
joined at the table by Mr. Doug Buttrey.
Mr. Chairman, I thank you, again, for having me on the
trip, with you and my friends and your colleagues in the
Senate, to Iraq and to Israel, and you went on, obviously, to
Jordan, and you went on to other countries, as well. I was
particularly delighted to be the only House Member, although I
was chagrined to have to carry people's bags all the time.
[Laughter.]
Mr. Ford. So I appreciate you----
The Chairman. But you did such a fine job.
[Laughter.]
The Chairman. I'm always pleased to be in your company, Mr.
Ford. I mean that.
Mr. Ford. Thank you, sir. And the feeling is mutual.
I bring greetings to you from Mr. Buttrey's former boss and
the leader of our business community back home and, for that
matter, around the country, Fred Smith, to you, to Ranking
Member Hollings, and to all the Members of the Committee. Thank
you for giving me the chance to say hello, and welcome and
introduce one of our city's finest residents, my friend, Doug
Buttrey. His wife, I know, is here as well, if she would just
raise her hand, always delighted to see her, as well. We're
from the country, so we like doing those things, Mr. Chairman.
As you know, Doug Buttrey works as an independent
transportation consultant now after his many years of service
at FedEx and its Government Affairs Office, where he was a
senior representative. Before that, he was a managing director
for properties and facilities at Airport Relations for FedEx,
so he brings a tremendous understanding of the situations that
arise on the ground in our transportation industry. He also has
familiarity with the Congress and government, having worked at
the Council for the Senate Aviation Subcommittee, under former
Senator James Pearson.
A graduate of the Tennessee Technological University and a
graduate of the University of Memphis School of Law, he is,
indeed, a son of Tennessee and a proud citizen, dedicated
citizen of our city. A devoted member of White Station Church
of Christ, where he is in charge of the legal ministry there,
active throughout our community, and we thank he and his family
for that.
His wealth of experience in the transportation industry,
Chairman McCain, whether it's by plane, train, or automobile,
will benefit him greatly in what we hope will be his new post
on the Surface Transportation Board.
As I close, Mr. Chairman, coming from FedEx, a company that
has built its reputation on customer service, it is our hope
and belief that Mr. Buttrey will bring that same commitment to
shippers and receivers and consumers as a member of the Surface
Transportation Board.
With that, I'm pleased to welcome and express my strong
support for my fellow Memphian and constituent and friend, Mr.
Doug Buttrey.
With that, I----
The Chairman. Thank you very much.
Mr. Ford.--thank you, Mr. Chairman.
The Chairman. Thank you, Congressman Ford, and thank you
for taking the time to come over today in behalf of this fine
witness. Thank you.
Mr. Ford. Thank you, sir.
The Chairman. Now I'd like to ask Ms. Rhonda Keenum and Dr.
Linda Combs, Mr. Douglas Buttrey, and Dr. Frank Mulvey to take
seats, please.
And while they're doing that, I will have inserted in the
record a statement by Senator Bill Frist regarding the
nomination of Mr. Douglas Buttrey to be a member of the Surface
Transportation Board. It's a very laudable statement, and it'll
be included in the record.
[The prepared statement of Senator Frist follows:]

Prepared Statement of Hon. Bill Frist, U.S. Senator from Tennessee
Mr. Chairman, I would like to thank you and the members of the
Committee for considering William Douglas Buttrey's nomination to serve
as a Member of the Surface Transportation Board. I personally
recommended Mr. Buttrey for this position, and I do not believe there
is a more qualified candidate than my fellow Tennessean and friend here
today.
Doug Buttrey spent his entire career working with the
transportation industry, and I strongly support his nomination to serve
on the Surface Transportation Board. Mr. Buttrey understands the
dynamics of regulatory and legislative decision making at the Federal
and state levels, and he has consistently demonstrated his ability to
implement sound policies and achieve positive results.
Doug began his career in Washington working for the Civil
Aeronautics Board. He then came to the United States Senate where he
served as Counsel for the Commerce, Science and Transportation
Committee's Aviation Subcommittee. After a successful and highly
praised tenure with the Subcommittee, Doug joined the Federal Express
Corporation, where he ultimately served as the company's Senior
Government Affairs Representative.
Doug Buttrey's many years of experience in both the government and
the private sector make him uniquely qualified to serve as a member of
the Surface Transportation Board. Board members will be faced with many
challenges, and Doug's experiences will help him make informed
decisions. Throughout his career, Doug has played a direct role in
policy development and legislative and regulatory decision making. Doug
understands the complexities of intergovernmental challenges, and he is
well equipped to handle anything put before him.
Again, I very much appreciate the Committee's consideration of Mr.
Buttrey's nomination, and I look forward to his confirmation by the
full Senate.

The Chairman. Now, for the most important part of this
hearing, Ms. Keenum, if you would introduce your family who is
with you here today.
Ms. Keenum. Mr. Chairman, thank you, and good afternoon.
I'd like to introduce my husband of 20 years, Mark Keenum, over
my right shoulder. And thank you for letting me do that.
The Chairman. Welcome.
Dr. Mulvey?
Dr. Mulvey. Yes, I'd like to introduce my wife of 30 years
next week, Petra Mulvey, my son Connor and his significant
other, Tanya Jacobson.
[Laughter.]
The Chairman. Would you please stand? Thank you. Thank you,
and welcome.
Mr. Buttrey?
Mr. Buttrey. Mr. Chairman, I'd like to introduce my wife
Margaret, if she'd please stand right here--hopefully trump
everyone else, we've been married for 35 years.
[Laughter.]
The Chairman. Welcome, Ms. Buttrey.
Dr. Combs?
Dr. Combs. Thank you, Mr. Chairman. And, yes, you do trump
everyone else.
[Laughter.]
Dr. Combs. My husband, David Combs----
The Chairman. Welcome.
Dr. Combs.--of 33 years.
[Laughter.]
The Chairman. My old friend, Senator Alan Simpson, who used
to be Senator, is one of the more entertaining, as he said he
and his wife Ann had been married for 35 years. He said it was
truly a religious experience. He said it was a living hell. I'm
sure that that doesn't----
[Laughter.]
The Chairman.--that it doesn't apply to anyone here.
[Laughter.]
The Chairman. Welcome, Ms. Keenum, and please, we'd like to
hear your opening statement.
Ms. Keenum. Mr. Chairman, on that note----
The Chairman. And could I just say welcome to the family
members. I know this is a very proud time for all of you, and
we share in your pride of the accomplishments and achievements
of these fine people.
Thank you. Please go ahead, Ms. Keenum.

STATEMENT OF RHONDA N. KEENUM, SENIOR ADVISOR TO

THE UNDER SECRETARY, INTERNATIONAL TRADE

ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE

Ms. Keenum. Thank you. Mr. Chairman and Members of the
Committee, it is, indeed, an honor and privilege to come before
you as the nominee for the position of Assistant Secretary and
Director General of the United States and Foreign Commercial
Service. I am humbled and honored that the President would
nominate me for this role, and I'm eager to take on the
challenge.
I would first like to thank Senator Thad Cochran and
Congressman Roger Wicker for their kind remarks. Both of these
distinguished leaders mean a tremendous amount to me and my
family, professionally and personally. I would also like to
express my sincere thanks to Secretary of Commerce Donald
Evans, former Deputy Secretary Samuel Bodman, and Under
Secretary Grant Aldonas for their support of me and my
nomination.
What makes America the greatest Nation in the world is the
entrepreneurial spirit of the American people, no matter what
your background.
Growing up in Mississippi, I was a first-hand observer of
the power of that entrepreneurial spirit. My father, James
Newman, left public service after almost a quarter of a century
to pursue his dream of starting his own business. And pursue
it, he did, risking limited family savings, stable employment,
and my mom's sanity in the process. His risk and investment
some 25 years ago continue to generate precious dividends in
the tangible evidence of community jobs, interstate commerce,
and income that even now, some 4 years after his death,
provides a financial safety net that my family would not have
otherwise had.
This story, my story, illustrates the power of small
businesses all over this great country. Small businesses create
more than two out of every three new jobs, and generate about
50 percent of our Nation's gross domestic product.
In this time of great change in our domestic and
international economies, it is imperative for our government to
assist American businesses to obtain access for their products
and services in the international marketplace. This is not only
the mandate of the U.S. and Foreign Commercial Service, but
also the dedicated focus of its programs and employees.
The Commercial Services worldwide network achieves this
goal every day by linking American suppliers with international
buyers, advocating for their best interests with foreign
governments, and ensuring a level playing field. The programs
and expertise provided by the Commercial Service are critical
to the success of American companies in competing and winning
in global markets. I have observed the efforts of Commercial
Service employees to assist American companies in often
difficult circumstances, and have been impressed with their
skills, dedication, and pride in public service.
If confirmed, I commit to a continuous assessment of, and
investment in, both the development of innovative trade
programs and the complex network that delivers them. My goal
will be ensure that the Commercial Service not only continues
to meet the high expectations that our clients have of us, but
that we exceed those expectations.
If confirmed, I will look to maximize the synergies we have
with state partners, as well as local partners, industry
associations, and sister Federal partners to provide companies
in all states with access to the tremendous opportunities
available to them through exporting.
If confirmed, I welcome the challenge to lead the trade
promotion arm of the Federal Government. My two decades of work
experience have been driven exclusively by client, constituent,
and consumer accountability. Those years of managing public
relations campaigns, leading field-based organizations,
developing and adhering to complex budgets, building
coalitions, and motivating and mentoring staff have prepared me
for the myriad of opportunities ahead.
If confirmed, I pledge to conduct myself with unwavering
commitment, taking ownership of every action, standing up for
the entrepreneurial ideas, like those of my father, and
standing by the over 1600 dedicated public servants that have
long made the Commercial Service an organization that leads,
rather than follows.
If confirmed, I will pursue the stewardship of the service
with energy, integrity, accountability, and a diligent
awareness that we are here to serve our clients, American
businesses.
Mr. Chairman, thank you for the opportunity to be here
today. And I also want to take this opportunity to express my
appreciation to family and friends. I'd be happy to answer any
questions you might have, and welcome your comments.
Thank you.
[The prepared statement and biographical information of Ms.
Keenum follow:]

Prepared Statement of Rhonda N. Keenum, Senior Advisor to the Under
Secretary, International Trade Administration, U.S. Department of
Commerce
Mr. Chairman, Senator Hollings and Members of the Committee, it is
indeed an honor and privilege to come before you as the nominee for the
position of Assistant Secretary and Director General of the United
States and Foreign Commercial Service.
I am humbled and honored that President Bush would nominate me for
this role. And I am eager to take on the challenge.
I would first like to thank Senator Thad Cochran and Congressman
Roger Wicker for their kind remarks. Both of these distinguished
leaders mean a tremendous amount to me and my family professionally and
personally.
I would also like to express my sincere thanks to Secretary of
Commerce Donald Evans, former Deputy Secretary Samuel Bodman and Under
Secretary Grant Aldonas for their support of my nomination.
What makes America the greatest nation in the world is the
entrepreneurial spirit of the American people, no matter what your
background.
Growing up in Mississippi, I was a first hand observer of the power
of that entrepreneurial spirit. My father--James Newman--left public
service after almost a quarter of a century to pursue his dream of
starting his own business, and pursue it he did--risking limited family
savings, stable employment and morn's sanity in the process. His risk
and investment some 25 years ago continue to generate precious
dividends in the tangible evidence of community jobs, interstate
commerce and income that even now some four years after his death--
provides a financial safety net that my family would not have otherwise
had.
This story--my story--illustrates the power of small businesses all
over this great country. Small businesses create more than two out of
every three new jobs and generate about 50 percent of our Nation's
gross domestic product.
In this time of great change in our domestic and international
economies, it is imperative for our government to assist American
businesses to obtain access for their products and services in the
international marketplace. This is not only the mandate of the U.S. and
Foreign Commercial Service, but also the dedicated focus of its
programs and employees.
The Commercial Service's worldwide network achieves this goal every
day by linking American suppliers with international buyers; advocating
for their best interests with foreign governments; and ensuring a level
playing field. The programs and expertise provided by the Commercial
Service are critical to the success of American companies in competing
and winning in global markets. I have observed the efforts of
Commercial Service employees to assist American companies in often
difficult circumstances, and have been impressed with their skills,
dedication, and pride in public service.
If confirmed, I commit to a continuous assessment of, and
investment in, both the development of innovative trade programs and
the complex network that delivers them. My goal will be to ensure that
the Commercial Service not only continues to meet the high expectations
that our clients have of us, but that we exceed those expectations.
If confirmed, I will look to maximize the synergies we have with
state partners--as well as local partners, industry associations, and
sister Federal partners--to provide companies in all states with access
to the tremendous opportunities available to them through exporting.
If confirmed, I welcome the challenge to lead the Trade Promotion
arm of the Federal government. My two decades of work experience have
been driven exclusively by client, constituent and consumer
accountability. Those years of managing public relations' campaigns,
leading field-based organizations, developing and adhering to complex
budgets, building coalitions, and motivating and mentoring staff have
prepared me for the myriad of opportunities ahead.
Further, my experience in developing successful strategic marketing
and outreach programs will heighten the awareness and value of
Commercial Service programs to American companies.
If confirmed, I pledge to conduct myself with unwavering
commitment-taking ownership of every action, standing up for the
entrepreneurial ideas, like those of my father, and standing by the
over 1,600 dedicated public servants that have long made the Commercial
Service an organization that leads rather than follows.
If confirmed, I will pursue the stewardship of the Service with
energy, integrity, accountability and a diligent awareness that we are
here to serve our clients--American businesses.
Mr. Chairman, thank you for the opportunity to be here today. I
also want to take this opportunity to express my appreciation to family
and friends--I would not be here today if not for you.
I will be happy to answer any questions you might have and welcome
your comments.
______

a, biographical information
1. Name: (Include any former names or nicknames used.) Rhonda
Newman Keenum (Rhonda Renee Newman).
2. Position to which nominated: Assistant Secretary and Director
General of the United States & Foreign Commercial Service.
3. Date of nomination: December 9, 2003.
4. Address: (List current place of residence and office addresses.)

Residence: Information not released to the public.

Office: Department of Commerce, 1401 Constitution Avenue, NW,
WDC 20230.

5. Date and place of birth: July 30, 1961; Waukegan, IL.
6. Marital status: (Include maiden name of wife or husband's name.)
Mark Everett Keenum.
7. Names and ages of children: (Include stepchildren and children
from previous marriages.)
Not Applicable.
8. Education: (List secondary and higher education institutions,
dates attended, degree received, and date degree granted.)

08/1981 to 05/1983 Mississippi State University: Bachelor of
Business Administration, May 1983.
08/1979 to 0511981 Northeast Mississippi Community College:
Associate Arts, May 1981.

9. Employment record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)

12/2003 to Present Department of Commerce, International Trade
Administration
Senior Advisor to the Under Secretary

01/2000 to 12/2003 Edelman Public Relations, Senior Vice President
1875 Eye Street, NW, Suite 900, Washington, D.C.
20006

12/1997 to 01/2000 Ketchum Public Relations, Vice President
2000 L Street, NW, Suite 300, Washington, D.C.
20036

04/1997 to 12/1997 Taggart & Associates, Associate
1015 15th Street, NW, Washington, D.C. 20006

01/1996 to 12/1996 Dole for President, Director of Surrogate Program
840 First Street, SE, Washington, D.C.

01/1995 to 01/1996 U.S. Congressman Roger Wicker, Administrative
Assistant & Press Secretary
206 Cannon House Office Building, Washington, D.C.
20515

01/1993 to 01/1995 Republican National Committee, Deputy Director
Convention & Meetings
310 First Street, SE, Washington, D.C.

11/91 to 01/1993 Bush Quayle Presidential Campaign, Political
Operations
15th Street, NE, Washington, D.C.

03/1990 to 11/1991 Republican National Committee, White House Liaison
310 First Street, SE, Washington, D.C.

10/1989 to 03/1990 General Services Administration, Schedule C
Appointment
18th Street, NE, Washington, D.C.

04/1985 to 04/1989 Deposit Guaranty National Bank, Customer Service
Representative
Main Street, Starkville, MS 39759

09/1984 to 04/1985 Withit Retail Store, Sales Clerk
Starkville, MS 39759

07/1983 to 09/1984 Heritage CableVision, Purchasing Clerk
Booneville, MS 38829

10. Government experience: (List any advisory, consultative,
honorary or other part-time service or positions with Federal, State,
or local governments, other than those listed above.)
Not Applicable.
11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.)
Officer--KS Associates, LLC (May, 9, 2003 to October 9, 2003)
12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)

Mississippi Society

Mississippi State Alumni Association

Junior League of Washington

13. Political affiliations and activities:

(a) List all offices with a political party which you have held or
any public office for which you have been a candidate.
Not Applicable.

(b) List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years.
Not Applicable.

(c) Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years.

Haley Barbour for Governor $1,000 (2003)

George W. Bush $1,000 (2000)

Mississippi Republican Party $1,200 ($300/annual)

Gary Jackson for State Senate $300 (2003)

Charles Walden for State Senate $250 (2003)

Bill Hawks for Lt. Governor $1,500 (1999)

Bob Dole for President $500 (1996)

14. Honors and awards: (List all scholarships, fellowships,
honorary degrees, honorary society memberships, military medals and any
other special recognitions for outstanding service or achievements.)
Phi Theta Kappa.
15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.)
Not Applicable.
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated.
Not Applicable.
17. Selection:

(a) Do you know why you were selected for the position to which you
have been nominated by the President?
Yes. I believe that the President nominated me for this position
because of my unique combination of management skills, specifically, my
experience managing nation-wide field operations, my budgetary and
fiscal planning acumen, my demonstrated leadership in building
coalitions and my long-standing commitment and success in motivating,
mentoring and developing employees.

(b) What in your background or employment experience do you believe
affirmatively qualifies you for this particular appointment?
I believe that my 15-plus years of experience in managing national
programs and field operations more than qualifies me for this position.
I also have significant experience in developing and managing large and
complex budgets; motivating and mentoring geographically dispersed
employees; building strong partnerships with U.S. businesses, state and
local governments and members of Congress; and setting clear
priorities, goals and objectives.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations, or business organizations if you
are confirmed by the Senate? Yes.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, please explain: No.
3. Do you have any plans, commitments, or agreements after
completing government service to resume employment, affiliation, or
practice with your previous employer, business firm, association, or
organization? No.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable? Yes.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers.
Not Applicable.
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
Not Applicable.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated.
Not Applicable.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy.
Managed public affairs campaigns (earned media, coalition,
grassroots activities) on behalf of client American Health Care
Association--in 1999 and 2000. The objectives of the campaigns were to
restore skilled nursing Medicare beneficiary funding that had been cut
as result of Balanced Budget Act of 1998. In 1999, Congress passed the
Balanced Budget Refinement Act (BBRA) that restored $2.7 billion to
Medicare beneficiaries in skilled nursing facilities. In 2000, Congress
passed the Beneficiary Improvement and Protection Act that restored
$1.9 billion to Medicare beneficiaries in skilled nursing facilities.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.)
Not Applicable.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain: No.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than for a minor traffic offense? If so, please explain: No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain: No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain: No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination.
Not Applicable.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Please explain how if confirmed, you will review regulations
issued by your department/agency, and work closely with Congress, to
ensure that such regulations comply with the spirit of the laws passed
by Congress.
Prior to implementation, I will ensure that any policies or
procedures developed for or by the U.S. Commercial Service are in line
with the intent of Congress, as expressed through its mandates, laws,
regulations and directives. All such policies and procedures will be
reviewed by my senior staff and planning office for compliance with
Congressional mandates to ensure that no conflicts exist. When there
are questions, we will work closely with members Congress and staff to
clarify any issues.
5. Are you willing to appear and testify before any duly
constituted committee of the Congress on such. occasions as you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. How does your previous professional experiences and education
qualify you for the position for which you have been nominated?
My 15-plus years of managing national programs and supervising
field operations, developing and adhering to complex budgets, setting
short and long term strategic operational objectives, building
coalitions, and developing, motivating and mentoring staff have more
than qualified me for this position. In addition, the contacts I have
made in federal, state and local agencies will enable me to advance the
goals of the U.S. Commercial Service by nurturing and leveraging
partnerships. Further, my skills in developing successful, strategic
marketing and outreach programs will heighten the awareness and value
of U.S. Commercial Service programs to American companies.
2. Why do you wish to serve in the position for which you have been
nominated?
This position will allow me to apply my extensive experience,
skills and abilities to meet the significant challenge of increasing
the number of small and medium-sized U.S. exporters. In doing so, my
hope is that the U.S. Commercial Service will play a part in improving
the prosperity of our country, including the addition of new and higher
paying jobs by small and medium-sized enterprises (the fastest growing
segment of the U.S. economy), and by increasing local tax bases to help
communities across the country.
3. What goals have you established for your first two years in this
position, if confirmed?
I have four primary goals I want achieve in this position, if
confirmed:

Increase the number of new exporters and help current
exporters increase the number of markets to which they export.

Increase the number of exporters from traditionally under-
served communities (minority-, rural- and women-owned
businesses).

Improve the quality of export assistance provided to
American companies by the U.S. Commercial Service by enhancing
the skills of our employees through professional development
opportunities.

Increase and deepen partnerships with other government
agencies and the private sector.

4. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills?
This position requires strong management, motivational, and
strategic planning skills for a widely dispersed, worldwide network.
These are skills that I have successfully cultivated throughout my
career and I believe that they will serve me well in this position. If
confirmed, I will continue to seek to opportunities to improve my
skills in this capacity.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when society's problems
should be left to the private sector, and what standards should be used
to determine when a government program is no longer necessary.
While I do not believe that it is the role of the Federal
government to duplicate what can be done more efficiently in the
private sector, I do believe that there is a necessary role for Federal
agencies to play in providing export assistance to small and medium-
sized enterprises (with targeted emphasis to minority and rural
communities).The cost of getting reliable market information from the
private sector would preclude most small and medium-sized companies
from exporting. It is for this reason that Congress created the
Commercial Service, to provide American companies with reliable market
information and export assistance at a reasonable price. In this
capacity, the Commercial Service helps to improve the prosperity of our
country, add new and higher paying jobs and increase local tax bases to
help communities across the country. I believe that these are
appropriate objectives for Federal Government agencies and programs.
6. Describe the current mission, major programs, and major
operational objectives 6£ the department/agency to which you have
been nominated.
Mission: The mission of the U.S. Commercial Service is to place
primary emphasis on the promotion of exports of goods and services from
the United States, particularly by small and medium-sized businesses,
and on the protection of United States business interests abroad.
Major Programs: The major programs of the Commercial Service
include:

Customer Service-improving service delivery, establishing
quality standards and improving internal accountability for the
U.S. Commercial Service's small-and medium-sized clients

Communication and Outreach raising the profile of the wide
array of Federal export assistance programs available to small
and medium-sized American companies.

Rural Export Initiative-providing rural companies with
better access to export assistance through a comprehensive
network of partnerships, new technologies and unique products.

Global Diversity Initiative providing minority-owned and
operated firms with access to export assistance through a
comprehensive array of products, services and programs.

Professional Development and Retention-implementing programs
to attract talented professionals and, once on board, retain
and motivate employees through professional growth and
development opportunities.

E-commerce -capitalizing on new technologies and developing
new e-commerce products and services to provide American
companies with more accessible, cost-effect export solutions
and opportunities.

Operational Objectives: The Commercial Service remains committed to
achieving greater operational cost savings and efficiencies through
automation and streamlining, while maintaining its high level of client
service and satisfaction.
7. What do you believe to be the top three challenges facing the
department/agency and why?

Technological advances that will require the development of
new and more effective ways to reach clients.

Globalization that will introduce a growing number of
American companies to exporting.

Maintaining a level playing field for U.S. exporters-
reducing corruption and human rights abuses, improving rule of
law and encouraging U.S. companies to be ``good'' neighbors
through corporate stewardship programs

8. In reference to question number six, what factors in your
opinion have kept the department/agency from achieving its missions
over the past several years?
The U.S. Commercial Service has, and continues to achieve its
mission of promoting exports, supporting U.S. international commercial
interests in the U.S. and abroad, and assisting the U.S. business
community to identify new markets and expand sales and market share
around the globe.
The agency has been successful because it has been proactive in
responding to changes in the world economy; adapted new technologies to
improve both internal business processes and the range of products and
services available to American companies; invested in its employees
through professional development opportunities, and prioritized
resources to get the most for its investments.
9. Who are the stakeholders in the work of this department/agency?
The Commercial Service's primary stakeholders are its clients,
namely, small-and medium-sized U.S. businesses with the initiative and
resources to export. Other internal stakeholders include the
International Trade Administration, the Department of Commerce,
Congress and the Office of Management and Budget.
10. What is the proper relationship between the position to which
yon have been nominated, and the stakeholders identified in question
number nine?
Clients: I would lead the U.S. Commercial Service's worldwide
network in providing small and medium-sized U.S. businesses with
customized export solutions.
Internal Stakeholders: I would serve as their primary source of
information on the U.S. Commercial Service for internal stakeholders.
For all performance measures and results, I would assume and accept
responsibility and accountability and provide regular access and
updates.
11. The Chief Financial Officers Act requires all government
departments and agencies to develop sound financial management
practices.

(a) What do you believe are your responsibilities, if confirmed, to
ensure that your department/agency has proper management and accounting
controls?
If confirmed, my responsibilities would be to institute and oversee
management practices which promote compliance with management and
accounting controls, to set an example by adhering to both the letter
and spirit of laws and regulations, and to advise and support the ITA
CFO as the CFO manages the agency's fiscal and accounting systems.
Management practices I would emphasize include: training to ensure
staff are cognizant of applicable fiscal systems and compliance
expectations; use of performance appraisals to hold staff accountable
for compliance/non-compliance; internal systems development to ensure
staff have the tools to comply and to document compliance; and
implementation of systems and practices to detect non-compliance.

(b) What experience do you have in managing a large organization?
I have over 15 years of experience in managing large, primarily
field-based promotions and programs. Much of this work required
building national coalitions and supervising the efforts of a large
field staff in implementing critical objectives. My collective
experience includes developing and adhering to complex budgets, setting
short and long-term strategic operational objectives, building
coalitions, and developing, motivating and mentoring geographically
dispersed staff.
12. The Government Performance and Results Act requires all
government departments and agencies to identify measurable performance
goals and to report to Congress on their success in achieving these
goals.

(a) What benefits, if any, do you see in identifying performance
goals and reporting on progress in achieving those goals?
I believe that identifying relevant performance goals benefits both
taxpayers and the Congress by increasing an organization's
accountability. Putting strong measures in place and reporting on those
measures to the Congress ensures that tax dollars are being spent
effectively and helps the agency stay focused on its core mission and
assess organization and individual performance. Strong and transparent
performance measures also promote a stronger trust in Government.

(b) What steps should Congress consider taking when a department/
agency fails to achieve its performance goals? Should these steps
include the elimination, privatization, downsizing, or consolidation of
departments and/or programs?
Congress should insist on an explanation of why the results were
not achieved, and, depending on the information provided, insist on
corrective action, mid-course changes to strategy and/or revised goals.
Agency elimination, downsizing, privatization, and consolidation are
broad policy concerns about the appropriate role and relationships of
the Federal Government and how to best serve the taxpayer. Failing to
achieve performance goals is but one factor when considering these
areas.

(c) What performance goals do you believe should be applicable to
your personal performance, if confirmed?
If confirmed, my personal performance goals should be in line with,
if not identical to, the goals of the agency. The goals presented to
the taxpayer through the Trade Promotion Coordinating Committee and the
National Export Strategy are applicable. In addition, as the senior
executive for the U.S. Commercial Service, I will periodically announce
management initiatives based on needs and evolving challenges, and
these are the basis for personal performance goals.
13. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you?
As a manager, I believe in assembling and motivating a strong
management team to help run the organization. In turn, the management
team delegates responsibility to regional managers, commercial officers
and trade specialists to deliver the highest quality service to our
clients. Trust in the judgment of our field staff is essential to
satisfy client needs in an organization that has more than 250 offices
worldwide. My management style is highly collaborative and seems to
work well in a diverse organization that has unionized foreign service
officers and foreign service nationals representing more than 84
different nationalities. No employee complaints have been brought
against me.
14. Describe your working relationship, if any, with the Congress.
Does your professional-experience include working with committees of
Congress? If yes, please explain.
I was the Administrative Assistant and Press Secretary for
Congressman Roger Wicker (R-MS) during his time as the President of the
Freshmen Class in 1995 an opportunity that allowed maximum interaction
with the 73 Freshmen members and staffs-many of whom remain in the
House (and in the Senate). In addition to my Hill experience, I
interacted often with many members (and staffs) in my political and
private sector positions.
15. Please explain what you believe to be the proper relationship
between yourself, if confirmed, and the Inspector General of your
department/agency.
My relationship with the Inspector General will be open and
collegial. It will include a continuing dialogue to ensure issues
identified by the IG are resolved appropriately and to use the IG as an
asset to improve the organization. The U.S. Commercial Service will
follow-up promptly and aggressively on recommendations provided in
Inspector General reports, and will make referrals to the Inspector
General in cases of possible wrong-doing. In addition, the Commercial
Service will seek a dialogue with the Inspector General on relevant
issues, ensure IG staff have ready access to staff and records, and
invite IG staff to participate as observers or speakers at management
conferences.
16. In the areas under the department/agency's jurisdiction to
which you have been nominated, what legislative action(s) should
Congress consider as priorities? Please state your personal views.
Personally, I believe that there are three primary areas under the
Department's jurisdiction that Congress should consider as priorities:

Improving the quality and accessibility of export assistance
programs to small and medium-sized American businesses.

Ensuring compliance with international trade agreements
including technology, biotechnology, and intellectual property,
to provide American companies with full and fair access to
global markets.

Making U.S. companies as competitive as those of a number of
our trading partners by providing more effective assistance and
advocacy for a level playing field.

17. Within your area of control, will you pledge to develop and
implement a system that allocates discretionary spending in an open
manner through a set of fair and objective established criteria? If
yes, please explain what steps you intend to take and a time frame for
their implementation. If not, please explain why.
If confirmed, I will pledge to develop and implement a system that
allocates discretionary spending based on national priorities
determined in an open fashion on a set of established criteria.
In allocating resources, I will examine the U.S. Commercial
Service's programs, initiatives, priorities and staffing patterns to
ensure that funding levels support the agency's mission. My actions
will be in accordance with budget timetables established by the
Department and will be fully transparent and well documented.

The Chairman. Thank you very much.
Dr. Combs?

STATEMENT OF LINDA MORRISON COMBS, NOMINEE FOR THE

POSITION OF ASSISTANT SECRETARY FOR BUDGET,

PROGRAMS, AND CHIEF FINANCIAL OFFICER,

U.S. DEPARTMENT OF TRANSPORTATION

Dr. Combs. Thank you, Mr. Chairman.
It's, indeed, an honor to appear before your Committee
today as you consider my nomination. I'm, too, very, very
pleased to be nominated by the President and have the
confidence of Secretary Mineta. And in the interest of your
time today, I'd be pleased to submit my statement for the
record.
The Chairman. Without objection.
Dr. Combs. Thank you.
[The prepared statement and biographical information of Dr.
Combs follow:]

Prepared Statement of Linda Morrison Combs, Nominee for the Position of
Assistant Secretary for Budget, Programs, and Chief Financial Officer,
U.S. Department of Transportation
Mr. Chairman and Members of the Committee, thank you for the
opportunity to appear before you today as you consider my nomination to
be Assistant Secretary for Budget, Programs and Chief Financial Officer
of the Department of Transportation. It is an honor to be here and a
privilege to have been nominated by President Bush for this important
post. I'd like to thank Secretary Mineta for his confidence in my
ability, and if confirmed, I look forward to working with all of you
and your staffs in addressing the transportation issues that affect all
Americans.
The position of Assistant Secretary for Budget, Programs and Chief
Financial Officer of any organization or Department carries a
tremendous responsibility. It's a pivotal place in the Department where
budget, accountability, and sound fiscal management all come together.
It will be my goal, if confirmed, to build upon the progress that has
already been made and continue to improve the management, performance,
and results for the Department.
Having gained invaluable experience in the management area while
serving as the Deputy Under Secretary for Management at the Department
of Education, Acting Associate Deputy Administrator for Management at
the Department of Veterans Affairs, Assistant Secretary for Management
and the first Chief Financial Officer at the Department of the
Treasury, and most recently as the Chief Financial Officer at the
Environmental Protection Agency, I welcome the opportunity, if
confirmed, to face the challenges that lie before me at the Department
of Transportation.
In each of my public offices I have been guided by one over-riding
principle: public service is a public trust. I am committed to
upholding the highest standards of honesty, fairness, and integrity.
The people of this great country deserve no less from those of us who
serve in such honored positions.
1 approach the challenges that lie before me with enthusiasm and
eagerness to provide expert leadership for the Department of
Transportation. Should you honor me with confirmation, I look forward
to maintaining open lines of communication and a close working
relationship with you. The Department of Transportation is very
fortunate to have an outstanding, highly experienced budget and
financial staff. If confirmed, I look forward to working with these
fine professionals and learning from them. I am eager to begin our work
together.
l again thank you for the opportunity to appear before you, and I
look forward to answering any questions you may have.
______

a. biographical information
1. Name: (Include any former names or nick names used.) Linda
Morrison Combs, Linda Combs, Linda M. Combs, Linda Morrison, Linda Gail
Morrison.
2. Position to which nominated: Assistant Secretary of
Transportation for Budget and Programs and Chief Financial Officer.
3. Date of nomination: November 25, 2003.
4. Address: (List current place of residence and office addresses.)

Residence: Information not released to the public.
Office: Department of Transportation, 400 7th Street, SW, Room
10101, Washington, D.C. 20590.

5. Date and place of birth: 06/29/46; Lenoir, NC.
6. Marital status: (Include maiden name of wife or husband's name.)
David Michael Combs.
7. Names and ages of children: (Include stepchildren and children
from previous marriages.)
None.
8. Education: (List secondary and higher education institutions,
dates attended, degree received and date degree granted.)

1960-1964 Hudson High Dip 1964
School
1964-1966 Gardner--Webb Boone, NC AA 1966
University
1966-1968 Appalachian Boiling BS 1966
State Univ. Springs, NC
1973-1978 Appalachian Boiling MA 1978
State Univ. Spring. NC
1982-1985 VP and State Blacksburg, VA Ed.D. 1985
University
1984-1984 Harvard Cambridge, MA Cert. 1984
University
1975 American Mgmt. Cert. 1975
Assn.
1979 American Cert. 1979
Institute of
Banking

9. Employment record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)

11/03-pres. Advisor to the Secretary, DOT, Washington, D.C.
11/01-11/03 Chief Financial Officer, USEPA, Washington, D.C.
1991-2001 Combs Publishing & Consulting, self--sole
proprietor, W-S, NC
07/89-05/91 Assistant Secretary of Treasury for Management &
CFO, Wash, D.C.
08/88-07/89 Acting Assoc. Administrator for Management, DVA,
Wash, D.C.
10/87-08/88 Deputy Associate Administrator for Management,
DVA, Wash, D.C.
05/87-10/87 Combs Consulting Group, self employed, W-S, NC
10/86-10/87 Int'l Education Systems of N.C., W-S, NC
05/86-04/87 Public Education Advisor to the Governor of NC,
Raleigh, NC
09/84-05/86 Deputy Undersecretary for Management, Dept of Ed.,
Wash, D.C.
02/83-09/84 Executive Secretary, Dept of Ed., Wash, D.C.
05/82-02/83 Deputy Executive Secretary, Dept. of Ed., Wash,
D.C.
03/80-04/82 Mgr. National Direct Student Loan Operations,
Wachovia Serv., NC
09/79-02/80 Section Manager, Wachovia Services, Winston-Salem,
NC
12/80-05/82 Elected Member, Board of Education, Forsyth Co.,
NC
08/77-08/79 Assistant Principal, Speas School, Forsyth Co.,
Winston-Salem, NC
09/73-06/77 Reading Coordinator, Ardmore School, Forsyth Co.
Winston-Salem, NC
06/73-08/73 Director, Title I Summer Program, Forsyth Co.
Winston-Salem, NC
09/71-06/73 Reading Teacher, Clemmons School, Forsyth Co.
Winston-Salem, NC
01/70-06/71 6th Grade Teacher, Brown School, Forsyth Co.,
Winston-Salem, NC
09/68-01/70 6th Grade Teacher, Kernersville School, Forsyth
Co. W-Salem, NC
06/69-08/60 Correspondence Clerk, Bowman Gray Sch. of
Medicine, W-Salem, NC

1991-2001 Self Employed (Consultant/Writer/Speaker)
Proprietor
1991-2001 Co-Proprietor with David Combs of Combs Music
1999-2001 Gardner-Webb University. Unpaid member, Board of
Trustees
1992-2001 Appalachian State Univ. Unpaid member, Board of
Directors
1984-2001 Wake Forest Univ. Babcock Sch. of Mgmt. Unpaid
mem., Bd of Visitors
1995-1997 Piedmont Triad Alzheimer's Association, Unpaid
member Bd. of Dir.
2000-2001 Kaesona, Inc. Unpaid member, Board of Directors
2000-2001 Kybele, Inc. Unpaid member, Board of Directors
501(c)(3) corporation, incorporated in the State
of Kansas
1996-2000 NC Jewish Home, Clemmons, NC (unpaid member while
parents were residents--home now closed)

12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)

1992-2001 Rotary International Club. Chaired the Devotional
Committee
1999-2001 Piedmont Women Executives
1996-2000 National Speakers Association

13. Political affiliations and activities:
(a) List all offices with a political party which you have held or
any public office for which you have been a candidate.

1980 Elected to Board of Education for Forsyth County
School System in Winston-Salem, NC
1980/81 Vice President of Forsyth Young Republicans Club

(b) List all memberships and offices held in and services rendered
to all political parties or Election committees during the last 10
years.

1972 & 1978 Actively worked in Jesse Helms for Senate Campaign
as Precinct Organizer. Also served in subsequent
campaigns in various capacities
1974-1980 Co-chair of South Fork Republican Precinct
1976-1980 Member of Forsyth Co. Republican Party Executive
Committee
1976 & 1980 Actively worked in the Reagan for President
Campaign
1980 Elected to Board of Education for Forsyth County
School System in Winston-Salem, NC
1980-1981 Vice President of Forsyth Young Republicans Club
1982-1991 Active member of the North Carolina Republic Club
of Washington
1987 George H. W. Bush Presidential Campaign
2000 George W. Bush Presidential Campaign
1999 Elizabeth Dole for President--National Finance
Committee
1999-2000 George W. Bush for President Campaign (Educators
for Bush)
1970-Pres. Forsyth County Republican Women's Club
1995-1996 Forsyth County Republican Party Finance Committee

(c) Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years.

George W. Bush--2004 Presidential Campaign $2,000
George W. Bush--2000 Presidential Campaign $1,000
George H. W. Bush--1992 Presidential Campaign $1,000
Elizabeth Dole--2000 Presidential Campaign $1,000

14. Honors and awards: (List all scholarships, fellowships,
honorary degrees, honorary society memberships, military medals and any
other special recognition for outstanding service or achievements.)

1963 Rural Electrification Assn. Scholarship for
writing a prize winning essay
1964 Graduated with honors from high school
1974 Winston-Salem/Forsyth Co. School System
Scholarship
1977 Nominated ``Teacher of the Year'' by Speas School
1978 Nominated ``Teacher of the Year'' by Speas School
1997 Delta Kappa Gamma Honor Society
1979 Phi Delta Kappa Honorary Society
1983 Combined Federal Campaign Award
1983 Combined Federal Campaign Outstanding Service
Award
1984 Phi Delta Kappa Service to Education Award
1984 Secretary of Education's Special Citation
1985 Honorary Doctorate, Gardner Webb College
1986 Distinguished Alumnus of the Year, Appalachian
State Univ.
1987 Alumnus of the Year, Gardner Webb College
1986 Certificate of Appreciation, U.S. Secretary of
Education
1988 President's Council on Management Improvement
Award
1988 Executive Performance Award, Veterans
Administration
1988 President's Council on Management Improvement
Outstanding Leadership
1988 Outstanding Volunteer Award
1989 Veterans Administration Appreciation Award
1989 Pride in Public Service Achievement
1996 Alzheimer's Association Award from Nancy Reagan
1996 Piedmont Triad Alzheimer's Association Volunteer
of the Year
1997 Special Service Award, Appalachian State
University
2002 Received the President's Quality Award Program
Finalist Award given in the area of budget and
performance integration. (One of only seven
awards presented government-wide.)
2003 Received White House recognition for Leadership
and accomplishments in improving financial
performance. (One of three recognitions given
government-wide.)

15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.)

Author......................................
Jan. 2001................................... ``Work Together to Ensure that No Child is Left Behind,'' Article
in Winston-Salem Journal Guest Column
Dec. 1994................................... ``Reflections on Dealing with Alzheimers,'' article by Linda
Morrison Combs
Dec. 1994................................... ``A Long Goodbye and Beyond. Coping with Alzheimers,'' book by
Linda M. Combs
Dec. 1996................................... ``Fact and Commentary,'' article on Alzheimer's Disease Primary
Psychiatry Journal
Mar. 1984................................... ``An Analysis of Productivity Improvements and Trends in the
Executive Secretariat,'' paper, U.S. Department of Education
Mar. 1985................................... ``Sharing Educational Responsibility,'' article in Winston-Salem
Sentinel
1985........................................ ``Developmental Education: The Federal Viewpoint.'' Journal of
Developmental Education, Volume 9, Issue 1
Nov. 1985................................... ``Education in the Year 2035--A Delphi Study to Identify Possible
Futures of the Public Secondary School'' (Dissertation submitted
to fulfill requirements for Ed.D. at Virginia Polytechnic and
State University)
Co-author...................................
Mar. 1985................................... ``An Inventory of Shared Administration Support,'' New
Perspectives on Federal Management for the President's Council on
Mgmt. Improvement (PCMI) Interagency Task Force Report
Apr. 1985................................... ``Case Studies of shared Administrative Support,'' New
Perspectives on Federal Management for the PCMI Interagency Task
Force Report
Aug. 1985................................... ``Measuring Administrative Services: Assessing and Improving
Productivity,'' A PCMI Interagency Task Force Report
Oct. 1985................................... ``Streamlining Internal Control Processes and Strengthening
Management Controls with Less Effort,'' A PCMI Interagency Study
Report
1985........................................ ``Improving Federal Productivity: An Inventory of Agency
Examples,'' A PCMI Task Force Report

04/1999 ``The Perfect Politician,'' speech for Forsyth
County Republican Club Monday luncheon, Winston-
Salem, NC
08/1999 ``Facing a long Goodbye--Caring for Your
Parents,'' for the National Speaker's Association
Meeting in San Antonio, TX
11/1999 Caregiver Renewal Day, speech Dallas TX
11/1999 ``Coping with Alzheimer's Disease,'' on-line chat
event guest for Web Med, Inc.
05/2002 Remarks during EPA Senior Executive Service
Meeting, Washington, DC
05/2002 ``Emerging Issues in Environmental Protection''
before the EPA Annual Planning and Budget
Meeting, Washington, DC
06/2002 ``Getting Beyond Green: President's Management
Agenda,'' for 7th Annual Treasury CFO Council
Retreat, Washington, DC
06/2002 ``Careers in Federal Government,'' during Caldwell
Co. June Scholars Ceremony, Lenoir, NC
08/2002 ``President's Management Agenda,'' during EPA
Regional Administrators Meeting on Improved
Results, Washington, DC
08/2002 ``Rising to Excellence through Citizen-Centered
Government,'' during EPA's 4th National Customer
Service Meeting, Washington, DC
08/2002 ``Using Business Tools to Improve Results,''
during Business Intelligence Team Kickoff
Meeting, Washington, DC
10/2002 ``Getting Beyond Green-Financial Management'
before the Administrator's Senior Staff Meeting
in San Francisco, CA
11/2002 Remarks before the ARA Meeting, Washington, DC
01/2003 ``Citizen-Centered Government,'' during Cleveland
County Manufacturer's Council Meeting,
Washington, DC
02/2003 ``Office of Chief Financial Officer's Priorities
for 2003,'' before the Second Annual Customer
Service Expo, Washington, DC
03/2003 ``Integrating Budget and Performance at EPA,''
during JFMIP 32nd Annual Conference as panel
session speaker, Washington, DC
03/2003 Remarks before the Environmental Financial
Advisory Board Annual Meeting in Washington, DC
04/2003 ``President's Management Agenda,'' at the EPA
Assistant Regional Admin. Annual Conference,
opening remarks, Washington, DC
05/2003 ``EPA Strategic Plan,'' before State Commissioners
and EPA Managers Workshop, welcoming remarks,
Washington, DC
05/2003 ``Government Agencies Are Facing Accelerating
Rates of Change,'' at AFFIRM Post/Newsweek Panel
Meeting
05/2003 ``Integrating Budget and Performance at EPA,'' at
logistics Management Institute Meeting, Tyson's
Corner, VA
06/2003 ``Strategic Business Partners: How Can we Be Good
Partners,'' before Association of Government
Accountants (AGA) Conference, Chicago, Ill.
06/2003 ``Partnering for Results'' before the AGA
Professional Development Development Conference
in Chicago, IL
10/2003 ``Update on Implementation of the President's
Management Agenda'' before the Environment
Performance Summit Meeting in Wash., DC

17. Selection:

(a) Do you know why you were chosen for this nomination by the
President?
I believe that I was chosen for this nomination by the President
because of my skills in managing other similar positions.

(b) What do you believe in your background or employment experience
affirmatively qualifies you for this particular appointment?
I have worked in four different Federal agencies with oversight
authority for financial management and budget. These positions include
Deputy Undersecretary for Management at the Department of Education;
Assistant Secretary for Management and Chief Financial Officer at the
Department of Treasury; Acting Associate Administrator for Management
at the Department of Veterans Affairs; and most recently as Chief
Financial Officer at the U.S. Environmental Protection Agency. During
my tenure at EPA, it became the third agency to ``get to green'' for
status in financial management, receiving a clean audit opinion with no
material weaknesses, an initiative on the President's Management
Agenda.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations or business organizations if you
are confirmed by the Senate?
I do not currently have any employment outside the Federal
Government.
2. Do you have any plans, commitments or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, explain: No.
3. Do you have any plans, commitments or agreements after
completing government service to resume employment, affiliation or
practice with your previous employer, business firm, association or
organization? No.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable? Yes.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients or customers. None.
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
See attached OGC letter following this page. [Not printed here.]
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated? None.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat or modification of any legislation or affecting the
administration and execution of law or public policy. None.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.)
I shall consult with DOT's designated Ethics Official and either
recuse myself, obtain a waiver, or take such other action as may be
appropriate.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
for unprofessional conduct by, or been the subject of a compliant to
any court, administrative agency, professional association,
disciplinary committee, or other professional group? If so, provide
details: No.
2. Have you ever been investigated, arrested, charged or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation or ordinance,
other than a minor traffic offense? If so, provide details: No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in interest in an administrative agency
proceeding or civil litigation? If so, provide details?
In 1976 in the zoning appeal case of City of Winston-Salem and the
Board of Alderman and Mayor V. the N.W. Stratford Neighborhood Planning
Council and David M. Combs and wife, Linda, I was named as a party
because my husband, then President of the N.W. Stratford Neighborhood
Planning Council, was named as the party in interest, hence I was named
due to NC marital estate law. The property was rezoned from a level one
tract single residential zone to a level five tract highway business
zone. The Planning Council filed a petition to challenge the vote
citing that the Roberts Rules of Order were not being properly
followed. In April 1976, the Council lost on a motion for summary
judgment, and an appeal was not pursued.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination. None.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines set by Congressional committees for information? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect Congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the committee with requested
witnesses, to include technical experts and career employees with
firsthand knowledge of matters of interest to the committee? Yes.
4. Please explain how you will review regulations issued by your
department/agency, and work closely with Congress, to ensure that such
regulations comply with the spirit of the laws passed by Congress.
If confirmed, I will have the responsibility to review the
budgetary impact of all significant DOT regulations. As the Assistant
Secretary for Budget and Programs/CFO it would be my responsibility to
verify the financial ramifications of regulations for both the
Department and private industry. I intend to work diligently with
regulators as well as Departmental officials to comply with all aspects
of the laws passed by Congress, and I will take responsibility to
ensure that a thorough review process is followed within DOT's Office
of the Chief Financial Officer.
5. Describe your department/agency's current mission, major
programs, and major operational objectives.
The mission of the Department of Transportation is to provide a
safe and efficient transportation system. If confirmed, I would be
committed to ensure that this mission is carried out in an efficient
manner with the use of all appropriate tools such as departmental
regulations, safety inspections and services, investments in
infrastructure and the development of new technologies and public
education awareness.
The Government Performance and Results Act (GPRA) commits the
Department to managing for results, and this has been reflected in the
strategic goals and performance plan. DOT already has been successful
in reaching over 70 percent of its goals set forth in its strategic
plan and I am committed to continue to strive to improve safety,
mobility, economic growth, human and natural environment, and national
security.
6. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so?
I will.
f. general qualifications and views
1. How have your previous professional experience and education
qualified you for the position for which you have been nominated?
I feel that I am qualified to serve in the position of Assistant
Secretary for Budget and Programs/Chief Financial Officer at DOT
because of my training, experience, and commitment. During my career I
have held numerous management positions with increasing levels of
responsibility. I have had the opportunity to serve in equivalent
positions at the Departments of Education, Veterans Affairs, Treasury,
and most recently at EPA.
The Chief Financial Officer position presents a tremendous
opportunity to develop a careful balance between providing service and
exercising control and discipline within the Agency. As the Assistant
Secretary for Budget and Programs/CFO at DOT, I would have the
responsibility of overseeing financial management, budgeting,
performance measurement, analysis and accountability functions, all of
which I have done in previous positions.
I have a very strong commitment to public service. I believe that
public servants have an obligation to set a good example and should
uphold the highest ethical standards. I am always mindful of that
public trust and will always strive to honor the public trust.
2. Why do you wish to serve in the position for which you have been
nominated?
If confirmed, I hope to inspire the employees at DOT to strive to
reach the Department's goals and objectives of providing the safest,
most efficient transportation system. This would be aided by improving
the financial management initiatives and ultimately bringing that
Department from ``red'' to ``green'' on the initiatives set forth as
priorities by the President's Management Agenda.
3. What goals have you established for your first two years in this
position, if confirmed?
My personal goal would be to elevate DOT into the limelight as one
of the best run financial management organizations in the Federal
Government thereby helping DOT in achieving its goal of providing a
safer, simpler and smarter transportation system for the benefit of all
Americans. I hope to obtain this goal through providing guidance for
appropriate funding recommendations. I believe my past experience in
motivating employees to ensure the best teamwork will ultimately
provide the development of transportation policies and programs that
will contribute to providing fast, safe, efficient, and convenient
transportation at the lowest cost.
If confirmed, some of the things I want to accomplish in my role as
Assistant Secretary for Budget and Programs/CFO would be to improve
upon the financial management efforts of the Department to ensure that
DOT receives and maintains a clean audit, to modernize and improve
DOT's financial systems for program management in a more efficient
manner to benefit taxpayers and to provide DOT managers with real-time
financial information that would be readily available to them from
their desktops.
4. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills?
I do not have extensive knowledge about transportation programs and
activities, but I have worked in oversight positions in financial
management in three Administrations at four Federal agencies
(Education, Veterans Affairs, Treasury and EPA) and believe my
knowledge of budgetary matters will allow me to have great insight into
any relevant programs that need a good solid financial structure on
which to accomplish its goals.
I have witnessed some very outstanding skills from DOT employees,
and I would want to learn from them in order to get the job done. I
hope to be able to combine our knowledge and skills to obtain the goals
set before us, and together I know we will succeed. A good working
relationship with Departmental and Congressional officials is also a
big step towards broadening my knowledge of relevant transportation
programs.
5. Who are the stakeholders in the work of this agency?
The stakeholders of DOT are our fellow American citizens. Most
Americans obtain a direct benefit from the Department in their daily
lives-traveling to and from work each day, going on vacation, or dining
out, made possible by delivery of foods via one or more modes of
transportation. Other important stakeholders include Congress, state
and local elected and appointed officials, and fellow Americans who are
employed by the transportation industry sector.
6. What is the proper relationship between your position, if
confirmed, and the stakeholders identified in question number ten.
If confirmed, I would certainly be accessible and responsive to the
stakeholders I have mentioned above, and provide clear and ethical
standards relating to budgetary and financial decisions. I would not
allow special interests to dictate the policy and operations of the
Department.
7. The Chief Financial Officers Act requires all government
departments and agencies to develop sound financial management
practices similar to those practiced in the private sector.

(a) What do you believe are your responsibilities, if confirmed, to
ensure that your agency has proper management and accounting controls?
If confirmed as Assistant Secretary for Budget and Programs/Chief
Financial Officer, I plan to ensure that DOT has state-of-the-art
management and accounting control systems in place. I believe this is
critical to obtain clean audit opinions and clear up material internal
control weaknesses. To do this, we must have at our fingertips the most
reliable, accessible and accurate financial information. I hope to be
instrumental in making the Department's accounting system more
practical and user friendly. This, combined with a productive workforce
will enable us to integrate the five mutually reinforcing goals into
DOT's culture as we strive for continuous management improvement as set
forth by President Bush's Management Agenda. Those goals are: (1)
Strategic Management of Human Capital; (2) Budget and Performance
Integration; (3) Competitive Sourcing; (4) Expanded E-Government; and
(5) Improved Financial Management.
To this end, I would be a shepherd for the department's major
priorities which are:

Safety. DOT's number one goal is to have a safe and efficient
transportation system. In order for this priority to be realized, DOT
components need to focus on improving safety, inspecting operations,
issuing regulations, supporting research projects, supporting public
education and maintaining all of the above functions without needing to
worry about the soundness of their financial systems. I hope to enable
all these functions to run smoothly.

Mobility. One of the biggest problems facing our economy today is
congestion. Traffic congestion and bottlenecks damage air quality, slow
commerce, increase energy consumption and threaten our quality of life
causing Americans to waste significant time and money. We all know that
public transportation is one way to alleviate some of these problems.
Better and more effective solutions are needed to address our growing
mobility needs. I will work towards developing a reliable and
financially viable system through more innovative finance programs.

Global Connectivity. Recognizing that global connectivity is a
vision of the future, we must open up our trade and economic growth
exchange to expanded democracies around the world. Transportation is
critical to opening up these worldwide exchanges. I hope to be
instrumental in finding ways to increase these exchanges with better
policies and programs installed into our performance plans.

Environmental Stewardship. Energy consumption is an emerging
concern for the transportation sector. Environmental streamlining and
stewardship offer a new way of doing business that brings together the
timely delivery of transportation projects and still protects the
environment. We must remain consistent with the requirements of
environmental law and our responsibilities to be good stewards of the
environment. I intend to offer my assistance to Secretary Mineta in his
role of chairman of the task force that has the goal to expedite
priority projects to lessen transportation effects on the environment.

Security. President Bush has asked DOT to work together with the
Department of Homeland Security (DHS) on designing a world-class
transportation security system. The aim is to maximize the
opportunities presented by our regulatory enforcement activities when
they expose security risks in the transport of goods or people.

(b) What experience do you have in managing a large organization?
I have managed large organizational structures at the Department of
Education, at the Department of Treasury and at EPA. There were
approximately 350 employees under my responsibility at EPA and over
1500 at Treasury. We managed to become one of the leading achievers in
the Federal financial management field. I believe one of my strengths
in managing is encouraging employees to do their very best always, and
when employees are given the respect and encouragement to do their
best, you usually attain the best results. A good supporting cast makes
a great difference in achieving goals that you have set for your
organization.
8. The Government Performance and Results Act requires all
government departments and agencies to identify measurable performance
goals and to report to Congress on their success in achieving these
goals.

(a) Please discuss what you believe to be the benefits of
identifying performance goals reporting on your progress in achieving
those goals.
I strongly believe in the spirit and intent of GPRA. I also believe
that the law was identified to keep agencies in check. Without GPRA, an
agency would have no way to measure its success. With reasonable goals
laid out in the strategic plan, the agency benefits greatly in its work
products because employees are going to strive to achieve those goals.
By reporting on the status of those goals, you know where you are and
where you need to be and also if there is a need for any changes.

(b) What steps should Congress consider taking when an agency fails
to achieve its performance goals? Should these steps include the
elimination, privatization, downsizing or consolidation of departments
and/or programs?
As usual, any actions that react to failure usually sound more
drastic than they need to be. But if any of the suggested actions above
will enhance the programs and make it possible to meet the performance
goals, such options should be considered. However, 1 believe
organizational factions should work together to sets goals that are
both reasonable and challenging, and also agree with mission of the
agency and the Administration. Goals should never be too reachable or
too unattainable.

(c) What performance goals do you believe should be applicable to
your personal performance, if confirmed?
If confirmed, I would personally accept responsibility for
administering the GPRA performance plan, thusly holding myself
accountable to all of the Department's top goals. I would maintain
close coordination with the Secretary and Deputy Secretary in the
conformance of annual performance goals for my office. These goals
would include being responsive to Congress and other stakeholders and
at the same time maintaining proper implementation of the duties of the
Assistant Secretary for Budget and Programs/CFO, specifically in
achieving and maintaining a clean audit.
9. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you?
My first and foremost philosophy on supervisor/employee
relationship centers on mutual respect for one another. I like to
practice innovative management techniques and institute management
improvements and initiatives that result in actual and noticeable
improvements. I believe that employees represent the greatest resource
for any organization, and it is my opinion that in order for employees
to achieve their highest potential and to take pride in their work, you
must motivate them to want to do so. All organizational accomplishments
are done by and through people, and as such, employees deserve
professional treatment and respect. I believe in rewarding positive
performance and encouraging innovation and creativity. I place a
premium on ideas and suggestions from employees on ways to improve the
efficiency and performance of an organization. I believe in listening
to both the customer and to the people who serve the customer.
I do not know of any employee complaints brought against me.
10. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please describe.
I have worked with Congress in previous positions within the
Federal Government. In my roles as the chief financial officials in
four previous departments and/or agencies, it has been my honor to
appear before several different oversight congressional committees to
provide testimony and reports, both in oral and written communication.
I know there is a genuine need for their oversight roles and I respect
the process. I always try to be responsive to Congressional staff and
members. If confirmed, I would strive to obtain and maintain positive
working relationships.
11. Please explain what you believe to be the proper relationship
between yourself, if confirmed, and the Inspector General of your
department/agency.
I have always had a close working relationship with the Inspector
Generals in the Departments in which I have served. If confirmed, I
would want to maintain a close working relationship with the IG at DOT.
One of the many goals of the IG is to ensure that the Department
operates in a manner that is free of waste, fraud and abuse. This is
certainly a goal of mine as well. I have spoken with DOT's IG and if
confirmed, I would welcome his offer to continue an open, candid
relationship with me.
12. Please explain how you will work with this Committee and other
stakeholders to ensure that regulations issued by your department/
agency comply with the spirit of the laws passed by Congress.
I would feel privileged to work closely with this Committee and DOT
officials to address any concerns about proposed regulations. As
Assistant Secretary for Budget and Programs/CFO, I would accept the
responsibility to review all regulations for budgetary impact on the
Department as well as in the private sector. I would assure that
Congress was notified of any obligations or resources needed by the
department.
When the Department of Transportation has legal authority or
direction to impose regulations, I believe it would be important to
assure that existing laws and regulations reflect Congressional intent.
I believe it is important to work with DOT officials to address
Congressional concerns with any proposed regulations. I feel strongly
that briefings with Congressional staff are important, and would strive
to work with Congress and staff to communicate pending departmental
actions.
13. In the areas under the department/agency's jurisdiction, what
legislative action(s) should Congress consider as priorities? Please
state your personal views.
The most recent six-year surface transportation authorization act,
the Transportation Equity Act for the 21\81\ Century (TEA-21), expired
on October 1, 2003. A short-term extension of TEA-21, the Surface
Transportation Extension Act of 2003, expires on February 29 of this
year.
Surface transportation reauthorization is a key priority of the
Administration and DOT. A major component of the Department's 2004
budget request includes the financial foundation for the proposed new
multi-year surface transportation legislation and the recently enacted
aviation reauthorization, Vision 100--Century of Flight Reauthorization
Act. I look forward to working closely with Congress on swift enactment
of the surface transportation reauthorization bill that will continue
to keep our surface programs strong and responsive to the Nation's
transportation needs while continuing to focus on highway safety.
One of my personal aspirations would be for Congress to look at
ways to make Amtrak solvent so that it can serve its customers in a
more efficient manner.
14. Within your area of control, will you pledge to develop and
implement a system that allocates discretionary spending based on
national priorities determined in an open fashion on a set of
established criteria? If not, please state why. If yes, please state
what steps you intend to take and a time frame for their
implementation.
I am a firm believer that discretionary spending based on national
priorities is a worthwhile objective to pursue. The criteria, however,
would need to be based on existing laws and standards set by Congress.
I would follow the direction of Congress, and laws that are passed by
Congress.

The Chairman. Thank you.
Mr. Buttrey?

STATEMENT OF W. DOUGLAS BUTTREY, MEMPHIS, TENNESSEE

Mr. Buttrey. Mr. Chairman, thank you very much for the
opportunity to be here today before you, and to have an
opportunity to thank the President and Senator Frist and
Senator Alexander for having faith in me and helping with this
nomination. I also wish to thank Congressman Ford for his very
kind introduction today.
I'd like to thank certain members of the staff at the
Surface Transportation Board for assisting me over the last few
weeks. Dan King and Mary Turek are here today and I'd like to
thank both of them very much for being here and helping me
prepared for this hearing.
If confirmed, I look forward to working with the Committee,
with other Members of the Congress and the staff, to take a
good, hard look at the issues facing the freight rail industry.
I'll have a very steep learning curve, having spent my entire
career in the air transportation industry.
So, I look forward to working with my colleagues at the
board, the staff at the board, and the Congress as we pursue
the issues that come before the Board.
Thank you very much.
[The prepared statement and biographical information of Mr.
Buttrey follow:]

Prepared Statement of W. Douglas Buttrey, Nominee to be a Member of the
Surface Transportation Board
Thank you, Mr. Chairman: I want to express my appreciation to you
and the Committee for holding this hearing today and to Senator Frist
and Senator Alexander for their support of my nomination.
I understand that they are not able to be here today due to other
pressing Senate business and have submitted statements for the record.
I also want to thank President Bush for sending up my nomination to
the Senate. This is a great honor which I take very seriously. I also
want to thank my Congressman, Harold Ford, Jr., for taking time from
his busy schedule to come to the hearing today on short notice to
introduce me and make a statement in support of my nomination.
If I may, Mr. Chairman, I would also like to thank three members of
the staff of the STB who have been very helpful to me during my
preparation for this transition. They are Dan King, Mary Turek and Anne
Quinlan. In the interest of time, I will be very brief.
I look forward to working with the Committee and the staff of the
Board to address the pressing issues in the freight rail industry.
Having spent my entire career in the aviation industry, I have a very
sharp learning curve ahead of me and i look forward to meeting that
challenge. I plan to do a lot of listening to the varied interests
which fall within the jurisdiction of the STB.
I have been engaged in my own personal due diligence to help me
prepare for my new responsibilities by touring an intermodal facility,
A large classification yard and by meeting with some significant rail
customers in Memphis.
Thank you again Mr. Chairman and I will attempt to answer any
questions that you may have.
______

a. biographical information
1. Name: (Include any former names or nicknames used.)
William Douglas Buttrey.
2. Position to which nominated: Member, Surface Transportation
Board.
3. Date of nomination: (TBD)
4. Address: (List current place of residence and office addresses.)
Residence: Information not released to the public.
5. Date and place of birth: May 11, 1945; Weeksville, North
Carolina.
6. Marital status: (Include maiden name of wife or husband's name.)
Married (Sep. 28, 1968); Margaret Ann (Beasley) Buttrey.
7. Names and ages of children: (Include stepchildren and children
from previous marriages.)
Nathan A. Buttrey (only child)--28.
8. Education: (List secondary and higher education institutions,
dates attended, degree received, and date degree granted.)

University of Miami--Grad. Law, 09/1971-05/1972, No Degree, n/a

University of Memphis School of Law, 09/1968-05/1971, JD, 05/
1971

Tennessee Technological University, 06/1964-08/1968, BS, 08/
1968

9. Employment record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)

Consultant American Project Memphis 07/2002 09/2003
Services
Consultant Memphis Biotech Memphis 04/2002 09/2003
Foundation
Sr. Gov't Federal Express Memphis/DC 02/1979-11/2001
Affairs Rep. Corporation
Counsel U.S. Senate Commerce DC 03/1976-12/1978
Committee
Attorney U.S. Civil DC 08/1972-03/1976
Aeronautics Board
Law Clerk Neely, Green, Memphis Summer 1970
Fargarson Law Firm
Counselor Memphis Park Memphis Summer 1969
Commission

10. Government experience: (List any advisory, consultative,
honorary or other part-time service or positions with Federal, State,
or local governments, other than those listed above.) None.
11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.)
See answer to Question A-9 above.
12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)

Church of Christ at White Station Deacon--Over ten years
Church of Christ at White Station Legal Ministry Leader--Over ten
years
Villas of River Oaks Homeowners Vice President--2002 to present
Ass'n
Tennessee Lobbyist Association Member--Five years
Tennessee Bar Association Member--Over ten years
District of Columbia Bar Member--Over ten years
Association
Shelby County Republican Party Caucus Delegate--2003
Student Bar Association Law School--President
Moot Court Board Law School--Student Justice
Friends of Charter Schools Board Member--1999/2000
Republican Eagles Company Representative (Company Pac
paid annual dues)
Memphis Area Chamber of Commerce Member--Gov't Affairs Committee
(Company paid annual dues)
Law Student Division--ABA 1969-1971
Nomination & Election Committee Chairman--1970
Alpha Tau Omega Fraternity College Social Chairman

13. Political affiliations and activities:

(a) List all offices with a political party which you have held or
any public office for which you have been a candidate.
None.

(b) List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years.
Shelby County Republican Party, Local Caucus Delegate.

(c) Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of$500 or more for the past 10 years.

Bush/Cheney 2004: $1,000

FedEx Political Action Committee:
2001: $404.25
1995-2000: $414/year
1993-1994: $240/year

14. Honors and awards:(List all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals and any other
special recognition for outstanding service or achievements.)

Sam A. Meyer Memorial Law Scholarship

Omicron Delta Kappa National Honor Society

ABA--LSD, Silver and Gold Key Awards

15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.) None.
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated. None.
17. Selection:

(a) Do you know why you were selected for the position to which you
have been nominated by the President?
I expressed an interest in serving in this capacity to Senator Bill
Frist, and he sent my name to White House Personnel.

(b) What in your background or employment experience do you believe
affirmatively qualifies you for this particular appointment?
Business degree; Law degree; Attorney at U.S. Civil Aeronautics
Board; Counsel to U.S. Senate Subcommittee on Aviation; 22 years
experience at Federal Express Corporation.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations, or business organizations if you
are confirmed by the Senate? Yes.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, please explain. No.
3. Do you have any plans, commitments, or agreements after
completing government service to resume employment, affiliation, or
practice with your previous employer, business firm, association, or
organization? No.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out your fall term or until
the next Presidential election, whichever is applicable? Yes.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers.

Collecting FedEx ``defined benefit'' pension--$4,322/month

Unpaid ``account receivable'' from American Project Services--
$70,000

Potential ``passive income/dividend'' from American Project
Services--TBD

2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated. None.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated. None.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy.
Prepared a white paper for the Memphis Biotech Foundation (MBF)
setting forth a strategy for securing Federal appropriations to support
biotech efforts in Memphis, Tenn. Attended two meetings in DC with MBF
staff.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.)

Termination

Divestiture

Recusal

Blind Trust

6. Do you agree to have written opinions provided to the Committee by
the designated agency ethics officer of the agency to which
you are nominated and by the Office of Government Ethics
concerning potential conflicts of interest or any legal
impediments to your serving in this position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain. No.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than for a minor traffic offense? If so, please explain.
Minor misdemeanor in Daytona Beach, Florida, while in college.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain. No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain.
See response to Question D-2 above.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination. None.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disc1osures? Yes.
3. Will you cooperate in providing the committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Please explain how if confirmed, you will review regulations
issued by your department/agency, and work closely with Congress, to
ensure that such regulations comply with the spirit of the laws passed
by Congress.
I will confer with STB legal staff and Congressional Committee
counsel on an ``as needed'' basis.
5. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. How does your previous professional experiences and education
qualify you for the position for which you have been nominated?
My legal education has provided me with an understanding of and
appreciation for the quasi-judicial nature of the agency's statutory
responsibilities. My experience as an attorney in the Office of General
Counsel at the U.S. Civil Aeronautics Board provided me with an
understanding of and appreciation for the functions of an Executive
Branch agency operating pursuant to the provisions of the
Administrative Procedures Act. My experience as counsel to the U.S.
Senate Subcommittee on Aviation provided me with an understanding of
and appreciation for the continuing oversight function of a committee
of original jurisdiction. My experience in the private sector as a
manager of a highly regulated industry provided me with an
understanding of and appreciation for the critical importance of
compliance with regulatory requirements.
2. Why do you wish to serve in the position for which you have been
nominated?
I was taught and I personally believe that public service is an
honorable endeavor which if properly executed results in benefits to
the overall public interest. I have had meaningful and rewarding
experience in the public and private sectors and I believe I can in
concert with my colleagues at the agency translate those experiences
into public policy in furtherance of the agency's statutory mandate.
The Congress has determined that there should be diligent economic
oversight of the freight railroad industry in order to maintain a fair
balance of the interests of all the stakeholders. Because the
transportation industry has been the focus of all my professional
career, this process is of interest to me.
3. What goals have you established for your first two years in this
position, if confirmed?
Familiarize myself with the major administrative precedents which
provide the regulatory framework for future decisions of the agency;
familiarize myself with the decisional criteria employed in major
proceedings before the agency; familiarize myself with the economics of
the freight railroad industry; familiarize myself with the economics of
major shippers; and, familiarize myself with the intricacies of labor
protective provisions which are a major concern to the Congress.
4. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills?
In my previous experience as an attorney at the Civil Aeronautics
Board, I had the least contact with the rate cases coming before the
Board. The rate cases were primarily domestic passenger fare cases
which were complex and lengthy. The attorneys handling those cases were
very specialized and skillful and were charged with the task of
unraveling the cost structures of the commercial carriers in an attempt
to divine fares that were fair to the traveling public and provided a
reasonable rate of return to the carriers. While similar to freight
railroad rate cases, there are considerable differences in the
economics of the two industries. I believe I will have to spend
considerable time with agency staff very early in my term understanding
the intricacies of rail freight rate construction. This is a task I
welcome and to which I look forward.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when society's problems
should be left to the private sector, and what standards should be used
to determine when a government program is no longer necessary.
There is a saying that is often repeated when discussing the proper
role of government in a democracy. The saying is ``The best government
is the least government.'' My basic view on the role of government
generally follows this view. This does not mean, however, that there is
never an occasion for government intrusion into the private sector.
Where there is a compelling public interest to be served and where
there is the realistic possibility that irreparable harm my result from
inattention to a particular activity or pursuit it would appear that
some measured application of intrusion could be justified. In my view,
the free enterprise system should be trusted to the maximum extent to
provide levels of competition and pricing that will serve the overall
public interest. Unfortunately, the free enterprise organism has proved
in some cases to have feet of clay and government intrusion has
resulted. Consequently, the American economy is replete with examples
of well intentioned attempts to benignly engineer a result that would
not likely occur in totally deregulated commerce. It would, in my view,
be preferable if such tinkering were not necessary. But, the likelihood
of irreparable harm compels those with oversight responsibilities to
take precautionary and remedial measures to protect the public
interest. Only when this protective desire is satisfied will we see the
intrusions of government be reduced.
6. Describe the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated.
Current Mission: In his October 23, 2003 testimony before the
Senate Commerce Committee, STB Chairman, Roger Nober, noted that, ``The
Board is an economic regulatory agency that Congress charged with the
fundamental missions of resolving railroad rate and service disputes
and reviewing railroad mergers, line sales, abandonments and new
construction. One of the main reasons the Board exists is to provide a
regulatory backstop to assess the reasonableness of rates charged to
captive shippers when those customers and their railroads are unable to
successfully negotiate a contract for the transportation.
Major Programs: Creation of the Rail Consumer Assistance Program
within the Office of Compliance and Enforcement providing a forum for
resolution of disputes short of a costly and lengthy formal proceeding;
Possible creation of a meaningful process for quickly and surely
deciding small rate cases pursuant to the Board's small case guidelines
adopted in 1996; Adoption of new procedures to streamline the
administrative process in large rate cases to shorten and reduce the
cost of such cases; and fully explore the opportunities available
through the arbitration early in the life of any dispute.
Major Operational Objectives: Fulfilling the Board's statutory
mandate with limited resources; assuring that due process requirements
are vigorously protected; assuring that access to the regulatory
process is not impeded; maintaining constant vigilance over quality
processes and assuring that Board staff issues are properly addressed.
7. What do you believe to be the top three challenges facing the
department/agency and why?
Finding ways to fulfill the Boards statutory mandate with limited
resources; Properly and fairly balancing the competing interests of all
the stakeholders in the freight rail industry; and, adequately
considering the environmental issues that might arise during
consideration of agency proceedings. These responsibilities form the
very core of the regulatory process the failure of which would likely
give rise to the initiation of oversight proceedings to protect the
public interest.
8. In reference to question number six, what factors in your
opinion have kept the department/agency from achieving its missions
over the past several years?
I do not feel comfortable with or well positioned to be a critic of
the Board's activities over the past several years because I have had
no professional contact with the industry or the Board. I have met the
current Chairman and the immediate past Chairman and I know a few
railroad employees. I am only now familiarizing myself with the
industry and the Board. This level of knowledge does not, in my view,
qualify me to be a critic. However, I have read Chairman Nober's recent
testimony before the Commerce Committee and I have taken note of some
of his concerns. I would call attention to one issue in particular
which has apparently considerable interest among Committee members.
Chairman Nober referred to his conclusion that many ``captive
shippers'' . . . ``believe the Board has inadequately performed . . .
(the Board's) . . . core mission of ensuring that they have a forum for
reaching a formal resolution of rate or service disputes. They feel
that without a regulatory backstop, the transportation market for
freight rail services does not properly function.'' He went on to say
that he agreed with that conclusion to some extent. This would appear
to create a major oversight issue and, therefore, one that must be
addressed. At this point, I am not prepared to render a judgment as to
why the Board has not been able to achieve its mission with respect to
this or any other issue.
9. Who are the stakeholders in the work of this department/agency?
Shippers, railroad companies, railroad employees, taxpayers,
industries and businesses which require raw materials/commodities that
travel on the railroads, consumers in general, the military, certain
trucking company, moving van, and non-contiguous ocean shipping company
rate payers, certain intercity passenger bus companies and consumers
and certain pipeline users not covered by FERC.
10. What is the proper relationship between the position to which
you have been nominated, and the stakeholders identified in question
number nine?
Because of the adjudicatory nature of the STB, I consider the
position to which I have been nominated to be comparable to the
position of Federal Judge. The legendary Justice Oliver Wendell Holmes
is credited with saying that a Supreme Court Justice should be ``a
combination of Justinian, Jesus Christ and John Marshall.'' That is a
very high standard. In my view, the term ``relationship'' is
inextricably connected to this very high standard which goes well,
beyond the ``good behavior'' which is expected of Federal judges.
Indeed, the term ``relationship'' is troubling to me in this context. I
would expect to have no ``relationship'' with any of the stakeholders.
Rather, I would expect to have a ``responsibility'' to every
stakeholder. That responsibility would certainly include thoroughness,
timeliness, impartiality and integrity.
11. The Chief Financial Officers Act requires all government
departments and agencies to develop sound financial management
practices.

(a) What do you believe are your responsibilities, if confirmed, to
ensure that your department/agency has proper management and accounting
controls?
I believe my responsibility in this regard is to work with my
fe11ow Members and STB staff to clearly articulate a policy of
accountability and vigilance to make sure that the taxpayers' money is
spent wisely and that proper financial controls are in place to guard
against mismanagement.

(b) What experience do you have in managing a large organization?
While at FedEx I was at one point a Managing Director of a team
whose responsibility it was to locate, acquire, design, develop,
operate and maintain operational facilities at major on-airport and
off-airport locations. Our team was on a very aggressive development
schedule with multiple projects in the U.S. and Europe. Our internal
group numbered about 80 and we managed several hundred outside
consultants, architects, engineers, construction firms, lawyers and
other related professionals. That period experienced the most explosive
growth in capital projects (other than aircraft acquisitions).
12. The Government Performance and Results Act requires an
government departments and agencies to identify measurable performance
goals and to report to Congress on their success in achieving these
goals.

(a) What benefits, if any, do you see in identifying performance
goals and reporting on progress in achieving those goals?
No organization will long survive without having objective and
measurable goals that are constantly reviewed and updated to support
the short and long term mission of the organization. Goals are
essential to the proper alignment of interdisciplinary tactics and
strategy and to the proper allocation of resources to accomplish the
mission of the organization. Goals provide vision, accountability and
feedback which enable management to adjust to changing circumstances
and data to make better judgments in the future.

(b) What steps should Congress consider taking when a department/
agency fails to achieve its performance goals? Should these steps
include the elimination, privatization, downsizing or consolidation of
departments and/or programs?
In the proper exercise of its oversight responsibility, Congress
would appear to have a full range of options available when an agency
fails to meet its performance goals. Since agencies such as the STB are
creatures of statute, the most severe action would be to completely
abolish the agency and replace it with another regulatory body or
deregulate the formerly regulated activity as was done in the case of
the Civil Aeronautics Board in 1978. A more realistic approach would be
to dearly identify specific areas of concern and request the agency to
focus more resources on that activity and report more frequently on the
progress of its efforts to bring the agency into compliance. This
oversight might result in the Congress recognizing that more resources
need to be authorized by the Congress or that certain resources need to
be reallocated. In any event, there needs to be a frequent, open and
candid exchange of views to avoid a situation where extreme measures
are required by the Congress or the agency.

(c) What performance goals do you believe should be applicable to
your personal performance if confirmed?
If confirmed, I will have a lot of catching up to do in order to
prepare myself to be a fully functioning Board Member. In the early
days of my term, I expect to be spending a considerable amount of time
with Board staff familiarizing myself with the Board's active case load
and the decisional criteria employed in such cases. I also expect to be
on a vigorous schedule to better understand the industry by visiting
with shippers, railroad companies and other stakeholders to learn
firsthand about their activities. I fully expect to be closely working
with my fellow Board Members to prepare a plan of action to accomplish
these goals within a reasonable time. I expect to have the support and
assistance of Chairman Nober and the STB staff in this regard.
13. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you?
No employee complaints have been brought against me. My management
style can best be described as ``consultative/open door.'' I prefer to
involve subordinates in the management process by encouraging their
input into setting organizational goals and objectives and determining
measurement tools so as to achieve ``buying'' during the process. I
prefer performance review sessions twice yearly where there is an open
exchange of views and an opportunity for subordinates to suggest ways
to improve communications and a team spirit. Keeping the air clear of
unspoken issues seems to lead to a more productive working environment.
14. Describe your working relationship, if any, with the Congress.
Does your professional experience. include working with committees of
Congress? If yes, please explain.
As a former counsel to the Senate Aviation Subcommittee of the
Committee on Commerce, Science and Transportation, I have had
considerable experience working with the committee system on both sides
of the Hill. While in the private sector I have had occasion to work
with numerous committee staff over the years but very little in the
last 10 to 12 years. In recent years, most of my work has been at the
state level. Very recently, I had a client who was interested in some
appropriations issues in the health and bio-sciences sector. I helped
them develop a strategy and even accompanied them on two occasions when
they had meetings in D.C. Those meetings were opportunities for the
client to ''tell their story'' and appeal for funding.
15. Please explain what you believe to be the proper relationship
between yourself, if confirmed, and the Inspector General of your
department/agency.
I believe I have an affirmative obligation to bring to his/her
office any issue that I believe needs further review. And, I believe I
have an affirmative obligation to cooperate fully with his/her office
if asked.
16. In the areas under the department/agency's jurisdiction to
which you have been nominated, what legislative action(s) should
Congress consider as priorities? Please state your personal views.
At this moment, I do not feel that I have a proper frame of
reference to respond to this question.
17. Within your area of control, wi1l you pledge to develop and
implement a system that allocates discretionary spending in an open
manner through a set of fair and objective established criteria? If
yes, please explain what steps you intend to take and a time frame for
their implementation. If not, please explain why.
At this moment, I do not feel that I have a proper frame of
reference to respond to this question.

The Chairman. Thank you.
Dr. Mulvey?

STATEMENT OF FRANK MULVEY, STAFF DIRECTOR,

U.S. HOUSE OF REPRESENTATIVES, COMMITTEE ON

TRANSPORTATION AND INFRASTRUCTURE,

SUBCOMMITTEE ON RAILROADS

Dr. Mulvey. Thank you very much, Mr. Chairman.
I want to thank you for giving me the opportunity today to
help you evaluate my qualifications to serve on the Surface
Transportation Board.
I want to thank Mr. Oberstar for his kind words and his
strong support for my nomination. I also wish to express my
thanks to Senator Daschle for recommending me, and to President
Bush for nominating me for this position.
Before continuing, I'd like to acknowledge a couple of
people in the audience today who I've worked with over the
years and/or will be working with in the future. First of all,
John Scheib, who was a colleague of mine on the House
Transportation and Infrastructure Committee, who is now Chief
Counsel for the Board; Steve Gardner, who was an intern of mine
on the T&I Committee and now works for Senator Carper on
transportation issues; Phyllis Scheinberg, who was a colleague
of mine at the General Accounting Office, who is now the Chief
Budget Officer at the Department of Transportation; Jack Wells,
a colleague of mine at GAO, who is now the Chief Economist at
the Bureau of Transportation Statistics; and, of course, former
Chairman Linda Morgan, whose position I've been nominated to
succeed. Having had the opportunity to work with such good,
competent people over the years is a large part of the reason
why I'm here today.
I've spent nearly my entire professional life working in
transportation issues, and much of it has been in government
service. As Mr. Oberstar said, for the past 4 years I've been
the Minority Staff Director for both the Railroad Issues
Subcommittee on the House T&I Committee, and for pipelines and
transit on the Pipelines, Transit, and Highways Subcommittee.
In that capacity, I was instrumental in getting several bills
passed, including pipeline safety reform legislation and
railroad retirement reform legislation. In both of those cases,
I had the opportunity and good fortune to work with Roger
Nober, who is now the Chairman of the STB. Sounds like it's a
small world out there, but the experience that I got working
with Roger and John Scheib tells me that we'll have no
difficulties working together, and I think we can bring about
some important changes and developments at the STB.
Prior to joining the Committee, I served as Deputy
Assistant Inspector General for Railroads, Transit, and Special
Programs in the Office of the Inspector General at the
Department of Transportation where I had the opportunity to
work with Ken Mead and his staff, and appeared before this
Committee on several occasions. Before that, I spent more than
a dozen years with the General Accounting Office, again working
primarily in transportation. While at GAO, I directed studies,
as Mr. Oberstar indicated, on numerous transportation issues,
covering all modes of transportation and all areas, including
economics, safety, performance issues, et cetera. During those
years, I directed more than a hundred reports and testimonies,
and had the opportunity to testify before numerous
congressional committees, including this one.
In addition to my government service, I also gained
valuable experience in transportation as the Vice President for
research with the American Bus Association, and as a Programs
Manager at the National Academy of Sciences' Transportation
Research Board, where I directed several studies including one
on the effectiveness of the 55 mile an hour speed limit.
I also did considerable consulting while teaching, and one
of my earliest consulting engagements, interestingly enough,
was for this Committee. Back in 1975, I wrote a study for the
Commerce Committee called ``Intercity Transportation for
Passengers and Freight,'' which, I guess, indicated that I was
going to be fairly broad-based in my transportation career.
I believe my 30 years in working on problems and issues
affecting virtually every mode of transportation qualifies me
for the position as a Member of the Board. That experience has
given me a deep appreciation of the criticality of our Nation's
transportation system to our Nation's economic health and
prosperity.
I promise that if I am confirmed, I will do my best to
balance the interest of shippers, railroads, and other affected
parties to best serve the needs of the American people for
efficient and affordable rail service. I will strive to ensure
that rates are fair, reasonable, and sufficient to meet
railroad's capital investment needs, and will do my best to see
that rail services are adequate to meet shipper needs.
Thank you, and I'm happy to answer any questions.
[The prepared statement and biographical information of Dr.
Mulvey follow:]

Prepared Statement of Francis P. Mulvey, Nominee to Be a Member of the
Surface Transportation Board
Mr. Chairman, Members of the Committee, I want thank you for giving
me the opportunity to appear before you so that you may evaluate my
qualifications to be a Member of the Surface Transportation Board. I
want to thank my current boss, Mr. Oberstar for his kind words and
strong support of my nomination. I also wish to express my thanks to
Senator Daschle for recommending me and to President Bush for
nominating me for this position.
I have spent nearly my entire professional life working on
transportation-related issues. Much of my career has been in government
service. For the past 4 years, I have been Minority Staff Director for
the Railroad Subcommittee and Minority Staff Director for Hazardous
Materials and Pipelines for the Highway, Transit and Pipeline
Subcommittee--both are Subcommittees of the House Committee on
Transportation and Infrastructure. While in that position, I had the
opportunity to help enact the pipeline safety and railroad retirement
reform legislation. On both of these bills, I had the opportunity to
work closely with Roger Naber, who is now the STB Chairman and John
Scheib, who is now his Chief Counsel Those experiences indicate to me
that we will be able to work well together at the STB.
In addition, I have been very involved during the past 4 years in.
the reauthorization of a number of Federal transportation programs
including hazardous materials transportation, the Federal Railroad
Administration's safety program, and of course the Surface
Transportation Board. I also played a major role in drafting the
Transportation and Infrastructure Committee's proposed high-speed rail
funding legislation and legislation designed to provide funds to short
line and regional railroads to help them upgrade their infrastructure.
Prior to joining the Committee, I served as Deputy Assistant
Inspector General for Railroads, Transit, and Special Programs in the
Office of the Inspector General at the U.S. Department of
Transportation. In that position, I directed the IG's first
departmental wide program evaluation of Hazardous Materials
Transportation programs. I also directed audits of a number of major
transit capital projects, the Federal Railroad Administration's
highway/rail grade crossing program, and the completion of the NEC
high-speed rail infrastructure program. I also directed a review of the
proposed acquisition of Conrail by the Norfolk Southern and CSX
Railroads to determine whether they were ready to consummate the
acquisition.
Before joining the IG, I spent a dozen years with the U.S. General
Accounting Office, primarily with the Transportation Group, although I
spent my final two years with the agency working on Social Security and
pension reform issues. At GAO, I directed numerous studies on such
diverse topics as the state of competition in the airline industry in
the aftermath of deregulation, the competitive challenges faced by U.S.
airlines in the international marketplace, factors affecting the
competitiveness of the railroad industry, highway safety, high speed
rail and Maglev, Canadian and Mexican trucking, and many other
transportation subjects. During those years, I directed the preparation
of more than 100 GAO reports and congressional testimonies on a wide
variety of transportation issues. I was privileged to appear before
this and other congressional committees on numerous occasions
accompanying the Transportation Issue Area Director.
In addition to my government service in transportation, I also
gained valuable experience in the transportation area as Vice President
for Research at the American Bus Association, Programs Manager at the
Transportation Research Board (where I directed a review of the
effectiveness of the 55 mph speed limit) and as an expert consultant
while teaching economics at universities in Ohio and Massachusetts. The
projects on which I consulted ranged from passenger rail and personal
mobility studies for the National Transportation Policy Study
Commission to analysis of the economic impacts from extending the Great
Lakes navigation season for the U.S. Army, Corps of Engineers. In fact,
one of my earliest consulting projects was for this Committee through
Harbridge House (now part of Price Waterhouse Coopers Lybrand). I
authored the passenger sections of the Commerce Committee report,
Intercity Transportation for Passengers and Freight, 1975).
I began my professional career in transportation when I began
researching my doctoral thesis on the economics of intercity rail
passenger service in America. I was able to secure an internship with
the Federal Railroad Administration in 1972-73 and thereby began a
lifelong involvement in freight railroad issues.
Therefore, I believe that my 30-plus years working on problems and
issues affecting virtually every mode of transportation in a variety of
capacities qualifies me for the position of Member of the Surface
Transportation Board. That experience has also given me a deep
appreciation of the criticality of our Nation's transportation system
to our country's economic health and prosperity. In many ways,
America's transportation system is the envy of the world. But we did
not achieve this status overnight.
Our nation was blessed with many favorable geographic
characteristics, excellent natural harbors and an extensive navigable
system of rivers and waterways, but there were also many geographic
challenges that had to be overcome as we settled the continent. The
railroads, of course, played a vital role in overcoming these barriers
and in the economic development of the United States. For nearly 100
years, the railroad was the dominant mode of freight and passenger
transportation. But, because of monopolistic abuses, in 1887 the
Congress decided that the Federal government needed to regulate the
Nation's railroads. Regulation of railroad rates and practices grew
more far reaching in the first half of the 20th Century and economic
regulation was extended to other forms as transportation as well. By
1940, the Interstate Commerce Commission was responsible for the
economic regulation of rail, motor, water and oil pipeline transport,
while the Civil Aeronautics Administration was responsible for
regulating the Nation's airlines.
The American decision to regulate privately owned transportation
companies differs from the road taken by most other developed nations.
Typically, other nations elected for government ownership of the
transport sector--especially railroads and airlines. Over the long
term, both public ownership and strict economic regulation proved
problematic and while other nations began privatizing, the U.S. began
deregulating the various modes of transportation. Trucking and aviation
were completely deregulated, but the Congress elected to retain some
regulation of the nations' railroads. The Interstate Commerce
Commission was terminated in 1995 and replaced with the Surface
Transportation Board whose mission is to balance the interests of
shippers and railroads in situations where the market cannot be
expected to always provide fair and reasonable rates.
The traffic over which the STB exercises regulatory authority is
not inconsequential--coal, grain, chemicals, forest products, ores--are
all vitally important to the Nation's economy. These products must move
at reasonable rates if we are to maintain our global competitiveness.
At the same time, the railroads must earn an adequate rate of return so
that they may make the necessary investments in plant and equipment so
that they can provide safe, efficient, and quality service to all rail
shippers. Indeed, in the coming years we will need to rely more and
more on our Nation's railroads if we are to address the growing highway
congestion problem. This will require substantial capital investment.
I promise that if I am confirmed that I will do my best to balance
the interests of shippers, the railroads, and other affected parties to
best meet the needs of the American people for efficient and affordable
rail service. Further, I will strive to ensure that rates are fair,
reasonable, and sufficient to meet railroad capital investment needs
and do my best to see that rail services are adequate to meet shipper
needs.
Thank you and I will be happy to take any questions.
______

a. biographical information
1. Name: (Include any former names or nicknames used.)
Francis P. Mulvey (Frank).
2. Position to which nominated: Commissioner, Surface
Transportation Board.
3. Date of nomination: November 17, 2003.
4. Address: (List current place of residence and office addresses.)

Residence: Information not released to the public.
Office: 2251 Rayburn HOB, Washington, D.C. 20515.

5. Date and place of birth: May 5, 1944; New York City (Astoria,
Queens), New York.
6. Marital status: (Include maiden name of wife or husband's name.)
Married to Petra Karolina Mulvey (maiden name: Petra Karolina
Huntley).
7. Names and ages of children: (Include stepchildren and children
from previous marriages.)
Son, Conor Francis Mulvey, 24 years old.
8. Education: (List secondary and higher education institutions,
dates attended, degree received, and date degree granted.)

High School: St. Francis Xavier 9/58-6/62

College: New York University, 9/62-6/66, BS in economics, 6/66

Graduate School: University of California at Berkeley, 1/67-6/
68, MA in Economics, 8/68

Graduate School: Washington State University, 9/70-6/72, PhD in
economics,
6/74

9. Employment record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)

Staff Director, Railroad Subcommittee, Committee on
Transportation and Infrastructure, U.S. House of
Representatives, Washington DC, (Also, serve as Staff Director
for Subcommittee on Highways and Transit responsible for
pipeline safety and hazardous materials issues.) 2/00 to
present

Deputy Assistant Inspector General for Rail, Transit, and
Special Programs, U.S. Department of Transportation, Washington
DC 3/99-2/00

Adjunct faculty member, University of Maryland, RH Smith School
of Business and Public Policy, College Park, MD 9/92 to present

Assistant Director, U.S. General Accounting Office, Washington,
D.C. 10/85-
3/99

Director for Economic Research, NY State Legislative Commission
on Solid Waste Management, Albany, NY 11/84-10/85

Programs Manager, National Academy of Sciences, Transportation
Research Board, Washington, D.C. 3/83-10/84

Vice President for Research, American Bus Association,
Washington, D.C.,
11/82-3/83

Assistant Professor, Department of Economics, Northeastern
University, Boston, MA, 9/77-1/82

Driver, Yellow Cab Company, Boston, MA, 7/77-8/77

Assistant Professor, Department of Economics, Wheaton College,
Norton, MA, 9/75-6/77

Assistant Professor, Department of Economics, Bowling Green
State University, Bowling Green Ohio, 9/73-6/75

Economist, U.S. Department of Transportation, Washington, D.C.,
7/72-6/73

Teaching Assistant, Department of Economics, Washington State
University, Pullman, WA, 9/70-6/72

Instructor, Golden Gate University, San Francisco, CA, 6/71-9/
71; 1/67-9/69 (part time)

Supervisor, Claims, Continental Insurance Co., San Francisco,
CA 5/70-9/70

Driver, Yellow Cab Company, San Francisco, CA 3/70-5/70

Management Consultant, George S. May Co., San Francisco, CA 10/
69-3/70

Economist, California Blue Cross/Blue Shield, San Francisco, CA
10/68-12/68

Claims Adjuster Trainee, Metropolitan Life Insurance Co San
Francisco, CA
9/66-12/66

Researcher, NASA/Oakland Budget Project, Berkeley, CA 6/66-9/66

10. Government experience: (List any advisory, consultative,
honorary or other part-time service or positions with Federal, State,
or local governments, other than those listed above.)

Consultant to New York State Legislative Commission on Solid
Waste Management, 10/85-12/89

Consultant on Rail Issues, U.S. General Accounting Office,
Washington, D.C., 3/85-10/85

Consultant, Transportation and Economic Research Associates
Study for U.S. Army Corps of Engineers on Extending the Great
Lakes Navigation Season, Arlington, VA, 3/79-8/79

Consultant, National Transportation Policy Study Commission,
Washington, D.C., 8/77-3/79

Consultant, Harbridge House Study on Intercity Transportation
for Passengers & Freight for U.S. Senate Commerce Committee,
Boston, MA 9/75-1/77

Consultant, Wisconsin State Department of Transportation,
Madison, Wisconsin 2/74-6/75

11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.) None.
12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)

Transportation Research Forum (President Washington Chapter,
Vice-President, Programs Washington Chapter, Council Member for
National Council and Vice President for Public Affairs)

Transportation Research Board (Member Committee on Aviation
Economics, Committee on Travel and Tourism Research Needs,
Panel on ADA Compliance for Intercity Busses Committee on FA
Scholarship Awards)

American Economics Association

Society of Government Economists

International Aviation Club

Pi Lambda Phi (college fraternity)

13. Political affiliations and activities:

(a) List all offices with a political party which you have held or
any public office for which you have been a candidate.
None.

(b) List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years.
None.

(c) Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years.
None.
14. Honors and awards: (List all scholarships, fellowships,
honorary degrees, honorary society memberships, military medals and any
other special recognitions for outstanding service or achievements.)

1999--Comptroller--General's Team Award

1998--Assistant Comptroller--General's Award, HEHS Division

1997--Special Recognition for Outstanding Performance HERS
Division

1997--Special Commendation Award HEHS Division

1995--Special Commendation Award RCED Division

1994--Special Commendation Award RCED Division

1994--Special Recognition for Outstanding Performance RCED
Division

1994 Outstanding Team Award RCED Division

1991--Special Recognition for Outstanding Performance RCED
Division

1989--Special Recognition for Outstanding Performance RCED
Division

1988--Outstanding Achievement Award RCED Division

1962--New York State Regents' Scholarship and Incentive Award

1962--Full Tuition Scholarship New York University

1958--U.S. Post Office Holy Name Society Scholarship to St.
Francis Xavier Military Academy

15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.)

``International Airline Alliances: A Study of Codesharing's
Impact on Airlines and Consumers'' (with T. Hannegan), Journal
of Air Transport Management, London, Spring 1996.

Batteries in New York's Municipal Solid Waste Stream: A Report
to the Commissioner of the New York State Department of
Environmental Conservation, SS&B--Taconic Resources, Albany,
NY, September 1988

``Demand and Cost Considerations in Domestic and International
Recycling Programs'', Waste Age, Washington, D.C. 1987

The Economics of Recycling, New York State Legislative
Commission on Solid Waste Management, Albany, NY, 1986

``New Directions in Materials Reclamation'', Journal of Natural
Resources and Technology, Vol. 14, No. 4, University of
Pennsylvania, Philadelphia, Pennsylvania, December 1985

The 55 mph Speed Limit: A Decade of Experience (with D. Kulash
and S. Godwin), National Academy of Sciences, National Research
Council, Washington, D.C., September 1984

The Safety Benefits and Costs of Using Citizen-Band Radios on
Intercity Buses (with L. Griffith and M. Heckard), National
Academy of Sciences, National Research Council, Washington
D.C., August 1984

``Performance Trends of Small Intercity Motor Coach Firms 1972-
1981'', Papers and Proceeding of the Transportation Research
Forum, New Orleans, Louisiana, October 1982

``Public Agencies and Private Carriers: Competition or
Cooperation'', Private Sector Role in Public Transportation,
Transportation Research Board, Washington, D.C., August 1982

``Unfair Competitive Marketing Practices in Intercity Surface
Transportation'', Papers and Proceedings of the Transportation
Research Forum, San Francisco, California, November 1981

Amtrak: The First Decade, University of Iowa Press, Iowa City,
Iowa, 1981

A Taxpayer's Perspective on Amtrak, National Taxpayers' Union,
Washington, D.C. July 1981

``Amtrak Versus Intercity Bus'', Challenge, Vol. 23, No.3,
July/August 1980

``Passenger Transportation in the Year 2000'', State
Transportation Issues and Actions, Special Report No. 189.
Transportation Research Board, Washington, D.C. 1980

``Interurban Helicopter Services: A Comment'', Journal of the
New England Business and Economics Association, Boston,
Massachusetts, 1980

``Amtrak: A Cost-Effective Approach'', Transportation Research,
Vol. 13 October 1979

Intermodal Impacts of Great Lakes/St. Lawrence Seaway System
Season Extension: A Report to the U.S. Army Corps of Engineers,
Transportation and Economic Research Associates, Arlington,
Virginia, 1979

Amtrak: An Experiment in Rail Service, National Transportation
Policy Study Commission, Washington, D.C., September 1979

``Capital Formation in the Airline and Railroad Industries'',
National Transportation Policy Study Commission Special Report
No.1: Issues in Transportation, Washington, D.C., May, 1978

``Consolidation of Transportation Regulatory Agencies'',
National Transportation Policy Study Commission Special Report
No.1: Issues in Transportation, Washington, D.C., May, 1978

Intercity Domestic Transportation for Passengers and Freight: A
Report to the U.S. Senate Committee on Commerce, Science, and
Transportation (with A. LaMond), Washington, D.C. 1977

The Northeast Corridor High Speed Rail System: Selected Impacts
on Alternative Modes--a Report to the U.S. DOT Transportation
Systems Center (with D. Hayman and G. O'Donohoe), Harbridge
House, Boston, Massachusetts, 1975

The Future of Rail Passenger Services in Wisconsin, Wisconsin
State Department of Transportation, Madison, Wisconsin, August,
1975

The Economic Future of Amtrak (doctoral dissertation),
Washington State University, Pullman Washington, August 1974

16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated.
In the past several years I have addressed numerous groups on the
House Transportation and Infrastructure Committee's legislative agenda.
However, all of these presentations were extemporaneous and none were
formal. Therefore, there are no written copies.
17. Selection:

(a) Do you know why you were selected for the position to which you
have been nominated by the President?
I was selected by the President on the recommendation of Senator
Daschle, Senate Minority Leader, for the minority position on the
Surface Transportation Board.

(b) What in your background or employment experience do you believe
affirmatively qualifies you for this particular appointment?
Virtually my entire professional life has been in the area of
transportation. I have taught transportation economics at both the
graduate and undergraduate levels. I am currently Staff Director, House
Railroad Subcommittee, the congressional committee that authorizes and
oversees the Board. As Deputy Assistant Inspector General at the
Department of Transportation I was responsible for all IG audits of the
freight railroad industry. At the U.S. General Accounting Office I
directed a number of studies of the railroad industry. As a doctoral
student at Washington State University, one of my concentrations was
Transportation Economics.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations, or business organizations if you
are confirmed by the Senate?
Yes, I have notified both the House Transportation Committee and
the University of Maryland that I will resign after I am confirmed by
the Senate.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, please explain.
I have no plans for outside employment during my service.
3. Do you have any plans, commitments, or agreements after
completing government service to resume employment, affiliation, or
practice with your previous employer, business firm, association, or
organization?
I have no plans, commitments or agreements to resume any
relationship with prior firms, associations, or organizations.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service?
No one has made such a commitment.
4. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable?
I expect to serve my full 5-year term.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers.
I have no financial arrangements with current employers except
continuation of my current salaries until I assume my new position.
2. Indicate any investments, obligations, liabilities, or other
relationships, which could involve potential conflicts of interest in
the position to which you have been nominated.
I have no investments or obligations that could involve potential
conflicts of interest.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated.
I have had no business relationships that could potentially involve
conflicts of interest.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy.
As a congressional staff member, it is my job to draft legislation
and work to secure its passage or to defeat proposed legislation that
the Ranking Member opposed. With respect to the position for which I am
being considered, the Ranking Member has introduced legislation to
reauthorize the Board and to make changes in its operations. I have
worked to secure the passage of the Railroad Retirement Reform Act and
The Pipeline Safety Act of 2002.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.)
I have no conflicts that require resolution.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position?
I agree to have the ethics officer of the Surface Transportation
Board offer written opinions regarding any potential legal impediments
or conflicts regarding my appointment.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain.
I have never been cited, disciplined, or been the subject of a
complaint for a breach of ethics.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than for a minor traffic offense? If so, please explain.
When I was 19 years old I was cited for climbing on a monument in
Washington Square Park in Manhattan following a party. As I recall, the
judge dismissed the charges on learning it was not a political
demonstration.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain.
I was sued following a minor traffic accident (no damage to either
vehicle) after the other party alleged back injuries. Because the other
party had just had back surgery, he successfully collected (I believe
$20,000) from my insurance provider.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain.
No, never.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination.
I have no additional information to offer.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees?
As a congressional staff member and as a former Deputy Assistant
Inspector General and GAO Assistant Director, I am very sensitive to
the need for timely compliance with deadlines for congressionally
requested information and will ensure my agency complies.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures?
At the General Accounting Office, I was party to several
confidentiality agreements and I will ensure the protection of whistle
blowers and other witnesses.
3. Will you cooperate in providing the committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee?
I will cooperate fully with the Committee in providing witnesses,
technical experts, and other career employees with knowledge of
interest to the Committee.
4. Please explain how if confirmed, you will review regulations
issued by your department/agency, and work closely with Congress, to
ensure that such regulations comply with the spirit of the laws passed
by Congress.
As a congressional staff member, I often monitored the rules and
regulations issued by the Federal Railroad Administration, the Research
and Special Programs Administration, and the Surface Transportation
Board to ensure that they were consistent with the letter and spirit of
the law. Because I have been on the other side of the fence on this
issue, I intend to work closely with those who drafted the legislation
directing the rules and regulations to ensure that we are meeting the
legislative intent.
5. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so?
I am very willing to appear before congressional committees and
have done so numerous times in the past. While I was with the GAO, I
drafted more than 50 congressional testimonies for our witnesses on a
wide variety of transportation, Social Security and pension issues. In
most cases, I accompanied the witness to the table and typically I
answered questions from committee members. Before joining government
and still an academic, I testified before congressional committees on
several occasions as an expert witness.
f. general qualifications and views
l. How does your previous professional experiences and education
qualify you for the position for which you have been nominated?
I believe I can state without reservation and without taking
anything from the fine individuals who have served on the Board
previously, that my background is more directly relevant, of longer
duration, and more detailed than any prior appointee. I have nearly 30
years as transportation professional. I have worked on economic and
regulatory issues for virtually every mode of transportation. I
directed numerous GAO studies monitoring the effects of airline
deregulation. I am considered a national expert on Amtrak, high-speed
rail, transportation competitive analysis, and other transportation-
related topics.
2. Why do you wish to serve in the position for which you have been
nominated?
I wish to serve because I believe I can make an important
contribution to the future of intercity freight and passenger
transportation in America. I have worked in the transportation policy
arena as a consultant, auditor, congressional staffer, and as an
academic. I would like now to be involved as a decisionmaker in
resolving some of the difficult issues facing our Nation's
transportation system, especially our rail network. I believe I bring
the skills and the experience needed to do the job well.
3. What goals have you established for your first two years in this
position, if confirmed?
During the first two years I will serve in this position, the
Nation will celebrate the 25th anniversary of the Staggers' Rail Act
and the 10th anniversary of the creation of the Surface Transportation
Board. I believe that these anniversaries should be marked by
reflection on and reassessment of the policies, processes,, and
outcomes to date. I want to work closely with my fellow Board members
and the agency staff to not only undertake an internal evaluation of
the STB's role and practices, but to identify outside parties that
could provide an objective review of the agency.
4. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills?
The Surface Transportation Board is a quasi-judicial agency and I
am not a lawyer. Although as a congressional staffer, I helped draft
legislation, I have not had formal legal training. However, my training
is in economics, and the Board also must determine complex economic
issues at arriving at their decisions. I will have legal counsel
assigned to me to assist in working through legal nuances and I plan to
intensely study the agency's prior decisions.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when society's problems
should be left to the private sector, and what standards should be used
to determine when a government program is no longer necessary.
I am a firm believer in the free market economy. One of my fields
of graduate study, and a subject about which I had the opportunity to
teach, was Comparative Economic Systems. The clear message from that
field is that private markets generally lead to an efficient allocation
of society's resources-unless there is market failure. Market failure
comes about whenever reliance on the private sector would give us too
little (or too much) of a good or service. Private markets can provide
education, but not universal education. We can't rely on the market for
public goods such as national defense, police, and fire services. Also,
when externalities (e.g., air or water pollution) are involved relevant
on the free market alone could lead to sub-optimal outcomes. When
externalities are present, there is a role for government. I believe
that the public sector's role also extends to establishing the rules
under which market participants can act. In general, these rules are
designed to ensure that people are treated fairly and that the
interests of those with less power are defended. Because I believe in
free market solutions whenever possible, I also believe that
competition is the sine qua non for the success of the market system.
If monopolies are established or if there are significant barriers to
market entry, competition will be thwarted and the benefits of the free
market system will be lost. Finally, I also believe that when problems
arise it is generally best that they be dealt with directly. Roundabout
solutions nearly always make matters worse.
With respect to the standards for terminating an agency, I believe
that there are two basic principles: (1) the agency's mission is no
longer relevant because circumstances have changed or the agency might
have achieved its purpose and (2) the agency has simply failed to
accomplish its mission. In the first case, I think it is important to
establish measures of success and communicate those as goals to agency
managers. In the second case, I think the agency and its personnel need
to be made aware of perceived failings and be given the opportunity to
correct the problems.
6. Describe the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated.
The Surface Transportation Board assumed the residual
responsibilities of the Interstate Commerce Commission. While the other
modes of transportation (truck and air) were almost entirely
deregulated, the Congress elected to retain a regulatory structure to
oversee the railroad industry. That structure was, however, much
relaxed to give railroads greater freedom to act as Congress recognized
that a significant proportion of rail traffic was not subject to the
discipline of market competition and preserved some regulatory
jurisdiction over railroad rates and service. I believe that agency's
primary mission is to balance the needs of the railroads to earn an
adequate return with the need of shippers for reliable and affordable
rail service.
7. What do you believe to be the top three challenges facing the
department/agency and why?
I believe the three top challenges facing the Surface
Transportation Board are: addressing the complaints of captive
shippers; assessing the pluses and minuses of further industry
consolidation; and finding ways to make the Board's resources
accessible to smaller shippers. First, there is clearly mounting
pressure for a legislative response to the concerns of captive
shippers. S. 919 calls for major changes in the relationship between
the STB and the railroad industry. The railroads claim that the changes
advanced in this legislation would destroy the industry. They would not
be able to earn sufficient revenues to invest in their infrastructure
and, as a result, service would decline. Shippers claim without such
changes they will be forced out of business or will need to relocate,
perhaps overseas. With respect to industry consolidation, the industry
has already consolidated from more than 20 Class I carriers in 1980 to
only 4 major and one minor Class I U.S. carriers and 2 Class I Canadian
carriers with U.S. subsidiaries. Further consolidation could lead to a
North American duopoly or a triopoly. Such an outcome might create
pressure to truly re-regulate the industry. Finally, I believe the
Board's authority must be available to all shippers regardless of size.
The existing processes make it relatively expensive for out small
shippers to bring complaints before the Board.
8. In reference to question number six, what factors in your
opinion have kept the department/agency from achieving its missions
over the past several years?
I do not believe the Board has failed to achieve its mission
although some would argue that it has not correctly balanced its
objectives.
9. Who are the stakeholders in the work of this department/agency?
The principal stakeholders are the railroads, shippers, rail labor,
and the American people.
10. What is the proper relationship between the position to which
you have been nominated, and the stakeholders identified in question
number nine?
A member of the Surface Transportation Board adjudicates disputes
between railroads and shippers, oversees the terms and conditions of
mergers, and performs other quasi-judicial functions. Therefore, the
Board member must relate to stakeholders in much the same manner as
judge--he or she must be fair, impartial, and maintain an arms length
relationship. The member must balance the interests of the stakeholders
based on the available facts submitted in the record. Objectivity,
impartiality, and attention to the public interest are the bases for
Board member behavior.
11. The Chief Financial Officers Act requires all government
departments and agencies to develop sound financial management
practices.

(a) What do you believe are your responsibilities, if confirmed, to
ensure that your department/agency has proper management and accounting
controls?
I believe that, as a member of the board, I am fully responsible
for ensuring that proper management and accounting controls are in
place. As an Assistant Director at the U.S. General Accounting Office
and as a Deputy Inspector General in the Auditing Division of the DOT's
Inspector General's office, I am familiar with the requirements of the
Chief Financial Officer's Act and will strive to uphold the highest
standards of financial integrity.

(b) What experience do you have in managing a large organization?
I have not managed an organization quite as large as the STB (130+
staff), but I managed a group of over 50 professionals at the
Department of Transportation and I regularly had as many as 20
professionals reporting to me at the General Accounting Office.
12. The Government Performance and Results Act requires all
government departments and agencies to identify measurable performance
goals and to report to Congress on their success in achieving these
goals.

(a) What benefits, if any, do you see in identifying performance
goals and reporting on progress in achieving those goals?
Performance goals are vitally important in monitoring progress
toward achieving an agency's mission. It is important that the overall
agency performance goals be part of the expectations setting process
for all employees. For example, while I was at GAO, we had a highly
structured system of setting goals for individual staff and for
providing periodic feedback. The result was that staff knew how well
they were performing, what kind of merit increase or bonus they could
expect, and what they needed to do to correct deficiencies. We could
identify whether any additional training was necessary and, sometimes,
whether an individual was assigned to the right projects. Moreover,
periodic assessment and feedback also give supervisors the opportunity
to provide positive feedback to superior staff--thereby further
motivating them to give their best.

(b) What steps should Congress consider taking when a department/
agency fails to achieve its performance goals? Should these steps
include the elimination, privatization, downsizing, or consolidation of
departments and/or programs?
If an agency fails to achieve its performance goals, the first
question that should be answered is why it hasn't? Are the goals
achievable? Are they appropriately defined? If achievable and defined
properly, then the next step would be to decide whether the right
management team is in place and whether sufficient and appropriate
resources are available.

(c) What performance goals do you believe should be applicable to
your personal performance, if confirmed?
I believe that my performance goals should include the timely
resolution of cases brought before the Board, evidence of thoughtful
consideration and analysis in arriving at decisions, efficient
management of assigned staff and agency resources, and leadership in
helping direct the agency toward rigorous analysis of evidence to reach
conclusions consistent with congressional intent.
13. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you?
Perhaps because I have spent many years in academia, I have adopted
a philosophy that a supervisor should be a mentor to his or her
employees. But, I also strongly believe in providing individuals with
as much responsibility as they can handle and I resist micromanaging
them. I have usually been pleased with the results. On the few
occasions when an employee has not done as well as I would have liked,
I try to recognize that I share the responsibility for the sub par
performance. In those cases, I would work more closely with the
individual to help them attain the skills or confidence needed for the
task. In the 35 years that I have been in supervisory positions, I
never had an employee file a complaint against me.
14. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please explain.
I have always had an excellent relationship with congressional
staff and Members. For the past 3\1/2\ years, I have served as Staff
Director for the Railroad Subcommittee of the House Committee on
Transportation and Infrastructure and as Staff Director for Pipeline
and Hazard us Materials Issues for the Subcommittee on Highways,
Transit, and Pipelines. I also spent nearly 14 years as an Assistant
Director at the U.S. General Accounting Office, the principal
investigative arm of the Congress. At GAO, I directed the preparation
of more than 100 studies and congressional testimonies before both
House and Senate Committees. The subjects covered ranged from airline
competition, highway safety, and railroad competitiveness to Social
Security and pension reform. Virtually all of our work at GAO was
performed at the request of either Chairman or Ranking Members of
congressional committees and so I worked closely with the appropriate
staff in undertaking the project. It was not unusual for me to be
overseeing as many as a dozen projects at a time for several different
committees.
15. Please explain what you believe to be the proper relationship
between yourself, if confirmed, and the Inspector General of your
department/agency.
Because I was the Deputy Assistant Inspector General at the U.S.
Department of Transportation for Rail, Transit, and Special Programs, I
was the Deputy IG who had oversight responsibilities for the Surface
Transportation Board. I firmly believe that agencies and departments of
the Federal government have a duty to be responsive to requests for
data and information so that the IG can conduct an audit or
investigation.
16. In the areas under the department/agency's jurisdiction to
which you have been nominated, what legislative action(s) should
Congress consider as priorities? Please state your personal views.
I believe that the Nation needs a healthy and prosperous railroad
industry in order that it can accommodate the projected growth in
freight and passenger traffic in the coming years. Unfortunately, at a
time when more investment in the industry is needed, the industry's
infrastructure is shrinking. Congress needs to consider what must be
done to ensure that the rail infrastructure will be there to meet
future needs. We are also approaching the 25th anniversary of the
Staggers Rail Act of 1980, which greatly changed the rail regulatory
framework, and the 1Oth anniversary of the ICC Termination Act, which
created the Surface Transportation Board. I believe this is an
appropriate time for an independent assessment of how well the current
system has worked and what legislative changes might be desirable to
make it work better.
17. Within your area of control, will you pledge to develop and
implement a system that allocates discretionary spending in an open
manner through a set of fair and objective established criteria? If
yes, please explain what steps you intend to take and a time frame for
their implementation. If not, please explain why.
To the best of my knowledge I do not believe that I have say over
much, if any, discretionary spending by the agency. To the extent that
I do, I pledge that such spending will always be done I an open manner
through fair and impartial criteria. I pledge to work with the agency's
ethics officer, the Inspector General, and the GAO to ensure that such
procedures are in place.

The Chairman. Thank you very much.
I want to thank all the witnesses. As you can see by the
large turnout, there's a great deal of controversy associated
with these nominations.
[Laughter.]
The Chairman. But please know that in the view of all
Members of this Committee your appointments are very important
to us and to the American people.
Ms. Keenum, as we speak there's amendments on the floor
concerning curtailment of free trade, on closing open markets,
and outsourcing of jobs, so I think you have some significant
responsibilities that you are assuming.
Dr. Combs, I think you will face budgetary and program
pressures that probably we have not experienced in many years
as we face looming deficits of trillions of dollars, and so you
have a very tough decisionmaking process and some heavy
responsibilities.
Dr. Mulvey and Mr. Buttrey, as you know, the Surface
Transportation Board has been moribund for some period of time,
and with the addition of both of you, you're going to have a
very large backlog of issues to address, and I hope that you
will work together to address the ongoing concerns that, in
some ways, at least to me, are almost insoluble. We continue to
be gridlocked here on the Committee and in the Congress on
issues such as captive shipper problems and others, so I hope
you can help us sort out some of these issues, as Dr. Mulvey
pointed out, balancing the fact that we have to have a viable
railroad industry, and, at the same time, we have to take in
consideration the rights and the need that consumers be treated
in a fair and equitable fashion.
So I welcome all of you. We will mark up your nominations
on Tuesday morning, and try to get them to the Senate this week
before we go out of session, as we are want to do every week or
two.
I thank you very much. Again, congratulations to you and to
your families.
This hearing is adjourned.
[Whereupon, at 3:05 p.m., the hearing was adjourned.]

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