[Congressional Record Volume 142, Number 134 (Wednesday, September 25, 1996)]
[Senate]
[Pages S11296-S11299]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. MOYNIHAN (for himself and Mr. Kerrey):

  S. 2119. A bill to establish the Commission to Study the Federal 
Statistical System, and for other purposes; to the Committee on 
Governmental Affairs.


   THE COMMISSION TO STUDY THE FEDERAL STATISTICAL SYSTEM ACT OF 1996

  Mr. MOYNIHAN. Mr. President, I rise today to introduce, along with 
Senator Kerrey of Nebraska, legislation that would establish a 
Commission To Study the Federal Statistical System.
  The United States has the oldest and by and large finest data 
gathering system in the world. Statistics are part of our 
constitutional arrangement, which provides for a decennial census that, 
among other purposes, is the basis for apportionment of membership in 
the House of Representatives. I quote from article I, section I:

       . . . enumeration shall be made within three Years after 
     the first meeting of the Congress of the United States, and 
     within every subsequent Term of ten Years, in such Manner as 
     they shall by Law direct.

  But, while the Constitution directed that there be a census, there 
was, initially, no Census Bureau. The earliest censuses were conducted 
by U.S. marshals. Later on, statistical bureaus in State governments 
collected the data, with a Superintendent of the Census overseeing from 
Washington. It was not until 1902 that a permanent Bureau of the Census 
was created by the Congress, housed initially in the Interior 
Department. In 1903 the Bureau was transferred to the newly established 
Department of Commerce and Labor.
  The Statistics of Income Division of the Internal Revenue Service, 
which was originally an independent body, began collecting data in 
1866. It too was transferred to the new Department of Commerce and 
Labor in 1903, but

[[Page S11297]]

then was put in the Treasury Department in 1913 following ratification 
of the 16th amendment, which gave Congress the power to impose an 
income tax.
  The Bureau of Labor Statistics, created in 1884, was also initially 
in the Interior Department. The first Commissioner of the BLS, 
appointed in 1885, was Col. Carroll D. Wright, a distinguished Civil 
War veteran of the New Hampshire Volunteers. A self-trained social 
scientist, Colonel Wright pioneered techniques for collecting and 
analyzing survey data on income, prices, and wages. He had previously 
served as chief of the Massachusetts Bureau of Statistics, a post he 
held for 15 years, and in that capacity had supervised the 1880 Federal 
Census in Massachusetts.
  In 1888, the Bureau of Labor Statistics became an independent agency. 
In 1903 it was once again made a Bureau, joining other statistical 
agencies in the Department of Commerce and Labor. When a new Department 
of Labor was formed in 1913--giving labor an independent voice, as 
labor was removed from the Department of Commerce and Labor--the Bureau 
of Labor Statistics was transferred to it.
  And so it went. Statistical agencies sprung up as needed. And 
they moved back and forth as new executive departments were formed. 
Today, some 89 different organizations in the Federal Government 
comprise parts of our national statistical infrastructure. Eleven of 
these organizations have as their primary function the generation of 
data. These 11 organizations are:

------------------------------------------------------------------------
                                                                 Date   
               Agency                      Department        Established
------------------------------------------------------------------------
National Agricultural Statistical    Agriculture...........        1863 
 Service.                                                               
Statistics of Income Division, IRS.  Treasury..............        1866 
Economic Research Service..........  Agriculture...........        1867 
National Center for Education        Education.............        1867 
 Statistics.                                                            
Bureau of Labor Statistics.........  Labor.................        1884 
Bureau of the Census...............  Commerce..............        1902 
Bureau of Economic Analysis........  Commerce..............        1912 
National Center for Health           Health and Human              1912 
 Statistics.                          Services.                         
Bureau of Justice Statistics.......  Justice...............        1968 
Energy Information Administration..  Energy................        1974 
Bureau of Transportation Statistics  Transportation........        1991 
------------------------------------------------------------------------

                          NEED FOR LEGISLATION

  President Kennedy once said:

       Democracy is a difficult kind of government. It requires 
     the highest qualities of self-discipline, restraint, a 
     willingness to make commitments and sacrifices for the 
     general interest, and also it requires knowledge.

  That knowledge often comes from accurate statistics. You cannot begin 
to solve a problem until you can measure it.

  This legislation would require the new Commission to conduct a 
comprehensive examination of our current statistical system and focus 
particularly on the agencies that produce data as their primary 
product--agencies such as the Bureau of Economic Analysis [BEA] and the 
Bureau of Labor Statistics [BLS].
  This week I received a letter from nine former chairmen of the 
Council of Economic Advisers [CEA] endorsing this legislation. 
Excluding the two most recent chairs, who are still serving in the 
Clinton administration, the signatories include virtually every living 
chair of the CEA. While acknowledging that the United States 
``possesses a first-class statistical system,'' these former chairmen 
remind us that ``problems periodically arise under the current system 
of widely scattered responsibilities.'' They conclude as follows:

       Without at all prejudging the appropriate measures to deal 
     with these difficult problems, we believe that a 
     thoroughgoing review by a highly qualified and bipartisan 
     Commission as provided in your Bill has great promise of 
     showing the way to major improvements.

  The letter is signed by: Michael J. Boskin, Martin Feldstein, Alan 
Greenspan, Paul W. McCracken, Raymond J. Saulnier, Charles L. Schultze, 
Beryl W. Sprinkel, Herbert Stein, and Murray Weidenbaum.
  I ask unanimous consent that the full text of this letter be printed 
in the Record following my statement.
  It happens that this Senator's association with the statistical 
system in the executive branch began over three decades ago. I was 
Assistant Secretary of Labor for Policy and Planning in the 
administration of President John F. Kennedy. This was a new position in 
which I was nominally responsible for the Bureau of Labor Statistics. I 
say nominally out of respect for the independence of that venerable 
institution, which as I noted earlier long predated the Department of 
Labor itself. The then-Commissioner of the BLS, Ewan Clague, could not 
have been more friendly and supportive. And so were the statisticians, 
who undertook to teach me to the extent I was teachable. They even 
shared professional confidences. And so it was that I came to have some 
familiarity with the field.
  For example, at that time the monthly report of the unemployment rate 
was closely watched by capital and labor, as we would have said, and 
was frequently challenged. Committees regularly assembled to examine 
and debate the data. Published unemployment rates, based on current 
monthly survey methodology appeared, if memory serves, in 1948, and so 
the series was at most 14 years in place at this time.
  There is, of course, a long history of attempts to reform our 
Nation's statistical infrastructure. From the period 1903 to 1990, 16 
different committees, commissions, and study groups have convened to 
assess our statistical infrastructure, but in most cases little or no 
action has been taken on their recommendations. The result of this 
inaction has been an ever expanding statistical system. It continues to 
grow in order to meet new data needs, but with little or no regard for 
the overall objectives of the system. Janet L. Norwood, former 
Commissioner of the BLS, writes in her book ``Organizing to Count'':

       The U.S. system has neither the advantages that come from 
     centralization nor the efficiency that comes from strong 
     coordination in decentralization. As presently organized, 
     therefore, the country's statistical system will be hard 
     pressed to meet the demands of a technologically advanced, 
     increasingly internationalized world in which the demand for 
     objective data of high quality is steadily rising.

  In this era of government downsizing and budget cutting it is 
unlikely that Congress will appropriate more funds for statistical 
agencies. It is clear that to preserve and improve the statistical 
system we must consider reforming it, yet we must not attempt to reform 
the system until we have heard from experts in the field.
  The Commission established in the legislation will also examine the 
accuracy of our statistics. In the past few years there has been a 
growing concern that the methodology used to generate U.S. statistics 
may be outdated and can be improved.

  It is clear there is a need for a comprehensive review of the Federal 
statistical infrastructure. For if the public loses confidence in our 
statistics, they are likely to lose confidence in our policies as well.


                       DESCRIPTION OF LEGISLATION

  The legislation establishes the Commission to Study the Federal 
Statistical System. The Commission would consist of 13 members: 5 
appointed by the President with no more than 3 from the same political 
party, 4 appointed by the President pro tempore of the Senate with no 
more than 2 from the same political party, and 4 appointed by the 
Speaker of the House with no more than 2 from the same political party. 
A chairman would be selected by the President from the appointed 
members. The members must have expertise in statistical policy with a 
background in disciplines such as actuarial science, demography, 
economics, and finance.
  The Commission will conduct a comprehensive study of all matters 
relating to the Federal statistical infrastructure, including:
  An examination of multipurpose statistical agencies such as the 
Bureau of Labor Statistics [BLS];
  A review and evaluation of the mission and organizational structure 
of statistical agencies, including activities that should be expanded 
or deleted and the advantages and disadvantages of a centralized 
statistical agency;
  An examination of the methodology involved in producing data and the 
accuracy of the data itself;
  A review of interagency coordination and standardization of 
collection procedures;
  A review of information technology and an assessment of how data is 
disseminated to the public;
  An examination of individual privacy in the context of statistical 
data;
  A comparison of our system with the systems of other nations; and

[[Page S11298]]

  Recommendations for a strategy to maintain a modern and efficient 
statistical infrastructure.
  All of these objectives will be addressed in an interim report due no 
later than June 1, 1998, with a final report due January 15, 1999.
  The Commission is expected to spend $10 million: $2.5 million in FY 
1997, $5 million in FY 1998, and $2.5 million in FY 1999. The 
Commission will cease to exist 90 days after the final report is 
submitted.
  This legislation is only a first step, but an essential one. The 
Commission will provide Congress with the blueprint for reform. It will 
be up to us to finally take action after nearly a century of 
inattention to this very important issue.
  Mr. President, I ask unanimous consent that additional material be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2119

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Commission to Study the 
     Federal Statistical System Act of 1996''.

     SEC. 2. FINDINGS.

       The Congress, recognizing the importance of statistical 
     information in the development and administration of policies 
     for the private and public sector, finds that--
       (1) accurate Federal statistics are required to develop, 
     implement, and evaluate government policies and laws;
       (2) Federal spending consistent with legislative intent 
     requires accurate and appropriate statistical information;
       (3) business and individual economic decisions are 
     influenced by Federal statistics and contracts are often 
     based on such statistics;
       (4) statistical information on the manufacturing and 
     agricultural sectors is more complete than statistical 
     information regarding the service sector which employs more 
     than half the Nation's workforce;
       (5) experts in the private and public sector have long-
     standing concerns about the accuracy and adequacy of numerous 
     Federal statistics, including the Consumer Price Index, gross 
     domestic product, trade data, wage data, and the poverty 
     rate;
       (6) Federal statistical data should be accurate, 
     consistent, and continuous;
       (7) the Federal statistical infrastructure should be 
     modernized to accommodate the increasingly complex and ever 
     changing American economy;
       (8) Federal statistical agencies should utilize all 
     practical technologies to disseminate statistics to the 
     public; and
       (9) the Federal statistical infrastructure should maintain 
     the privacy of individuals.

     SEC. 3. ESTABLISHMENT OF COMMISSION.

       (a) Establishment.--There is established a commission to be 
     known as the Commission to Study the Federal Statistical 
     System (hereafter in this Act referred to as the 
     ``Commission'').
       (b) Membership.--
       (1) Composition.--The Commission shall be composed of 13 
     members of whom--
       (A) 5 shall be appointed by the President;
       (B) 4 shall be appointed by the President pro tempore of 
     the Senate, in consultation with the Majority Leader and 
     Minority Leader of the Senate; and
       (C) 4 shall be appointed by the Speaker of the House of 
     Representatives, in consultation with the Majority Leader and 
     Minority Leader of the House of Representatives.
       (2) Political party limitation.--(A) Of the 5 members of 
     the Commission appointed under paragraph (1)(A), no more than 
     3 members may be members of the same political party.
       (B) Of the 4 members of the Commission appointed under 
     subparagraphs (B) and (C) of paragraph (1), respectively, no 
     more than 2 members may be members of the same political 
     party.
       (3) Consultation before appointments.--In making 
     appointments under paragraph (1), the President, the 
     President pro tempore of the Senate, and the Speaker of the 
     House of Representatives shall consult with the National 
     Science Foundation and appropriate professional 
     organizations, such as the American Economic Association and 
     the American Statistical Association.
       (4) Qualifications.--An individual appointed to serve on 
     the Commission--
       (A) shall have expertise in statistical policy and a 
     background in such disciplines as actuarial science, 
     demography, economics, and finance;
       (B) may not be a Federal officer or employee; and
       (C) should be an academician, a statistics user in the 
     private sector, or a former government official with 
     experience related to--
       (i) the Bureau of Labor Statistics of the Department of 
     Labor; or
       (ii) the Bureau of Economic Analysis or the Bureau of the 
     Census of the Department of Commerce.
       (5) Date.--The appointments of the members of the 
     Commission shall be made no later than 150 days after the 
     date of the enactment of this Act.
       (c) Period of Appointment; Vacancies.--Members shall be 
     appointed for the life of the Commission. Any vacancy in the 
     Commission shall not affect its powers, but shall be filled 
     in the same manner as the original appointment.
       (d) Initial Meeting.--No later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold its first meeting.
       (e) Meetings.--The Commission shall meet at the call of the 
     Chairman.
       (f) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (g) Chairman.--The President shall designate a Chairman of 
     the Commission from among the members.

     SEC. 4. FUNCTIONS OF THE COMMISSION.

       (a) Study.--
       (1) In general.--The Commission shall conduct a 
     comprehensive study of all matters relating to the Federal 
     statistical infrastructure, including longitudinal surveys 
     conducted by private agencies and partially funded by the 
     Federal Government.
       (2) Study and recommendations.--The matters studied by and 
     recommendations of the Commission shall include--
       (A) an examination of multipurpose statistical agencies 
     that collect and analyze data of broad interest across 
     department and function areas, such as the Bureau of Economic 
     Analysis and the Bureau of the Census of the Commerce 
     Department, and the Bureau of Labor Statistics of the Labor 
     Department;
       (B) a review and evaluation of the collection of data for 
     purposes of administering such programs as Old-Age, Survivors 
     and Disability Insurance and Unemployment Insurance under the 
     Social Security Act;
       (C) a review and evaluation of the mission and organization 
     of various statistical agencies, including--
       (i) recommendations with respect to statistical activities 
     that should be expanded or deleted;
       (ii) the order of priority such activities should be 
     carried out;
       (iii) a review of the advantages and disadvantages of a 
     centralized statistical agency or a partial consolidation of 
     the agencies for the Federal Government; and
       (iv) an assessment of which agencies could be consolidated 
     into such an agency;
       (D) an examination of the methodology involved in producing 
     official data and recommendations for technical changes to 
     improve statistics;
       (E) an evaluation of the accuracy and appropriateness of 
     key statistical indicators and recommendations of ways to 
     improve such accuracy and appropriateness;
       (F) a review of interagency coordination of statistical 
     data and recommendations of methods to standardize collection 
     procedures and surveys, as appropriate, and presentation of 
     data throughout the Federal system;
       (G) a review of information technology and recommendations 
     of appropriate methods for disseminating statistical data, 
     with special emphasis on resources, such as the Internet, 
     that allow the public to obtain information in a timely and 
     cost-effective manner;
       (H) an examination of individual privacy in the context of 
     statistical data;
       (I) a comparison of the United States statistical system to 
     statistical systems of other nations;
       (J) a consideration of the coordination of statistical data 
     with other nations and international agencies, such as the 
     Organization for Economic Cooperation and Development; and
       (K) a recommendation of a strategy for maintaining a modern 
     and efficient Federal statistical infrastructure as the needs 
     of the United States change.
       (b) Report.--
       (1) Interim report.--No later than June 1, 1998, the 
     Commission shall submit an interim report on the study 
     conducted under subsection (a) to the President and to the 
     Congress.
       (2) Final report.--No later than January 15, 1999, the 
     Commission shall submit a final report to the President and 
     the Congress which shall contain a detailed statement of the 
     findings and conclusions of the Commission, and 
     recommendations for such legislation and administrative 
     actions as the Commission considers appropriate.

     SEC. 5. POWERS OF THE COMMISSION.

       (a) Hearings.--The Commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out the purposes of this Act.
       (b) Information From Federal Agencies.--The Commission may 
     secure directly from any Federal department or agency such 
     information as the Commission considers necessary to carry 
     out the provisions of this Act. Upon request of the Chairman 
     of the Commission, the head of such department or agency 
     shall furnish such information to the Commission.
       (c) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (d) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.

     SEC. 6. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--

[[Page S11299]]

       (1) In general.--Subject to paragraph (2), each member of 
     the Commission shall be compensated at a rate equal to the 
     daily equivalent of the annual rate of basic pay prescribed 
     for level IV of the Executive Schedule under section 5315 of 
     title 5, United States Code, for each day (including travel 
     time) during which such member is engaged in the performance 
     of the duties of the Commission.
       (2) Chairman.--The Chairman shall be compensated at a rate 
     equal to the daily equivalent of the annual rate of basic pay 
     prescribed for level III of the Executive Schedule under 
     section 5315 of title 5, United States Code, for each day 
     (including travel time) during which such member is engaged 
     in the performance of the duties of the Commission.
       (b) Travel Expenses.--The members of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission. 
     Such travel may include travel outside the United States.
       (c) Staff.--
       (1) In general.--Subject to paragraph (2), the Commission 
     shall, without regard to the provisions of title 5, United 
     States Code, relating to the competitive service, appoint an 
     executive director who shall be paid at a rate equivalent to 
     a rate established for the Senior Executive Service under 
     section 5382 of title 5, United States Code. The Commission 
     shall appoint such additional personnel as the Commission 
     determines to be necessary to provide support for the 
     Commission, and may compensate such additional personnel 
     without regard to the provisions of title 5, United States 
     Code, relating to the competitive service.
       (2) Limitation.--The total number of employees of the 
     Commission (including the executive director) may not exceed 
     30.
       (d) Detail of Government Employees.--Any Federal Government 
     employee may be detailed to the Commission without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       (e) Procurement of Temporary and Intermittent Services.--
     The Chairman of the Commission may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of such title.

     SEC. 7. TERMINATION OF THE COMMISSION.

       The Commission shall terminate 90 days after the date on 
     which the Commission submits the final report of the 
     Commission.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated $2,500,000 for 
     fiscal year 1997, $5,000,000 for fiscal year 1998, and 
     $2,500,000 for fiscal year 1999 to the Commission to carry 
     out the purposes of this Act.
                                                                    ____

                                               September 23, 1996.
     Hon. Daniel P. Moynihan,
     Hon. J. Robert Kerrey,
     U.S. Senate,
     Washington, DC.
       Dear Senators Moynihan and Kerrey: All of us are former 
     Chairmen of the Council of Economic Advisers. We write to 
     support the basic objectives and approach of your Bill to 
     establish the Commission to Study the Federal Statistical 
     System.
       The United States possesses a first-class statistical 
     system. All of us have in the past relied heavily upon the 
     availability of reasonably accurate and timely federal 
     statistics on the national economy. Similarly, our 
     professional training leads us to recognize how important a 
     good system of statistical information is for the efficient 
     operations of our complex private economy. But we are also 
     painfully aware that important problems of bureaucratic 
     organization and methodology need to be examined and dealt 
     with if the federal statistical system is to continue to meet 
     essential public and private needs.
       All of us have particular reason to remember the problems 
     which periodically arise under the current system of widely 
     scattered responsibilities. Instead of reflecting a balance 
     among the relative priorities of one statistical collection 
     effort against others, statistical priorities are set in a 
     system within which individual Cabinet Secretaries recommend 
     budgetary tradeoffs between their own substantive programs 
     and the statistical operations which their departments, 
     sometimes by historical accident, are responsible for 
     collecting. Moreover, long range planning of improvements in 
     the federal statistical system to meet the changing nature 
     and needs of the economy is hard to organize in the present 
     framework. The Office of Management and Budget and the 
     Council of Economic Advisers put a lot of effort into trying 
     to coordinate the system, often with success, but often 
     swimming upstream against the system.
       We are also aware, as of course are you, of a number of 
     longstanding substantive and methodological difficulties with 
     which the current system is grappling. These include the 
     increasing importance in the national economy of the service 
     sector, whose output and productivity are especially hard to 
     measure, and the pervasive effect both on measures of 
     national output and income and on the federal budget of the 
     accuracy (or inaccuracy) with which our measures of prices 
     capture changes in the quality of the goods and services we 
     buy.
       Without at all prejudging the appropriate measures to deal 
     with these difficult problems, we believe that a 
     thoroughgoing review by a highly qualified and bipartisan 
     Commission as provided in your Bill has great promise of 
     showing the way to major improvements.
           Sincerely,
     Prof. Michael J. Boskin,
       The Hoover Institution.
     Dr. Martin Feldstein,
       National Bureau of Economic Research.
     Alan Greenspan.
     Prof. Paul W. McCracken,
       University of Michigan.
     Raymond J. Saulnier.
     Charles L. Schultze,
       The Brookings Institution.
     Beryl W. Sprinkel.
     Herbert Stein,
       American Enterprise Institute.
     Prof. Murray Weidenbaum,
       Center for the Study of American Business.
                                 ______