I. The Nature of Bureaucracy
a. Sometimes referred to as the “4th branch” of government
i. The word “bureaucracy” comes from the French for “desk” or “office”
ii. Today the word refers to an hierarchically organized group of offices that each carry out a special function within the govt.
b. There is NO Constitutional reference to the bureaucracy, but it is implied in Article II, sec. 2—where the President is given the power to appoint “all other officers of the United States, whose appointments are not herein otherwise provided for.” And in Article II, sec. 3, where the president is charged with taking “care that the laws be faithfully executed, and shall commission all the officers of the United States.”
c. Bureaucracy is not unique to government; it is also found in private corporations
i. It allows for division of labor, especially when the issues are complex
ii. It encourages cooperation and team-playing and compromise as well as expertise in a highly specialized policy area
iii. U.S. bureaucracy is subject to the president and the Congress
1. President appoints most department and agency heads
2. Congress appropriates funds, makes certain rules about staffing, and keeps the departments or agencies alive (Congress creates and Congress may destroy)
3. Government Bureaucracy exists to serve the interests of the citizens of the country (whereas the private bureaucracy exists to serve the stockholders)
iv. Attempts to reform the government and curtail inefficiency
1. Almost every president has attempted it
2. Almost none have succeeded in any large measure
3. See Table 12-1 in the book, page 401 for past plans for reform
v. U.S. government bureaucracy is not-for-profit organization—they exist (in theory at least) to minimize inefficiency and to conserve taxpayer dollars
vi. U.S. bureaucracy is…
1. relatively autonomous, independent of the rest of government because
a. of the government’s size
b. of the blurry lines of authority—who is responsible for what, when, and how
2. responsible for providing financial assistance to the state-agency counterparts to the national agencies. There is not a direct implementation of national programs—they are implemented through the states’ bureaucracies.
a. E.g., welfare money comes from the Department of Health and Human Services and is given to the state bureaucratic office that is in charge of distributing this money to the people.
b. E.g., the Department of Education provides some money for state public schools, but the money is channeled through the state education departments
i. This filtration of federal money gives the states more control over how federal money is spent
ii. It also maintains the separation of powers between the federal and state governments, ensuring federalism works as it should—states’ rights maintained concurrently with strong national government
3. Consists of many administrative agencies that are created by the Congress and exist to administer and enforce specific laws—three examples:
a. Environmental Protection Agency (EPA) to enforce environmental standards like the Clean Air Act
b. Securities and Exchange Commission (SEC) to regulate the stock exchanges and to ensure full disclosure of financial profiles of publicly-traded corporations
c. Nuclear Regulatory Commission (NRC) to ensure that the nation’s nuclear power plants are efficient and safe.
II. Theories of Bureaucracy
a. Weberian Model—named for Max Weber (German sociologist)
i. Bureaucracy is inevitable as societies become more complex
ii. Bureaucracy is a hierarchical organization that seeks to resolve problems apolitically and rationally
iii. Individual advancement within bureaucracy is merit-based
b. Acquisitive Model
i. The individual government agencies and departments try as hard as they can to expand
ii. There’s always an innate sense of competition between agencies and departments for prestige in the eyes of the public or government insiders
iii. Each department or agency wants to “sell” its “goods” (e.g., defense, housing, welfare, subsidies, etc.) to Congress and the people
1. may do so through Congressional hearings
2. through news conferences/advertising
c. Monopolistic Model
i. Fosters inefficiency and waste
ii. Lack of genuine competition from outside competitors
iii. No incentive to minimize waste or reduce costs because there is no penalty for it and no one else will take up the slack (e.g., the DOD is not threatened by an independent military so it can afford to spend money on a $600 toilet seat and not suffer any penalty for it)
d. Garbage Can Model
i. Lacking any formal organization
ii. All solutions are based upon trial and error methods that are inefficient and costly
e. The U. S. Bureaucracy is probably best characterized as an amalgam of ALL of these models put together. No one model adequately explains what really happens within the system.
III. The Size of Bureaucracy
a. Originally the bureaucracy was small indeed
i. In 1789, there were only about 50 government workers
ii. Today the smallest cabinet department (the Dept. of Education) is near 5,000 personnel strong. The largest cabinet department (the Dept. of Defense) is nearly 700,000 personnel strong (excluding the military)
b. All total today the federal bureaucracy employs c. 3 min. civilians directly while many others work for the government either directly or indirectly by subcontracting or in consulting capacities. Indeed, these “unofficial” workers may be more than the three million strong official federal workforce.
c. Government employs more than 15% of the entire civilian workforce
IV. The Organization of the Federal Bureaucracy
a. Cabinet Departments
i. 15 cabinet-level departments (the most recent was the Dept. of Homeland Security added late 2002)
ii. these departments are created by Congress and are directly accountable to the President (line organization)
iii. Presidents may ask for new departments to be created (as Bush did with Homeland Security) but Congress must grant legislative approval
iv. Depts. are responsible for printing money, raising and maintaining troops, conducting foreign policy, etc. (For a full list of what the individual cabinet depts. do, see p. 407 in your book)
v. Presidents may appoint (with the advice and consent of the Senate) and fire all top officials within the cabinet departments
vi. Each dept. is headed by a secretary (except for Dept. of Justice that is headed by the Attn. Gen.) and several undersecretaries, deputy secretaries, assistant secretaries, etc.
vii. Permanent employees below these appointed positions tend to resist rapid change; they are not subject to presidential appointment or firing, and may hold their office as long as their merit lasts
b. Independent Executive Agencies
i. Are separate bureaucratic organizations that are not located within any cabinet department
ii. Report directly to the President
iii. Exist to implement specific policies
iv. Examples include:
1. The EPA—to implement environmental policy
2. The CIA—to gather intelligence in and about foreign nations
3. NASA—to conduct U.S. space missions/research/satellite launches
c. Independent Regulatory Agencies
i. Are separate bureaucratic organizations that are not located within any cabinet department
ii. Are not directly responsible to the President; and are administered independently of all three branches of government
iii. Exist to protect the public interests
1. Making non-political decisions about rates, profits, and rules
2. Decisions by these agencies do not require congressional legislation (Congress creates these agencies to ensure some non-partisan and apolitical control over day-to-day, technical and complex matters that it does not have time to handle directly—Congress does what is “necessary and proper” to its function by creating such agencies to make rules that do not require legislative action)
iv. These exhibit a combination of executive, legislative, and judicial authority
1. they enforce the rules they make
2. they make rules
3. they decide disputes over the rules they make
v. Examples include:
1. Federal Reserve System Board of Governors (the Fed)—to determine interest rates, credit availability and regulate the money supply
2. Federal Trade Commission (FTC)—prevents businesses from engaging in unfair trading practices; prevents formation of business monopolies and protects consumer rights
3. Equal Employment Opportunity Commission (EEOC)—works to eliminate discrimination on all bases; investigates claims of discrimination
vi. Regulatory agency members are appointed by the president with the advice and consent of the Senate—members must be from more than one political party by law; members may come under review only for causes that are specified in the laws that created the agency.
vii. Agency capture—direct or indirect industrial takeover of the agency that was create to regulate that industry. Results are usually less competition and higher prices.
viii. Deregulation and Regulation
1. Usually an oscillation period between the two extremes
2. Reagan was determined to deregulate many private sector companies (e.g., the airlines)
3. Bush the elder was pressured into re-regulating some companies and industries (e.g., the ADA, the Clean Air Act, Cable Reregulation Act)
4. Clinton abolished the Interstate Commerce Commission that had regulated many businesses and industries since the 1880s. Banking and telecommunications were also deregulated; environmental polices regulated many industries
d. Government Corporations
i. Government agency that administers a quasi-business enterprise
ii. For profit
iii. Activities are primarily commercial
iv. Sustain themselves by the revenue they produce
v. Require greater flexibility than most departments or agencies are permitted
vi. Examples include:
1. the US Postal Service (the largest government corporation)
2. FDIC—to insure individual bank accounts, oversee business activities of banks
3. National Railroad Passenger Corporation (AMTRAK)
V. Staffing the Bureaucracy
a. Two Categories of Bureaucrats
i. Political Appointees
1. Usually are the “Politically well-connected”
2. Suggestions for appointees are taken by the president and his advisors from politicians (e.g., the appointee’s home-state senator), businessmen (who may have an interest in rules and regulations from a certain regulatory agency), other prominent individuals (e.g., certain media personalities, lawyers, physicians, professors, etc.)
3. Appointment often based upon political debt the pres. owes to campaign contributors or workers
4. Appointee’s experience, intelligence, political affiliation and personality are considered as well
5. Usually do not serve for more than an average of 2 years (though some serve much longer and others much shorter terms)
ii. Civil Servants
1. serve on the basis of merit
2. often differ in opinion from their appointed bosses
3. are sometimes slow to implement their appointed bosses’ proposals because they know the appointee will not be around that long => appointees having little influence over their subordinates.
4. After Civil Service Reform Act of 1978, senior civil servants can be transferred within their departments and receive bonuses and other benefits for working for their appointed superior’s policies/goals
b. Brief History of Civil Service
i. Jeffersonian Ideal of a Natural Aristocracy—only the best of birth, wealth, and talent will serve (a very elitist notion of who should govern)
ii. Jacksonian Ideal of Rewarding Friends and Supporters (This “spoils system” had been around for awhile before Jackson, but he was the first to use it shamelessly and indiscreetly)
iii. Civil Service Reform Act of 1883 (Pendleton Act)—created the merit system
1. Civil service jobs awarded on the basis of performance on competitive exams
2. Created the Civil Service Commission to administer personnel service
3. Today the merit system covers more than 90% of all federal employees (much different than when it was first created and covered only about 10%)
4. After 1976 and 1980 Supreme Court cases, party affiliation alone is no longer an acceptable reason for firing a civil servant (unless that position’s requirements demand overt partisanship)
5. After 1990 Supreme Court decision, partisanship is no longer permissible as a basis for hiring, promoting or transferring most civil servants, with the exception of senior policymaking positions that go to the people most in line with the president’s agenda.
6. The Hatch Act (Political Activities Act) of 1939—prohibits use of federal authority to influence nominations and elections or the use of rank to pressure federal employees to make political contributions and prohibits civil servants from engaging actively in political campaigns.
7. Civil Service Reform Act of 1978—Abolished the Civil Service Commission and created
a. the Office of Personnel Management (OPM) to recruit, interview and test potential civil service employees and determine who should be hired (ultimate decision rests with the agency or department);
b. the Merit Systems Protection Board (MSPB)—to oversee promotions, employees’ rights, etc. Investigates charges of misconduct and hears appeals from agency decisions and can correct agency or employee actions
VI. Bureaucratic Reform
a. Sunshine Laws (1976)—multi-headed federal agencies (about 50 of them) are required to hold all meetings in public session, except for those dealing with court proceedings and/or personnel problems; These laws are now existent at all levels of government (local, county, state, federal)
b. Sunset Laws—Congressional review of bureaucratic performance on a regular schedule. Congress must renew agency’s creation charter if it is to still exist; otherwise it is automatically terminated.
i. Idea began with the New Deal programs of the 1930s-1940s but was never adopted in relation to those programs
ii. Sunset laws are more common at state level, beginning in Colorado in 1976
c. Contracting Out—replacement of government services with services provided by private companies.
i. E.g. operation of prisons (a somewhat risky option given the reputation of some private prisons for abuse and/or escape)
ii. E.g., Bush’s proposal of giving $ to faith-based charities to do the work of many govt. agencies (another risky option since the resources and availability of such private charities are not as great as those of the government.)
iii. E.g., federal “vouchers” for housing in private buildings instead of federal projects; “vouchers” for private school tuition instead of funding for public schools (in failing districts)
iv. Most effective in city or county provisions—e.g., trash/garbage collection, ambulance service (like in Waco)
v. Some things the government simply could not easily contract out without running huge risks (e.g., national defense, general police protection; fire protection)
d. Incentives for efficiency and productivity
i. Making government more entrepreneurial; offering reward bonuses for improved efficiency to workers/staffers
ii. Government Performance and Results Act of 1997
1. requires all government agencies (except the CIA) to describe their new goals and establish methods for determining whether those goals are met
2. Broad or narrow goals, depending upon the agency or issue involved (Broad—eliminate spending; narrow—eliminate spending by cutting back on the use of paper clips)
a. Is government bureaucracy an anachronism? Has it worn out its usefulness that it had in the past?
b. Is government bureaucracy responsive to changes in society?
c. Is it the fault of political appointees who assume new jobs with little or no training, experience, or expertise?
e. Helping the Whistleblowers—bringing attention to the gross government inefficiency or illegal actions
i. Reprisals against whistleblowers are forbidden by 1978 Civil Service Reform Act
ii. Institution of several toll-free hotlines to report anonymously on bureaucratic waste and misconduct (about 35% of these calls result in agency action or follow-up)
iii. Whistleblower Protection Act of 1989—established Office of Special Counsel to investigate complaints brought by government employees who experience repercussions for reports of waste, etc.
iv. More than 40% of whistleblowers report that they are no longer employees of the agency on which they blew the whistle
v. Some state and federal laws encourage whistleblowers by offering $ incentives to them (Federal Claims Act of 1986)
1. 15-25% of proceeds for claim brought by the US Government
2. 25-30% of proceeds for claim brought by the whistleblower on behalf of the government after the latter has declined to intervene
VII. Bureaucrats as Politicians and Policymakers
a. Congressional delegation of powers to administrative agencies
i. Enabling legislation: Congressional statute authorizing creation of an administrative agency, specifying the name, purpose, composition, functions, and powers of the agency created
b. Theoretically, agencies should execute the laws of Congress, but
i. Laws are often vague/general with little guidance on how to execute them
ii. Agencies themselves are left to decide how to execute the laws
iii. Congress lacks the technical expertise or resources for monitoring all executions of its laws—administrative agencies provide the necessary skills/labor =>
iv. Formulation of administrative rules (regulations) to give shape to Congress’ general outline => agencies becoming “unelected policymakers”
c. Rulemaking Environment
i. Rulemaking is not done in a vacuum
ii. Regulatory agency publishes rules in the Federal Register (same publication as executive orders are published in)
iii. Debates between individuals and corporations involved in the agency ensue
iv. Final form of the rule is presented and published in Federal Register
v. Rule becomes subject to judicial review if anyone wishes to challenge it
vi. 60 days must pass after rule is published before the agency may begin to enforce it; Congress may overturn the rule during this 60-day period
d. Negotiated Rulemaking
i. Regulations have been challenged in court since World War II ended
ii. The 1980s, wastefulness of litigation became obvious
iii. Agencies today often encourage the people and corporations affected to become directly involved in the regulation process (Does this negate the whole purpose of regulation?)
iv. Congress passed Negotiated Rulemaking Act of 1990 formalizing the negotiating process
1. if agencies want to engage in this activity, they must publish in the Federal Register
a. subject of rule intended to be made
b. the scope of the rule intended to be made
c. the parties significantly affected by the rule intended to be made
2. Representatives of the affected parties then apply to be members of the negotiating committee
3. the committee is presided over by a neutral third party
4. once agreement is reached, the process follows the same steps as all other agency rulemaking
e. Bureaucrats are Policymakers
i. Iron Triangle (3-way alliance between bureaucrats, legislators, and interest groups to make/preserve policies to suit their interests
1. policy development depends upon how a policy affects each component in the iron triangle
2. may thwart the president’s efforts to get certain programs enacted
ii. Issue Networks—a group of individuals or organizations which may consist of legislators and/or legislative staff members, interest group leaders, bureaucrats, media, scholars, experts—that support a particular position on given issue—e.g., the environment, taxation, consumer safety, etc.
1. growing complexity of bureaucracy is reflected in the increased importance of issue networks
2. divided government puts opposing pressure on the bureaucracy
VIII. Congressional Control Over Bureaucracy
a. Congress giveth life and Congress taketh away life
b. Congress appropriates $ and withholds it as is necessary
c. Oversight through investigations and hearings
d. Authorizing Funds
i. Authorization—formal declaration by a legislative committee that a certain amount of funding may be available to an agency—some authorizations must be renewed periodically (e.g., funding for NASA); others are automatically renewed and require no additional Congressional action (e.g., Social Security)
1. periodic authorization gives Congress spending control
2. permanent authorization saves Congress time from having to review agencies each year (but these permanent authorizations easily become political nightmares because they are virtually unchecked)
ii. Appropriation of funds—passage by Congress of a spending bill, specifying the amount of $ authorized that is actually available for allocation to that agency
e. Hearings, investigations and Review
i. Ensure compliance with congressional intentions
ii. Agency officers and employees may be subpoenaed to a congressional hearing to testify about certain agency actions or inactions
iii. During these hearings, the positions of Congress regarding certain agencies may become clear (just through the nature of questions that are asked, ideas that are spouted, etc.)
iv. Views of Congress are taken seriously by agency heads even if no laws are actually changed (the agency head may be more inclined to make alterations without receiving a congressional mandate to do so, if s/he knows that Congress is leaning one way or another)
v. Congressional Review Act of 1996—special procedures are created to express Congressional disapproval of a particular agency’s actions (these procedures are rarely used—first time use was in 2001 to overturn ergonomic regulations issued in the waning days of the Clinton administration)