Mr. McCormack
American Government
CentralDauphinHigh School
Chapter Fifteen – Government at Work: The Bureaucracy
I. The Federal Bureaucracy
A. Bureaucracies are large, complex administrative structures that handle the daily business of an organization
1. The Federal Government is the largest organization in the country
a. It is impossible to avoid the influence of the federal bureaucracy in an average day
i. Postal system
ii. Tax collection
iii. Business regulation
iv. Social programs (welfare, social security, etc.)
v. Military and foreign affairs
vi. Federal land management
b. Many people believe government bureaucracies are necessarily difficult, inefficient, and wasteful
2. The administrative organizations of private businesses are like bureaucracies in most ways
3. Three features are required of all bureaucracies
a. Hierarchical authority – A chain of command establishes total control at the top of the organization
b. Job specialization –Division of labor within the organization assigns specific responsibilities to every member of it
c. Formalized rules – bureaucracies function under specific, established regulations and procedures
4. Benefits of Bureaucracy
a. Bureaucracies tend to be effective at coordinating large scale operations
i. The hierarchy resolves or reduces disputes about responsibilities
ii. Specialized laborers theoretically become more efficient
iii. Rules allow decisions to be made according to a standard, not a personal whim
b. Bureaucracies may make better decisions than politicians because they can be more focused on the problem than on popular preferences
5. Bureaucrats have great power to shape public policies even though they haven’t been elected to office
B. Major elements of the Federal Bureaucracy
1. The Federal Bureaucracy includes all of the agencies, people, and procedures in government
2. It is the major organ for developing and administering public policy, leading some political scientists to call it the “fourth branch” of government
3. The Constitution is almost completely silent about the bureaucracy
a. The Constitution seems to anticipate two executive departments
i. Military (originally War Department, now the Defense Department)
ii. Diplomatic (State Department)
b. The Framers seem to have intended for Congress to design the bureaucracy
i. They realized that the Congress and President would find it impossible to implement their policies by themselves
ii. Most of the bureaucracy has been organized under the executive branch
4. The Federal Bureaucracy is divided into three broad groups of agencies
a. The Executive Office of the President
b. The fifteen Cabinet departments
c. More than 150 Independent agencies
5. Branches of the Federal Bureaucracy are known by many names
a. Only Cabinet level branches are called departments
b. Other common terms include agency, administration, commission, corporation, and authority
i. “Agency” or “administration” may refer to any government body
1. EPA – Environmental Protection Agency
2. NASA – National Aeronautics and Space Administration
ii. “Commission” usually refers to agencies that regulate businesses
1. FCC – Federal Communications Commission
2. SEC – Securities and Exchange Commission
iii. “Corporation” or “authority” usually refers to agencies that conduct business-like activities 1. FDIC – Federal Deposit Insurance Corporation
2. TVA – TennesseeValley Authority
c. A variety of names may be used within each major agency without any rule or consistency
d. Some agencies are known by various nicknames
i. Sallie Mae – Student loan agency
ii. Amtrak – National Railroad Passenger Corporation
6. The United States Government Manual lists and describes all of the federal agencies
a. Published by the Office of the Federal Register in the National Archives and Records Administration
b. Produced annually
c. More than 580 of 700 pages describe Executive Branch agencies
7. Federal agencies can be broken into two categories by function
a. Staff Agencies advise and assist in management and organization
b. Line Agencies actually perform tasks for the government
II. The Executive Office of the President (EOP)
A. The Presidential staff has grown enormously in the last two hundred years
1. Most early presidents paid their staff out of their own pocket
2. Thomas Jefferson hired two staffers – a messenger and a secretary
3. In 1857 James Buchanan became the first president to hire his staff (one clerk) at public expense
4. Congress created the EOP in 1939 at the request of FDR
B. The Executive Office of the President is an umbrella agency that oversees the rest of the executive branch
1. White House Office
a. The “nerve center” of the EOP
b. Houses the president’s key personal and political staff, about 400 people
c. Found mostly in the “West Wing” of the White House, near the Oval Office
d. Headed by the Chief of Staff, one of the President’s most important aides
e. The White House Office is also home to many of the president’s assistants for foreign policy, defense, the economy, political affairs, congressional relations, and media relations
i. Press Secretary
ii. White House Counsel (official lawyer)
iii. President’s physician
iv. First Lady’s Chief of Staff
2. National Security Council (NSC)
a. Advises the president on most major steps in foreign policy
b. Meets irregularly and on short notice, as desired by the president
c. Composed of the President, Vice President, Secretary of State, Secretary of Defense
d. Also attended by the chairman of the Joint Chiefs and the director of the CIA
e. The President’s National Security Advisor leads a small staff and gives a great deal of direction to the CIA
3. Office of Homeland Security
a. Homeland Security is the newest major agency in the EOP
b. Created in response to 9/11
c. Works closely with the Cabinet-level Department of Homeland Security
4. Office of Management and Budget(OMB)
a. The main task of the OMB is to prepare an annual federal budget
i. The budget is a detailed estimate of federal income and expenses for the upcoming fiscal year
ii. The federal government’s fiscal year runs from October 1 to September 30
iii. Actual budget requests come from each of the individual agencies for OMB review
b. The OMB also monitors spending for Congress
c. The OMB can help the president monitor other agencies, offer suggestions for improvement, and help draft Executive Orders
5. Office of Faith-Based and Community Initiatives
a. Created by President Bush in 2001
b. Coordinates and encourages private charitable efforts to combat homelessness, poverty, drug abuse, etc.
6. Office of National Drug Control Policy
a. Established in 1989 to fight illegal drugs
b. The head of this office is usually referenced as the nation’s “Drug Czar”
7. Council of Economic Advisers
a. Consists of three leading economists who help shape economic policy
b. Helps the president compose his annual Economic Report to Congress
8. Other offices are included in the EOP
a. Office of the United States Trade Representative advises on foreign trade
i. The US Trade Representative carries the rank of ambassador
ii. Typically represents the president at trade negotiations
b. Council on Environmental Quality advises the president on environmental policies
i. Consists of three members
ii. Helps settle disputes between other agencies (e.g. Agriculture Dept. and EPA)
iii. Helps ensure federal agencies comply with environmental laws
c. Office of Science and Technology Policy advises on technological matters
d. Office of Administration provides major support services (clerical, library, etc.)
e. Office of the Vice President helps the Vice President fulfill his duties
f. Office of Policy Development advises the president on domestic affairs
III. The Executive Departments
A. The executive departments have changed over time
1. Congress created the first three in 1789
a. Department of State
b. Department of the Treasury
c. Department of War (now known as Defense)
2. Congress has created, combined, and abolished departments over time
3. The Department of State is the oldest and most prestigious, but also among the smallest with only 25,000 employees
4. The Department of Defense is the largest, with 1.4 million servicemen in the military and another 670,000 civilian contractors
5. The Department of Health and Human Services has the largest budget, accounting for about 25% of all federal spending each year
B. Departmental Organization
1. Each department is headed by a Secretary, except for Justice, which is led by the Attorney General
2. These department heads serve in the President’s cabinet
3. Assistants or under-secretaries help the secretaries administer their departments
4. Each department is composed of a number of sub-units
5. Many agencies in executive departments are structured geographically
C. Departmental Functions
1. State
a. Advises the president on foreign policy
b. Negotiates agreements with foreign countries
c. Represents the United States abroad in international organizations
2. Treasury
a. Produces coins and bills
b. Collects taxes
c. Borrows money and manages public debt
d. Enforces alcohol, tobacco, and firearms laws
3. Defense
a. Provides military forces to protect national security
b. Deters war
4. Justice
a. Prosecutes violations of federal law
b. Provides legal advice to the president
c. Represents the United States in court
d. Operates federal prisons
5. Interior
a. Manages public lands, wildlife refuges, and national parks
b. Operates hydroelectric power plants
c. Helps Native Americans manage their affairs
6. Agriculture
a. Manages national forests
b. Inspects food
c. Assists farmers and ranchers
d. Administers food stamp and school lunch programs
7. Commerce
a. Conducts the census
b. Grants patents and registers trademarks
c. Promotes international trade, economic growth, and technological development
8. Labor
a. Enforces federal laws on minimum wages, maximum hours, and safe working conditions
b. Operates job training programs
c. Administers unemployment insurance and workers’ compensation programs
9. Health and Human Services
a. Funds health care research programs
b. Conducts programs to prevent and control disease
c. Enforces pure food and drug laws
d. Administers Medicare and Medicaid
10. Housing and Urban Development (HUD)
a. Operates home-financing and public housing programs
b. Enforces fair housing laws
11. Transportation
a. Administers programs to promote and regulate highways, mass transit, railroads, waterways, and air travel
b. Administers oil and gas pipelines
12. Energy
a. Promotes production of renewable energy, fossil fuels, and nuclear energy
b. Transmits and sells hydroelectric power
c. Conducts nuclear weapons research and production
13. Education
a. Administers federal aid to schools
b. Conducts educational research
14. Veterans Affairs
a. Administers benefits, pensions, and medical programs for veterans of the armed services
b. Oversees military cemeteries
15. Homeland Security
a. Border and transportation security
b. Emergency preparedness and response
c. Chemical, biological, radiological, nuclear defense
d. Information analysis and infrastructure protection
D. The Cabinet
1. The Cabinet began as an informal advisory body when Washington regularly sought advice from his four top assistants
a. Secretary of State Thomas Jefferson
b. Secretary of the Treasury Alexander Hamilton
c. Secretary of War John Knox
d. Attorney General Edmund Randolph
2. The Cabinet now consists of the heads of the fifteen executive departments and a few other top officials as occasions require
a. Vice President
b. Director of the OMB
c. Chief of Staff
d. Drug Czar
e. EPA Chief
f. US Trade Representative
3. Choosing Cabinet Members
a. The president appoints the fifteen department heads
i. The Senate only rarely rejects a president’s nominee
ii. Of more than 600 nominations, only 12 have been defeated
b. Political party is an important consideration, either for balance or loyalty
c. Major figures in the president’s election campaign are often appointed to the cabinet
d. Geographic balance is usually an important factor
i. Secretary of the Interior usually comes from the West
ii. Secretary of Agriculture usually comes from the Midwest
iii. Secretary of HUD usually comes from a big city
e. Ethnic and gender balance is important
f. Professional experience is considered important
4. Some presidents have leaned more heavily on their cabinets for advice than others
a. Kennedy found cabinet meetings a waste of time
b. Some presidents prefer other groups of advisors
i. Andrew Jackson’s “Kitchen Cabinet”
ii. FDR’s “Brain Trust”
IV. Independent Agencies
A. Congress began assigning more executive functions to independent agencies in 1880
1. Some of these remain independent because they don’t fall within any of the categories of departmental responsibility
2. Some of these remain independent to insulate them from political manipulation
3. Some are independent largely by accident
4. Some are independent because of the sensitive natures of their functions
B. Independent Agencies are just as important as Executive Departments
1. Several of them administer programs similar to those of Cabinet departments (i.e. NASA and Transportation or Defense)
2. The Social Security Administration has a larger budget than all but one of the Departments (HHS)
3. The General Services Administration (GSA) oversees the construction, purchase, or operation of buildings and supplies, etc.
4. The Office of Personnel Management (OPM) is the hiring agency for nearly all other federal agencies
C. Independent Agencies can be divided into three main groups
1. Independent Executive Agencies
a. Most independent agencies fall into this category
b. The most important distinction between executive agencies and the fifteen executive departments is that the former lack cabinet status
2. Independent Regulatory Commissions
a. These exist largely beyond any presidential direction or control
b. These exist to regulate important aspects of the nation’s economy
c. There are ten independent regulatory commissions
i. Board of Governors of the Federal Reserve System
ii. Federal Trade Commission
iii. Securities and Exchange Commission
iv. Federal Communications Commission
v. National Labor Relations Board
vi. Federal Maritime Commission
vii. Consumer Product Safety Commission
viii. Nuclear Regulatory Commission
ix. Commodity Futures Trading Commission
x. Federal Energy Regulatory Commission
d. Even though the President appoints members of these commissions, Congress found several ways to ensure their independence
i. Members serve for a term of years that is usually longer than a president’s term
ii. No more than a majority of each board may come from either party
iii. Members’ terms are staggered so that no more than one vacancy may occur in a year
iv. Members of five of these commissions can be dismissed by the president only under restricted circumstances
e. Regulatory commissions are executive, but also quasi-legislative and quasi-judicial
i. Congress has assigned them certain tasks, and they create and enforce rules necessary to accomplish those tasks
ii. These agencies violate the principle of separation of powers, but the Supreme Court has not overturned any of them
iii. Many have supported proposals to abolish or redesign these agencies
a. Civil Aeronautics Board that regulated commercial air traffic was abolished in 1985
b. Interstate Commerce Commission that regulated routes and rates for commercial trade was abolished in 1996
3. Government Corporations
a. Government corporations were created by Congress to conduct business-like activities
b. The first government corporation was the Bank of the United States
c. Many were created to handle emergencies during the Great Depression
d. There are more than 50 of them existing today
i. FDIC – Federal Deposit Insurance Corporation
ii. United States Postal Service
iii. Amtrak – National Railroad Passenger Corporation
e. Public or Private?
i. Many government corporations are structured like and compete with private companies
ii. Many of them generate income that is added to the government’s budget, but many others receive tax subsidies to avoid bankruptcy
iii. Many believe that it is wrong for the government to compete against the private sector with these corporations, and that they should be sold (“privatized”) or abolished to save money
V. The Civil Service
A. Development of the Civil Service
1. The Constitution says very little about staffing the federal government
2. Staffing the federal government is a huge undertaking
a. There are more than 2.7 million federal employees
b. Only about 2,500 are appointed by the president
3. The Civil Service began as a way to fight against political patronage
a. Presidents would typically fire federal employees who didn’t belong to their party so they could reward and hire their supporters
b. This corrupt practice came to be known as the “spoils system”
c. Andrew Jackson, a great practitioner of the spoils system, defended it
i. Almost anyone of intelligence can do almost any job in the government
ii. Many people should enjoy the privilege of serving their government
iii. Long tenure in office leads to tyranny and inefficiency
iv. The people’s preferred political party should run the government
d. Congress passed the Civil Service Act of 1883 (a.k.a. “Pendleton Act”) after President Garfield was assassinated by Charles J. Guiteau, a maniac who was disappointed not to have received a diplomatic post
4. The Civil Service attempts to make merit the key to hiring and promotion in the government
a. Merit was determined by the administration of practical exams given by the Civil Service Commission
b. The merit system hopes to keep the best available people in government service
B. The Civil Service Today
1. About 90% of the executive branch agencies’ employees are in the Civil Service
a. The largest exception is the Postal Service, which is run by organized labor and collective bargaining
b. The other agencies to opt out of Civil Service are the FBI, CIA, and Tennessee Valley Authority, all of which have their own merit service
2. Employees are hired in a competitive process and promoted based on the written evaluations of their superiors
3. The Office of Personnel Management replaced the Civil Service Commission in 1978
a. The OPM acts as a clearinghouse for federal job applicants
b. Qualified applicants are listed in registers
4. A bipartisan board, the Merit Systems Protection Board, enforces the merit principle
5. Many complain that women and minorities are still not being treated fairly by the merit system
6. Pay and benefits at lower levels of government service are quite competitive with private employers, but not so comparable at higher levels of responsibility
7. Federal civil servants are restricted in their political activities by several laws and regulations
a. Hatch Act of 1939 – Act to Prevent Pernicious Political Activities – kept civil servants from partisan campaigning
i. Critics of the law said it violated the political rights of employees