Focus of this Session - Bureau of the Fiscal Service 08 2016 GFMC... · Focus of this Session ... 55% men, 45% women -31% minority -25% veterans - ... Examples . . . Treasury Appointees

3

Focus of this Session

Snapshot on Federal Funding & Long-Term Landscape

Some Budget History

The Process – Federal & Congressional

A Bit of Discussion on Organization and Political Appointee Structure

Some Keys to Success as a Manager During Transition

Transitions to a New Administration August 15, 2016

4

Background to Take Home with You

Some Facts on the Federal Budget


5 Transitions to a New Administration August 15, 2016

8

Federal Budget Surplus/Deficits

-14.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

FY 2000 FY 2008 FY 2010 FY 2011 FY 2013 FY 2015

(Dollars in Billions/Percent of GNP)

SOURCE: Represents unified federal deficit, GDP projections, and unemployment levels reflected in the President’s FY 2016 Budget Request, Feb 2015, Tables S-1, S-12 of the Summary Tables, and Economic Report

$1,556 (10.6%)

$680 (4.1%) $578 (3.1%)

$236 (2.4%)

$459 (3.2%)

$1,267 (8.3%)

4.0%

5.8%

5.4%

10.0%

9.2%

7.4%

UR = Unemployment Rate


9


11

Federal Profile Over Time


14

U.S. Federal Debt % of GDP

August 15, 2016

Transitions to a New Administration

15 August 15, 2016


16 August 15, 2016


17 August 15, 2016


18

How Fast Can a Surplus Disappear? A Look at How Fast a Surplus Can Disapear

($ in Billions) 2002 2003 2002-11

Jan ’01 Est. + 313 + 163 +5,610

Tax Cut 2001 - 42 - 99 - 1,656

Econ Slowdown - 321 - 306 - 2,576

Other Spending - 108 - 153 - 1,357

Jan ’03 Est

- 158

- 395

+ 20

August 15, 2016


19

Some Budget History

August 15, 2016


20

Evolution of Federal Budget Management

Legislative Dominance (1789 - 1921)

Presidential Budgeting (1921 - 1974)

Shared – Congress/Presidential Leadership (1974 - Today) – Varies w/ Alternative Power Settings

August 15, 2016


21

Federal Budgeting Gets its Start w/ New Nation

1789 - 1921: Legislative Dominance Constitution gives Congress broad powers to tax & spend.

Does not expressly provide any role for President in financial matters or federal budget process.

All power rested with House Ways & Means & Senate Finance

No Appropriations Committees until 1865-67

Concept of budgeting imported from Europe, not independently derived.

August 15, 2016


22

The Real Birth of Federal Budget Process

1913 Taft Commission . . . Commission Noted:

Agencies were submitting budgets directly to Congress (most wish it were the same today)

Met basic requirements, but with little information included Failed to reflect full cost of long-term plans Led to conflicts between President/Congress

In 1921: Congress pushes through wide range of Wilson legislation

(from Taft Commission) greatly expanding Government Wilson’s success broadens federal role and sets new standard for

Presidential influence on Congress.

August 15, 2016


23

What Did the 1921 Legislation Do?

1921 -- Passage of Budget & Accounting Act President becomes an Agent in Congressional budget process

[Creates OMB (BoB) & GAO] Congress coordinates revenues & spending decisions with overall

recommendations of President. Agencies barred from submitting budgets directly to Congress

[President & budget aides decide how much to request] Spending decisions in Congress returned to Appropriations

Committees (Removed, 1897-1921) Congress adds teeth to the accountability of Gov’t operations Legislation puts in place operational guidelines for expenditure and

reporting of government operations

August 15, 2016


24

Evolution of Federal Budget Management

1921 to Today: Establishing the “Tool Kit”

1974-1985: Process Management [Still the Framework for Congressional Process]

1985-1990: Deficit Management – [Designed to Eliminate the Deficit by 1991 (1993)]

1991-Present: Spending Management (plus “On-Budget” policy controls & Pay-As-You-Go]

August 15, 2016


25

Up to 1974: ONE LAW . . . Since then -- Many

Legislative Changes: [1974] CBA: Congressional Budget Act (Deferral/Rescissions) [1988] FMFIA: Federal Management Financial Integrity Act [1990] CFO Act I: Chief Financial Officers Act [1993] GPRA: Gov’t Performance & Results (Results Act) [1994] GMRA: Gov’t Management & Reform Act [1996] FFMA I: Federal Financial Management Act [1996] Debt Collection: Federal Debt Collection Act [1996] ITRMA: Information Tech. Reform Management (Clinger Cohen) [1997] FASA: Federal Acquisition Streamlining Act [1998] FFMA II: Federal Financial Management Act

New Legislation & Mandates

August 15, 2016


26

New Legislation & Mandates [Con’t]

Legislative Changes: [1998] GPEA: Gov’t Paperwork Elimination Act [2002] ATDA: Accountability of Tax Dollars Act [2004] CFO Act II: DHS Financial Accountability Act [2006] FFARA: Federal Funding Accountability & Transparency Act [2010] GPRA Modernization Act: GPRA II

Recent Executive Mandates:

[1993-2000] Reinvention of Government [2001-2005] President’s Management Agenda [2002-2008] OMB PART: Program Assessment Review Tool [2005] Fin Mgmt: New OMB A-123/130

August 15, 2016


27

What is the Process and

How Does it Work?

August 15, 2016


28

August 15, 2016


31 August 15, 2016


32

Continuing Resolution History – Not Good • Between 1977 and 2015, all regular appropriations bills have passed on time in only four

years – Fiscal Years 1977, 1989, 1995, and 1997.

• Between calendar 1976 and 2013, there were numerous Government Shutdown scenarios. • Between 1976 and 1980, there were six lapses, where NO furloughs were implemented • Most shutdowns have revolved around budget issues & debt ceilings, and have led to

furloughs of certain 'non-essential' personnel • Majority of fights lasted 1–2 days; a few lasting more than a week; 1995 most significant • Long CRs: 2008, 227-day CR for remainder of year; 2012, 168-day CR, same purpose • In FY 2001, there were 21 CRs; 14 in 1996; Most other years are between 5-8 CRs

• 1995 Shutdown (FY1996 Appropriations) was the most significant. • Shutdown – a conflict between President & Republican-controlled House on entitlements &

domestic allocations – resulted in two shutdowns of non-essential functions • Lasted 26 days -- one for 5 days, a second for 21 days due to lack of funds

• In 2013 (for FY2014) Congress failed to agree on any regular appropriations bills prior to the start of FY 2014:

• Shutdowns occurred during October – December, primarily related to early implementation surrounding the Affordable Care Act – lasted 16 days

• After agreements on numbers & policies, along with postponement of Sequestrations, Omnibus appropriations were finally enacted in February 2014

• In 2014 & 2015 (for FY2015 & FY 2016), delays again occurred, with Omnibus Appropriations eventually being enacted in December both years.

August 15, 2016


34

Congressional Process

How’s It Working?

August 15, 2016


42

OMB Works Hard to Manage the Every Changing Process

August 15, 2016


43

The Appointment Process . . .

. . . How Does it Work?

August 15, 2016


45

Federal Civilian Employment

Most Federal Employees are - Defense (745K) and USPS (485K)

Other Big Employers - VA (342K), DHS (186K), Justice (117K), Treasury (98K), Transp (56K)

Some Departments are Small - Labor (18K), Energy (17K), HUD (10K), Education (4K)

Distribution of Employees - 12% in Washington - 55% men, 45% women - 31% minority - 25% veterans - 7% disabled

August 15, 2016


46

Political Appointees - Types

PA Presidential Appointment, no Senate Confirmation

- Example -- OMB Policy Associate Directors

NA SES Positions filled by non-career appointments - Example – Chief of Staffs to Cabinet Secretaries, OMB PADs

LA SES Positions filled by limited appointments XS Statutory Excepted Appointments

PAS Presidential Appointment, Senate Confirmation

SC Schedule C Excepted Appointments

August 15, 2016


47

Political Appointees - Numbers

PAS 1,203* PA 223 NA 648 LA 169 SC 1,287 XS 390

* Includes Ambassadors, U.S. Attorneys, U.S. Marshals, etc.

August 15, 2016


48

Appointment Process Formalized in 1960s

Key players

- The President and key advisors - Office of Presidential Personnel - Senate Authorizing Committees – Examples . . . Treasury Appointees – Senate Finance Committee Judicial appointees – Senate Judiciary Committee Defense appointees – Armed Services Committee State appointees – Senate Foreign Relations Committee

Revised Further in Presidential Transition Act of 2000 and in more

recent legislation

August 15, 2016


49 Transitions to a New Administration August 15, 2016

50

Some Key’s to Success During Transition . . .

. . . As a Career Manager

August 15, 2016


51

What’s Your Key to Success During Transition and Beyond?

Position Your Appointee for Success Their failure is your failure, if you haven’t tried to partner Empower yourself with sensitivity to above

Be Honest and Always Open to New Approaches You don’t have a monopoly on government operations

Remember -- You are Valued More for Your Program Knowledge

than Your Management Expertise Don’t forget to manage downward as you are drawn upward Management will always be considered your job -- not the

Appointee’s

August 15, 2016


52

What’s Your Key to Success During Transition?

Always Work toward Success Never hand off problems without also offering solution choices

It’s an old adage, but . . . You are valued for both your surfacing of issues and your ability to help in their resolution.

Problems are not always internal . . . But part of how to communicate externally – Your role could be . . .

Who are the stakeholders and how will issues be received? What’s already been tried and what was the result? Are there alternatives available, while still meeting

objective?

August 15, 2016


53


Political appointees come and go, but you are the vital infrastructure Value their contributions to the Agency – let them be a part of

solutions If it is perceived by them that you are a nuisance, and not a

solution builder, then . . . Always think long term, even though the Appointee is short

term Long-term connects you better with mission of organization and,

therefore, lines you up better with the Appointee

August 15, 2016


54


Share tasks with your Appointee Target tasks for appointee commensurate with their policy responsibilities. They will be stronger overall, if not viewed externally as doing your job too! It will also Increase the number of influence points for the organization

Always Think in Advance Try to stay ahead of your appointee, while not preventing their contribution or

impact. Such an approach puts you more in control of your destiny. Allows you to be more of an advisor and contributor to policy making, instead

of merely implementing ”what comes down.”

August 15, 2016


55


Leading the work for your Agency, with new Political appointees added, requires your skill as a: Facilitator, and Negotiator (Sometimes compromise)

Also requires you to:

Be knowledgeable on all programs Engage and know your Agency’s policies & priorities Ensure consistency with approved policy/priorities

August 15, 2016


56

Time with decision makers is valuable and needs to be “quality time.”

You are key to your Political Appointee in informing them of stakeholder concerns . . . Cannot be done without the help of Program Managers

You need to empower yourself as much as possible – This increases effectiveness of the political decision maker.


August 15, 2016


57

Staying Current on All Issues A vitally important task . . . Today’s complexities make that a

challenge Job’s Other Requirements:

Ability to articulate policy and establish communication links; critical to your success and success of your Appointee

Knowing when to engage officials (Appointees) – and when not to -- so they can be effective in timely manner w/ expertise & influence


August 15, 2016


58

All funding decisions today are resolved as part of an Legislative agenda

Legislative Agendas are not perceived to be the role of Career Executives, but that of Appointees

Career Executives need to be part of solutions, but walk the sensitive line of not taking role away from Appointee

Successes are dependent on partnerships with those who develop and work those Legislative agendas

Your partnerships will make you more effective with your Appointee.

Legislative folks become key to your success

Understanding their perspective makes you more valuable to your Appointee.


August 15, 2016


59

Questions and Answers

August 15, 2016


60

Thank You

August 15, 2016


61

Carl L. Moravitz Senior Managing Consultant, Fulcrum VETS L.L.C. [Also, supporting

OMB’s Budget Formulation and Execution Line of Business]

Former Federal Budget Director [Treasury, Internal Revenue Service, Homeland Security, Voice of America] Over 30 Years of Budget Experience

Budget & Policy Leader at Agency & Cabinet Department Levels Operational experience in financial plan management

Specialized Experience in: Congressional Budgeting, Appropriations Law, “Scorekeeping,” Financial Management Broad Knowledge of: Federal Government Budgeting and the Associated

Fiscal Economic Landscape M.S. Degree in Economics from Virginia Tech Visiting Professor -- Graduate programs at Va Tech, George Washington

Univ., Georgetown Univ., MBA/Washington Campus Consortium & CapitolNET

August 15, 2016


Documents

Focus of this Session - Bureau of the Fiscal Service 08 2016 GFMC... · Focus of this Session ... 55% men, 45% women -31% minority -25% veterans - ... Examples . . . Treasury Appointees