CHAPTER 7 THE EXECUTIVE BRANCH AT WORK. SECTION 1 FEDERAL BUREAUCRACY

CHAPTER 7THE EXECUTIVE BRANCH AT WORK

SECTION 1

•FEDERAL BUREAUCRACY

WHAT IS FEDERAL BUREAUCRACY?

• BUREAUCRACY- ANY ORGANIZATION, EITHER IN GOVERNMENT OR THE PRIVATE SECTOR, HAVING THE FOLLOWING FEATURES:

• A CLEAR FORMAL STRUCTURE

• A DIVISION OF LABOR

• A SET OF RULES AND PROCEDURES BY WHICH IT OPERATES

• THE FEDERAL BUREAUCRACY CONTAINS ALL OF THE AGENCIES AND DEPARTMENTS OF THE EXECUTIVE BRANCH

• BUREAUCRATS- ADMINISTRATORS AND SKILLED, EXPERT WORKERS WHO CARRY OUT MANY SPECIFIC TASKS OF THE FEDERAL BUREAUCRACY, ALSO KNOWN AS CAREER EMPLOYEES.

THE CIVIL SERVICE

• CIVIL SERVICE IS MADE UP OF THE CIVILIANS WHO CARRY OUT THE WORK OF THE FEDERAL GOVERNMENT

• IN THE EARLY YEARS OF OUR COUNTRY THESE JOBS WERE NOT ALWAYS GIVEN TO THE MOST QUALIFIED DUE TO THE SPOILS SYSTEM.

• THE SPOILS SYSTEM IS WHERE THE PRESIDENT WOULD GIVE OUT JOBS AND POLITICAL REWARDS TO SUPPORTERS OF HIS

THE CIVIL SERVICE

• THIS SYSTEM CAME UNDER INTENSE SCRUTINY OVER TIME AND THE CIVIL SERVICE ADVISORY BOARD WAS CREATED WHICH WROTE NEW RULES FOR FEDERAL HIRING AND FIRING.

• THIS LAST FOR ABOUT 3 YEARS BEFORE IT WAS DISBANDED

• 1883 PRESIDENT CHESTER A. ARTHUR SIGNED THE PENDLETON CIVIL SERVICE ACT BASED ON HIRING AND PROMOTIONS FOR CERTAIN GOVERNMENT JOBS BASED ON MERIT AND NOT ON A PERSON’S PARTY AFFILIATION.

• THIS CREATED THE CIVIL SERVICE COMMISSION WHICH DETERMINED A PERSONS QUALIFICATIONS FOR POSITIONS.

THE CIVIL SERVICE

• THIS ACT ONLY APPLIED TO 10% OF THE POSITIONS FILLED IN THE FEDERAL BUREAUCRACY

• TODAY MORE THAN 90% OF THE JOBS ARE FILLED BASED ON THIS ACT

• THE CIVIL SERVICE ACT OF 1978 CREATED MANY OF THE AGENCIES IN TODAY’S CIVIL SERVICE

• (OPM) OFFICE OF PERSONNEL MANAGEMENT- CONDUCTS EXAMS FOR JOBS

• FEDERAL LABOR RELATIONS AUTHORITY- HANDLES WORKER COMPLAINTS

• US MERIT SYSTEMS- PROTECTS CIVIL SERVICE EMPLOYEES FROM UNFAIR PRACTICES

SECTION 2

•EXECUTIVE DEPARTMENTS AND INDEPENDENT AGENCIES

EXECUTIVE DEPARTMENTS

• EXECUTIVE DEPARTMENTS ARE THE MAJOR UNITS OF ADMINISTRATION AND POLICY MAKING IN THE EXECUTIVE BRANCH

• THESE ARE USUALLY CALLED CABINET LEVEL DEPARTMENTS THERE ARE 15 OF THEM

• CONGRESS AND THE PRESIDENT SHARE THE RESPONSIBILITY FOR THE EXECUTIVE DEPARTMENTS

EXECUTIVE DEPARTMENTS

• GEORGE WASHINGTON ESTABLISHED THE 1ST EXECUTIVE DEPARTMENTS IN 1789

• HE CREATED THE DEPARTMENTS OF STATE, TREASURY, AND WAR

• 1870 – DEPARTMENT OF JUSTICE WAS FORMED

• 1849 – CONGRESS FORMED THE DEPARTMENT OF THE INTERIOR (DEAL WITH DOMESTIC ISSUES)

• 1913 – CONGRESS FORMED THE DEPARTMENT OF LABOR

EXECUTIVE DEPARTMENTS

• AFTER WORLD WAR II CONGRESS CREATED 7 EXECUTIVE DEPARTMENTS

• 1965 – CONGRESS CREATED THE DEPARTMENT OF HOUSING AND URBAN AUTHORITY IN RESPONSE TO THE WATTS RIOTS

• 1973 – CONGRESS CREATED THE DEPARTMENT OF ENERGY FOLLOWING THE ARAB OIL EMBARGO WHICH LED TO GAS SHORTAGES AND SKYROCKETING PRICES

HEALTH AND HUMAN SERVICES

• LOOK ON PAGE 198-199 AT THE CHART IN YOUR BOOK ON THE DEPARTMENTS

• HEALTH AND HUMAN SERVICES (HHS)- PROTECT THE HEALTH OF THE AMERICAN PEOPLE. IT EMPLOYEES MORE THAN 65,000 PEOPLE. SOME OF THE KEY PROGRAMS ARE AS FOLLOWS:

• SOCIAL SECURITY

• MEDICARE – MEDICAL INSURANCE TO PEOPLE 65 AND OVER

• MEDICAID – MEDICAL INSURANCE TO PEOPLE OF ALL AGES WITH LOW-INCOME

• (FDA) FOOD AND DRUG ADMINISTRATION- INSPECTS FOOD AND DRUG SAFETY STANDARDS

DEPARTMENT OF DEFENSE • THE (DOD) DEPARTMENT OF DEFENSE OVERSEES THE US MILITARY FORCES

• IT WAS ORIGINALLY KNOWN AS THE DEPARTMENT OF WAR, IT WAS ONE OF THE ORIGINAL DEPARTMENTS CREATED IN 1789

• DURING WORLD WAR II CONGRESS PUT ALL BRANCHES OF THE MILITARY UNDER 1 LEADER IN THE DEPARTMENT OF DEFENSE

• IT EMPLOYEES MORE THAN 1.3 MILLION MEN AND WOMEN ON ACTIVE DUTY IN THE ARMED FORCES AND ANOTHER 1.1 MILLION IN THE NATIONAL GUARD AND RESERVE AND ANOTHER 670,000 CIVILIAN EMPLOYEES

• THE DOD BUDGET IN 2008 WAS AROUND $480 BILLION

HOMELAND SECURITY

• THE DEPARTMENT OF HOMELAND SECURITY WAS CREATED IN 2003 FOLLOWING THE EVENTS OF 9/11/2001

• THIS AGENCY WAS NOT A NEW AGENCY IT WAS A REORGANIZATION OF MANY AGENCIES TO BETTER PROTECT THE UNITED STATES

• THE SECRET SERVICE AND US NATIONAL COASTGUARD ARE UNDER THIS AGENCY

INDEPENDENT AGENCIES• INDEPENDENT AGENCIES ARE GOVERNMENT AGENCIES THAT OPERATE

SEPARATELY FROM THE EXECUTIVE DEPARTMENT. THIS REQUIRES AN ACT OF CONGRESS TO CREATE ONE OF THESE

• A FEW EXAMPLES OF THESE ARE AS FOLLOWS:

• (EPA) ENVIRONMENTAL PROTECTION AGENCY- IN CHARGE OF ALL ENVIRONMENTAL ISSUES

• (USPS) UNITED STATES POSTAL SERVICE- MORE THAN 700,000 EMPLOYEES GOVERNS MAIL

• DEFENSE NUCLEAR FACILITIES BOARD- FEWER THAN 100 EMPLOYEES

• THERE ARE 3 MAIN TYPES OF INDEPENDENT AGENCIES:

• INDEPENDENT EXECUTIVE AGENCIES

• INDEPENDENT REGULATORY COMMISSIONS

• GOVERNMENT CORPORATIONS

INDEPENDENT EXECUTIVE AGENCIES

• THESE AGENCIES OVERSEE AND MANAGE SPECIFIC ASPECTS OF THE FEDERAL GOVERNMENT

• THEY HAVE EXECUTIVE PRIVILEGES BUT THEIR HEADS ARE NOT CABINET MEMBERS

• THE PRESIDENT EXERCISES MOST OF THE CONTROL OVER THESE AGENCIES

• (NASA) NATIONAL AERONAUTICS AND SPACE ADMINISTRATION IS AN EXAMPLE OF A LARGER INDEPENDENT AGENCY

• THE PEACE CORPS WHICH WAS CREATED BY JFK IN 1961 IS ANOTHER EXAMPLE

• THE NATIONAL ARCHIVES IS ALSO ANOTHER EXAMPLE

INDEPENDENT REGULATORY COMMISSIONS

• THESE AGENCIES ARE SETUP TO REGULATE SOME ASPECT OF THE ECONOMY

• THEY ARE LED BY A 3 TO 7 PERSON BOARD WHOSE MEMBERS ARE NOMINATED BY THE PRESIDENT

• A GOOD EXAMPLE OF THIS IS THE (FCC) FEDERAL COMMUNICATIONS COMMISSION- WHICH CONTROLS BROADCASTING RULES OF TELEVISION, RADIO, AND SATELLITE COMMUNICATIONS

• THEY MUST BE BI-PARTISAN (HAVE MEMBERS FROM BOTH PARTIES)

• THESE WERE CREATED BECAUSE CONGRESS BELIEVED THE FOLLOWING:

• A SPECIALIST GROUP WAS BETTER EQUIPPED TO BETTER HANDLE CERTAIN ISSUES THAN CONGRESS

• THERE COULD BE MORE CONTINUITY IN A PERMANENT COMMISSION

• THEY WOULD BE FREE OF UNDUE POLITICAL PRESSURE

GOVERNMENT CORPORATIONS

• THESE ARE RUN LIKE BUSINESSES BUT ARE OWNED IN WHOLE OR IN PART BY THE FEDERAL GOVERNMENT

• THE POST OFFICE IS AN EXAMPLE OF THIS

• ONE DIFFERENCE IN THESE AND PRIVATE CORPORATIONS IS THEY ARE NOT FOCUSED ON PROFITABLE AREAS OF BUSINESS AS MUCH

• THE RAILROAD OR AMTRAK IS ALSO ANOTHER EXAMPLE OF THIS

POWER AND ACCOUNTABILITY IN THE FEDERAL BUREAUCRACY

• PRESIDENTS CAN SHAPE THE DIRECTION OF THE BUREAUCRACY BY WHO THEY APPOINT

• CONGRESS ROUTINELY SEEKS ANSWERS FROM FEDERAL AGENCIES ON DECISIONS TO KEEP THEM IN CHECKS ALSO

• CONGRESS PASSED THE ADMINISTRATIVE PROCEDURES ACT IN 1946 TO SET GUIDELINES

• IN 1965 THEY PASSED THE FREEDOM OF INFORMATION ACT WHICH ALLOWED FOR THE GENERAL PUBLIC TO HAVE ACCESS TO INFORMATION

SECTION 3

•FINANCING THE GOVERNMENT

PAYING FOR GOVERNMENT

• IN ORDER TO PAY FOR GOVERNMENT THE GOVERNMENT RELIES ON THE FOLLOWING:

• INCOME TAXES – 47% OF GOVERNMENT REVENUE. CONGRESS HAS THE ABILITY TO LAY AND COLLECT TAXES FROM PEOPLE BASED ON THEIR INCOME. THIS IS A PROGRESSIVE TAX THAT DEPENDS ON THE INCOME OF PEOPLE

• PAYROLL TAXES- 34% OF GOVERNMENT REVENUE. MONEY WITHHELD BY AN EMPLOYER ON A PERSONS CHECK IT IS A REGRESSIVE TAX AND HAS A GREATER IMPACT ON LOWER INCOME PEOPLE AS OPPOSED TO HIGHER INCOME PEOPLE (SOCIAL SECURITY TAX)

• SADFAS

PAYING FOR GOVERNMENT

• IN ORDER TO PAY FOR GOVERNMENT THE GOVERNMENT RELIES ON THE FOLLOWING:

• TARIFFS- TAXES ON IMPORTED GOODS

• ESTATE TAXES- TAX ON MONEY AND PROPERTY THAT IS PASSED ON HEIRS OF SOMEONE WHO INHERITS STUFF FROM SOMEONE WHO DIES.

• BORROWING MONEY - IF TAXES DO NOT COVER THEIR EXPENSES THEY HAVE THE ABILITY TO BORROW MONEY BY SELLING BONDS (WHERE THE GOVERNMENT BORROWS FROM THE PUBLIC)

• THE TOTAL SUM OF MONEY THAT THE FEDERAL GOVERNMENT HAS BORROWED IS THE FEDERAL DEBT

GOVERNMENT SPENDING

• CONGRESS HAS MANDATORY SPENDING AND DISCRETIONARY SPENDING

• MANDATORY SPENDING – SPENDING REQUIRED BY LAW GOVERNMENT PROGRAMS (SOCIAL SECURITY)

• DISCRETIONARY SPENDING- SPENDING SUBJECT TO THE ANNUAL BUDGET. (OPTIONAL PROGRAMS GOVERNMENT MUST PAY FOR)

THE BUDGET PROCESS

• THE FEDERAL BUDGET LASTS ONE YEAR AND GOES FROM OCTOBER 1 TO SEPTEMBER 30

• THE PRESIDENT IN IN CHARGE OF PROVIDING A BUDGET WHICH THE (OMB) HELPS HIM PUT TOGETHER. THIS BUDGET MUST BE COMPLETE BY JANUARY BEFORE THE ANNUAL STATE OF THE ADDRESS

• THE PRESIDENT PROVIDES THIS BUDGET TO CONGRESS BY THE FIRST MONDAY IN FEBRUARY AND THEN CONGRESS WORKS ON IT BASED ON THE RECOMMENDED BUDGET

• THIS IS LOOKED AT BY THE (CBO)

• CONGRESS MUST HAVE THIS BUDGET COMPLETE BY THE 1ST OF THE FISCAL YEAR

FISCAL AND MONETARY POLICY

• BY CREATING A FEDERAL BUDGET AND TAX LAWS THEY ARE CREATING FISCAL POLICY

• MONETARY POLICY IS WHERE THE GOVERNMENT ALTERS THE AMOUNT OF MONEY IN CIRCULATION AND INTEREST RATES AT WHICH IT IS BORROWED

• THE FED WAS CREATED IN 1913 AS AN INDEPENDENT REGULATORY COMMISSION THAT ACTS AS THE NATIONS CENTRAL BANKING SYSTEM