The 103rd Congress passed the Government
Performance and Results Act in 1993 to make federal agencies more
responsive and accountable to the American people. The Results Act
requires agencies to submit strategic plans to Congress that
clearly specify their missions and goals. House Majority Leader
Richard Armey, who leads the congressional effort to evaluate and
grade these strategic plans, believes the Results Act enables
Congress to ask "What's working, what's wasted, what makes any
difference, [and] what's duplicative" before appropriating more
money for an agency.
The
Department of Energy (DOE) is a textbook example of an agency whose
own agency plan highlights the depth of its problems. The
department's final strategic plan, submitted in September 1997, was
the culmination of four years of planning, drafts, and revisions.
It received an anemic grade of 43.5 out of 100 possible points and
a ranking of 12th out of 24 agency plans submitted. DOE's fiscal
year (FY) 1999 annual performance plan, linking specific
performance measures to elements of its budget request, was
submitted in February. It fared even worse, scoring 30 out of 100
and ranking 20th out of 24. (See Chart
1.)
Given this poor performance record,
Congress increased DOE's budget by only $13 million between FY 1997
and FY 1998, and held its total budget to about $16.5 billion. For
FY 1999, however, the Department of Energy is asking Congress to
reward its dismal Results Act report card with a budget hike that
would be 100 times larger than the one it received in FY 1998, to
give it more than $18 billion in tax dollars. (See Chart
1.)
Yet,
as Victor Rezendes of the U.S. General Accounting Office (GAO)
testified before Congress, "DOE's mission and priorities have
changed dramatically over time so that the Department is now very
different from what it was in 1977. While energy research,
conservation and policy-making dominated early DOE priorities,
weapons production and now environmental cleanup overshadow its
budget." Today, 75 percent of DOE's budget is spent on activities
other than energy resources.
Fortunately, some Members of Congress are
asking why an agency with no clear mission should continue to be
funded, let alone receive increased funding as requested in the
President's budget. Representative John Kasich, chairman of the
House Budget Committee, proposed that the Department of Energy be
eliminated in FY 1999. The government's own evaluations, from
report cards issued by the congressional staff team tasked with
grading agency plans to reports prepared by the GAO and agency
inspectors general, highlight at least five reasons why Congress
should consider closing down the Department of Energy.
REASON #1: An
ever-changing mission.
REASON #2: Wasteful
spending on unnecessary or duplicative programs.
REASON #3: Costly
management deficiencies.
REASON #4: An inability
to measure program performance.
REASON #5: Too many
programs that should be privatized.
Major programs within the Department of
Energy that should be privatized include the Strategic Petroleum
Reserve, the Power Marketing Administrations, the Federal Energy
Regulatory Commission, and the Energy Information
Administration.
A
Cabinet department that reports directly to the President should
have a clearly defined mission. No case has been made that DOE's
functions must be performed in the public sector or that its
programs are more valuable than the budgetary resources they
consume. The truth is that if the Department of Energy were closed
down tomorrow, most Americans would not even notice. In the case of
DOE, the Administration is using unfounded fears about global
warming to increase the budgets of energy research and development
programs substantially. Many of these programs already have a long
history of failure.
The
Results Act was intended to trigger congressional decisions to
reshape the size and scope of the federal government. DOE's
substandard report card should provoke Congress to move in this
direction by eliminating this unnecessary, wasteful, and expensive
agency.
Angela Antonelli
is the former Director of The Thomas A. Roe Institute for Economic
Policy Studies at The Heritage Foundation.