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Strategic Objective 1.3

Enhance the supply of key economic and demographic data to support effective decision-making of policymakers, businesses, and the American public

STRATEGIC OBJECTIVE 1.3 TOTAL RESOURCES
(Dollars in Millions)
  FY 1999 FY 2000 1 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006
Fiscal Dollars $1,731.1 $4,644.0 $1,024.9 $866.2 $921.2 $1,009.2 $1,095.0 $1,164.9
FTE – Full-Time Equivalent 21,122 86,867 10,854 8,908 8,223 8,563 8,976 9,321
1. Funding increased dramatically in FY 2000 due to the Decennial Census. (back)

STRATEGIC OBJECTIVE 1.3 PERFORMANCE RESULTS
Rating Number of Reported Results
FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006
Exceeded Target 1 0 0 0 1 1 0 0
Met Target 3 6 6 12 18 19 12 12
Slightly Below Target 0 0 0 0 0 2 0 0
Did Not Meet Target 0 0 1 0 3 0 0 0
See Appendix A: Performance and Resource Tables for individual reported results.

This objective is important to the nation’s economic well being in that it focuses on meeting the needs of policymakers, businesses and non-profit organizations, and the public for current measures of the U.S. population, economy, and governments, while respecting individual privacy, ensuring confidentiality, and reducing respondent burden. It also focuses on promoting a better understanding of the U.S. economy by providing timely, relevant, and accurate economic data in an objective and cost-effective manner.

The Department’s statistical programs and services are widely used by policymakers, business leaders, and the U.S. public. As a primary source for measures of macroeconomic activity, the Department provides the nation with the picture of its economic health.

SUMMARY OF STRATEGIC OBJECTIVE 1.3 PERFORMANCE GOALS
PERFORMANCE GOAL STATUS*
Meet the needs of policymakers, businesses, non-profit organizations, and the public for current and benchmark measures of the U.S. population, economy, and governments (ESA/Census) Green, Met (100%)
Promote a better understanding of the U.S. economy by providing the most timely, relevant, and accurate economic data in an objective and cost-effective manner (ESA/BEA) Green, Met (100%)
* Green = MET (100%) Yellow = SIGNIFICANTLY MET (75% - 99%)  Red = NOT MET (<75%)  Black = NOT APPLICABLE  (back)

Performance Goal: Meet the needs of policymakers, businesses, non-profit organizations, and the public for current and benchmark measures of the U.S. population, economy, and governments (ESA/Census)
Census Bureau collects and disseminates a wide range of current demographic and economic information and provides benchmark measures of the nation’s economy and population to help decisionmakers and the public make informed decisions.

PERFORMANCE GOAL REPORTED RESULTS
Rating Results
Exceeded Target 0
On Target 6
Slightly Below Target 0
Below Target 0
See Appendix A: Performance and Resource Tables for individual reported results.

The Census Bureau’s current economic statistics program provides public and private data users with annual national statistical profiles for every sector of the U.S. economy. In FY 2006 the Census Bureau released over 400 reports with information on retail and wholesale trade and selected service industries, construction activity, quantity and value of industrial output, capital expenditure information, e-commerce sales, foreign trade, and state and local government activities.

The current demographic statistics programs provide accurate, timely, and efficient information on the social and economic condition of the population. These programs include:

  • The Current Population Survey (CPS) provides monthly information on labor force characteristics and provides official government estimates of annual data on work experience, income, migration, and school enrollment. In an effort to provide information about the evacuees from Hurricane Katrina, the Census Bureau and the Bureau of Labor Statistics (BLS) added questions to the CPS, beginning in October 2005, that provide monthly estimates of the evacuee population, their labor force status, and whether they have returned to their original residence.
  • The Survey of Income and Program Participation (SIPP) is the major source of information on the economic well being of Americans over-time. The data are used to estimate future costs and coverage for government programs and to provide detailed statistics on the distribution and source of income in the United States. The Census Bureau also began efforts to design a new and more efficient data collection and processing system on income and federal and state program dynamics to meet the policy and operational needs of the country, which will eventually replace the SIPP.
  • The Survey of Program Dynamics (SPD) provides sub-national estimates of poverty and receipt of government assistance; and the State Children’s Health Insurance Program (SCHIP) provides state-based estimates of health insurance coverage of children.

The Census bureau met its target to achieve at least 90 percent of the planned response rates for the current economic and demographic surveys. Response rates are a measure of the quality of survey data.

The Census Bureau’s cyclical programs provide the foundation for critical national, state, and local data. These include the Economic Census and Census of Governments, which are conducted every five years; Intercensal Demographic Estimates; Demographic Surveys Sample Redesign; and the Decennial Census program.

The Economic Census provides comprehensive, detailed, and authoritative facts about the structure of the U.S. economy ranging from the national to the local level. The data help build the foundation for GDP and other indicators of economic performance. The Census of Governments is the only source of comprehensive and uniformly classified data on the economic activities of state and local governments. During FY 2006, the Census Bureau released 51 reports from the 2002 Economic Census. In addition, work began on the forms content and initial forms design for both the 2007 Economic Census and Census of Governments.

The Intercensal Demographic Estimates program provides updated estimates of the U.S. population for the country, states, counties, cities, and townships in the years between the decennial censuses. In addition to meeting the schedule for the release of the official set of July 2005 population estimates for the nation, states, counties, cities, and townships, the Intercensal Demographic Estimates program designed special methodology, to deliver to BLS beginning in October, monthly survey controls for the CPS that took into account the unprecedented impact of Hurricanes Katrina and Rita. The Intercensal Demographic Estimates program also produced a set of January 1, 2006 total household population estimates for the 117 counties identified by the Federal Emergency Management Agency (FEMA) as eligible for Individual and Public Assistance (IPA). Because of the unique nature of the methodology and data used, these special estimates were not part of the official estimate series but were produced to provide data users with some information on population size of the affected areas.

The Demographic Surveys Sample Redesign program provides improved sampling methodologies and updated samples of households based on the most recent census information for major recurring household surveys conducted by the Census Bureau. Census 2000-based samples for the National Health Interview Survey were released on schedule. The Census Bureau began investigating the acquisition and use of commercial address lists for the National Health Interview Survey and other programs with the goal of reducing survey costs. The Census Bureau is also investigating if the use of the American Community Survey (ACS) as a sampling frame for the Dynamics of Economic Well-being System would be cost effective.

The Decennial Census program completed all planned FY 2006 activities and operations related to the 2006 Census Test, and awarded two of the major automation contracts for the 2010 Census itself. The ACS, which collects and tabulates long-form data every year throughout the decade, achieved a 97.6 percent weighted response rate, using three modes of data collection (mail-out, telephone, and personal interview). The ACS also released social and demographic data for all places with a population of 65,000 and larger based on the first full year of ACS data collection at the full national sample size. The Boundary and Annexation Survey (BAS) program achieved an 86.6 percent response rate. BAS is used to update information about the legal boundaries and names of all governmental units in the United States. In addition, street features have been corrected in the Topologically Integrated Geographic Encoding and Referencing System (TIGER) database for the planned 700 counties in FY 2006, bringing the total completed to just over two-thirds of all 3,232 counties in the United States and Puerto Rico.

The data used to evaluate the effectiveness of performance goal achievements are reviewed on a quarterly basis. The Census Bureau continues to validate the performance data and ensure that all programs have verifiable processes in place to collect, store, and calculate all performance information reported in the Annual Performance Plan (APP) and the Performance and Accountability Report (PAR). Based on Census Bureau analysis and review, the Department can attest to the accuracy and reliability of the data used to report performance results.

Performance Goal: Promote a better understanding of the U.S. economy by providing the most timely, relevant, and accurate economic data in an objective and cost-effective manner (ESA/BEA)

PERFORMANCE GOAL REPORTED RESULTS
Rating Results
Exceeded Target 0
On Target 6
Slightly Below Target 0
Below Target 0
See Appendix A: Performance and Resource Tables for individual reported results.

ESA’s Bureau of Economic Analysis (BEA) produces some of the nation’s most important economic statistics, including the GDP, the broadest measure of economic activity. BEA produces economic statistics for four major program areas:

  • National Economic Accounts includes GDP, personal in-come and outlays, corporate profits, and capital stock estimates. These statistics are key ingredients in federal budget planning, monetary policy, and business investment decisions.
  • Industry Economic Accounts are directly linked with the national income and product accounts (NIPA) and other economic accounts. The annual input-output accounts and the GDP-by-industry estimate are an integrated set of accounts that provide a time series of detailed information on the changing structure and performance of the U.S. economy. These statistics are critical for studying the inter-relationships among U.S. industries and the sources of productivity. In addition, the industry economic accounts produce industry satellite accounts, including travel and tourism and a preliminary research and development (R&D) account, which provide more detail on selected economic activities and their contributions to economic growth.
  • International Economic Accounts include the international transactions accounts (balance of payments), the international investment position accounts, and the estimates of the activities of multinational companies (for both U.S. direct investment abroad and foreign direct investment in the United States). These statistics are important for understanding the financial position of the U.S. in the world as well as for studying the phenomenon of offshoring.
  • Regional Economic Accounts provide estimates of personal income and earnings by industry for 50 states and the District of Columbia, 938 metropolitan and micropolitan areas, 3,111 counties, and 179 BEA economic regions. Along with the estimates of gross state product by industry, these statistics are used by the federal government for the distribution of over $215 billion in federal funds; by state and local governments for budget forecasts and spending caps, economic development, and transportation planning; and by businesses for site locations, planning, and investment decisions.

BEA draws on the data collection and analyses conducted by the Census Bureau, BLS, Internal Revenue Service (IRS), Federal Reserve, and others to produce over 50 public releases of economic statistics a year. Using these data, BEA estimates the nation’s economic accounts. These estimates provide a comprehensive, integrated, and consistent measure of U.S. economic activity and are used as critical ingredients in budget appropriations and forecasts, international trade and policy formulation, and business and personal financial strategies. Without these measures, the nation’s leaders would have little objective information on which to base monetary and fiscal policy decisions and the domestic and global market would have few statistics to understand the health of the U.S. economy.

Measures such as the GDP, U.S. and local area personal income, international trade in goods and services, and gross state product are important components to the work of government, business, academia, and other organizations. Some key uses of BEA measures:

  • The Office of Management and Budget (OMB), Congressional Budget Office, Council of Economic Advisors, and the Department of Treasury (DOT) use trend GDP and a wide range of NIPAs data including trend growth in real GDP and inflation, wages and salaries, profits, and other types of data to make important policy decisions.
  • Federal Reserve uses real GDP and BEA’s measures of inflation to help set monetary policy.
  • U.S. businesses use BEA data to guide over $2 trillion in U.S. private business in investments plant, equipment, and new housing construction to assess the macroeconomic and international trade outlook, and in making location decisions in the United States and around the world.
  • Federal programs—such as Medicaid, Foster Care, and SCHIP—use BEA’s state personal income estimates to allocate over $215 billion in federal funds.
  • Virtually all 50 states and the District of Columbia use quarterly state personal income to estimate revenue and expenditure projections.
  • U.S. trade policy officials use trade and other international account statistics to develop trade policy and to assess the impact of international investment and trade on the U.S. economy.
  • U.S. private investors use BEA’s economic data to help them in managing over $22 trillion in investments in stocks and bonds.

BEA has worked to make these critical measures more accurate and more accessible for all users. BEA has significantly accelerated the release of eight key economic statistics and expanded the level of detail of both new and historical data available. BEA has also incorporated more real-time data and more detailed IRS source data into key sector estimates. BEA has increased the speed and quality of its information dissemination by implementing a Really Simple Syndication (RSS) feed on www.bea.gov and launching a new online digital library to make available to the public important historical information about the national accounts. During FY 2006, BEA also reached out to virtual users by revising the Industry Accounts input-output interactive tables and developing a database-driven, user-friendly glossary for the BEA Web site.

BEA has modernized its statistical processing systems and has made great progress in addressing the significant long and near-term challenges that the organization faces. During FY 2006, BEA achieved a number of important data improvement and availability targets, including:

  • Implemented a new GDP core processing system, System for Tabling and Aggregating Time Series (STATS), for both the Annual Revision and the Current Estimate. This new GDP processing system will improve processing time, reduce error rates, and enhance customer service.
  • Released the preliminary R&D satellite accounts for the first time.
  • Expanded geographic detail on U.S. international transactions to better understand the nation’s financial position in the world.
  • Launched an online, interactive system for BEA data on multinational companies. The new system allows users to create time series data tables and charts interactively.
  • Completed the accelerations of the releases of gross state product with industry detail and metropolitan area personal income.
  • Worked with the Federal Reserve to jointly publish integrated estimates of the NIPAs and flow of funds.
  • Launched a new online digital library and expanded the BEA Web site to include important archive files including estimates for local area personal income, state personal income, gross state product, and state personal income.

BEA has met all six of its FY 2006 performance targets, thereby, providing the U.S. public with a reliable source of accurate and comprehensive economic data. BEA has met each of its targets for all three of its long-term performance measures for the past three years. These long-term measures—reliability of release, customer satisfaction, and percent of GDP estimates correct—track the core attributes of BEA’s mission. Three budget-related measures, which are tied directly to specific budget initiatives, monitor BEA’s performance toward achieving the projects for which funds were provided. BEA has accomplished all the major milestones defined in the BEA Strategic Plan related to these budget initiatives; thus meeting the performance targets.

BEA programs are evaluated through a variety of means. OMB has evaluated BEA twice using the Program Assessment Rating Tool (PART). In FY 2002 and FY 2003, BEA was awarded the highest rating of effective and was ranked within the top five percent of all federal programs reviewed. BEA also conducts an online survey of its users to monitor their satisfaction with BEA products and services. For four years running, customers of BEA products and services have indicated high levels of satisfaction. In 2006, BEA conducted its third Organizational Assessment Survey (OAS), administered by the Office of Personnel Management (OPM), to assess its organizational culture. BEA is one of the highest scoring federal agencies among those surveyed and it scored above the median on all measures and matched or bettered the highest ratings on seven measures.

The BEA 5-year Strategic Plan is the most important evaluation of BEA programs and performance. The Strategic Plan is a detailed operating plan that guides BEA’s planning with more than 160 detailed milestones per year. Managers are responsible for ensuring that the milestones are met as they feed directly into the performance measures and budget requests of the Agency.

Twice a year, the blue-ribbon 13-member BEA Advisory Committee meets publicly to review and evaluate BEA statistics and programs. The Committee advises the Director of BEA on matters related to the development and improvement of BEA’s national, regional, industry, and international economic accounts, especially in areas of new and rapidly growing economic activities arising from innovative and advancing technologies, and provides recommendations from the perspectives of the economics profession, business, and government.

STRATEGIES AND FUTURE PLANS

Photo showing Census Bureau employees managing, operating, and supporting a variety of data collection, data capture, and data processing operations.
Census Bureau employees manage, operate, and support a variety of data collection, data capture, and data processing operations. Photographed by Ted Wathen for the U.S. Census Bureau.

The Census Bureau strives to provide accurate, timely, and useful information to users in the most cost-effective manner while honoring privacy, protecting confidentiality, and conducting work openly. One way the Census Bureau is doing that is through a multi-year effort to re-engineer the census. This effort will allow the Census Bureau to meet the nation’s ever-expanding needs for social, demographic, and geographic information by improving the relevance and timeliness of census long-form data, reducing operational risk, improving accuracy of census coverage, and containing costs. The strategy is to accomplish that through the use of the ACS, enhancements to the Master Address File (MAF) and geographic database (TIGER), and a re-engineered short-form only 2010 census. The Census Bureau will continue the ACS and release products for geographic areas and population groups of 65,000 or greater for the second year in a row.

Other plans for FY 2007 include completing evaluation reports for the 2005 National Census Test; completing operations and evaluations for the 2006 Census Test; continuing major contracting efforts related to field data collection automation, data response integration, and data access and dissemination; beginning to award printing contracts for the 2010 Census; continuing preparations and pre-census operations for the 2008 Dress Rehearsal; continuing the overall management and integration of planning, testing, development and implementation efforts for the 2010 Census; and conducting early operations for the 2010 Census.

The Census Bureau began efforts in FY 2006 to re-engineer the SIPP. SIPP’s household longitudinal design, with an interview every four months across several years, provides a wide breadth of detail on a wide range of topics, but is extremely burdensome on respondents, complicated to edit and process, and expensive to conduct. The Census Bureau is working with stakeholders and moving rapidly to develop a new system on the dynamics of economic well being, and is considering several design options. The redesigned data collection system is expected to lower attrition, reduce respondent burden, and increase the timeliness of the data, while addressing the same basic issues covered by SIPP. This effort will result in a survey that meets the most important data needs of policymakers, at a reduced cost to taxpayers.

Census Bureau economic benchmark data are the foundation of the nation’s economic statistics programs. They provide core information on virtually all non-farm businesses and related data on business expenditures, commodity flows, minority and women-owned businesses, and other topics. The Census Bureau plans to enhance the 2007 Economic Census to ensure the usefulness and relevance of the programs; improve the timing of respondents, especially for large companies; increase response rates; improve internal processing efficiency; and improve the timeliness of statistical products.

In addition, this year the Census Bureau has undertaken an independent review of the Government Statistics programs. The review, conducted by the Committee on National Statistics, is aimed at assessing program content and recommending improvements. In June, the panel held a two-day workshop where several themes recurred throughout— improving timeliness; filling gaps in the current data; measuring relevance of the historical data scheme in the current economy; the Census Bureau’s role in providing data analysis; and the importance of increasing the program’s visibility. The final report is expected by December 2006.

BEA conducted extension outreach to its user communities in order to better understand their statistical needs. As part of the annual updates to the BEA 5-year Strategic Plan, BEA provides all its stakeholders and users an opportunity to review the five-year plan and make recommendations. In addition, BEA senior staff have participated in conferences and meetings to share the priorities and changes at BEA in order to help users understand improvements and to get feedback on their priorities.

Photo showing a census-taker collecting information from a household that did not mail in the form for the 2006 Census Test.
A census-taker collects information from a household that did not mail in the form for the 2006 Census Test. Photographed by the U.S. Census Bureau.

During 2006, BEA expanded external communications and outreach efforts to inform existing users of upgrades and changes to BEA data and to educate new users on how they can use BEA data to make better informed decisions. Areas of particular focus for BEA’s FY 2006 outreach were the hurricane-affected areas of the Gulf State region. BEA staff conducted training and participated in conferences designed to inform users of recent improvements to and expansion of publicly available data that reflected the economic consequences of the three major hurricanes of 2005. BEA also provided its regional input-output modeling system (RIMS) multipliers for these areas to government and non-government users in order to develop a more complete understanding of the affects of the hurricanes on regional economies and specific industries.

BEA staff also use these and other outreach opportunities to understand the needs of users which are then discussed and considered during the annual revision of the BEA 5-year Strategic Plan. This plan is updated annually through a series of BEA directorate-level planning retreats and a senior staff retreat. At the retreat, a review of the past Strategic Plan is conducted and a report of the progress toward meeting the milestones is prepared and made public. Senior staff also use the retreat to set the directions and priorities for the Agency for the next year to five years. This updated plan is made available to the public for comment. Through this process, BEA is able to clearly define a path that reflects the needs and interests of the U.S. public.

CHALLENGES FOR THE FUTURE

Given the major changes in overall design and methodology, the efforts involved with re-engineering the 2010 Decennial Census program will continue to present a significant management challenge for the Census Bureau and the Department.

The Census Bureau continues to address the significant management challenges of meeting user demands for reliable data, obtaining and maintaining targeted response rates for the various surveys conducted, and continuing to maintain respondent confidentiality.

BEA continues to face three major challenges in the near future. To tackle them, BEA has developed a detailed, public plan in its Strategic Plan for FY 2006 - FY 2010. The three major challenges facing BEA are:

Measuring a constantly changing economy. The U.S. economy is in constant flux. In order to measure a constantly changing economy, BEA must meet important challenges such as understanding the structural changes in the economy, improving measurement methodologies in areas like pensions and R&D, monitoring changing tax and accounting laws, and locating and incorporating data sources to capture the changes. BEA must continue to keep pace with these changes in order to provide the nation with the most timely, relevant, and accurate economic statistics possible.

Integrating federal economic accounts. The demand for greater consistency between the various economic accounts in a decentralized statistical system is growing among users of federal economic statistics. BEA has continued to integrate its industry accounts with the NIPAs, and is working with BLS and the Federal Reserve to integrate shared accounts. The federal agencies responsible for the production of U.S. economic accounts must continue working together to integrate the accounts by harmonizing definitions, methodologies, and analytical techniques in order to provide consistent estimates to users.

Building and developing a skilled workforce. BEA is its workforce. The quality of BEA statistics is dependent on the knowledge and skills of its staff. With the increasingly complex and changing economy, the demands on BEA staff to be at the leading edge of economic change and provide innovative solutions to measurement are increasing. BEA must continue to prepare its employees for these challenges.


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