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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
Fiscal Dollars
(Dollars in Millions)
FY 2002 FY 2003 FY 2004 FY 2005
$866.2 $921.2 $1,009.2 $1,095.0
FTE 1 Resources
FY 2002 FY 2003 FY 2004 FY 2005
8,908 8,223 8,563 8,976
1. FTE— Full-Time Equivalent ( back)
STRATEGIC OBJECTIVE 1.3 REPORTED RESULTS
Rating Results
On Target 12
Slightly Below Target  0
Below Target  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 serves to meet 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 seeks to promote 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%)  (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
On Target 6
Slightly Below Target 0
Below Target 0
See Appendix A: Performance and Resource Tables for individual reported results.

ESA’s Census Bureau produces both current statistics and benchmark measures to help decisionmakers, businesses, and the public to make informed decisions. Current surveys and statistics programs provide current measures of the U.S. economy and population.

The 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 2005 The Census Bureau released over 300 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.
  • 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 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.

Targeted response rates, which are a measure of the quality of survey data, were successfully achieved for the demographic surveys. Data products for SIPP, CPS, and the American Housing Survey (AHS) were released as scheduled.

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 (DSSR), 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 2005, the Census Bureau released 883 geographic area series reports from the 2002 Economic Census, two reports from the 2002 Survey of Business Owners, and preliminary data from the 2002 Business Expenses Survey. In addition, detailed project plans were developed for conducting both the 2007 Economic Census and Census of Governments.

The Intercensal Demographic Estimates program provides updated estimates of the United States population for the country, states, counties, cities, and townships in the years between the decennial censuses.

The DSSR 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 were released, as planned and on schedule, for several demographic surveys.

Photo showing a survey being filled out.
“Every survey counts.” Only a small percentage of addresses receive the American Community Survey each year, which is why it is so important that each selected household respond to the survey. Photographed by the U.S. Census Bureau.

The re-engineered 2010 Decennial Census Program is designed to improve the relevance and timeliness of census long-form data, reduce operational risk, improve the accuracy of census coverage, and contain costs. The program is made up of three integrated components:

  • The American Community Survey (ACS), which collects and tabulates long-form data every year throughout the decade using a large household survey. The ACS was successfully expanded to it full national sample size. The target response rate was successfully achieved and data products were released as scheduled.
  • The MAF/TIGER1 Enhancement Program to modernize geographic resources and systems by enhancing and improving the Census Bureau’s MAF/TIGER. TIGER features have been brought into global positioning system alignment for an additional 623 counties.
  • The planning, development, and testing of short-form only census in 2010 that builds on opportunities made possible by the ACS and MAF/TIGER efforts. Critical testing and preparatory efforts for the 2010 Census were completed, including evaluations of the 2004 Census Test, preparations for the 2005 National Census Test, and design requirements and early operations for the 2006 Census Test.

The data used to evaluate the effectiveness of performance goal achievements are reviewed on a quarterly basis. In response to GAO and Office of Inspector General (OIG) requirements, the Census Bureau has also implemented an on-going internal review process, which involves collecting detailed data from programs in support of each performance goal, measure, and target. The purpose of these reviews is to validate the 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
On Target 6
Slightly Below Target 0
Below Target 0
See Appendix A: Performance and Resource Tables for individual reported results.

ESA’s BEA produces some of the nation’s most important economic statistics, including the GDP, the broadest measures of economic activity. BEA produces economic statistics for four major program areas:

  • National Economic Accounts produces GDP, personal income and outlays, corporate profits, and capital stock estimates.
  • Industry Accounts produces GDP by industry, input-output estimates, capital flow, and U.S. travel and tourism accounts.
  • International Accounts produces U.S. balance of payments accounts, international trade in services, international investment position, foreign direct investment, and the operation of multinational companies.
  • Regional Accounts produces gross state product, state and local personal income, and regional multipliers.

BEA draws on the data collection and analyses conducted by the Census Bureau, Bureau of Labor Statistics, Internal Revenue Service, Federal Reserve, and others to produce over 50 public data releases a year. By pulling together a diverse set of statistics ranging from profits to retail sales and other indicators collected by the Census Bureau and other statistical agencies, BEA provides a comprehensive and integrated measure of U.S. economic activity. These economic measures are used by policymakers, business leaders, and the U.S. public to make decisions on economic matters that are critical to the efficient operation of the U.S. economy. Without them, the nation would have no objective sense of the direction or magnitude of U.S. economic activity and would be unable to provide the government or the public with a picture of its economic health.

Measures such as the GDP, U.S. and local 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 specific public benefits of BEA measures:

  • OMB, Congressional Budget Office, Council of Economic Advisors, and the Department of Treasury use trend GDP to calculate federal budget projections.
  • Federal Reserve uses real GDP and wage inflation to help set monetary policy.
  • Federal programs, such as Medicaid, Foster Care, and State Children’s Insurance Program, use BEA’s state personal income estimates to allocate over $190 billion in federal funds.
  • State and local budget offices use quarterly state personal income to estimate revenue and expenditure projections.
  • U.S. trade officials use trade and other international account statistics to develop trade policy and assist in trade negotiations.

BEA has worked in the past year to make these critical measures more accessible to all users and to ease the burden of response to BEA’s international surveys. In FY 2005, BEA significantly increased the accessibility and level of detail of its economic estimates. A new search engine and e-mail delivery service for its major releases was initiated, additional interactive tables on www.bea.gov were launched, and historical data were provided. During FY 2005, BEA also completed implementation of its electronic reporting system that allows all survey respondents to report online, thereby reducing their burden and improving data quality.

BEA has modernized its statistical processing systems and take on challenges such as accelerating the release of a number of major economic accounts. During FY 2005, BEA achieved a number of important data improvement goals, including:

  • Improved estimates of banking, software prices, and housing.
  • Continued work on research and development (R&D) satellite account.
  • Provided historical GDP-by-industry estimates on NAICS (North American Industrial Classification System) basis.
  • Accelerated local area industry data and prototype gross state product estimates.
  • Expanded electronic survey collection.

BEA has met all six of its FY 2005 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 in as many years using the Program Assessment Performance 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 annual survey of its users to monitor their satisfaction with BEA products and services. For three years running, customers of BEA products and services have indicated high levels of satisfaction. A certification and accreditation review of BEA’s security plans was performed by the Department’s Office of IT Security and given a green light.

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. The committee also 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. For the 2010 Census, the Census Bureau plans to award two contracts next year for capturing and integrating response data and for automating data collection in the field. Census Bureau economic data related to this goal allow users to gauge competition, calculate market share, locate business markets, locate distributors, design sales territories, prepare operating ratios, and analyze change in the nation’s economic structure. Likewise, cost-effective and relevant demographic data provide accurate information to decisionmakers so that funds can be allocated appropriately to the U.S. public.

The Census Bureau will continue to review performance data on a quarterly basis to ensure that they are meeting the Department’s goals. Work will continue in the area of data validation and verification to ensure accuracy and relevancy of reported performance information.

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.

The multi-year effort to re-engineer the census 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 MAF and geographic database (TIGER), and the short-form only 2010 census.

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 5-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.

During 2005, BEA began a series of user conferences to invite data users into BEA and help educate them on the proper uses of BEA’s economic accounts as well as provide them with access to senior BEA staff. In July of 2005, BEA jointly sponsored an important conference with the U.S. Chamber of Commerce in which leaders in business and the public sector came together to share their insights and priorities for the nation’s economic accounts.

All this feedback is used by BEA senior staff to develop future plans announced in the BEA 5-year Strategic Plan. This plan is updated annually through a series of internal account meetings and a senior staff retreat. At the retreat, a review of the past Strategic Plan is conducted and a report of the successes of meeting the announced milestones is prepared and made public. Senior staff also set the directions and priorities for the agency for the next year and next five years. The directions and priorities are set out in the updated plan, which 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

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.

Given the major changes in overall design and methodology, the efforts involved with reengineering the 2010 Decennial Census Program will continue to present a significant management challenge for the Census Bureau and Department of Commerce.

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 faces three major challenges in the near future. To tackle them, BEA has developed a detailed, public plan in its Strategic Plan for FY 2005 – FY 2009. The three major challenges facing BEA are:

Measuring a constantly changing economy. The U.S. economy is in constant flux. BEA is challenged to understand the structural changes in the economy, improve measurement methodologies, and locate and incorporate data sources to capture the changes. Its challenge is to 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. 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 people. 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 for innovative solutions to measurement are increasing. BEA must continue to prepare its employees for these challenges.

 

1 Master Address File/ Topologically Integrated Geographic Encoding and Referencing system. (back)


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