Is This Any Way to Run a Democratic Government?

Chapter 9 Can the Federal Budget Be Democratic?

★★★ 125 ★★★ Can the Federal Budget Be Democratic? Chapter 9 Can the Federal Budget Be Democratic? OMB’s Invisible Hand Lynn Ross ★★★ T ensions exist in any democratic government . There are tensions between serving special interests and serving the “public” interest. There are tensions between creating open and accessible processes and conducting efficient processes that seek effective outcomes. There are tensions between new and innovative policymaking and routine, bottom-line-oriented program implementation . There are tensions between politics and merit. The Office of Management and Budget (OMB) offers a unique crucible for examining these tensions in the American system of government. OMB is uniquely involved in designing each administration’s blueprint for funding competing interests. Thus, its budget process offers a window into the tensions between those interests. OMB also is charged with overseeing government operations to ensure program efficiency and effectiveness. Thus, its relationship with federal departments and agencies provides a real-world case of clashing demands for open and accessible government and efficient processes that lead to effective programs more broadly defined. OMB’s oversight of agency programs points up the tension between designing new and innovative policies that likely require new investment and implementing current programs efficiently, as well as funding new programs within established fiscal targets. Finally , OMB’s position within the executive branch—career staff working closely with high-level political appointees within the president’s executive office—brings it face to face with the tension between serving a political agenda and providing analytical and neutral advice that is based on technical merits. We expect the tensions that arise in democratic systems to be balanced against one another. Specifically, we expect that special interests will have a voice, but not at the expense of the public interest. We expect that political processes will be open, but not to the extent that deliberation paralyzes policymaking. We expect that innovative ideas will spring forth, but not to the demise of good management of ongoing programs. And we expect that legitimately chosen political principals will make critical policy decisions, but not without studying the facts and merits of each case. Political processes and government institutions provide the fulcrum on which such competing demands can balance. For its part, OMB offers a kind of counterbalance to the elements of a system that on their face are democratic (responsive, open, innovative, politically legitimate) but if taken too far can undermine the very system they define. Methodology OMB is involved in many varied aspects of the public policymaking process. It coordinates the president’s legislative program (Legislative Reference Division); it reviews regulations and government forms, and it develops government statistical policy and information technology policy (Office of Information and P A R T I I I : A D E M O C R AT I C E X E C U T I V E ? ★★★ 126 ★★★ Regulatory Affairs); it is responsible for financial management policy and guidelines to federal agencies (Office of Federal Financial Management); it develops federal procurement policy (Office of Federal Procurement Policy); and it prepares economic models for making economic and fiscal forecasts (Economic Policy Office). These roles make OMB central to the operations of government. The focus of this examination, however, is on the more commonly known aspect of OMB’s position in the executive branch—budget office to the president. In particular, the focus here is on the budget formulation process, which tends to be dominated by OMB’s resource management offices (RMOs). A focus on RMOs affords a glimpse into the other roles OMB plays because RMOs tend to be involved in most aspects of OMB’s work— mostly because RMO program examiners are supposed to be experts in agency programs and, as a result, tend to be involved in most aspects of their agencies’ operations. In addition , the budget formulation process, in which RMOs are key players, is the most visible and relevant process through which to explore the democratic nature of government . First, its outcomes represent the public policy priorities of the administration that was elected to represent the people; second, the process itself offers public constituencies the opportunity to weigh in on government priorities, at least during certain key phases—most notably the congressional budget process. To delve into the particulars of the budget process and OMB’s place in it, I conducted several interviews with OMB and agency staff members.1 Beyond interview data and some of the scholarly literature that considers OMB’s culture and historical mindset, I also examined several...