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2014-0342-F [ ] Monday, April 27, 2015 FOIA Marker This is not a textual record. This FOIA Marker indicates that material has been removed during FOIA processing by George W. Bush Presidential Library staff. Council of Economic Advisers Hubbard, R. Glenn - Subject Files Location or NARA Number: FRC ID: OA Number: Stack: Row: Sect.: Shelf: Pos.: Hollinger ID: W 30 13 5 1 5648 18583 1403 1551 Folder Title: Office of Management and Budget [1] Memo to the Record Date: 05/23/2017 Collection: Council of Economic Advisers Series: Hubbard, R. Glenn - Subject Files Folder Title: Office of Management and Budget [1] RE: Mid-Session Review, Budget of the United States Government, Fiscal Year 2003 A copy of the report entitled "Mid-Session Review, Budget of the United States Government, Fiscal Year 2003" is included at this location in this folder. It was not scanned. It can be viewed athttps://www.gpo.gov/fdsys/pkg/BUDGET-2003-MSR/pdf/BUDGET-2003-MSR.pdf.Ifthis link is broken, please contact the George W. Bush Presidential Library archives for additional information regarding this item. Memo to the Record Date: 05/23/2017 Collection: Council of Economic Advisers Series: Hubbard, R. Glenn - Subject Files Folder Title: Office of Management and Budget [1] RE: Mid-Session Review, Budget of the United States Government, Fiscal Year 2003 A copy of the report entitled "Mid-Session Review, Budget of the United States Government, Fiscal Year 2003" is included at this location in this folder. It was not scanned. It can be viewed at https://www.gpo.gov/fdsys/pkg/BUDGET-2003-MSR/pdf/BUDGET-2003-MSR.pdf-Ifthia link is broken, please contact the George W. Bush Presidential Library archives for additional information regarding this item. EXECUTIVE OFFICE OF THE PRESIDENT STATE SECUTIVE UNITED OFFICE 1 PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 July 16, 2002 M-02-10 MEMORANDUM FOR HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES FROM: Director Mitchell E. Daniels, Jr. mooy SUBJECT: Program Performance Assessments for the FY 2004 Budget Improving programs by focusing on results is an integral component of the President's budget and performance integration initiative. OMB's April 24, 2002 FY 2004 Budget planning memorandum emphasized the importance of program effectiveness ratings in formulating the FY 2004 Budget. It informed you that formal effectiveness ratings would be conducted for approximately 20 percent of Federal programs, and that the results of these ratings would be published in the FY 2004 Budget. Since then, and with valuable assistance from agency staff, we have progressed in this effort. For instance, OMB and agencies have identified the programs that will be rated for FY 2004 (see Attachment). Programs listed total approximately $480 billion, or over 24 percent of Federal spending, and reflect a diverse mix of discretionary and mandatory programs. Thank you for your serious commitment to this effort and for helping develop this list. A critical goal for the FY 2004 Budget is to improve the program rating process by making ratings more consistent, objective, credible and transparent than they were for FY 2003. To this end, OMB, with advice from the President's Management Council's (PMC) subgroup on Budget and Performance Integration, developed the draft program assessment rating tool (PART). On May 17, 2002, the draft PART and instructions were officially provided to agencies through the PMC. The PART was thoroughly tested by OMB and agency staff during OMB's Spring Review process. We also received excellent feedback from agencies, informal comments from Congressional and General Accounting Office staff, and advice from outside experts, including OMB's Performance Measurement Advisory Council of experts from outside the government. As a result, we have concluded that the PART is a useful and informative instrument that will help us achieve our objective for FY 2004. The comments we received also identified improvements that could be made to the PART. In response to these comments we have revised the PART. PARTs for all program types, and revised guidance, can be found at http://www.whitehouse.gov/omb/budintegration The revised PART will be used by OMB, working closely with agency staff, to complete program effectiveness assessments for the FY 2004 Budget by September 30, 2002. I have asked my staff to complete the PARTs by September 9, 2002, so that any issues regarding completed PARTs can be addressed by September 30. Major Changes in Final PART The revised PART includes the following major changes from the draft PART: Four point scale in Section IV, Results - We received many comments on the "Yes/No" format for responses. Many parties liked the certainty and forced choice of "Yes/No." Others felt the format did not reveal adequate distinction between the performance of various programs, especially in the results section. In response, the PART has been revised to include four choices of responses in the results section (Section IV) only. Now, a program that achieves some of its goals, or that shows reasonable, but not complete progress toward goals, will receive partial credit in the results section, the most heavily weighted section. For Sections I - III, which focus more on processes than results, the "Yes/No" format is retained. Questions Added in Sections II and III for corrective actions - Many parties commented that the draft PART does not distinguish between programs that were taking action to address planning and management deficiencies, and those that were not. While the PART is primarily a snapshot of the current status of programs, it is important to recognize when significant efforts are underway to address deficiencies in a program. The revised PART contains new questions in sections II and III to address this issue. These new questions, combined with the new format for section IV described above, will result in more refined and meaningful distinctions between programs. Better focus on performance and performance measures - The PART format for Section IV has also been revised to explicitly require display of performance targets and actual performance on the key measures identified by the agencies and OMB. Guidance has also been revised to require that at least one of the key measures identified for the program be an efficiency measure. Critical Federal Role question to be examined separately from the PART - We received comments that question 3 in the Section I of the draft PART ("Is the Federal role critical?") was too subjective and could vary depending on philosophical or political viewpoints. We also received many comments that this question is so important that it should not only be retained, but be elevated in importance in the overall score. To keep the PART as objective as possible, this question has been eliminated, and the remaining questions in Section I have been adjusted to focus on objective, evidence-based criteria about program purpose and program design. The appropriateness of the Federal Role in addressing national interests, problems or needs will be specifically examined during OMB's Fall Budget Reviews, but will not 2 be included in the PART. The new PART includes additional revisions to specific questions in response to comments we received. In general, we have tried to reduce the number of questions, especially in Section III, without losing important information. Subjectivity of PART Responses During the PART testing and comment period, the issue of the subjectivity of PART responses, either on the part of OMB or agency staff, was raised repeatedly. While subjectivity can be minimized, it can never be completely eliminated regardless of the method or tool. In providing advice to OMB Directors, OMB staff have always exercised professional judgment with some degree of subjectivity. That will not change. As one of our Advisory Council members stated, the PART makes public and transparent the questions OMB asks in advance of making judgments, and opens up any subjectivity in that process for discussion and debate. The PART is a necessary step forward in systematizing and revealing OMB's deliberations. Nonetheless, we are taking several steps to minimize subjectivity: Clarified Guidance - We have strengthened and clarified the PART instructions including the evidence required to support a "Yes" or "No" answer, with the specific goal of reducing the subjectivity of responses. Revised guidance can be found at http://www.whitehouse.gov/omb/budintegration. Training - OMB's Performance Evaluation Team (PET) will conduct training over the next several weeks for OMB examiners and agency staff aimed at achieving consistency of approaches and standards applied in answering questions. Additional information is available through your OMB RMO contact. Review of Completed PARTs for Consistency - OMB will initiate a process to selectively review questions on completed PARTs for consistency in application of instructions and standards. We will provide additional information on this process at a later time. Potential Involvement of IGs, GAO or other third parties in the assessment - We have met with the Inspector General community, the General Accounting Office, and other groups with expertise in program evaluation. All of these groups expressed interest not only in the process, but also in assisting OMB and agencies in completing the assessments. Knowledgeable third parties can help identify relevant information for consideration in the assessments. In addition, third parties can provide an objective viewpoint if disputes arise in considering PART questions. We will continue to discuss with these groups how they can most effectively participate in this process, including providing some level of independent review. I encourage all agencies to make the PART assessment process as open and inclusive as feasible. 3 Finalizing PARTs As with many other aspects of the budget development process, disagreements between OMB and agency staff may remain after staff work on the PART is complete, and after a technical review for consistency. In these cases, agencies and OMB should resolve disagreements in the traditional manner, i.e., first through OMB branch chief and division director, and then through the OMB Program Associate Director. As noted above, all issues, questions and disagreements must be resolved and finalized by September 30. Presentation of PART Results in the FY 2004 Budget Final decisions have not yet been made regarding presentation of PART results in the FY 2004 Budget. We received good advice from the Performance Measurement Advisory Council (PMAC) on making sure the presentation highlights separately the results score and key measures. We also believe sections I - III scores should be displayed in some fashion, and an overall assessment (e.g., "effective" or "ineffective") will be shown. One outstanding question is if or how to show the overall weighted numeric PART score for the program. Since this score will determine the overall assessment, we will almost certainly make the score and the basis for it (i.e., the completed PART) available to the public. The PMAC will discuss presentation options further at their September meeting. Relationship to GPRA Agencies expend considerable time and effort developing and updating their Government Performance and Results Act (GPRA) plans and reports on an annual basis. The program assessment effort presents an opportunity to inform and improve agency GPRA plans and reports, and establish a meaningful, systematic link between GPRA and the budget process. This effort will also help identify specific performance measures that could support budget and management recommendations and efforts. Through this process, OMB will work with agencies to maintain measures in GPRA materials that are useful and eliminate reporting burdens that have no utility. How Ratings Will Be Used Finally, many agencies expressed concern over how the ratings would be used during the Fall Budget Review, and specifically that a low PART score would automatically result in a funding reduction. OMB does not view the PART as an automated approach to making budget decisions. A low PART score does not, in itself, signify whether a program needs more or less funding. The PART provides a tool for diagnosing how programs can be improved and it is from such diagnosis, as well as other information regarding the program, that budget and management decisions will be made. FY 2004 decisions will be fundamentally grounded in program performance, but will also continue to be based on a variety of other factors, including policy objectives and priorities of the Administration, and economic and programmatic trends. Attachment 4 Attachment Programs to be Assessed for FY 2004* CABINET AGENCIES: Department of Education, continued Department of Agriculture Safe and Drug Free Schools State Grants Multifamily Housing Direct Loans and Rental Assistance Grants Vocational Rehabilitation State Grants Rural Utilities Service Electric Loan Program (Not including TRIO Student Support Services Hardship loans) TRIO Upward Bound Wildland Fire Management Selected ESEA Programs Food Aid Programs (including P.L. 480 Title) All IDEA Programs Marketing Loans and Loan Deficiency Payments All Vocational and Adult Education Programs Farmland Protection Program Projects with Industry (PWI) Wildlife Habitat Improvement Program Student Loan Programs USDA Service Centers (FSA, NRCS, and RD, also includes CCE) Pell Grants Food Safety and Inspection Service (FSIS) Student Aid Administration APHIS: Agic. Quarantine and Inspection GEAR UP APHIS: Animal Welfare Leveraging Education Assistance Partnerships (LEAP) Water and Wastewater Grants Assessment & Statistics Forest Service Operating Program National School Lunch Program Department of Energy Environmental Management (EM) Department of Commerce Weatherization Assistance Program U.S. Patent Trademark Office-Patents Office of Science EDA-Patents All applied R&D: National Weather Service -Fossil Energy U.S. Patent Trademark Office-Trademarks -Energy Efficiency NIST-In-house Labs -Nuclear Energy Bureau of Economic Analysis -EM Pacific Coastal Salmon Recovery Grants National Nuclear Security Administration (NNSA): National Marine Fisheries Service Safeguards and Security Minority Business Development Agency Facilities and Infrastructure ASCI Department of Defense MPC&A NOTE: This is the original program list. It will be modified pending Power Marketing Administrations: discussions between OMB and DoD -Bonneville Power Administration Defense Environmental Restoration Program (DERP) -Southeastern Power Administration Defense Health Programs (DHP) including Milpers and Construction -Southwestern Power Administration C-17 Strategic Airlift Aircraft -Western Area Power Administration Navy Marine Corps Intranet (NMCI) -Falcon and Amistad Operating and Maintenance Fund Recruiting Introductory Pilot Training Department of Health and Human Services Facilities Sustainment, Restoration, Modernization & Demolition FDA Center for Biologics Evaluation and Research - (O&M) FDA Center for Food Safety and Applied Nutrition Depot Level Maintenance FDA Center for Drug Evaluation and Research Energy Conservation Improvement Program (ECIP) FDA Center for Devices and Radiological Health F-22 Fighter Aircraft FDA Center for Veterinary Medicine Unmanned Combat Aerial Vehicles HRSA Health Centers DDG-51 Destroyer HRSA Ryan White F/A-18 E/F Navy Fighter/Attack Aircraft HRSA Health Professions LPD-17 Amphibious Ship HRSA National Health Services Corps Joint Strike Fighter (JSF) HRSA Nursing Loan Repayment Space-Based Infra-Red (SBIRS) High Missile Warning Satellite HRSA Maternal Child Health (MCH) Block Grant Ballistic Missile Defense System - Midcourse IHS Federally-Administered Activities Chemical Demilitarization IHS Sanitation Facilities Future Combat System CDC Immunizations Interim Armored Vehicle (IAV) CDC Domestic HIV/AIDS Prevention V-22 Tilt Rotor Aircraft CDC Chronic Disease Breast and Cervical Cancer Basic Research CDC Chronic Disease - Diabetes Housing Privatization NIH Overall Cooperative Threat Reduction (CTR) SAMHSA Grants to States for the Homeless SAMHSA Children's Mental Health Services Department of Education SAMHSA Substance Abuse Treatment Programs of Regional Even Start and National Significance *This is a near-final list of programs to be assessed for FY 2004. Some programs may change as OMB and agencies continue discussions. 1 Department of Health and Human Services, continued Department of State and other related agencies, continued AHRQ Surveys (Medical Expenditure Panel Surveys, Healthcare Security Assistance to Sub-Saharan Africa Cost and Utilization Program, Consumer Assessment of Health Remainder of PKO (includes OSCE Peacekeeping) Plans) Antiterrorism Assistance AHRQ Translating Research into Practice Security Construction CMS State Children's Health Insurance Program (SCHIP) New NATO and NATO Aspirants ACF Head Start Refugees-Resettlement and Placement in U.S. and Israel ACF Foster Care Public Diplomacy to South Asia and Near:East Asia ACF Refugee and Entrant Assistance Border Security AoA Congregate Meals Program Health Care Fraud and Abuse Control (HCFAC) Program International Assistance Programs BioT: Health Alert Network (to all States) (and related activities in Treasury Technical Assistance FY03) International Development Association BioT: Metropolitan Medical Response System (contracts to USAID Development Assistance - Environment statutorily selected cities) USAID Development Assistance - Population Programs Export Import Bank - Long-Term Guarantees Department of Housing and Urban Development Overseas Private Investment Corporation - Finance Programs Housing Vouchers (Section 8 Tenant-Based Rental Assistance) P.L. 480 Title II Food Aid Section 8 Project-Based Rental Assistance Elderly Housing Grants Department of Transportation Disabled Housing Grants FAA Airport Improvement Program HOME FHWA Highway Infrastructure Native American Housing Grant USCG Search and Rescue USCG Drug Interdiction Department of the Interior USCG Aids to Navigation DOI Wildland Firefighting NHTSA Highway Safety Programs BIA School Construction FMCSA Highway Safety BIA School Operations BLM restoration activities Department of the Treasury BOR Hydropower Program IRS Collection BOR Rural Water Supply Projects Federal Law Enforcement Training Center BOR Title XVI Water Reuse and Recycling Earned Income Tax Credit (EITC) Compliance FWS Hatcheries Office of Foreign Assets Control (OFAC) FWS Partners Program ATF Consumer Product Safety Activities (Inspection and licensing MMS Environmental Studies Program processing) NPS deferred maintenance backlog Coin Production (Mint) NPS Natural Resource Challenge Bank Enterprise Award (BEA) OSM Abandoned Mine Land Program Office of the Comptroller of the Currency (OCC) - Bank Supervision OST Tribal land consolidation Office of Thrift Supervision - Thrift Supervision USGS National Mapping Program Department of Veterans Affairs Department of Justice Burial Bureau of Prisons (S&E) Medical Care Drug Enforcement Administration (S&E) Compensation OJP Residential Substance Abuse Treatment FBI Cybercrime INDEPENDENT AND OTHER AGENCIES: FBI White Collar Crime INS Immigration Services Corps of Engineers (Civil Works) OJP Weed and Seed Inland Waterways Navigation OJP Drug Courts Hydropower Office of Juvenile Justice and Delinquency Prevention Flood Damage Reduction Juvenile Accountability Block Grants Wetlands (non-regulatory) Emergency Management Department of Labor Trade Adjustment Assistance (TAA) Corporation for National and Community Service Occupational Safety and Health Administration (OSHA) AmeriCorps Bureau of Labor Statistics (BLS) Office of Federal Contract Compliance Programs (OFCCP) Consumer Product Safety Commission Dislocated Worker Assistance: State Formula Grants Consumer Product Safety Commission Youth Activities Federal Employees' Compensation Act (FECA) Environmental Protection Agency Pension and Welfare Benefits Administration (PWBA) Leaking Underground Storage Tanks Program ILAB Technical Assistance Grants (Child Labor and Core Labor Air Toxics Program Standards grants) Nonpoint Source Program Superfund Removal Program Department of State and other related agencies Drinking Water State Revolving Fund State Dept. - Refugee Admissions to the U.S. Pesticides Freedom Support Act Assistance to Russia Chemical Programs *This is a near-final list of programs to be assessed for FY 2004. Some programs may change as OMB and agencies continue discussions. 2 Environmental Protection Agency, continued Tribal General Assistance Civil Enforcement Pollution Prevention Research Federal Emergency Management Agency Hazard Mitigation Grant Program Disaster Relief Fund - Public Assistance Program National Flood Insurance Program General Services Administration Asset Management of Federally-owned Real Property Vehicle Acquisition & Leasing Supply Depots & Special Order Program Multiple Award Schedules Program National Aeronautics and Space Administration Space Station Mars Exploration Program Space Shuttle Space Launch Initiative Earth Science Technology National Science Foundation Core Research Nanoscale Science and Engineering PreK-12 Education Information Technology Research Major Research Equipment and Facility Construction Major Facility Operations Polar Programs Office of the Comptroller of the Currency Bank Supervision Office of National Drug Control Policy High Intensity Drug Trafficking Area (HIDTA) program Youth Anti-Drug Media Campaign Office of Personnel Management Federal Employees' Group Life Insurance (FEGLI) Retirement Office of Thrift Supervision Thrift Supervision Small Business Administration Business Information Centers (BICs) Service Corps of Retired Executives (SCORE) Small Business Development Centers (SBDCs) Section 504 Certified Development Corporation Guaranteed Loan Program Social Security Administration Supplemental Security Income for the Aged Disability Insurance Tennessee Valley Authority TVA Power Program TVA Non-power Program *This is a near-final list of programs to be assessed for FY 2004. Some programs may change as OMB and agencies continue discussions. 3