Program Highlights

The Census Bureau mission is to serve as the leading source of quality data about the nation’s people and economy.

The Congress has directed that the Census Bureau be one of the key agencies in the development of an information infrastructure for the nation. To fulfill this mandate, the Census Bureau implements a wide range of programs that can be divided into two broad areas – demographic and economic. Some programs report information on a monthly, quarterly, or annual basis, while others, such as the decennial and economic censuses, have longer life cycles. The Census Bureau must continually maintain and improve its infrastructure – geographic, technological, methodological, and human capital – to support the high quality of these surveys and censuses and to disseminate their results.

The Census Bureau’s FY 2005 - 2009 strategic goals:

1. Meet the needs of policy makers, businesses and non-profit organizations, and the public for current measures of the U.S. population, economy and governments;
2. Support the economic and political foundations of the U.S. by producing benchmark measures of the economy and population for the administration and equitable funding of federal, state, and local programs;
3. Meet constitutional and legislative mandates by implementing a re-engineered 2010 Census that is cost-effective, provides more timely data, improves coverage accuracy, and reduces operational risk; and
4. Support innovation, promote data use, minimize respondent burden, respect individual privacy, and ensure confidentiality.

The Census Bureau’s FY 2005 budget request is the result of a review of both ongoing and cyclical programs necessary to achieve these four goals.

Summary of Cyclical Program Changes

In support of strategic goals two and three, we plan to continue our cyclical programs which set the benchmark for critical national data. These include the economic census and the census

of governments, conducted every five years. The cyclical programs also include the Decennial Census of Population and Housing which will, in FY 2005, continue the deliberate, gradual ramp up to the re-engineered 2010 Census. While Census 2000 was an operational and data quality success, it was conducted with high cost and at great operational risk. We must re-engineer the 2010 Census such that it is cost-effective, provides more timely data, improves coverage accuracy, and reduces operational risk.

Following the decennial census, the cyclical demographic surveys sample redesign program develops the new samples necessary to maintain the high quality of ongoing demographic surveys. Resource requirements for this activity peak in FY 2003 and begin decreasing in FY 2004.

Support for the Census Bureau’s goals is provided in the following cyclical program changes:

• Conduct the economic census ($9.5 million reduction) – Strategic goal #2

• FY 2005 is the final year in the six-year 2002 census cycle and the first year of the six-year 2007 census cycle
• Release all 1,027 data products by the end of the fiscal year
• Begin planning for 2007 census by carefully evaluating 2002 census content, processing and products.
• Fund the Women-Owned Business part of the Survey of Business Owners that was funded by the Small Business Administration prior to FY 2003

• Conduct the census of governments ($1.3 million reduction) – Strategic goal #2

• Fiscal year 2005 is the first year of the 2007 Census of Governments five-year cycle
• Begin planning for the 2007 census by carefully evaluating 2002 census content, processing and products

• Re-engineer the 2010 Decennial Census to be more efficient and cost-effective, improve population coverage, provide timely and relevant data, and reduce risk in meeting constitutional and legislative mandates ($174.7 million increase) – Strategic goal #3

• Conduct the first full year American Community Survey (ACS) program as fully implemented in FY 2004
• Continue improving the Master Address File and the associated geographic database (MAF/TIGER)
• Continue the early design and planning process
• Evaluate results of the 2004 Census Test and other critical testing and development activities
• Conduct the National Content Test and prepare for the FY 2006 Census Test

• Continue implementing the new samples from the 2000 demographic surveys sample redesign program ($1.2 million reduction) – Strategic goal #2

• Conduct sample control activities
• Continue enhancing/modifying new automated systems and procedures to collect necessary information for the surveys
• Implement newly designed samples based on Census 2000 information

Summary of Initiatives

In addition to these cyclical changes in activity, the Census Bureau is requesting funding in FY 2005 to launch new program-specific initiatives that will significantly improve the breadth and quality of the information it collects and provides to the country.

The Census Bureau has carefully identified major segments of the economy and population that are not sufficiently measured at present. These data gaps force policy and other decisions to be made based on insufficient information. A relatively modest investment will yield tremendous gains in understanding complex interactions affecting millions of people and jobs. These gains will result in more informed decision making and better allocation of resources nationwide.

The initiatives that support our performance goals include:

• Improved measurement of services ($4.0 million increase) - Strategic goal #1
• Measuring migration across U.S. borders ($1.2 million increase) – Strategic goal #2
• Electronic government ($3.3 million increase) - Strategic goal #1
• Improve quality and accelerate release of trade statistics ($10.4 million increase) - Strategic goal #1

The initiatives will be addressed under the appropriate program areas.

Demographic Programs

The FY 2005 request for budget authority for current demographic statistics is $60.8 million (788 FTE); for intercensal demographic estimates $11.0 million (97 FTE); for demographic surveys sample redesign $12.1 million (47 FTE); and 2010 Decennial Census $433.2 million (4,022 FTE). Anticipated funding for the Survey of Program Dynamics is $10.0 million (119 FTE). The Medicare, Medicaid and State Children’s Health Insurance Program Act (P.L. 106-113) appropriated $10.0 million (171 FTE) to produce statistically reliable state data on the number of low income children who do not have health insurance coverage.

Current Demographic Statistics Programs

Each year, the Census Bureau collects and disseminates a vast array of demographic information on diverse topics such as income and poverty, health, crime victimization, housing, voting, consumer expenditures, travel, families and child care.
The current demographic statistics surveys and analysis work includes:

• Current Population Survey, which focuses on employment, unemployment, income and related characteristics;
• Methods Development Survey, which develops improved ways of conducting surveys to assure that they are cost- effective, accurate, and up-to-date; and
• Survey of Income and Program Participation, which provides a major source of information on the economic well-being of Americans. This survey follows a cohort of sample persons over a 3- 4 year period to provide detailed changes in income, poverty, health insurance coverage, and participation in and eligibility for social programs.

Non-Decennial Periodic Demographic Statistics Programs

The periodic demographic surveys sample redesign activity updates the samples for the major recurring household surveys to reflect the latest Decennial Census data. This is particularly important because America has a mobile population and complex socio-economic environment. This activity is jointly funded by the major federal statistical agencies. The requested level of funding is necessary to continue implementing the new samples – enabling the Census Bureau to continue the seven major ongoing household surveys at a quality and reliability level demanded by data users.

Between decennial censuses, decision-makers rely on the intercensal demographic estimates program for annual
population estimates for states, counties, cities, and towns.
These estimates are the basis for the distribution of nearly $200 billion in federal funds, as controls for a variety of federally sponsored surveys, as denominators for vital statistics and other health and economic indicators and for a variety of federal, state, and private program planning needs. In FY 2003, the intercensal estimates program began an initiative to fill an important data gap in measurement of migration across U.S. borders. This initiative will continue with a FY 2005 increase of $1.2 million.

Mandatory Programs

The Census Bureau anticipates funding of $10.0 million in FY 2005 for the Survey of Program Dynamics (SPD). This survey provides policy makers with cost-effective and relevant socioeconomic data to evaluate the effects of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. The program collects data on a national random sample of the population with special emphasis on low income families and recipients of assistance under State programs. Current funding for the program expires March 31, 2004. Pending legislation would re-authorize this program and provide funding for FY 2004-2008.

With the mandatory appropriation of $10.0 million in FY 2005, the Census Bureau will produce statistically reliable State data on the number of low-income children who do not have health insurance coverage for the State Children’s Health Insurance Program (SCHIP). The SCHIP is used to allocate funds to states based on statistics from an enhanced Annual Demographic Supplement to the Current Population Survey.

Decennial Census

Census 2000 was an operational and data quality success. However, it was conducted with high cost and at great operational risk. Therefore, the goal of the 2010 Census is to meet the constitutional and legislative mandates by implementing a re-engineered plan for the 2010 Census that reduces operational risks, improves accuracy, provides more relevant data, and contains cost.

To reach this goal, the Census Bureau has developed a plan with three highly integrated and complementary components. The first component is continuous American Community Survey (ACS) operations to collect long form data on an ongoing basis rather than once-a-decade – this will provide greatly improved long form data and simplify the 2010 short form operation. The second component is modernizing and enhancing the geographic database and address list system called “MAF/TIGER” – this will result in a more accurate and efficient census. The third component is establishment of an early design and planning process to test major elements of a simplified, streamlined “short form only” census. These three components form the basis for re-engineering the 2010 Census.

In FY 2005, 2010 Decennial Census activities will include: the American Community Survey program as fully implemented in FY 2004 and expanded to cover Puerto Rico and group quarters; having corrected the accuracy of map feature locations in 48% of all counties in the U.S., Puerto Rico, and island areas; evaluating the results of the 2004 Census Test; conducting the National Content Test; and planning, acquisitions and preliminary operations for the 2006 Field Test.

Reimbursable Programs

The Census Bureau also conducts work on a reimbursable funding basis for other federal agencies, such as the collection of labor force and consumer expenditure data for the Bureau of Labor Statistics, data on experience of crime for the Department of Justice, education data for the Department of Education, health measures for the Department of Health and Human Services, and housing data for the Department of Housing and Urban Development.

Economic Programs

The FY 2005 request for budget authority for current economic statistics is $155.9 million (1,510 FTE); for the economic censuses, $68.3 million (494 FTE); and $5.2 million (49 FTE) for the census of governments.

Current Economic Statistics Programs

More than 100 annual, quarterly, and monthly surveys carry forward key national economic statistics on a current basis — including business, construction, manufacturing, federal expenditures, and general economic statistics. The Census Bureau’s merchandise trade program provides the closely watched trade numbers. Federal agencies, like the Federal Reserve Board and the Bureau of Economic Analysis (BEA) are major users of the data. These data also are used to develop the Gross Domestic Product (GDP), production indexes, and Congressional economic projections. Also, these data allow users to: gauge the competition; calculate market share; locate business markets; locate distributors; design sales territories; prepare operating ratios; and analyze changes in the nation's economic structure.

In FY 2005, the Census Bureau requests $4.0 million for the Improved Measurement of Services initiative. This request builds upon the foundation laid by new surveys and improved source data provided by the FY 2003 services initiative. It will provide BEA with new key source data on the service sector needed to improve critical quarterly and annual estimates of our nation’s GDP. This initiative will expand annual coverage of service industries, increase coverage of the new quarterly principal economic indicator of service industry activity, and provide annual merchandise line data for selected retail and wholesale trade industries. This expansion provides a comprehensive framework for gathering information on services and improves the periodicity and detail of service sector statistics.

The $3.3 million increase for the E-Government initiative will enable the Census Bureau to respond to business demands for e-government services by permitting businesses to file electronically in any one of almost 100 current economic surveys. This initiative provides new tools for collecting data and improving data quality. The Census Bureau expects electronic reporting to increase response rates in our principal economic indicators and estimates that we can reduce the annual business-reporting burden by at least 5 percent or 50,000 hours starting in FY 2006, with an additional 5 percent reduction through FY 2008. Finally, the Census Bureau requests a $10.4 million increase to improve the quality and accelerate the release of trade statistics.

Periodic Economic Statistics Programs

The United States Code mandates that the Census Bureau conduct the economic census and the census of governments every five years. The economic census provides decision makers with comprehensive, detailed, and authoritative facts about the structure and functioning of the U.S. economy. These censuses are the foundation of the nation's economic statistics programs, providing core information on virtually all non-farm businesses and related data on business expenditures, commodity flows, minority and women-owned businesses, characteristics of the nation’s trucking inventory, and other topics.

Practically all major government economic reports depend on information from the economic census for accuracy and coverage. These are critical to the Bureau of Economic Analysis’ estimates of GDP and industry inputs and outputs. The Bureau of Labor Statistics, Federal Reserve Board, Department of Energy, and other agencies also rely on these data. The economic census are also used extensively by national, corporate, and local decision makers to assess past performance and shape future plans.

Fiscal year 2005 is the last year in the six-year 2002 Economic Census funding cycle and the first year of the six-year 2007 Economic Census cycle. The FY 2005 request will provide for dissemination of all 1,027 census products; an accelerated release schedule to support Bureau of Economic Analysis’ plans to significantly improve the timeliness of the Input-Output benchmark; a 20 percent increase in economic census data products; funding for the Women-Owned Business part of the Survey of Business Owners that was funded by the Small Business Administration prior to FY 2003; and planning activities related to design and content of the forms for the 2007 Economic Census.

The census of governments provides periodic benchmark data on public finance and employment; local government organization, powers and activities; and related subjects such as state and local financial relationships.

Fiscal year 2005 is the first year in the five-year cycle of the 2007 Census of Governments. FY 2005 funding will allow the Census Bureau to evaluate past efforts, consider new directions in conjunction with users, start developing revised procedures and standards, review activities with data users, and assess the relative importance of the census of governments information.

Geographic Support

The FY 2005 request for budget authority for geographic support is $41.4 million (384 FTE). The funding requested in this subactivity will maintain the existing antiquated system. The funds for enhancing the system are requested in the 2010 Decennial Census subactivity. The Census Bureau has developed an integrated computer based Geographic Support System (GSS). The GSS requires large volumes of information from many external sources to establish and maintain accurate geographic boundaries, address ranges, and other map information. These data are stored in an address list and associated geographic database. This information must be updated on a periodic and regular basis to meet the needs of the economic census, the current demographic statistics program, and the intercensal demographic estimates program.

Technological Innovation

The FY 2005 request for budget authority for Electronic Information Collection (EIC) is $6.6 million (21 FTE); data processing systems, $30.4 million (0 FTE); and for survey development and data services $3.7 million (46 FTE).

The innovative work funded by the EIC subactivity will allow the Census Bureau to explore new data collection and processing tools and applications, improve our business processes through the use of workflow technology for survey and census operations, explore the use of knowledge management strategies and tools, and research and test other improvements such as pen-based machines, wireless, and voice/speech recognition for data collection in an effort to control costs and improve the timeliness of the Census Bureau’s data.

The data processing systems subactivity funds the hardware, software, and systems engineering services supporting the Census Bureau’s enterprise needs. Economies of scale are achieved through centralized information technology contracts and services in accordance with Department of Commerce guidelines and a comprehensive Information Technology Plan.

The survey development and data services subactivity provides basic statistical volumes and guides to sources of statistics and conducts necessary research into survey design and estimation, time series analysis, error reduction, privacy protection, and special experimental and evaluation studies. These activities continually improve the Census Bureau’s survey and census activities.

SUMMARY OF RESOURCES

The following summary provides a comparison between the FY 2004 Estimate and the FY 2005 Estimate
(Dollars in thousands)