DHS seeks shift in funds to cover Federal Protective Service shortfall

Senate appropriators and Homeland Security Department officials plan to meet Thursday to discuss a department request to shift more than $42 million in funds to address a budget shortfall at the Federal Protective Service.

Late payments from agencies that reimburse FPS for its building protection services, an undersized staff and financial mismanagement are to blame for the gap in the agency's budget, and the subsequent June 30 request to reprogram funds from other accounts within DHS, an agency management source said. The requested shift would draw funds from areas including explosives detection and detention of illegal immigrants.

In a June 30 letter to Sen. Robert Byrd, D-W.Va., ranking member of the subcommittee handling homeland security appropriations, DHS Acting Management Undersecretary Scott Charbo said the transfer was necessary because of "the structural transition of FPS from the General Services Administration," its former parent agency, to the Immigration and Customs Enforcement bureau within DHS, and "financial management issues."

FPS is an "accounts receivable" agency, meaning it provides services for which other federal entities must reimburse it. The agency, which provides security for federal buildings from courts to administrative offices, has seen contracts for security workers grow from 4,000 before Sept. 11 to more than 15,000 today, the management source said.

At the same time, FPS has fewer than 1,500 employees in more than 50 locations, said the source, making it nearly impossible for the staff to follow up on the larger contract workload.

FPS also lacks sufficient enforcement abilities for accounts past due. It is required to provide security at federal buildings, the source said, even if clients are behind on payments. "A lot of agencies" are behind on their bills, he added, and FPS is considering scaling back security patrols for chronically tardy bill payers.

"No money, no service … that's how it's going to be," the source said. "We're going to just have to shut down service."

The source added that so far, no agency has had its security removed as a result of failure to pay bills. Some, however, might see the number of uniformed guards decreasing if FPS' notifications continue to go ignored, he said.

Dean Smith, a spokesman for ICE said, "ICE has been able to demonstrate that the funding structure FPS inherited from [GSA] does not fully cover the costs of FPS," and ICE and DHS are "working aggressively" to fix the agency's problems.

ICE would not comment on any issues surrounding agencies' and courts' failure to pay bills for FPS in a timely manner.

Byrd expressed frustration at DHS' request to rearrange funds to meet FPS' shortfall. "There is another example of the rob-Peter-to-pay-Paul approach that the administration takes to securing our homeland," he said. He instead advocated that the agency increase its fees for the services it provides.

Neither chamber has acted on the reprogramming request.