Congress is considering a measure that would force federal agencies to work together to make it easier for states, local governments and non-profit organizations to apply for government grants.
The measure would require agencies to develop common application forms for related grant programs, develop governmentwide standards and digitize federal assistance procedures through the use of the Internet. State government representatives voiced their support for the measure and decried the way the federal government currently administers grants at a hearing of the House Government Reform and Oversight Committee Subcommittee on Government Management, Information and Technology on Thursday.
"Most agencies still require grantees to repeatedly provide basic data with each new grant application that has already been supplied many times," said James Martin, legislative counsel for the National Governors' Association.
William Kilmartin, comptroller of Massachusetts, testified on the complexities of dealing with widely varying rules and numerous federal financial systems.
"States participating in federal grant programs are often subject to different rules and procedures dependent upon which federal agency is administering the program. We recognize that each program is different, but administering certain common financial functions such as payment request and disbursement procedures does not have to be different for each federal agency," Kilmartin said. "Typically, a single state must accommodate 10 to 12 federal disbursement systems."
The federal government administers more than 600 grant programs, many of which cover similar services. For example, in 1995, 15 agencies operated 163 employment training programs. While there are a few common standards all grant programs must follow for applications, payments and reporting, Congress has put a wide variety of specific requirements on grant programs over the years, and agencies have created many program-specific procedures of their own.
"Each federal agency has different forms and rules that must be followed by grantees to apply for, and report on, grants received," said Rep. Steve Horn, R-Calif., chairman of the subcommittee. "The result is a maze of overlapping programs. It's difficult for even experienced state, local, tribal and non-profit program administrators to navigate this maze."
Under the 1998 Federal Financial Assistance Management Improvement Act (H.R. 3921 in the House and S. 1642 in the Senate), the Office of Management and Budget would be required to help agencies develop common applications for related grant programs. OMB and agencies would also have to devise uniform reporting requirements for grantees and establish simplified administrative procedures that eliminate the need for grantees to fill out numerous forms asking for similar information. The bill also calls for more electronic application and reporting procedures.
The executive branch would have five years to improve federal assistance programs. The National Academy of Public Administration would review the government's progress four years into the streamlining project.
The Office of Management and Budget said in a statement that the legislation is unnecessary because OMB and agencies are already working on streamlining initiatives. For example, 12 agencies are working on developing an electronic grants program that would span many of their assistance programs.
But members of Congress and the state representatives said OMB is not moving fast enough.
"It's not getting done. Sometimes, it has to be legislation rather than executive order or circular to get it done," Rep. Rob Portman, R-Ohio, a co-sponsor of the bill, said. "The proof is in the pudding."
The Congressional Budget Office has estimated the bill would cost the government $5 million to $10 million over five years. But both Democratic and Republican lawmakers argue that savings will outweigh costs, though they have not forecasted potential savings.
"The federal government has created hundreds of different taps through which assistance flows, and communities, programs and families must run from tap to tap with a bucket to get the help they need," said Rep. Steny Hoyer, D-Md., a cosponsor of the bill. "Local, state and federal governments will ultimately save significant sums through this bill."
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