[House Hearing, 110 Congress] [From the U.S. Government Publishing Office] PASSING THE BATON: PREPARING FOR THE PRESIDENTIAL TRANSITION ======================================================================= HEARING before the SUBCOMMITTEE ON GOVERNMENT MANAGEMENT, ORGANIZATION, AND PROCUREMENT of the COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED TENTH CONGRESS SECOND SESSION __________ SEPTEMBER 24, 2008 __________ Serial No. 110-154 __________ Printed for the use of the Committee on Oversight and Government Reform Available via the World Wide Web: http://www.gpoaccess.gov/congress/ index.html http://www.oversight.house.gov U.S. GOVERNMENT PRINTING OFFICE 49-494 WASHINGTON : 2009 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HENRY A. WAXMAN, California, Chairman EDOLPHUS TOWNS, New York TOM DAVIS, Virginia PAUL E. KANJORSKI, Pennsylvania DAN BURTON, Indiana CAROLYN B. MALONEY, New York CHRISTOPHER SHAYS, Connecticut ELIJAH E. CUMMINGS, Maryland JOHN M. McHUGH, New York DENNIS J. KUCINICH, Ohio JOHN L. MICA, Florida DANNY K. DAVIS, Illinois MARK E. SOUDER, Indiana JOHN F. TIERNEY, Massachusetts TODD RUSSELL PLATTS, Pennsylvania WM. LACY CLAY, Missouri CHRIS CANNON, Utah DIANE E. WATSON, California JOHN J. DUNCAN, Jr., Tennessee STEPHEN F. LYNCH, Massachusetts MICHAEL R. TURNER, Ohio BRIAN HIGGINS, New York DARRELL E. ISSA, California JOHN A. YARMUTH, Kentucky KENNY MARCHANT, Texas BRUCE L. BRALEY, Iowa LYNN A. WESTMORELAND, Georgia ELEANOR HOLMES NORTON, District of PATRICK T. McHENRY, North Carolina Columbia VIRGINIA FOXX, North Carolina BETTY McCOLLUM, Minnesota BRIAN P. BILBRAY, California JIM COOPER, Tennessee BILL SALI, Idaho CHRIS VAN HOLLEN, Maryland JIM JORDAN, Ohio PAUL W. HODES, New Hampshire CHRISTOPHER S. MURPHY, Connecticut JOHN P. SARBANES, Maryland PETER WELCH, Vermont JACKIE SPEIER, California Phil Schiliro, Chief of Staff Phil Barnett, Staff Director Earley Green, Chief Clerk David Marin, Minority Staff Director Subcommittee on Government Management, Organization, and Procurement EDOLPHUS TOWNS, New York, Chairman PAUL E. KANJORSKI, Pennsylvania BRIAN P. BILBRAY, California CHRISTOPHER S. MURPHY, Connecticut TODD RUSSELL PLATTS, Pennsylvania, PETER WELCH, Vermont JOHN J. DUNCAN, Jr., Tennessee CAROLYN B. MALONEY, New York Michael McCarthy, Staff Director C O N T E N T S ---------- Page Hearing held on September 24, 2008............................... 1 Statement of: Johnson, Clay, Deputy Director for Management, Office of Management and Budget; Gene L. Dodaro, Acting Comptroller General of the United States, Government Accountability Office; and Gail Lovelace, Chief Human Capital Officer, General Services Administration............................ 6 Dodaro, Gene L........................................... 20 Johnson, Clay............................................ 6 Lovelace, Gail........................................... 48 Kumar, Martha, professor, Department of Political Science, Towson University; Doris Hausser, panel member for the Department of Homeland Security President Transition Study, the National Academy of Public Administration; Don Kettl, professor, FELS Institute of Government, University of Pennsylvania; and Patricia McGinnis, president and CEO, the Council for Excellence in Government....................... 68 Hausser, Doris........................................... 77 Kettl, Don............................................... 249 Kumar, Martha............................................ 68 McGinnis, Patricia....................................... 214 Letters, statements, etc., submitted for the record by: Dodaro, Gene L., Acting Comptroller General of the United States, Government Accountability Office, prepared statement of............................................... 22 Hausser, Doris, panel member for the Department of Homeland Security President Transition Study, the National Academy of Public Administration: Prepared statement of.................................... 208 Report entitled, ``Addressing the 2009 Presidential Transition at the Department of Homeland Security,''... 78 Johnson, Clay, Deputy Director for Management, Office of Management and Budget, prepared statement of............... 8 Kettl, Don, professor, FELS Institute of Government, University of Pennsylvania, prepared statement of.......... 251 Kumar, Martha, professor, Department of Political Science, Towson University, prepared statement of................... 72 Lovelace, Gail, Chief Human Capital Officer, General Services Administration, prepared statement of...................... 50 McGinnis, Patricia, president and CEO, the Council for Excellence in Government, prepared statement of............ 217 Towns, Hon. Edolphus, a Representative in Congress from the State of New York, prepared statement of................... 3 PASSING THE BATON: PREPARING FOR THE PRESIDENTIAL TRANSITION ---------- WEDNESDAY, SEPTEMBER 24, 2008 House of Representatives, Subcommittee on Government Management, Organization, and Procurement, Committee on Oversight and Government Reform, Washington, DC. The subcommittee met, pursuant to notice, at 2:16 p.m., in room 2247, Rayburn House Office Building, Hon. Edolphus Towns (chairman of the subcommittee) presiding. Present: Representatives Towns, Bilbray, and Platts. Staff present: Mike McCarthy, staff director; Jason Powell, counsel; Bill Jusino, professional staff member; Robert Burdsal, detailee; Kwane Drabo, clerk; and Mark Marin, minority professional staff member. Mr. Towns. The committee will come to order. Welcome to today's oversight hearing on the upcoming Presidential transition. Today we will examine a huge management challenge that we face between now and January 20: the Presidential transition. Last month, we watched our U.S. track athletes compete in the Olympics in Beijing. You may remember that both the men's and women's sprint relays didn't even make the finals, because they dropped the baton passing from one runner to another. It showed us that as talented and as hard-working as those athletes are, without working together, all may be lost. I hope the current administration and the new administration keep this example in mind and make sure that the hand-off of government is not fumbled or dropped. I will be candid with you. I want Barack Obama to be the next President. That's on the side. I know my friend Congressman Bilbray wants John McCain to be the next President. But that is not what today's hearing is about. It is about making sure that the government isn't in limbo for any period of time, because the challenges we face will not take a break while things are getting organized. This transition will have unique challenges. Much has changed since the last transition 8 years ago. Congress is working on a plan that would give the Secretary of the Treasury a huge amount of additional authority, $700 billion--that's ``b'' as in boy--to bail out Wall Street and to fix the largest financial failure we have seen since the Great Depression. I'm skeptical about this plan, but it is clear that the next President and his Treasury Secretary are going to have to clean up this mess. The candidates have to start working on that right away--right now, by following the situation closely and by finding the most qualified person possible to be the Treasury secretary on January 20. It might even be a good idea for each candidate's economic advisers to sit in on discussions with Federal Reserve Chairman Bernanke and Secretary Paulson to make sure that they will be completely ready to take the lead next year. That isn't presumptuous. It's good leadership. Another concern I have is a problem that has come up before, where political appointees seek career positions to ``burrow into'' the executive branch. These career positions are supposed to be open to the public. They are based on merit. If a political appointee is the person most qualified for the position, then so be it. But we will not allow members of the current administration to use their position to get jobs they do not deserve and stick around into the next administration. I would like to thank Ranking Member Bilbray, who has been working very closely with me over the years on so many issues in terms of this committee. I look forward to hearing from our witnesses who can tell us a lot about what exactly needs to happen in the next few months for the most effective transition possible. [The prepared statement of Hon. Edolphus Towns follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Towns. Of course, what I would like to do now is to swear in the witnesses. We always swear in our witnesses here. [Witnesses sworn.] Mr. Towns. Let the record reflect that all the witnesses answered in the affirmative. You may be seated. Let me introduce our witnesses. Mr. Clay Johnson is Deputy Director of Management with the Office of Management and Budget. Welcome. He was the Executive Director of the 2000 Presidential transition and has a lot of experience with transitions. Mr. Gene Dodaro is the Acting Comptroller General of the United States and the head of the Government Accountability Office, Congress' investigative and auditing agency. We welcome you as well. And Ms. Gail Lovelace is the Chief Human Capital Officer of the General Services Administration, the Federal Government's main support agency and is leading GSA's transition planning. We welcome you, as well. I would ask the witnesses to summarize their testimony in 5 minutes. The procedure is when you start out the light is on green; and when it gets to the final minute, it becomes yellow, caution; and then at the end it's red. Red means stop. Now, we have had some witnesses here that did not know what red meant. So why don't we start with you, Mr. Johnson. STATEMENTS OF CLAY JOHNSON, DEPUTY DIRECTOR FOR MANAGEMENT, OFFICE OF MANAGEMENT AND BUDGET; GENE L. DODARO, ACTING COMPTROLLER GENERAL OF THE UNITED STATES, GOVERNMENT ACCOUNTABILITY OFFICE; AND GAIL LOVELACE, CHIEF HUMAN CAPITAL OFFICER, GENERAL SERVICES ADMINISTRATION STATEMENT OF CLAY JOHNSON Mr. Johnson. Thank you, Mr. Chairman. Thank you for holding this hearing. Let me just make a few brief remarks here at the beginning. A lot of effort is being expended, a lot of intelligence being applied to make sure that the things you are concerned about don't happen. There are really two related transition preparation activities going on. One of them involves the White House; and they are working with both candidates, the transition teams, to do everything we know how to do to prepare, to advise both candidates to do the work they need to do now and then during the transition to put their team on the field faster than anybody previously thought possible. Neither candidate is pretending like they aren't prepared to govern. They understand they need to be working on it now, and my understanding is that they are working diligently on it. And the White House is reaching out and working equally with both candidates, which I think might be a first, that the incoming--I mean, that the outgoing administration is working with both candidates of the major parties. The second thing which Gail Lovelace and I are involved in heading up is we want--this is working with agencies to ensure that the continuity of public services during the transition is consistent as if there is no transfer of leadership taking place. Our definition of success is that a customer of Labor or a citizen dealing with Homeland Security, whatever, should not recognize or should not be getting any different level of service during the transition than they had when all the political leaders were there in the previous administration and when all the political leaders will be there in the new administration. So we had, for instance, a 3, 2\1/2\ hour meeting today with the career, senior transition leads for every agency. I'm sure it's the first of what will be many meetings to talk about our goals, answer questions, plan on future activities, be really specific about the kind of input they need and so forth. With that goal in mind and that services will not be interrupted, the solution for that for the Treasury Department is going to be different than the solution to that for Homeland Security, which is going to be different for the solution for that for the Department of Agriculture. But the goal remains the same, which is if we're implementing some new program run by the Treasury Department, we needed to find this fall what that involves, what the outgoing and incoming administrations need to do aggressively and intelligently with each other and that the necessary preparation is made and the necessary interaction during the transition period takes place and that no balls are dropped, no baton is dropped. I'm highly confident that's going to happen, because I have every reason to believe that both candidates' transition activities are very results oriented. They know how serious this is. They know how the risk of dropping the baton during the transition is very real. And I know this outgoing administration from firsthand experience is equally results oriented and committed to doing this. So I'm highly confident that this baton is going to get passed. And, again, the way it gets passed successfully, Treasury, Homeland Security, whatever, it's going to be different, but it will get passed, as we say, seamlessly so it will not be even noticed by the customer. So, with that, thank you again for having the hearing; and I look forward to your questions. Mr. Towns. Thank you, Mr. Johnson. [The prepared statement of Mr. Johnson follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Towns. Mr. Dodaro. STATEMENT OF GENE L. DODARO Mr. Dodaro. Thank you, Mr. Chairman. Good afternoon to you, Congressman Bilbray, Congressman Platts. I'm pleased to be here to talk about GAO's efforts and plans to assist the upcoming transitions. As you well know, GAO has a long tradition and experience in providing assistance to each new Congress, and we have efforts under way to do that for the 111th Congress. But GAO is also cited in the Presidential Transition Act specifically as a reference, a source that new administrations are encouraged to come to to learn about their upcoming management challenges and risk as they make the leap from campaigning to governing. Now, our transition work has several key objectives. One, we want to provide insight into pressing national issues that the incoming administration will need to deal with from day one. These include the oversight of financial markets and institutions, a range of national security and homeland security areas to include U.S. efforts in Iraq and Afghanistan. Second, we want to underscore the range of challenges that a new administration will face in establishing partnerships with State and local governments, nonprofits, the private sector to deal with issues that need innovative, integrated solutions, such as financing our Nation's surface transportation system. We saw examples of that this year in shortfalls in the highway trust fund activities. Also, critical infrastructure protection, a national response plan and other issues. Third, we want to point out targeted opportunities to reduce waste and to conserve resources that could be applied to new priorities. There is over $55 billion in improper payments that are being made in a range of Federal programs. The Defense Department weapons systems have had cost overruns of our last estimate of $295 billion. There's a $290 billion tax gap. These are all areas where I think there are opportunities; and we're certainly, given the long-term fiscal outlook of the Federal Government and some of the pressing short-term needs, are going to need attention and could free up resources to help in some of these other areas. Fourth, there is a real capacity challenge in all the departments and agencies that's really going to need to be met and if not confronted directly is going to affect implementation of any policy initiatives a new administration will try to put in place. They are going to need to pick senior leaders as part of the management team. They have experience running large enterprises and achieving results across the Federal Government. The Federal Government has become more dependent on contractors, and it's very important to get a handle quickly on the contracts that are under way and also to build the capacity to better oversee and manage those contractors going forward. Also, one-third of the Federal Government's work force will be eligible to retire on this next administration's watch, so there's a succession planning challenge there as well as getting the new team to be implemented going forward. Last, we also believe it's very important for the new administration to build on some of the successes and efforts that have been established by Clay Johnson, OMB, and this administration on the high-risk programs and lists that GAO lists every year for the Congress that are in need of transformation and are fraud, waste, abuse and mismanagement. GAO's high-risk list, which we update with every new Congress, has really provided the foundation for the management improvement agendas of both the recent Bush administration and the Clinton administration before then; and we think that some solid foundations have been laid to make progress and that we think it's very important for that progress to continue to yield results. In closing, Mr. Chairman, with two wars ongoing, with a first transition for the new Department of Homeland Security, with turmoil in our financial markets, this is shaping up to be no ordinary transition effort; and GAO stands ready to help returning policymakers as well as new ones deal with all the challenges facing our Federal Government. So I will be happy to answer questions later. Mr. Towns. Thank you very much for your testimony. [The prepared statement of Mr. Dodaro follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Towns. Ms. Lovelace. STATEMENT OF GAIL LOVELACE Ms. Lovelace. Good afternoon, Chairman Towns, Congressman Bilbray and Congressman Platts. Thank you for the opportunity to appear before you on behalf of the General Services Administration. Presidential transition is the top priority for GSA as stated by our Acting Administrator, Mr. Jim Williams, during his confirmation hearing. Jim has made it quite clear to all of us at GSA that we will be and are fully committed to a successful and smooth transition from the current administration to the next. I believe that the transition is an exciting time for us in the government. I'm honored to be able to play a role in ensuring a smooth transition as envisioned by Presidential Transition Act of 1963. At GSA, we deliver superior workplaces, quality acquisition services, and expert business solutions to our Federal customers. Our responsibility during Presidential transition is to provide many of those same services to the President-elect, Vice President-elect and members of the Presidential transition team. We started early and have good teams in place. We have secured space in Washington, DC, for the Presidential transition team and are currently well positioned to provide furniture, parking, office equipment, supplies, telecommunications, mail management, travel, financial management, vehicles, information technology, human resources management, contracting, and other logistical support as necessary and appropriate. We are partnering with the Secret Service and the Federal Protective Service, both part of the Department of Homeland Security, as they provide security for the President-elect and Vice President-elect. We recognize that a transition can be perceived as a time of vulnerability for our country, and we have identified alternate locations and workplace solutions for the Presidential transition team in the event of an emergency. GSA provides space, services and logistical support to the Presidential Inaugural Committee and the teams that plan and stage the various events that make up the Presidential inauguration. GSA provides similar logistical support services to President Bush and to Vice President Cheney to help them establish their offices when they depart the White House. GSA assists in establishing the former President's office, as we do for all former Presidents. The Presidential Transition Act of 2000 expanded our role in transitions specifically in two areas: We now prepare a transition directory in conjunction with the National Archives and Records Administration, and we assist the incoming administration with appointee orientation. The President's fiscal year 2009 budget requested $8.5 million to support Presidential transition. In the event of a continuing resolution, GSA will need to make sure that funds are available for obligation by the incoming administration. This will require a special provision in the continuing resolution. Looking inside Federal agencies, I've had the pleasure of meeting with many agencies individually and in groups to explain GSA's unique role with them and to share some ideas about getting ready. We've created a special Web site, a section on our Web site, to share information about transition. As Clay mentioned, just this morning we held a meeting with agency transition directors. This session reinforced transition guidance that was recently issued by the executive office of the President. Like all other agencies, GSA is diligently working to ensure a smooth transition within our agency. We have created teams and empowered them to ensure that we have a successful transition as well. As an agency, I believe we are well positioned to do our part to ensure a smooth transition. In closing, Chairman Towns and members of the subcommittee, I would like to thank you for the opportunity to address you this afternoon; and I would be happy to answer any questions. Mr. Towns. Thank you very much. [The prepared statement of Ms. Lovelace follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Towns. Let me thank all of you for your testimony. I'd just like to deviate for a moment and allow opening statements. Ranking Member Mr. Bilbray. Mr. Bilbray. Thank you, Mr. Chairman. I appreciate it, and I will ask unanimous consent to introduce a written statement in my opening statement. Mr. Towns. Without objection, so ordered. Mr. Bilbray. And, let me just paraphrase. As somebody who has done transitions in many different ways, from when I was a young mayor in my 20's to chairman of a county of 3 million, the transition from one administration to the other is very important; and I think sometimes we forget that there's a trust and a responsibility given to us by the voters in every administration, be it a Member of Congress, be it some--a long- haired mayor in a beach community or if it be a chairman of a county of--larger than 20 States in the Union. The responsibility does not end when someone else is elected. The responsibility continues to the last moment when the baton is passed, as this hearing has pointed out. We are an example, Mr. Chairman, of how not to do it; and I will say that regardless of my party affiliation. I think everybody agrees that if we really look back at what happened 8 years ago, that is an example of how not to have a transition, when we saw the kind of abuses and the problems we had with the White House. There was equipment--questions about where it went, damage, records missing, and everything else. And, I say that with no happy heart. I just remember this happening; and it was a time that I was doing transition and turning over my office to another Member of Congress, a new Member of Congress. This is personal for me. I've had the displeasure of taking over an office from a Member of Congress who basically used the last days of her administrative--her time in office to trash everything so that it was the worst possible, in violation of the oath of serving and protecting the people under the guidance of the Constitution. And, one of things I said to my staff when I lost the election in 2000 was we're going to do just the opposite of our predecessors. We're going to show our predecessor exactly how somebody is responsible. And I hope, I hope, that is the kind of attitude that this administration takes in the transition, of setting an example of how it should be done. Because, to be very blunt, I think we've had an example of how it shouldn't be done; and, hopefully, that will be a challenge that Republicans and Democrats can work together in this next transition. So I appreciate the chance to be here today, Mr. Chairman. Mr. Towns. Thank you very much. I now yield to Congressman Platts. Mr. Platts. Thank you, Mr. Chairman. I have no opening statement other than to thank the witnesses for being here but, most importantly, for the work you're doing to ensure we do have that type of transition that the ranking member just discussed. Thank you. Mr. Towns. Thank you very much. Let me begin with the questions. Let me start with you, Ms. Lovelace. What services do you believe will be the most important for the incoming administration? Ms. Lovelace. As we work with both campaigns, we're working through to make sure that we are providing them all of the services that they need so that when they walk through the door, hopefully, the day after election, they are ready to begin their work immediately. So I believe it is the whole suite of services that we provide. The IT, of course, will be important. The furniture--I mean, it sounds rather trivial, but ensuring that they have everything they need as they walk through the door. I think it's the whole suite of services that we provide that will be credible. Mr. Towns. Mr. Johnson, let me go to you with the same question. Mr. Johnson. I agree with what Gail says. The transition is such an intense time that if the environment is something you don't notice, if it's just there, the things you need, the space, the lights, the paper, the computers, the phones or whatever are there, then you can deal with the intensity and deal with what you've been planning to deal with without being distracted by no lights, no air conditioning, whatever. And so, it's that everything works but yet you don't pay attention to the fact that it works because you're so focused on everything else. I think that's probably the definition of success for GSA, and I'll bet you they'll do a good job of it. Mr. Towns. Right. Let me ask, now, these political appointees, as it comes to the end, they now take jobs in an administration. Is anybody looking at this? Because, I'm concerned about it. Because, I think that if a person is highly qualified and it should be based on merits, rather than political ties or political connections for the next administration to have to deal with. Is anybody looking at this? Because, it happens all the time. Mr. Johnson. Yes, sir. I think it was in June or July that then the head of OPM, Linda Springer, put out some very comprehensive guidance on transition-related personnel matters; and one of them was the potential that you raised of political appointees burrowing in. So, what she defined is all the transition-related matters that the chief human capital community has to deal with, and so defined it very clearly, what's permitted, what's not, what laws allow, what laws don't allow. And so, the chief human capital community is intently focusing on getting the Federal Government to adhere and abide by those policies, just like the CFO Council is working on what their transition-related challenges are and the CIO Council and so forth. So, it's been raised as an issue, as something that's particularly sensitive during a transition; and it's something that's going to be actively managed. So, yes, people are paying attention to it. Mr. Towns. Mr. Dodaro. Mr. Dodaro. Mr. Chairman, if I might add, GAO, as it has been for the past 20 years during transitions, asked to monitor this conversion process across the Federal Government's activity. So we have efforts under way to do this. During the 2001-2005 timeframe when we last looked at this, there were about 130 positions that we questioned--we reviewed that--where transitions had occurred. About 18 we had some questions, and we referred them all to OPM. They followed up and took appropriate action. So we're on the case again this time at the request of Congress, and we'll be looking at that process as well. Mr. Towns. Mr. Johnson, you offered many general suggestions for what the incoming administration should do to prepare to govern, but what specifically should they do to prepare to take on the financial crisis? Mr. Johnson. Well, I think I--the primary message I tried to deliver in that article, that I was asked to write was you have to have really clear goals about what you want to accomplish in a transition. So my answer is sort of an offshoot of that. If the goal is, as I suggested it should be, that the outgoing administration and the incoming administration manage the transition at Treasury such that the American people, on all that's being debated within Congress now, never---- Mr. Bilbray. Or not debated. Mr. Johnson. Or not debated. Never see--never get a sense that leadership is changing hands. That what needs to be taking place at the Treasury Department, Agriculture Department, Homeland Security, whatever, at the border, whatever, there will be no apparent change in political leadership taking place where the work is being done. So, what I'm confident is going to happen--I don't know what the specific answer is for the Treasury Department, because, first of all, what has to be done hasn't been defined. But I'm confident, as purposeful and results oriented as I understand both candidates are, whoever is elected to be President and this outgoing administration are going to clearly define what it means to be implementing what's been agreed to or not implementing what isn't agreed to and decide who needs to be brought up to what level of expertise and knowledge by what date. And, they'll decide who needs to be sitting in on what meetings and how quickly the--isn't the Secretary of the Treasury the first one that has to be confirmed, etc., and that will all get done. But it will all be driven by the commitment to the goal, which is that the most important things that have to happen in the Federal Government--and the one you talked about will be one of the most important if something is agreed to--is addressed and that the new administration is fully prepared and the outgoing administration is doing all the things they can do to get them up to speed, prepared to take that baton and pass-- not drop it. Mr. Towns. Right. I yield to the ranking member, Mr. Bilbray. Thank you. Mr. Bilbray. Let's keep on my ranting and raving and say this: What are we doing to try to avoid the problem we had 8 years ago and what can we do with the executive basically going in transition? Is it something that we're going to need law enforcement into, of watching, and basically try to warn administrative members that they will be held accountable, if we have another incident like this where equipment, files, data, and everything else, the kind of abuses we've seen in the past? Do we have the ability to be proactive here and say, don't even think about it? Mr. Johnson. Yes, sir. I think, again starting with the goal, a seamless transition, no baton is dropped, the new administration comes in prepared, a new White House comes in prepared to begin to be effective and govern day one. Then what happens is the facilities people sit down and the communications people sit down and the mail delivery people sit down and say, what does that mean for them? And, that means those offices are spick and span, the computers are working, there is no trash, this, that or so forth, and so then they're held accountable. And, I know how this White House is run, and I know that will be the way this is managed. The keys being missing from some of the computers and the screens and initials being carved, that did occur. It was not ubiquitous. It was a handful of people, very--I bet very junior people. It was not systematic. It was--for the people whose offices were affected, it was a nuisance, but it was not a widespread phenomenon as reported in the paper. I wish it hadn't happened. I'll bet you those that were the perpetrators wish it hadn't happened. Now that they're 8 years older, I bet you they don't look fondly back on those days. But I have, again, every reason to believe that this administration is going to make sure that the definition of success for the outgoing administration is going to be made really clear. Mr. Bilbray. Well, I think we've just got to recognize that there are two sides of passion, and one is a passion for the people you work for or whatever. And, when elections don't work out the way you want, those can turn very negative. And, that's one of the threats you've got in there. And, you really do have an environment where passions can run very high, especially when elections don't turn out the way you want. And so, you basically think that it was a small enough problem that we don't have to really make a proactive---- Mr. Johnson. Well, yes. I don't think it's--we have to respond to make sure that occurrence doesn't reoccur. I just know that, in general, this administration, from the facilities people to the--whatever, are going to have--to make sure that all the environmental things, the computers, the phone equipment, the spaces and so forth will be spick and span, clean, ready to go, just like Gail is planning on having it be the case at the transition offices. Mr. Bilbray. Mr. Johnson, we need to do it now while people are cool and calm, because elections can--once the emotions start flying, all the systems and logic go aside and you end up with that kind of situation. Mr. Johnson. Right. One of the two deputy chiefs of staff's primary job is transition and particularly how the executive office, the President, does its--performs its role during the transition. So, facilities being prepared for the next administration is a primary responsibility of this person and is the primary thing that this deputy chief of staff in the White House is focusing on. Ms. Lovelace. And, if I could add to that, we are working very closely with the people Clay is talking about at the White House, to make sure that everything is in alignment. We are ready to make sure that, just as we are preparing for the Presidential transition team coming in to make sure we're supporting them through the logistical support and facilities management of the White House complex to make sure that there aren't any issues. We've had many meetings on this topic and will continue to do that to make sure that there aren't any issues. Mr. Bilbray. Ms. Lovelace, if I was a manager on this staff, I'd be telling my staffers, look, if the election doesn't work out the way we want, you're going to have people coming here looking for things to blame on you, looking for it. So, you've got to make sure everything is taken care of, because they're going to be looking at stuff to be able to drag you over the carpet on. Ms. Lovelace. And, we work on it every day to try to make sure we don't have those kinds of issues. Mr. Dodaro. And, Congressman Bilbray, we at GAO were asked to go look at the circumstances in the White House during the last transition; and it was--as Clay articulated it--and it was documented along the lines of what he talked about. Now, one of the lessons learned there, though, too, there's a need to keep, you know, better records during this kind of transition process. So I think, while it wasn't a widespread issue, that prudence would dictate that it would be good to have reminders sent out to all the departments and agencies, records be kept appropriate. In case there are instances, then you'd be able to figure it out more efficiently. We had to spend a lot of time trying to reconstruct what either happened or didn't happen during that period of time. But, at end of the day, it wasn't a pervasive issue. It was very unfortunate, but I think reminders sent out among the executive branch to the key people would be a good idea. Mr. Bilbray. In fact, Mr. Chairman, because of my experience, it's maybe one of the issues that we've got to remember. It's not just the executive branch. It's every Member of Congress that's leaving and a new one coming in. I literally experienced a situation with computers being trashed and data banks being destroyed and a lot of stuff going on. So, it's not just an executive branch problem. This is a legislative problem, too. Mr. Johnson. Somebody was--in our meeting this morning with the career transition director, somebody was telling the story that they'd heard about back in--maybe when Nixon came into office in the White House. And, there was a fellow that was working in the Eisenhower Executive Office Building. So the new person came in, and the outgoing guy who was in charge of the facility had a big ring of about 30 keys and threw him the set of keys and said, ``It's all yours.'' That was the extent of the transition, the hand-off to the incoming administration. And, so our sights are set way higher than that. Mr. Bilbray. Thank you. Mr. Towns. I'm happy to hear it, too. Mr. Bilbray. Pretty ambitious. Mr. Towns. Thank you, Congressman Bilbray. I understand that GSA will manage a budget of $8.5 million to support transition activities. Should any additional funds be necessary, where that would that money come from? Would it come from the winning candidate? Ms. Lovelace. There is the opportunity when the--once there is a President-elect, they are able to continue to get funds from private citizens. There are some rules that are around those funds, and it's our experience that most incoming Presidents actually do get funds during that point in time. And, there are rules around what they can and cannot spend that money on and how much money they can take in. But, yes, there is a source of funding for them, likely. Mr. Towns. So, if your $8.5 million is not enough, you just say, that's it, we're not going to do any more, they now have to assume the responsibility? Ms. Lovelace. Well, we believe that we will manage the $8.5 million effectively so it will take us through the whole point--a period of time between the election and the inaugural. So we will be working with the office of the President-elect to make sure that we are spending that money wisely and making sure that they are getting their priorities taken care of as a result of that money, but they can bring other money in to use during transition period. Mr. Towns. Yes, Mr. Dodaro. Mr. Dodaro. Mr. Chairman, the act allows for contributions up to $5,000, as Ms. Lovelace is pointing out; and those have to be disclosed both at GSA and GAO; and we have potential audit responsibilities over that money as well. However, your main point, though, goes back to the need-- and one of the other things that we're doing during this transition is to try to record lessons learned and identify opportunities for further refinements. Years ago, when the act was first passed in 1963, there was just an amount set. It wasn't indexed for future inflation costs or whatever, and I worked on an effort with the Congress in the past to have that amount indexed. But, we're talking about a government nowadays that's a lot different than the governments that have come before it in terms of the responsibilities and the requirements, and I think in a post-9/11 environment we need to sort of take a look as a Nation as to whether or not Presidential Transition Act is properly funded--well configured enough to allow for these type of transitions going forward. I think the current administration is doing a good job getting things ready, but I think it needs a good examination and lessons learned that can be documented and then reflected on. Mr. Towns. Right, because the last time we didn't have Homeland Security. Mr. Dodaro. Right, exactly. Mr. Towns. So did you look at that in terms of whether that would require extra money to help out in terms of the transition there as well? Ms. Lovelace. Well, with the Department of Homeland Security standing up, I mean, there are some security requirements that we have to meet for the incoming Presidential transition team. We are currently working with both the Secret Service and the Federal Protective Service as well as different members over in the White House to make sure that we are meeting those security requirements. So, whether we'll have enough money to take care of that, we will figure out a way to help manage through that. But, yes, there are some new security requirements. Mr. Johnson. But, if the Department of Homeland Security is scheduling some extra practices or tabletop exercises or whatever, this money does not go to that. This money goes to the President-elect's transition activities; and any moneys that are related to transition that are particular to individual agencies, that's supposed to be in their whatever- fiscal-year-it-is budget. Mr. Towns. But, the question is, is it enough? That's the question. Mr. Johnson. What--the answer is going to be simply you can't do anything about--if their appropriations bills are passed by the beginning of the administration of the new fiscal year, it will be enough money. But, with the likelihood of a CR, there could be some agencies that have to move some money around. Mr. Towns. Mr. Dodaro, you warned that about one-third of the Federal work force will be eligible to retire at the end of 2008. We're going to need to replace them with the most highly qualified people we can find, and we don't pay as well as the private sector, as you know. This is going to be a tough problem for the incoming administration. Do you have any suggestions as to what they might be able to do? Mr. Dodaro. I think the first thing is to focus on the career senior executives in those departments and agencies. Their retirement rates are a lot higher than for the general work force at large, and these are the people that have the institutional experience and are going to be the main interfaces with the political leadership that are going to come in at the departments and agencies. There are retention provisions that could be exercised at those departments, to try to hang on to some of these people a little bit later. There's efforts that could be made to bring back retired individuals who have particular expertise in these areas and waive the disincentive which is built into the system to have their annuity offset by whatever new money they're going to make. I think in some of these extraordinary circumstances that are occurring there ought to be some creative ways to try to both retain some of these very talented career senior executive service personnel. And then, while you're building the cadre of people underneath them, I am very concerned, very concerned about the ability to oversee contractors in this Federal Government in a lot of activities. And, if Treasury's plan is approved the way it is, they're going to be relying heavily on contractors; and they're going to have a big job, a big challenge overseeing those contractors which already would be dealing with very complex financial, you know, transactions, financial portfolios. So--and the number of career executives at the Treasury Department that are eligible to retire currently at the SCS level is almost 40 percent. So, I think this is a really important issue, and the new leadership team coming in really needs to focus on this both to solidify their relationship with the career civil servants and then to be very creative on attracting and retaining talent. And, succession planning has not been as much as it needs to be a priority in this government and having the capacity to govern and oversee these very difficult operations. So those are some of my initial thoughts. Mr. Towns. Mr. Johnson. Mr. Johnson. One thing that agencies--for this very reason, one thing that agencies have been held accountable for is to have succession plans in place and critical skills gaps. If you anticipate 2 years from now, 3 years from now, 4 years from now, where do you anticipate having critical skills gaps, management, technical expertise and so forth? So, every agency is held accountable for having a plan to fill this with--train junior people to take on more senior responsibilities, hire additional people, retain--and retain people who might be retiring otherwise. So, agencies are paying a lot of attention to how they're going to have the number of critically skilled people they need, including management people where they need them and when they need them, and it's not 100 percent perfect. Some agencies aren't where OPM would like them to be or GAO would like them to be, but this has been a specific activity that all Federal agencies have been accountable for. And, the majority of them are in very good shape--in terms of knowing what they're going to do to make sure they've got the right people on the job when they need them. Mr. Towns. Thank you. I yield. Mr. Bilbray. I have no further questions. Mr. Towns. Ms. Lovelace, let me just ask you one very quick question before you go. How is GSA using its lessons learned? In other words, looking back in terms of what has happened--I'm thinking in terms of what my colleague just said--in terms of some of the transitions that he's been involved in. I must admit that I have not had his experiences, but I could imagine what would happen in some transitions. Are you using your lessons learned to be able to deal with what's coming up? Ms. Lovelace. One of the nice things that we've done in GSA for actually the last several transitions is have the Director of Transition write after-action reports. So we have quite detailed reports on every aspect of the logistical support that we provide to the transition teams. So we have pretty significant insight into what happened previously, so that we can share those lessons learned across several changes of administration. We have also tapped into some of the resources who actually worked on previous transitions, so that they are there in support and advisory capacity to us so--you know, you can't put everything on a piece of paper--so they are sharing with us verbally some of their lessons learned and are there as advisors to us, to help make sure we can learn from what happened before and hopefully not make some of the same mistakes. Mr. Towns. Right. Let me just close with this. Mr. Johnson, you've stated that OMB has already distributed transition guidance and goals to the agencies. We understand that you held a big meeting you said this morning, which I think is good. But as we reviewed your guidance, we're pleased to note how you tied the accomplishments of the transition goals directly to the performance appraisal of agencies and, of course, senior executives. Please let us know how that works out. And you also indicated that the agencies will establish their fiscal year 2009 programs and management practice goals in a timely manner to support the transition in an appropriate manner, which is also good. I guess the question is, when will Members of Congress get their notice? Mr. Johnson. When will they get their notice? Mr. Towns. Yes. When will we get the information that you shared with us? Mr. Johnson. You mean about how the transition went? Mr. Towns. Well, when will your goals be made publicly is what I'm saying. Your goals, when they will be made publicly? Mr. Johnson. There was an agency--general guidance to the agencies on July 18th, and that's public. Mr. Towns. It is? Do you have one? Mr. Johnson. I mean, we can distribute it. Mr. Towns. I'd like---- Mr. Johnson. It's a public document. Well, really, it's attached to my testimony; so that makes it public. Mr. Towns. Yes, but I would like to have a copy of it. Mr. Johnson. Fine, sir. Mr. Towns. That would really make it public. Mr. Johnson. OK. I sent you a copy with my testimony, but I will send you another copy. Mr. Towns. OK. Thank you very much. Let me thank all of you for your testimony. And I really feel that, working together, we can bring about a smooth transition. I think that's very, very important; and we all want to see that happen. We don't want to drop the baton, as has been described early on, and just try to make it as smooth as we possibly can. And, I would like to sort of put the GAO study into the record in terms of the Clinton transition. I would like to make that part of the record. So thank you very, very much for your testimony; and I look forward to working with you in the days and months ahead. Mr. Dodaro. Thank you, Mr. Chairman and Congressman Bilbray. Mr. Towns. Will our second panel come forward. I would like to welcome our second panel. As with the first panel, it is our committee policy that all witnesses are sworn in. So please rise and raise your right hands. [Witnesses sworn.] Mr. Towns. Let the record reflect that all the witnesses have answered in the affirmative. You may be seated. Let me welcome all of you here. Our first witness, of course, Dr. Martha Kumar, is a political science professor at Towson University. Her research focuses on the White House; and she is director of the White House Transition Project, a nonpartisan effort by presidency scholars to provide transition information to the incoming administration. Ms. Doris Hausser is an academy fellow with the National Academy of Public Administration. She was a panel member for NAPA recent report on the transition of the Department of Homeland Security, and she retired from the Federal Government last year, as Senior Policy Advisor to the Director of Office of Personnel Management. Welcome. Dr. Don Kettl is the director of the Fels Institute of Government at the University of Pennsylvania. His research is focused on public policy and public administration, and he testified before Congress on management issues many times before. And, we're delighted to have you back again. And, maybe we can keep bringing you until we get it right. Ms. Patricia McGinnis is the president and CEO of the Council for Excellence in Government. Her organization is offering its help to the incoming administration with orientation sessions, briefings on management challenges, and it lists the profiles of the most difficult management jobs in the government. Welcome. Your entire statements will be placed in the record. And as we went through it before, the green light means go. The yellow light means prepare to stop. The red light means stop. As I indicated earlier on, some people get that mixed up. They think the red light means start. So we just want to make certain that we have the rules down pat. So why don't we start with you, Dr. Martha Kumar. STATEMENTS OF MARTHA KUMAR, PROFESSOR, DEPARTMENT OF POLITICAL SCIENCE, TOWSON UNIVERSITY; DORIS HAUSSER, PANEL MEMBER FOR THE DEPARTMENT OF HOMELAND SECURITY PRESIDENT TRANSITION STUDY, THE NATIONAL ACADEMY OF PUBLIC ADMINISTRATION; DON KETTL, PROFESSOR, FELS INSTITUTE OF GOVERNMENT, UNIVERSITY OF PENNSYLVANIA; AND PATRICIA McGINNIS, PRESIDENT AND CEO, THE COUNCIL FOR EXCELLENCE IN GOVERNMENT STATEMENT OF MARTHA KUMAR Ms. Kumar. Thank you very much, Chairman Towns, Congressman Bilbray. Thank you for the opportunity to discuss Presidential transitions and their importance to an effective start of a new administration. It's something in which we all have a stake. With the Nation at war and a fragile economy, a smooth transfer of power is not an option, it's a necessity. One of the points that distinguishes our political system from many others is our history of peaceful transfers of power from one administration to another. And we've experienced orderly transfers but they've been--there's been a difference in how they've played out. A smooth and effective transition comes about only through the work and coordination of many people and institutions in our political system. Mr. Johnson said the administration has as a primary goal to do a better job than it's ever done before to help the new administration prepare to govern. That means a great deal, because the efforts of the President, White House staff, departments and agency staff, contribute mightily to a smooth transition. The work of others in the Washington community is important as well, including the contributions of the Congress. In looking at what kinds of support and priorities seem to be important and have been important in transitions past, there are several. First, a climate of support for transition work by the two candidates. Successful transitions begin early and are viewed as a legitimate aspect of a Presidential campaign. Internally in government there is and has been support throughout the year for the notion of early transition planning. Outside of government, however, there's not been the same supportive climate, particularly in the press. With a Presidential campaign that seemed to have created so much media interest and attention in 2008, there was little interest in looking, on the part of news organizations, in looking at the preparations for holding office. News organizations have published occasional op-ed pieces calling for early transition planning. But, one Washington Post reporter wrote, at the end of July, about the reports that Presidential candidate Barack Obama was assigning transition planning to a team. He suggested perhaps that they create a hubris watch. In reality, by the summer nominating conventions, every President coming into office since President Carter has had a transition operation in place, gathering information on appointments in past transitions. In spring 1999, Clay Johnson began gathering information and names of people to appoint and talk to people from past transitions. In the Reagan years, Pendleton James who worked on appointments began in the spring of 19--in 1980, and coordinated with Ed Meese who was then the chief of staff. That was done well before the Republican Convention. Second, providing funding support that a transition requires. Whoever comes in as President next January faces a difficult situation where the budget is concerned. Living as we are on continuing resolutions rather than a fiscal year 2009 budget, it will be difficult for a President-Elect to prepare for a budget of his own when there's none in place. The incoming President will need to introduce his budget within approximately 3 weeks of coming into office. That will mean, he will need to have his budget officials in place and ready to go shortly after the election. For the transition, the two teams cannot plan at this point on government funding when the $8.52 million transition funds request contained in the fiscal year 2009 budget proposal has not been passed. With--at this point with no funds committed, both the candidates must anticipate creating a fundraising operation capable of raising substantial sums. In the case of the incoming Bush administration, they were able to do that before they were declared the winners, but only because they had planned ahead so early, one of the kinds of priorities that's important here. And third is that White House staff comes first; that a President needs to have an orderly decisionmaking process in place, personnel director, and a counsel who's responsible for vetting and for creating ethics orders very early in the process before they ever select a Cabinet. With around 1,200 administrative positions requiring Senate confirmation, a White House team needs to be in place to establish which of those positions to focus on. Recent experience calls for a new President to choose approximately 100 key positions, as the vetting and confirmation process has not been able to handle many more than that in the first 100 days. With their emphasis on economic issues, the Reagan transition team isolated 87 positions related to the economy and gave priority to filling those. Congress and the administration have made efforts to speed up the national security clearance process for the 2009 transition by allowing clearance of officials to begin after the transition team--after the conventions and by working on the efficiency of the clearance process itself. The candidates, too, have a role here through what they say and what they promise. Candidates have sometimes limited themselves by making promises such as cutting the White House staff by 25 percent, which they then have to live with, and how very difficult and sorry they had ever said. Also, early promises about strong ethics rules have sometimes been a problem as they were in the Clinton administration. And in the end he had to rescind the order, the ethics order that he had. Identifying government resources. There are so many agencies, as we've heard today, that are interested in helping the transition teams early. And there's things that they can work on. Such, for example, a transition team can establish how it's going to capture and maintain its records. Both the Clinton and George W. Bush administrations experienced difficulties with records issues, which are something an incoming administration can avoid by working through with the Archives the capacities of possible record systems, particularly e-mail ones. The current administration could provide a smooth records process by reaching agreement on the status of the records of the Office of Administration in the Executive Office of the President as well as those of the Vice President. Otherwise a new administration will begin with unsettled rules for retaining records in both offices. The executive actions can limit and aid an administration. Many Presidents leave office with a blizzard of executive orders, proclamations and regulations, responding to requests by those in the administration and key constituents. In early May, White House Chief of Staff Joshua Bolten sent out a memorandum to executive branch personnel calling for a principled approach to regulation as we sprint to the finish, and resist the historical tendencies of administrations to increase regulatory activities in their final months. Though diminished, their remaining pressures---- Mr. Towns. Could you summarize? We're going to have a series of votes. Ms. Kumar. In addition, the administration--sitting administration--can help by clearing out political appointees, by firing those that are political appointees so that the next Chief Executive doesn't have to do that, because it's hard when he comes in to do it. So in sum, there are people in place inside and outside of government ready to assist the transfer, and many positive actions have taken place to smooth the transfer. Mr. Towns. Thank you very much. [The prepared statement of Ms. Kumar follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Towns. Ms. Hausser. STATEMENT OF DORIS HAUSSER Ms. Hausser. Thank you, Mr. Chairman. Did that go on? Can you hear me, sir? Mr. Chairman and members of the subcommittee, thank you for inviting the National Academy of Public Administration to testify on the best practices for the 2009 Presidential transition. As an NAPA Fellow, I served as panel member for the Academy's 2008 report that assessed the Department of Homeland Security's executive profile, its transition training, and the Department's plans for the 2009 Presidential transition. Many of the issues and recommendations outlined in that report apply to other departments and agencies as well as DHS, and especially those with national or homeland security responsibilities. The Presidential transition of 2009 is the first major transition since 9/11. As we point out in our report, recent history demonstrates that political transitions present an opportunity for terrorists to take advantage of real or perceived weaknesses in a nation's ability to detect, deter, prevent or respond to attacks. The final report of the 9/11 Commission raised concerns about the impact of future transitions on the government's ability to deal with terrorism. Owing in part to the delayed resolution of the 2000 election, the incoming Bush administration did not have its deputy Cabinet officials in place until spring 2001 or its sub- Cabinet officials in place until that summer. Historically, getting the Presidential team in position has been a slow process. The Commission strongly pushed for changes to the process so that the Nation is not left vulnerable to these types of delays in a post-9/11 world. During the transition, DHS must retain the ability to respond quickly to most man-made and natural disasters. In light of these issues, Congress and DHS asked the Academy to assess DHS's executive profile, study its transition training, and review its plans for the 2009 Presidential transition. Our June report was the result of that request, and I request on behalf of NAPA that it be entered into the record, the full report, as my testimony is limited to this oral statement. [The information referred to follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Hausser. The lessons learned from this work can be applied to other Federal departments and agencies. For example, the Academy panel assessed DHS's allocation of executives between career and political appointees and compared it with other departments. Overall, about 13 percent of DHS executives are political appointees, about average for all Federal departments. The percentage of all executive appointees who are political appointees ranged from 9 percent at the Veterans Administration to 35 percent at the Department of State. But the Academy panel also noted that 30 of the top 54 executive positions, or 56 percent at DHS, are filled by political appointees. Large percentages of other departments' top executives are also political. This includes 49 percent at Treasury, 59 percent at Justice and Defense, and 66 percent at the Department of State. Overall, the Academy panel believes that efforts need to be made to reduce the number of political appointees, specifically in the DHS security and national disaster environment, so that these positions can be filled with career executives who will learn the job over time versus a noncareer appointee with a much shorter tenure. At DHS the Academy panel recommended that noncareer headquarters deputy officials, FEMA regional administrators, and other professionals be career executives. Another part of the Academy's DHS study compared their transition training programs with those of similarly structured Cabinet-level agencies. The Academy panel concluded that DHS's transition training and development efforts are consistent with executive development programs in most Federal agencies, and it has a balanced set of transition-specific training programs underway. If implemented, these should help executives prepare to meet their homeland security responsibilities during transition. DHS is well along with its--in its transition training, especially given that it is a young agency with a critical national mission going through its first Presidential transition. The panel believes other departments could benefit from learning about DHS's transition training. Finally, we looked at their transition planning and the report laid out a series of actions that were tailored to Presidential transition timeframes. Specifically, before the national party conventions, DHS was to have completed, updated, and executed its transition plans, identified key operational executive positions, ensured that training and joint exercises had begun, and filled vacant executive positions. Between the conventions and the elections, consistent with the recommendations of the 9/11 Commission and sense of the Senate provisions, the panel recommended DHS should work with executive branch agencies and Congress to reach out to Presidential candidates to identify potential homeland security transition team members and help them obtain security clearances by Election Day. Between the election and the inauguration, DHS should work with the incoming administration, the executive branch, and Congress to ensure that the new Secretary of Homeland Security is sworn in on Inauguration Day, that key executives are identified and voted on by the Senate as quickly as possible, recognizing that any day a critical position is vacant is a gap in our homeland security coverage and that transition training and joint exercises are provided to executive appointees and nominees. Following Inauguration Day, training of new appointees, nominees, and careerists should continue to build trust and operational performance. Within the first 6 months there should be a capstone scenario exercise to evaluate the effectiveness of transition planning. We want to--are happy to report that in June the DHS appointed retired Coast Guard Admiral John Acton to a full-time transition director who reports directly to the Deputy Under Secretary for Management, and they have completed a comprehensive plan for all facets of transition that focus on particularly critical issues. In addition, they are collaborating with relevant departments within the Federal Government, with State and local governments, and with the private industry. And joint training and exercise opportunities are being actively coordinated. Many of the Academy panel recommendations for DHS do also apply to other Federal departments such as the appointment of a transition director, development of a comprehensive plan, identification of critical noncareer positions and transition training. The report notes that to the greatest extent possible, incoming DHS leadership, including the Secretary and key staff, must be in place on Inauguration Day or shortly thereafter. This will require the support and cooperation of Congress, and certainly Federal agencies with background checks and clearance responsibilities. The Academy panel believes all Federal departments and agencies need to begin immediately to address the issues that are appropriate--that are presented in our DHS report. Mr. Chairman, that concludes my statement. Thank you again for inviting the Academy to this hearing and I would be happy to respond to any questions. Mr. Towns. Thank you very much. [The prepared statement of Ms. Hausser follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Towns. As you know, the bells just sounded, which means that we have votes. How many votes do we have? I would say 10 minutes after the last vote we resume. Mr. Bilbray. I'll try to make it back. At 4 I have---- Mr. Towns. OK. Well, I can't say what time because we have three votes. But as soon as we finish. Mr. Bilbray. As soon as the Chair is back. Mr. Towns. Ten minutes after the last vote we'll be back. OK. So the committee is in recess. [Recess.] Mr. Towns. Ms. McGinnis. STATEMENT OF PATRICIA McGINNIS Ms. McGinnis. There we go. Thank you very much, Mr. Chairman, for inviting me to be part of this discussion. The Council for Excellence in Government, as I'm sure you know, is a nonprofit, nonpartisan organization made up of private sector leaders who work together to improve performance. And we've been involved in--actively in past Presidential transitions in several ways. One, we publish a quadrennial ``prune book.'' I don't know whether you've heard of it it or seen it. It is not the ``plum book,'' which is the list of 7,000 political appointees. But instead we choose a smaller number of prunes, the top appointed tough management jobs. And then we profile them in terms of qualifications and what it takes to succeed. So we say that a prune is a plum, seasoned by experience and wisdom and with a much thicker skin. So the metaphor has sort of taken on a life of its own. We also produce a survivor's guide for Presidential nominees, which helps people navigate the very complicated process and helps those who are reporting about it or overseeing it understand it. And we're taking all of this online this year in an interactive Web resource related to transition. We also have been asked by the George W. Bush White House and the Clinton White House to organize and help with orientation leadership programs for new top Presidential appointees and White House staff. So that has been a privilege to do. And we have worked closely with steering committees in the White House to structure those programs in ways that work best for each President and each administration. But they focused on managing for results and managing in the context of the Federal Government and the Washington context and the national context. This year we were also asked by the Department of Homeland Security and Congress to focus on DHS transition. And we're helping them assure continuity by working first with the acting career officials to make sure they're prepared to respond to a major emergency, and then the transition leaders, and then the new appointees as they come in. So we have thoughts about an effective Presidential transition that I'll share a few with you, and there are more in my testimony. Of course, looking back to the past to see what's worked and what hasn't makes a lot of sense. But this year more than any transition I can think of, it's just as important, maybe more important, to look to the future and the kinds of challenges that we're facing. We know that this is a historic transition. We have Presidential and Vice Presidential candidates, none of whom have worked in the executive branch of the Federal Government before. We're at war. Our economy is facing unprecedented risk. And 83 percent of Americans think that things in our country are off on the wrong track. The public's priorities are understandably the economy, the war in Iraq, health care reform, and terrorism. And those really defined the context for the Presidential campaign. And transition. Campaigns usually focus on ideas and policies and what needs to change. But success in governing depends as much or more on the ability to implement and execute those ideas well. And the same goes for a Presidential transition. So organization and management and results really matter. In my testimony I laid out the key indicators of a successful Presidential transition, and I won't go through them all. But it's really about the quality and experience of the people who are appointed to the leadership roles and, equally important, getting them in place early so that we do have continuity on January 20th or as closely as possible for the Cabinet and the top sub-Cabinet officials. And then, of course, having the White House organized and a decisionmaking process in place, a lot of consultation and outreach with other government officials and stakeholders and the public and being ready to lay out the agenda through the President's Budget, the Inaugural Address, the first address to a joint session of Congress. The things that I want to say in terms of our advice, or to the transition leaders and to the Congress, the transition leaders should take advantage of the provisions in the Intelligence Reform and Terrorism Prevention Act, which allow them to submit--today they could submit 100 names to begin the security clearance process for transition advisors. It's my understanding that very few names have been submitted at this point. And then the day after the election, they can begin to submit names for prospective nominees. The goal should be to have the Cabinet confirmed on January 20th, the White House staff in place. The White House chief of staff should be named as soon after the election as possible. And if you're going to have 50 to 100 sub-Cabinet appointees in key departments like Treasury, Homeland Security, national security agencies, you have to start early with the Cabinet. It probably means that the Cabinet needs to be selected soon after the election in order to have them--or at least the most critical Cabinet members involved in the selection of the sub-Cabinet appointees. The other piece of this puzzle for the executive branch in the Bush administration is to make sure that you can move these clearances and move the appointments process, the nomination process, as rapidly as possible. Clay Johnson has said that they are prepared to have 100 people in place by April 1. And we say that's not good enough. You have to have people in place sooner than that. And the way to do that, given the way the process works--and it has been streamlined and expedited--is to have more investigators. If you can get the Cabinet in place on Inauguration Day, or the week after, with enough investigative capacity you can get 50 or more sub-Cabinet critical appointees in place within 30 days of inauguration. I want to commend Clay Johnson and his work as Deputy Director for Management because I think it really has been outstanding. But again, we think that this should go faster. And if you sort of map out the process, I think we could all figure out how to do that, and expanding the capacity is important. The final piece of the puzzle is that the Senate should be prepared to confirm nominees within a reasonable period of time. The Intelligence Reform and Terrorism Protection Act suggests 30 days. We think that's right. And we have just-- along with the heads of a number of organizations, including the National Academy of Public Administration--sent a letter to both candidates saying that they should not only get their names forwarded but implore their Senate colleagues to agree on a timeframe for considering and approving these--voting on these nominees and perhaps changing the rules about holds to prevent votes and any other process changes that would make sense to try to get those in place before the election and before we have a winner and loser. All of those ingredients together. If the transition teams, the FBI, and OPM investigative capacity is expanded and the confirmation process can go rapidly, I think that we could have a strong team in place and really ensure continuity in this challenging time. Thank you very much. And I look forward to the discussion. Mr. Towns. Thank you very much. [The prepared statement of Ms. McGinnis follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Towns. Mr. Kettl. STATEMENT OF DON KETTL Mr. Kettl. Mr. Chairman, thanks very much, and not only for the opportunity for the chance to testify before the subcommittee today, but also for the subcommittee's leadership in taking on this absolutely critical and important issue. We already knew this was going to be an important transition. We knew that with the issues of homeland security, we're facing challenges unlike any we've seen before. But what we've seen in the last week with the issues of financial security, we now know that we have challenges that are multiplied. We have big problems that emphasize all the more the importance of leadership and that emphasize even more fundamentally the importance of confidence in the system to be able to drive things forward. And that's the most important thing that we can accomplish in the transition that's coming, of creating capacity to ensure both competence and confidence in the American government. The challenges are huge, in part because the problems are so dynamic and changing, in part because the pace at which the decisions are being made is so fast, in part because any decision that we make has implications that spill over internationally, not only within our own hemisphere but around the world. We have institutions that we are in the process of creating, recreating, and transforming in the process. And we have big issues for which there's no clear roadmap. And so it's all the more important that we establish principles to guide our actions instead of running the risk of stumbling through on an ad hoc basis, dealing with one problem as it comes up after the other, which can only serve to undermine the ability of the system to create confidence to begin with. We have homeland security, which is already important. We have financial security, which has become even more important. We have other issues that are out there, including management of the census, the care for our wounded warriors returning from wars in Afghanistan and Iraq. We have a need to try to manage the war in a productive kind of way. And in short, we have a whole set of issues that demand the highest levels of both confidence and competence in our system. Let me suggest five things, Mr. Chairman, that we might be able to do to ensure that the transition gives the American people what it is that they deserve. The first is to make the obvious point that some of the others today have made as well, which is the essential importance of beginning now. And in fact beginning now is already too late. We need to have transition processes in place long before now so that when Election Day comes, the new team is ready to begin that process of transition into executive decisionmaking and responsibility. To even talk about this out loud is so often seen as hubris. But one of the most important things this committee can do and, in fact, that all those who care about this issue can accomplish, is to make it possible and politically safe for people to talk about what it is that needs to happen, because it is is irresponsible not to. One of the things that we are electing is the Chief Executive of the United States, and we need to make sure that the President's in the position to ensure that the laws are faithfully executed. The second thing is fast track confirmation. As many of my colleagues today have talked about, we need to be able to make sure that, first, the new administration is in a position to identify the mission-critical positions; that the security clearances and background checks are done expeditiously; that the Senate confirms them quickly; and that we can get the key people in the key positions ready to act, so that we are not in a position, as we might well have been in in the middle of a financial crisis, without the key people in place, confirmed by the Senate, in the position to exercise legal authority. At this point there is simply no alternative but to ensure that we have fast track confirmation for those key mission-critical positions if we're going to have a government that works. Third thing is preparing the team to lead. We need not only orientation programs for the top political appointees, but we need a kind of rolling process to ensure that as others come onboard after the first 100 days, the first 200 days, given the pace of clearance and the way in which these positions are filled, we need an ongoing orientation program and we need a program on top of that to provide ongoing support. We did a project not too long ago with Danish senior civil servants and Danish political appointees who told us that one of the hardest things that was hardest about their jobs was a sense of loneliness and the lack of support. Having people in a position to provide guidance on some of these key issues is absolutely critical to ensuring that the kind of executive experience we need is in place. This requires, in some cases, a small bit of budget support; but to do otherwise is to risk leaving the country unprepared. Fourth is to build the budget. If the President doesn't have the priorities in place when the new budget's submitted, then in many cases it may be a year and a half until there's another crack at trying to attack those issues. It's absolutely critical that the administration has the capacity in place to make those decisions quickly. Finally, if there's anything that's become clear about this election is it's an election about change. One of the things we have not heard, though, is how the candidates propose to translate that change into results. The new President needs to be in a position quickly to ensure that the rhetoric of change is translated into results that matter; that we need to have a system for management for results. We need, as the Comptroller General suggested earlier, far better contract management and, in particular, an attack on the high-risk programs that especially expose the government to fraud, waste and abuse. And finally, we have a looming human resources crisis that will require continuing effort to make sure that we have in place the people who are equipped to be able to do the jobs that need to be done. In short, Mr. Chairman, we need a government that can not only provide competence but also confidence, and that's why this transition is so absolutely critical. Mr. Towns. Thank you very, very, very much. [The prepared statement of Mr. Kettl follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Towns. There's one thing that sort of went through-- almost every one of you said it, that people must be confirmed quickly. I know Ms. McGinnis indicated 30 days the process should take. Could I get from the rest of you, in terms of time that you think that a person should be confirmed, within how many days? Mr. Kettl. Mr. Chairman, if I could take just a quick stab at that. It would be hard to have an absolute standard for everyone. There are some positions that are most critical. And one of the things that Mr. Johnson has put together is a list of the mission-critical positions, not only the White House staff but also in Cabinet agencies. What we need to do is figure out who needs to be ready to act and decide at noon on January 20th, limit that to perhaps the first 50, maybe even 75 percent, then work backward to figure out what it is we need to do, when to get it done, and then work through the rest of the processes. We just have no alternative but to make sure that we have a financial security team in place on January 20. Some positions are going to take much longer. There are some that we just don't have the luxury of being able to deal with that. And the thing to do is to figure out what it is we need to have done when, and backup to make sure that what we need to do can get done, so that decisions are made and the clearances and the background checks are done in the meantime. Mr. Towns. Time limit? Ms. Kumar. I think if people start putting in--the candidates start putting in names now, which is something that's not been done before--of their transition team people, they can put people on there who they want to have in their administration when they come in. So this is an opportunity that they should take advantage of. And I think that way they'll be able to increase their capacity. And I think Ms. McGinnis's suggestion about increasing the number of people involved in the confirmation--in going through the nominee's background--is a critical way of doing it too. But the candidates themselves are going to have to decide who they're going to focus on, what positions. Like, for example, Reagan, when he knew that the economy was the big issue, and so he chose the 87 positions. He did that--he was able to do that right after the election because they had--they had chosen their chief of staff and they had a team in place that could make--make the choices and start sifting through. Ms. Hausser. Mr. Chairman, I do know that NAPA has supported the 30-day deadline, although I agree with Professor Kettl that probably, it being a hard standard, is a little bit more than we could hope for. But 30 days seems reasonable. There is the need to have the vetting. We know the Senate committees like to do a lot of vetting. And that's--they're taking their role seriously. But I think are committed--a sense of commitment to expeditious confirmation is something we should--they could also commit to. Ms. McGinnis. Could I just add--and I hope you'll have a chance to look at this letter that was signed by the President of the Center for the Study of the Presidency and the National Academy of Sciences, the Partnership for Public Service and the Carnegie Institution for Science, as well as I signed it and other leading scholars. And what we called for was to have the Senate consider and vote on the 50 most critical sub-Cabinet nominees within 30 days of inauguration. And after that, the standard we suggested would be 45 days. I think it's important to set a goal and have a deadline. And that's why we joined with these leaders to suggest that. The process is--it has two parts. It's the nomination process, which the President-Elect in the transition will control, and then the confirmation process. To say that confirmation should happen within 30 days is perfectly reasonable. And the nomination process should be able to be completed within 30 days as well. Mr. Towns. You know, I know that sometimes you have circumstances that can develop and then might slow down the process. But I think that the key here is that we do not do enough up front. I mean, the point is that one of these guys are going to be President of the United States. And of course, I think the process can start, you know, now, because you know--and of course--and by the time the process is over, by the time we find out who the winner is, then we'll be in a position to move forward. I think that we need to try to eliminate this long delay. And, of course, I think that if we do that, then I think that then we would be able to put people in place in a very timely fashion. Ms. Kumar, what do you think is the best way to get ready to address the problem? Should the campaign's economic advisors be briefed before the election, especially during this atmosphere and climate that we have today? They are asking for $700 billion over there. I just left. Ms. Kumar. Yeah. There's certainly--there's a great deal of information that's already out there. And I think the candidates have been working with the White House, and their transition teams have been working with the White House. And I think the White House has tried to be flexible in what it's providing to candidates. So I think if they want certain kinds of information, I think that they'll probably get it. Mr. Towns. Right. You know, my colleague Congressman Bilbray, you know, mentioned something that I think that, you know, that he said that the lower staff members, in terms of people not at the top but down below, that are now being put out, looking for jobs, that could create problems. You know, what could we do to sort of prevent that sort of thing from happening? I mean, he talked about--I mean, he gave some examples of some experiences that he's had at the lower level. But the point is that he felt that we might have it as well at the level in terms of the Presidency. You know, when you have a situation where you run for office and then somebody loses, then the people that's in know now they have to go. And then they begin to create all kinds of problems. And he gave some examples which I thought were interesting. Ms. Kumar. I think that in the end, they didn't turn out to be very big issues. That there weren't as many, you know, w's taken from the computer keyboards and the rest of the things that were--that had been listed early on that had happened in the White House. Most of that, in fact, did not take place. I think the real problem in coming into a White House is not that kind of thing. It's the fact that there's no institutional memory. That if--when you come into the Office of Chief of Staff, one person was telling me when he came into his office as staff secretary, that all he had was a desk, a computer and there was no hard drive. This is in the Clinton administration when they came in. And they had no hard drive, because the courts had ordered that they be taken. The Presidential Records Act provides that everything from a White House goes with the President. So, when somebody comes in, there's no manual of how to do their job. And, there is-- and there are not records left behind except some in the counsel's--and the NSC has records. That's a real problem when somebody comes into the White House. Mr. Towns. How can the Congress help? We see it's a problem. You know, what can we do to be helpful? Right down the line. Ms. McGinnis. I think this is a leadership issue. And so, you know, speaking out and making it a high priority to get excellent people in place and have continuity of leadership on the Senate side; a leadership commitment to expedite the consideration of nominees, particularly the critical top 50 to 100. And overall, we would certainly suggest that in the next Congress, legislation be considered to reform the Presidential appointments process. There's a lot in that process that needs to be changed, and some of it will require legislation. There have been proposals in the past which have not been enacted. And that might be a place to start. But, you know, really look seriously at improving the process and perhaps reducing the number of people who have to be confirmed. We who think about the prune jobs, you know, feel that these top management jobs, people who are running agencies, are really important in terms of accountability and confirmation. But, I'm not sure that every single assistant secretary or other sort of staff function around a secretary needs to go through the whole confirmation process. So overall reform would be my suggestion. Mr. Kettl. Mr. Chairman, let suggest three quick things. One is to echo what Ms. McGinnis said about streamlining the appointments process, some of which will require some legislative action, some of which can simply be done to try to at least ensure that everybody makes a promise not to change the forms in the meantime, so at least there is an ability to be able to note what it is that you've got to supply. Second thing is, relatively modest appropriations to ensure the political appointees in particular have ongoing support through the course of their jobs. We're not talking about very much money, but we're talking about critical money that can make a difference. And the third, and probably most importantly, is attention, like this hearing, to try to make it safe for people to talk about these issues. The overriding--in some ways--terrible fact about this is that it's a problem that insiders know about, but it's very difficult to talk about it publicly on the outside, outside these Chambers, because otherwise candidates are accused of hubris. They're accused of sticking their neck way out. They're accused of celebrating before the game is over. And, it's absolutely irresponsible not to think about how to do the job, if you get it, as the process of trying to convince people that ought to earn it. And, unfortunately it is just impossible to be able to have frank, honest discussions and to be able to use this as a criteria for selecting the President. And, one of the most important things that Congress can do is to make the discussion safe, including discussions like this, and including shining a bright light on the campaigns and asking them what it is that they were doing and what is it they're planning and how they would do the job if they got it. Mr. Towns. Right. Because you're right. Most of the time, they'd feel as if they're being criticized for being presumptuous by taking on transition work. I mean, they were being criticized. So, I was wondering, if maybe in terms of--you know, statements were not made by Members of Congress to say that this process should be moved forward. I think that might be something that needs to be done. Because you know, being a candidate a few times myself, people, you know, you're concerned about the perception or criticism that you might get. And, this is a very serious issue that I think that needs to be dealt with. And, of course, I think that maybe, you know, that's something that we can make statements about. It's an important time to encourage that process to move forward. Mr. Kettl. Congressman, I would even consider making a small appropriation available for transition planning to the candidates, with the requirement that the candidates name a transition director as of July 1st, for example. Just a small amount of money in exchange for at least making it public and therefore making it safe to talk about it might make some difference. Ms. McGinnis. Even a resolution to this effect I think would be enormously helpful. A House resolution, a Senate resolution. It gives a lot of cover to the campaigns who are-- they do have transition planning teams in place, but no director has been publicly announced. And, it's all being done sort of below the radar. And, that is--it's really kind of silly when you think about all the steps that need to be taken even before the election. So a bipartisan resolution or statement would be excellent. Mr. Towns. Right. Ms. Kumar, what do you think we can do right now to help with this? And, what should the transition team be doing at this moment? Ms. Kumar. Well, I think one of the things that's important is the transition budget. They need to have--know how much money they're getting. The problems that are going to result from dealing with continuing resolutions are great because when they--when you do have a winner, they're going to have to deal with a new budget, prepare for a budget 3 weeks after they come in. And here there is no budget in place and they don't have-- the funds, I assume, are going to come forth for the transition. But they have to figure out how much private money that they're going to be raising. I think right now the--in the transition, the transition teams would be focusing on getting--gathering names for appointments and focusing on what are the key issues that the candidates are talking about themselves. One of the reasons that the Reagan and George W. Bush transitions were so effective was that the candidates spoke about five issues. And, so when they came into office, they were able to take their five campaign issues and make their governing issues. So when Bush, for example, came in, he took his five issues and he spent the first week on education. Then he did faith-based initiatives, tax cuts, and went down the list of what he had already talked about. So, one of the things the candidates can do for themselves is focus on just what they're going to do when they're governing. And then that allows their transition teams to focus on bringing people in place for those particular issues. But, we know that national security is crucial, as is financial security. And, those are going to be the areas that they're going to have to focus their efforts on on recruitment. Mr. Towns. Yeah. We have to get SEC, SEC, we have to get FDIC. We have to get all this. And, with the crisis that we have, I mean, we need to make certain that we get some good people. Ms. Kumar. And, there are many vacancies on--a lot of boards are suffering from having vacancies, too. And they have to make sure that they can fill those on crucial--spots that are crucial to those issues. Mr. Towns. Right. I guess, Ms. Hausser, what's preventing the implementation of the rest of the NAPA recommendations? What's stopping it? Ms. Hausser. I don't know that I can say that they're stopped. I think there's--until the appointment of Admiral Acton, I think there was some inertia; that his appointment has really changed things in terms of their focusing. And with respect to some of the executive appointment recommendations, they're making progress. That, by its nature, is a process that you have to go into thoughtfully. Although it can be expedited and should be expedited, it still is--making crucial appointment decisions is--especially at this time in an administration--is its own challenge. I think there is a renewed--particularly since the appointment of the Admiral--there's a renewed focus on the transition and making sure the training is taking place. That had a little bit of a slow start, but now efforts are panning out. And, there--I think there's been an acceleration in momentum. So, given where their things were in June with respect to our making recommendations that things happened, of the first 12 recommendations, at least 10 are completed to some degree. So it's coming along. And, I'm--I think the--what you hope for is that there's nothing that occurs that would reverse that momentum, because it has accelerated. Mr. Towns. This committee--Ranking Member Bilbray and I-- we're not a finger-pointing committee. I mean, we recognize that we have a role as well to play in trying to fix whatever the problems might be. So we talk to you to try to find out in terms of our role, in terms of what we might need to do to be able to sort of make things work, you know, much more effectively. So, if you have any suggestions or recommendations to us, you know, and we call to talk to you, because you've had so much experience with it, and we think that we need to have that, because if we don't have it, then we're not sure as to what we might do on this side. So, we need to have that information. So, if you have any suggestions or recommendations to us, you know, as to how we might make this transition much more effective or smoothly, you know, please share. Ms. Hausser. Well, again, with respect to Homeland Security in particular, I think there had been so much turmoil in that Department with its major reorganizations, with the high degree of turnover, the dust took so long to settle--and it arguably hasn't settled completely--that the--it's important to recognize the progress, but I do believe that congressional leadership--acknowledging it and then making it very clear that it's expected to continue, particularly with respect to prompt appointment of key executives. There was a little bit of--when the Department was asked to identify its critical executive positions, that actually started a while ago and there was an effort made to do that. It turned out the criteria were a little bit confusing. And, when they redid the list, or when they reexamined the list, there was a particular slant on transition. It helped focus the effort. So, the first effort was somewhat successful, but a little bit disappointing in some respects, in that there didn't seem to be a lot of consistency in how people approached the task. But, they took it as a learning experience. And, with the oncoming transition, they focused it again, particular emphasis on transition. And, I think they're very-- they're satisfied with the way they've identified their critical positions. So, now they have much better focus with respect to during a transition, immediately after, where do they really have to make sure they've got good acting career people or career deputies in place and where will the initial appointments need to be made. So, it's--they've done--there's been a lot of organizational learning at Homeland Security, muddled by the major reorganizations along the way. Mr. Towns. Yes. Ms. McGinnis. At the beginning of the hearing, Mr. Chairman, you mentioned that you were for Barack Obama and Mr. Bilbray is for John McCain. Mr. Towns. Yes. Ms. McGinnis. And, that's not what we're here to talk about. But, I think it could be very effective to reach out to the candidates individually and convey, you know, the points that you've raised and confirmed about the importance of beginning that personnel--identifying people, making sure that they can be prepared to send the names of well-qualified people for these most critical positions before the inauguration, so that we can have, you know, the full team on the field on day one. Mr. Towns. Uh-huh. Any other comments? Let me thank you for your testimony. You've been very helpful. And, I think that dialogs must take place and, of course, we might even be talking with you again, you know, as we move forward, because we want to make certain that we have a smooth transition. And, I am concerned because Homeland Security is-- that was not a part of any other transition. And, of course, you know, you have to be, you know, concerned about that. Also concerned about the fact that our financial situation is really, really in flux. And of course, it's important that we get to keep people in there that's going to stabilize it to make certain that stays strong. So, your input is very, very important. So I want to thank you again for your testimony. Thank you very, very much. And, this committee stands adjourned. [Whereupon, at 4:45 p.m., the subcommittee was adjourned.] [Note.--The Government Accountability Report entitled, ``The White House, Allegations of Damage During the 2001 Presidential Transition,'' can be found in subcommittee files.] [Additional information submitted for the hearing record follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]