Q: What is OMB?
A: The Office of Management and Budget serves as the chief money manager and internal oversight arm of the executive branch of the federal government. It evaluates, formulates and coordinates management procedures within and among federal departments and agencies. From my post on Capitol Hill, I take seriously my watchdog responsibility of checks and balances, especially when it comes to taxpayers’ hard-earned money. The federal government collects and spends trillions of tax dollars and implements tens of thousands of regulations to run the people’s business. From national defense to transportation, education, homeland security, veterans affairs, environmental protection, health care, and social services, the OMB bears tremendous influence and responsibility to hold federal agencies accountable.
Q: What is the Improper Payments Information Act of 2002?
A: Congress passed this legislation two years ago to help rein in improper payments by federal agencies. In 2001 and 2002, improper payments by the federal government exceeded $20 billion. The law requires federal agencies to identify programs that are vulnerable to improper payments, estimate the amount of underpayments and overpayments each year and develop measures to correct the errors. Regrettably, the OMB has suggested guidelines that undermine the intent of Congress. It would not require agencies to report improper payments that exceed $10 million if the payments are less than 2.5 percent of program spending. Consider the Social Security Administration; that agency reported $1.3 billion in improper payments in the disability insurance program. This is only 2.2 percent of program outlays. So although it meets the $10 million threshold enacted by Congress, it would not meet the 2.5 percent standard set by OMB. These guidelines simply are misguided. That’s why I’m working to ensure the law is implemented as Congress intended. Lawmakers need the complete picture to do a good job appropriating the people’s money. As a senior member of the Senate Budget Committee, I work to make sure we can squeeze the most use out of every last penny.