Senator Tom Coburn's activity on the Subcommittee on Federal Financial Management, Government Information, and International Security

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$11 Billion and Counting: the 2010 Census

Coburn Hearing to Examine 80 Percent Cost Increase For Low-Tech 2010 Census


June 6, 2006


Chairman Coburn convened a hearing on June 6: “2010 Census, Off-Line and Off-Budget: The High Cost of Low-Tech Counting” to examine why cost projections for the 2010 Census have risen so dramatically over the 2000 Census despite massive financial investments in technology.  Watch the webcast.

The Census Bureau currently estimates the 2010 Census will cost $11.3 billion (non-inflation adjusted), almost an 80 percent increase, or $5 billion more, than the 2000 Census. As part of a long-standing effort to reduce its costs, the agency had planned to go paperless for this census, offering the census online and purchasing wireless handheld devices for door-to-door workers. The Census Bureau recently scrapped its online plans and discovered the wireless devices did not work properly, despite the major financial investment in the technology.

“The Census Bureau seems to be stuck with an early 20th century mentality of slate pencils and chalkboards,” Dr. Coburn said. “In an age when people shop, bank and file their taxes online, the census is lagging behind, needlessly adding to its already high costs. This type of budget growth is inexcusable when technology makes everything cheaper. The Census Bureau must answer for their outrageous cost increases, especially during a time of war and great financial challenge in our country.”

Witnesses:

The Honorable Louis Kincannon
Director
U.S. Census Bureau

Ms. Brenda Farrell
Acting Director, Strategic Issues
U.S. Government Accountability Office





Major Findings:

• Currently, the Census Bureau estimates that the 2010 Census will cost $11.3 billion, which is $5 billion more than the cost of the 2000 Census.
• On average, the cost of the census increases by 100% every ten years.
• The Census Bureau has blamed these cost increases largely on inflation and population growth, yet inflation is estimated to increase by only 30% and population is projected to increase by less than 10%.
• GAO is considering placing the 2010 Census on its “High-Risk List” due to the Census Bureau’s inability to contain costs. As a result of these concerns, GAO has recommended in 2004 that Census produce a master planning document providing Congress with detailed budget information through 2010. Census agreed, but has now allowed two and a half years to pass and has still not produced a detailed budget document.
• The Census Bureau has invested $600 million to purchase 500,000 wireless handheld devices for census-takers to use in going door-to-door. Although these are intended to achieve cost savings, GAO is concerned that the devices may not work properly, or even work at all.
• Despite years of planning and preparation for an online census the Bureau decided this past Spring to pull the plug on the idea and not offer the census online, citing its belief that an online census would not increase public participation or decrease costs. Many countries, though, including Canada, New Zealand and Australia, already conduct their national census online.
• Currently, according to the Pew Internet & American Life Project, 73% of all American adults (147 million) are online. It is unclear why an online option for participating in the census is impractical in an age when citizens use the internet for shopping, banking and filing their taxes.


Impact on Taxpayers:

• GAO is extremely concerned that the estimate of $11.3 billion for the 2010 Census is not accurate, and may rise much higher. If cost overruns for 2010 match those in 2000, the census may cost as much as $15 billion. If the Census Bureau is not able to get rates of cost increase under control, the 2030 Census may cost nearly $50 billion.
• The 2000 Census cost approximately $23 per citizen and $57 per household to administer, but the 2010 Census is expected to cost at least $37 per person and $89 per household.
• By deciding to not offer the census online in 2010, the Census Bureau will be unable to test an internet option until 2020 at the earliest. This means that all potential financial benefits available to this census will be delayed.
• Consider how private sector solutions may be used to bring down the cost the decennial census.


These Findings Demand a Response:

• The Census Bureau needs to address the GAO recommendation that it produce a budget document providing Congress with a detailed blueprint for spending between now and 2010. The blueprint should include specific funding estimates for each year, broken down by category.
• The Census Bureau needs to re-initiate its long-term effort to move the 2010 Census online in time for its software to be tested by the 2008 Dress Rehearsal.


Related Resources:

Panel 1 Testimony:



Charts:



Further Readings:



News:





June 2006 Hearings




Senator Tom Coburn's activity on the Subcommittee on Federal Financial Management, Government Information, and International Security

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