EPA’s Process for Budgeting and Allocating Resources Does Not Fully Consider the Current Workload in Terms of Strategic Goals or Specific Laws

EPA budgets and allocates resources incrementally, largely based on  historical precedents, and thus its process does not reflect a bottom-up  review of the nature or distribution of the current workload—either for  specific environmental laws or the broader goals and objectives in the  agency’s strategic plan. These historical precedents are drawn from  workload models EPA had developed in the 1980s, but the distribution of  EPA’s workload has changed over time as EPA has taken on new  responsibilities under the Clean Water Act and other laws and the states  gradually assumed a greater role in the day-to-day implementation of key  aspects of this workload. Other factors, such as the introduction of new  technologies and shifts in regional population, have also affected the  amount, type, and distribution of EPA’s resource needs. Within the existing system, EPA and state officials have some flexibility to  realign resources based on actual workload but have not taken full  advantage of such opportunities. EPA has developed several  initiatives that could improve the agency’s ability to plan its resources more  strategically, including some efforts that focus on workforce planning and  others that could provide key information needed to support a data-driven  approach to budgeting and allocating resources. Beyond these initiatives,  however, EPA faces larger challenges in adopting a more systematic  process for budgeting and resource allocation:  obtaining reliable data on  key workload indicators and overcoming internal resistance to adopting  such a process. Although EPA’s workforce planning initiatives address, to varying degrees,  some of the recommended practices for managing human capital, its  efforts could be more effective. The  primary focus of the project was identifying the gap between states’ needs  and available resources. One of the challenges to improving data quality will be determining which  of the workload indicators represent the most significant drivers of  resource needs. Conclusions

Because EPA does not have a system in place to conduct periodic bottom- up assessments of the work that needs to be done, the distribution of the  workload, or staff and other resource needs, the agency may be unable to  respond effectively to changing needs and constrained resources. EPA is obligated to meet its reporting responsibilities under section  516(b)(1) of the Clean Water Act. Officials from these  entities and the four EPA regional offices selected for review also provided  information on the challenges EPA faces in taking actions to improve  resource planning. 2).
Why GAO Did This Study

Federal and state fiscal constraints may jeopardize past and future accomplishments resulting from the Clean Water Act (the act). In this environment, it is important to manage available resources as efficiently as possible and to identify future human capital needs, including the size of the workforce and its deployment across the organization. GAO was asked to determine (1) the extent to which the Environmental Protection Agency's (EPA) process for budgeting and allocating resources considers the nature and distribution of its Clean Water Act workload and (2) the actions EPA is taking to improve resource planning and the challenges the agency faces in doing so.

What GAO Found

EPA's process for budgeting and allocating resources is largely based on historical precedent and does not fully consider the changing nature or distribution of the workload either for specific environmental laws or the broader goals and objectives in the agency's strategic plan. With prior year's allocations as the baseline, year-to-year changes are marginal. EPA's program offices and regions also have some flexibility to realign resources based on actual workload. Overall, the impact of these changes is minor, according to EPA. Because the nature and distribution of the act's workload has changed as the scope of regulated activities has grown, with EPA gaining new responsibilities and shifting others to the states, more than marginal changes may be appropriate. EPA does not conduct the periodic "bottom-up" assessments of the work that needs to be done, the distribution of the workload, or the resources needed to respond more effectively to changing needs and constrained resources. EPA has developed initiatives that could improve its ability to plan its resources more strategically, including efforts that focus on workforce planning. These efforts are promising but could be more effective if two agencywide initiatives were better coordinated and employee skill surveys were designed to identify gaps in needed skills. Beyond these initiatives, EPA faces larger challenges in adopting a more systematic process for budgeting and resource allocation, particularly in obtaining reliable data on key workload indicators. According to EPA officials, data on many of the factors that affect workload--and thus, drive resource needs--are not comprehensive or reliable. One of the biggest challenges will be assessing which of the workload indicators represent the most significant factors in determining resource needs. While this assessment presents a challenge, it would help EPA set priorities for improving data quality.