# FY 2003 Budget Request Amendment

Submitted by

### The Federal Election Commission

The estimated incremental cost for implementing the Bipartisan Campaign
Reform Act (BCRA) in FY 2003 is \$5,366,200, including \$750,000 to
acquire space for the additional 31 FTE. If the emergency FY 2002
supplemental appropriation request of \$750,000 in no-year funding is
received, the FY 2003 Budget Request Amendment will be reduced to
\$4,616,200.

The FEC originally requested a FY 2003 appropriation of \$46,917,000 and
362 FTE. However, with the enactment of the BCRA, our initial FY 2003
budget request is no longer sufficient. In order to accomplish our
mandated responsibilities, which include implementing the numerous
statutory changes to the Federal Election Campaign Act, the FEC is
requesting a total of \$52,283,200 and 393 FTE. This amendment covers
only incremental costs required to implement the BCRA. For detailed
information on our core programs, see the FEC's original budget
justification, submitted in February 2002.

The proposed \$5,366,200 FY 2003 incremental request covers the
following costs:

[FY 03 Incremental Request]{.underline} [% of Total]{.underline}

Space \$932,700 17.4%

(Permanent & Interim)

FTE & Support \$2,911,500 54.2%

Program \$1,522,000 28.4%

Total \$5,366,200 100.0%

The FY 2003 and FY 2004 costs by office are provided in the attachments.
The space, FTE, and program costs are discussed in the sections below.

# Space 

As the current space at 999 E Street is insufficient to accommodate the
proposed additional FTE, we are exploring the acquisition of the 5^th^
floor and, in the interim, space either at 800 N. Capitol Street or
another building.

We have requested information from GSA about the cost associated with
acquiring the 5^th^ floor. As the primary tenant at 999 E Street, it is
the prerogative of the FEC to force another tenant to vacate a floor.
The FEC, however, would have to pay for the moving costs, and,
potentially, some portion of the build-out cost at the tenant's new
office site. It is likely that the Bureau of Public Debt (BPD) would
move from both the 5^th^ and 3^rd^ floors, rather than splitting its
headquarters staff. When this option was pursued two years ago with
respect to the possible expansion of the Office of Election
Administration, the initial estimate to move the Bureau of Public Debt
from both floors and make at least some design changes to the 5^th^
floor was approximately \$750,000. If we receive the requested FY 2002
supplemental appropriation, we can begin the process of acquiring the
5^th^ floor.

Given the length of time required to move BPD and prepare the 5^th^
floor for occupancy, we also are exploring the possibility of renting
interim space at 800 N. Capitol Street, or, if space is not available
there, at another building. The estimated FY 2003 cost per square foot
for 999 E Street is \$31.50 (a 5% increase from the FY 2002 cost of
\$30.00 per square foot.) Assuming an average of 200 square feet per
person, and using the estimated 999 E Street cost of \$31.5 per square
foot, the FY 2003 cost for interim space would be \$182,700.

The total FY 2003 space costs are \$932,700\--\$750,000 for the 5^th^
floor and \$182,700 for interim space.

Because the timing of acquiring the 5^th^ floor and completing necessary
construction is uncertain, it is important to add that in FY 2004 total
space costs will be \$671,400---interim space rent of \$191,400 and
5^th^ floor rent of \$480,000.

# FTE 

The largest costs are associated with the requests for the additional 31
FTE. The personnel costs (salaries, benefits, and overtime) and
accompanying support costs (computers, furniture, and supplies) for FY
2003 and FY 2004 follow:

[Office/Division]{.underline} [\# FTE]{.underline} [FY 2003]{.underline}
[FY 2004]{.underline}

OGC 10 \$1,165,000 \$1,185,000

RAD 11 \$ 554,500 \$ 655,500

Audit 1 \$ 54,500 \$ 64,500

Information 1 \$ 74,500 \$ 75,500

Disclosure 1 \$ 43,000 \$ 49,000

ADR 1 \$ 76,000 \$ 77,500

OAR 1 \$ 26,000 \$ 77,500

Personnel 1 \$ 89,500 \$ 90,500

Commission [4]{.underline} [\$ 418,000]{.underline} [\$
424,000]{.underline}

FTE Costs 31 \$2,501,000 \$2,699,000

Support Costs [N/A]{.underline} [\$ 410,500]{.underline} [\$
77,500]{.underline}

Total Personnel &

Support Costs 31 \$2,911,500 \$2,776,500

OGC requests ten additional attorneys to process the expected increases
in advisory opinion requests, subsequent phases of regulations,
litigation, additional complaints, and to provide legal counsel to other
divisions of the agency.

RAD requests 11 FTE primarily for the review of the increased number of
reports, administration of the non-filer process and administrative fine
program, and to provide assistance to filers.

Audit requests 1 FTE to assist with changes in Reports Review and
Referral Procedures Policy, Audit and Compliance Referral Policy,
changes to forms, and accompanying changes to audit procedures.

Information requests 1 FTE to assist with the modifications to
publications, forms, potentially new or expanded outreach efforts, and
to respond to the expected increase in oral and written inquiries.

Disclosure requests 1 FTE to process the increased number of filings.

ADR and OAR each request 1 FTE to process more cases. OAR is currently
hiring a second review analyst as an overage position. The OAR FTE
request converts the FY 2003 overage position to an FTE. Requested FY
2003 funding for a temporary employee in OAR of \$50,000 would be
transferred to personnel costs to cover most of the FTE cost.

Personnel requests 1 FTE to help process the hiring of the additional
FTE and to assist in the anticipated negotiations with the union
regarding space issues and changes to work processes and requirements
(impact and implementation bargaining).

Four FTEs are added for an additional Executive Assistant for the four
Commissioner offices that do not have a second Executive Assistant.

# Program and Other Costs 

Program and other costs consist of:

[FY 2003]{.underline} [FY 2004]{.underline}

DSDD \$ 795,000 \$ 500,000

Information \$ 310,000 \$ 215,000

OGC \$ 207,000 \$ 225,000

Personnel \$ 100,000 \$ 100,000

Disclosure \$ 95,000 \$ 30,000

RAD [\$ 15,000]{.underline} [\$ 25,000]{.underline}

Total \$1,522,000 \$1,095,000

# Data Systems Development Division

Policy decisions and interpretations of the BCRA, as implemented in the
regulations, will determine levels of effort with regard to items such
as the software standards and tracking the new limitations provisions
such as the millionaire provisions. These policy decisions and the
resulting operational decisions concerning the tracking of the new
limits will affect the resources required by DSDD.

In FY 2003, DSDD requests \$100,000 to be added to the electronic filing
contract for help desk assistance in electronic filing and for
modifications to the electronic filing process, a \$50,000 supplement to
the development of automated review for limit tracking, \$300,000 for
development of software standards and accompanying documentation and
modifying databases and applications, and \$50,000 for a requirements
analysis to initiate the data mining project. In response to OGC's
anticipation of changes to the Case Management System (CMS) and to the
Enforcement Priority System (EPS), Data has added funding for both
systems. For CMS, \$100,000 has been added, and for EPS, \$120,000 has
been added. Given the extent of the BCRA changes, modifications also may
be required to the Commission Research Database (CRD), and \$75,000 has
been added for those modifications.

In FY 2004, \$100,000 is added to the electronic filing contract to
support changes to the automated review process, and \$400,000 is added
for further disclosure database changes and electronic filing standards
and documentation.

If the decision were made to purchase the hardware and software for the
Secretary of the Senate to enable the Senate to file electronically,
\$200,000 would be added to the FY 2003 or FY 2004 figure. These costs
are not included in the estimates.

# Information Division

Information requests FY 2003 increases to cover new publications and
changes to existing publications (\$150,000), contract funds for
short-term assistance in revising forms and publications (\$100,000),
travel for new outreach (\$30,000), postage for shipping of
publications, forms, as well as responses to inquiries (\$25,000), and
increased administrative expenses to cover expenses related to
preparation for conferences or other outreach efforts (5,000).

FY 2004 increases cover new publications and changes to existing
publications (\$100,000), contract funds for short-term assistance in
revising forms and publications (\$50,000), travel for new outreach
(\$30,000), postage for shipping of publications, forms, as well as
responses to inquiries (\$25,000), increased administrative expenses to
cover expenses related to preparation for conferences or other outreach
efforts (5,000), and training for new staff (\$5,000).

# Office of General Counsel

For FY 2003, OGC requests funds for the LSI system (\$35,000), training
(\$27,000), Federal Register notices (\$25,000), publications
(\$25,000), contracts for temporary administrative staff (\$30,000),
depositions and regulatory hearing transcripts (\$20,000), litigation
software support (\$20,000), administrative expenses (e.g., witness
fees) (\$10,000), travel (\$10,000), and postage (\$5,000).

For FY 2004, OGC requests funds for the LSI system (\$35,000), training
(\$10,000), Federal Register notices (\$25,000), publications
(\$50,000), contracts for temporary administrative staff (\$30,000),
depositions and regulatory hearing transcripts (\$20,000), litigation
software support (\$20,000), administrative expenses (e.g., witness
fees) (\$10,000), travel (\$10,000), equipment maintenance (\$10,000),
and postage (\$5,000).

# Office of Personnel

Personnel requests \$100,000 in FY 2003 and FY 2004 to hire contract
help to participate in the automation of the HR/MIS/FTE/Budget system.

# Public Disclosure

Disclosure requests FY 2003 contract funds to revise the forms
(\$50,000) and to hire temporary employees to process the increased
report volume (\$20,000), as well as additional and upgraded fax
equipment to handle independent expenditure and electioneering
communication notices (\$25,000).

Disclosure requests FY 2004 contract funds to hire temporary employees
to process the increased report volume (\$20,000) and funds for
equipment maintenance for the new equipment (\$10,000).

# Reports Analysis Division

In FY 2003, RAD requests funds for training (\$5,000), postage (\$5,000)
and administrative expenses (\$5,000). In FY 2004, RAD requests funds
for training (\$5,000), postage (\$5,000), administrative expenses
(\$5,000), and equipment maintenance (\$10,000).

# FY 2005

It is expected that there will be a reduced need for staff in several
offices by FY 2005 as a result of the implementation of electronic
review and the other information technology initiatives and the
implementation of the legislation. This will be at least partially
offset by an increased need for staff in the Audit Division.

The FEC respectfully urges your approval of the Commission's revised FY
2003 Budget Request. This amendment, in the amount of \$5,366,200 and 31
FTE, when added to our original submission, brings our total request to
\$52,283,200 and 393 FTE.

Attachments