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NOMINATIONS FOR THE 

DEPARTMENT OF COMMERCE 

AND DEPARTMENT OF TRANSPORTATION 

HEARING 

BEFORE THE

COMMITTEE ON COMMERCE, 

SCIENCE, AND TRANSPORTATION 

UNITED STATES SENATE 

ONE HUNDRED EIGHTH CONGRESS 

SECOND SESSION 

MARCH 4, 2004 

Printed for the use of the Committee on Commerce, Science, and Transportation 

( 

(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED EIGHTH CONGRESS 

SECOND SESSION 

JOHN MCCAIN, Arizona, Chairman 

TED STEVENS, Alaska 

CONRAD BURNS, Montana 

TRENT LOTT, Mississippi 

KAY BAILEY HUTCHISON, Texas 

OLYMPIA J. SNOWE, Maine 

SAM BROWNBACK, Kansas 

GORDON H. SMITH, Oregon 

PETER G. FITZGERALD, Illinois 

JOHN ENSIGN, Nevada 

GEORGE ALLEN, Virginia 

JOHN E. SUNUNU, New Hampshire 

ERNEST F. HOLLINGS, South Carolina, 

Ranking 

DANIEL K. INOUYE, Hawaii 

JOHN D. ROCKEFELLER IV, West Virginia 

JOHN F. KERRY, Massachusetts 

JOHN B. BREAUX, Louisiana 

BYRON L. DORGAN, North Dakota 

RON WYDEN, Oregon 

BARBARA BOXER, California 

BILL NELSON, Florida 

MARIA CANTWELL, Washington 

FRANK R. LAUTENBERG, New Jersey 

JEANNE BUMPUS, Republican Staff Director and General Counsel 

ROBERT W. CHAMBERLIN, Republican Chief Counsel 

KEVIN D. KAYES, Democratic Staff Director and Chief Counsel 

GREGG ELIAS, Democratic General Counsel 

(III) 

C O N T E N T S 

Page 

Hearing held on March 4, 2004 .............................................................................. 1 

Statement of Senator McCain ................................................................................. 1 

Prepared statement .......................................................................................... 1 

Prepared statement of Hon. Bill Frist, U.S. Senator from Tennessee ......... 6 

WITNESSES

Buttrey, W. Douglas, Memphis, Tennessee ........................................................... 26 

Prepared statement .......................................................................................... 26 

Biographical information ................................................................................. 27 

Cochran, Hon. Thad, U.S. Senator from Mississippi ............................................ 2 

Combs, Linda Morrison, Nominee for the Position of Assistant Secretary 

for Budget, Programs, and Chief Financial Officer, U.S. Department of 

Transportation ...................................................................................................... 17 

Prepared statement .......................................................................................... 17 

Biographical information ................................................................................. 18 

Dole, Hon. Elizabeth, U.S. Senator from North Carolina .................................... 4 

Ford, Jr., Hon. Harold E., U.S. Representative from Tennessee ......................... 5 

Keenum, Rhonda N., Senior Advisor to the Under Secretary, International 

Trade Administration, U.S. Department of Commerce ..................................... 8 

Prepared statement .......................................................................................... 9 

Biographical information ................................................................................. 10 

Mulvey, Frank, Staff Director, U.S. House of Representatives, Committee 

on Transportation and Infrastructure, Subcommittee on Railroads ................ 33 

Prepared statement .......................................................................................... 35 

Biographical information ................................................................................. 36 

Oberstar, Hon. James L., U.S. Representative from Minnesota .......................... 3 

Wicker, Hon. Roger F., U.S. Representative from Mississippi ............................ 3 

(1) 

NOMINATIONS FOR THE 

DEPARTMENT OF COMMERCE 

AND DEPARTMENT OF TRANSPORTATION 

THURSDAY, MARCH 4, 2004 

U.S. SENATE, 

COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, 

Washington, DC. 

The Committee met, pursuant to notice, at 2:35 p.m. in room 

SR–253, Russell Senate Office Building, Hon. John McCain, Chairman of the Committee, presiding. 

OPENING STATEMENT OF HON. JOHN MCCAIN, 

U.S. SENATOR FROM ARIZONA 

The CHAIRMAN. This hearing will come to order. We’ll have the 

hearing come to order, please. 

We will hear from our panel: Ms. Rhonda Keenum, Senior Advisor to the Under Secretary for International Trade Administration, 

U.S. Department of Commerce; Dr. Linda Combs, Advisor to the 

Secretary, U.S. Department of Transportation; Mr. W. Douglas 

Buttrey, of Memphis, Tennessee; and Dr. Frank Mulvey, Staff Director, U.S. House of Representatives, Committee on Transportation and Infrastructure, Subcommittee on Railroads, but first we 

would like to hear from our distinguished colleagues from the Senate and the House, who are here on behalf of the nominees. 

And we always try to begin with the oldest—— 

[Laughter.] 

The CHAIRMAN.—and it’s pretty obvious. But he’s not here. 

[Laughter.] 

The CHAIRMAN. Actually, if it’s agreeable, we’ll begin with our 

colleagues from the House, if that’s OK, since they—oops, here he 

is, the oldest. 

[Laughter.] 

The CHAIRMAN. Senator Cochran, we appreciate you being here 

today. I know you’re here on behalf of the nominee, Ms. Keenum, 

and we know how busy your schedule is, so if you would please 

proceed—we’re honored to have you here. 

[The prepared statement of Senator McCain follows:] 

PREPARED STATEMENT OF HON. JOHN MCCAIN, U.S. SENATOR FROM ARIZONA

Good afternoon. The Commerce Committee meets today to consider the qualifications of four individuals who have been nominated by the President to serve the Nation in very important posts. 

This Committee takes its advice and consent role seriously. It is our responsibility 

to ensure that the nominees fully understand their duties and are capable and comVerDate Nov 24 2008 08:35 Jul 11, 2016 Jkt 075679 PO 00000 Frm 00005 Fmt 6633 Sfmt 6621 S:\GPO\DOCS\20623.TXT JACKIE
2 

mitted to fulfilling the mission requested of them. I note that each of the nominees 

has responded in detail to the Committee’s requests for biographical and financial 

data. I intend to move your nominations in the near future. 

Today’s nominees include Ms. Rhonda Keenum, nominated by the President to 

serve as Assistant Secretary and Director General of the United States and Foreign 

Commercial Service with the Department of Commerce. If confirmed, Ms. Keenum 

will be responsible for overseeing and implementing the export promotion activities 

of the U.S. Commercial Service within the International Trade Administration. 

Dr. Linda Combs has been nominated by the President to serve as Assistant Secretary for Budget and Programs and Chief Financial Officer for the Department of 

Transportation. If confirmed, Dr. Combs will advise the Secretary on the development, review, and presentation of the Department’s budget resource requirements, 

and on the evaluation and oversight of the Department’s programs. 

Finally, we have Mr. Douglas Buttrey and Dr. Francis Mulvey, who have been 

nominated by the President to serve as Members of the Surface Transportation 

Board (STB). The STB’s primary function is to oversee the economic regulation of 

the Nation’s freight railroads. The Staggers Rail Act of 1980, which partially deregulated the freight railroads, has produced positive benefits overall, but there is 

a perceived lack of regulatory relief available to shippers at the STB. Last year, during Committee consideration of legislation to reauthorize the STB, an amendment 

sponsored by myself and Senator Hollings was adopted to direct the STB to issue 

expedited procedures for small rate cases within 180 days following enactment. 

For the past year, the only confirmed member of the Board has been Chairman 

Roger Nober, who has been reluctant to initiate major rulemakings acting alone. I 

hope my colleagues will confirm these nominees quickly so that longstanding shipper issues can finally be addressed by the Board. 

I thank the nominees for being here today. I know your nominations are a great 

honor, and that your families are very proud. Please feel free to introduce any family members who are present here today before you begin your remarks. 

STATEMENT OF HON. THAD COCHRAN, 

U.S. SENATOR FROM MISSISSIPPI 

Senator COCHRAN. Mr. Chairman, thank you very much. I appreciate the opportunity to be here in your Committee today. 

I’m here to recommend, to the Committee, Rhonda Keenum, for 

confirmation as Assistant Secretary of Commerce and Director 

General of the United States and Foreign Commercial Service. I 

have known the nominee for 15 years. In the spirit of full disclosure, I must tell you, she is a close friend of mine, and her husband, Mark Keenum, is my chief of staff. I also know her as a very 

talented marketing and public relations manager, with skills that 

will enable her to do a superb job in this important office. 

She has a strong sense of responsibility and accountability. Her 

proven management capabilities will be very useful as she works 

to discharge the responsibilities of this office. I can attest to her 

good character, her capacity for hard work, and her willingness to 

expend whatever energy is required to accomplish a goal. 

I hope you can approve this nomination expeditiously. The Department of Commerce will benefit greatly from her immediate assumption of the duties of this important office. 

Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you very much, Senator Cochran. And we 

know you have a busy schedule. I know Ms. Keenum and the rest 

of us appreciate you being here. Thank you, sir. 

Since we are giving great appreciation to Ms. Keenum, we might 

as well let Mr. Wicker speak on her behalf. I remind you of the 

words of my dear and beloved friend, Morris Udall, who said, ‘‘Everything that can be said on the subject has been said, only not everyone has said it.’’ 

3 

[Laughter.] 

The CHAIRMAN. Welcome, Congressman Wicker. Thank you for 

coming here on behalf of Ms. Keenum. 

STATEMENT OF HON. ROGER F. WICKER, 

U.S. REPRESENTATIVE FROM MISSISSIPPI 

Mr. WICKER. It may be, Mr. Chairman, that Ms. Keenum’s future 

title will be longer than my testimony. 

[Laughter.] 

The CHAIRMAN. Thank you. 

Mr. WICKER. I simply would echo the recommendation of Senator 

Cochran. I’ve known her 10 years, and what I can add is that she 

actually was a member of my staff when I first came to the House 

of Representatives in 1995. She is a joy to work with. I can say— 

both from the staff that we organized during that first Congress, 

and also from the constituent standpoint—I think she will serve 

the public well, she’ll be a credit to the Administration, and she 

has my highest recommendation. 

And I thank you. 

The CHAIRMAN. Thank you very much, Congressman Wicker, and 

thank you for your continued outstanding service to the people of 

Mississippi. Thank you. 

Mr. WICKER. Thank you. 

The CHAIRMAN. Congressmen Oberstar? 

Mr. OBERSTAR. Thank you, Mr. Chairman. 

The CHAIRMAN. And then Senator Dole, I think, would be next, 

if that would be all right. 

STATEMENT OF HON. JAMES L. OBERSTAR, 

U.S. REPRESENTATIVE FROM MINNESOTA 

Mr. OBERSTAR. Thank you for the opportunity to come to this 

Committee, and thank you for hearing the nomination of Frank 

Mulvey, as well as others; in Frank’s case, for the Surface Transportation Board. 

My acquaintance with Dr. Mulvey goes back to the mid-1980s, 

when I chaired the Investigations and Oversight Subcommittee in 

the House, and we were doing a great deal of work on aviation 

safety and maintenance, security, but also other transportation 

issues, and turned to the General Accounting Office to do basic research work for our—in preparation for our hearings, and to determine, in many cases, whether there was a justification to hold a 

hearing. And I can say that, at the time, Newt Gingrich was the 

ranking Republican on the Subcommittee. He and I spent a great 

deal of time working together and benefiting from research that 

was done under Dr. Mulvey’s direction, or by him personally and 

directly. 

He has a Ph.D. in railroad economics from the University of 

Washington State. He did his undergraduate work at NYU University, and a master’s degree in economics from Berkeley. 

But the work that he did for us ranged over an extraordinary 

breadth of issues—airline CRS competition problems that we were 

inquiring into, airline alliances in the earliest stage to see whether 

the public was getting its due benefit from these airline alliances, 

and code-sharing among airlines, domestic and foreign, again to see 

4 

whether there really was competition. He directed the first study 

on the safety effects of the 55 mile-an-hour speed limit on highway 

safety and speed laws. He spent a great deal of time on inner city 

bus competition and unfair practices, which led to hearings that 

our Subcommittee conducted; highway safety, high-speed ground 

transportation work that was done in early 1994, laying the 

groundwork for legislative language that we included in ISTEA and 

TEA–21; he did an extensive inquiry into the structure, continuity, 

and viability of our transportation trust funds; he also did work for 

us on inter-urban helicopter services; and during a time when 

there was a great failure in one of the locks on the St. Lawrence 

seaway, his team at GAO did an inquiry into the intermodal impacts of Great Lakes-St. Lawrence seaway season extension work. 

I consider Frank Mulvey’s work on our Committee staff at the 

Committee of Transportation Infrastructure for the last 4 years as 

truly a renaissance man in transportation, with a remarkable 

sweep of intellect, as well as intellectual curiosity. He is the kind 

of person the Surface Transportation Board needs to handle those 

complex issues where competition and the public interest clash 

often with interests of the corporate sector, and Frank is the kind 

of independent, objective mind that we need to bring to bear on 

those issues. He can render for the Congress and for the traveling 

public a fair judgment. 

The CHAIRMAN. Thank you very much, Congressman Oberstar. 

Those are high praises, indeed. And thank you for coming over 

today. Thank you. 

Mr. OBERSTAR. It’s been a pleasure working with you, Mr. Chairman, for many years on—— 

The CHAIRMAN. Thank you, sir. 

Mr. OBERSTAR.—transportation issues. 

The CHAIRMAN. It’s a pleasure to welcome Senator Dole. Thank 

you, Senator Dole. 

STATEMENT OF HON. ELIZABETH DOLE, 

U.S. SENATOR FROM NORTH CAROLINA 

Senator DOLE. Thank you, Mr. Chairman. 

And I’m pleased today to introduce a fellow North Carolinian, 

Linda Combs, who’s been nominated by President Bush to be Assistant Secretary for Budget Programs and Chief Financial Officer 

of the Department of Transportation. 

Linda Combs has an impeccable record of public service that is 

as diverse as it is impressive. She has served in management roles 

at the Department of Education, Environmental Protection Agency, 

Veterans Affairs, and the Department of the Treasury. 

Mr. Chairman, as the former Secretary of Transportation, I understand the unique qualifications required for this position. A candidate must possess experience not only in management, but also 

an adept ability to practice sound fiscal responsibility. As the first 

Chief Financial Officer at the Department of the Treasury and, 

most recently, the Chief Financial Officer at the Environmental 

Protection Agency. Dr. Combs is extraordinarily well prepared to 

meet this challenge. She has answered the call to public service, 

and she understands this service to be a noble endeavor with many 

challenges. 

5 

Throughout her career, Linda Combs has demonstrated the highest standards of honesty, fairness, and integrity, and I’m very 

proud to call her a dear friend. 

Mr. Chairman, this fine North Carolinian will join an outstanding team at the Department of Transportation, and serve Secretary Mineta and President Bush with honor and dignity. Thank 

you for the opportunity to introduce Linda Combs today, and for 

your consideration of her nomination. 

Thank you. 

The CHAIRMAN. Thank you, Senator Dole. And thank you for taking the time from your busy schedule to be here in behalf of this 

highly qualified person. 

Senator DOLE. Thank you. 

The CHAIRMAN. Thank you very much. 

Now, I’d like to ask our nominees, Ms. Rhonda Keenum—oh, certainly we are pleased to welcome the Honorable Harold Ford, of the 

U.S. House of Representatives famous junketeers with us today. 

[Laughter.] 

The CHAIRMAN. Congressman Ford? 

STATEMENT OF HON. HAROLD E. FORD, JR., 

U.S. REPRESENTATIVE FROM TENNESSEE 

Mr. FORD. Mr. Chairman, thank you. I’m delighted to be joined 

at the table by Mr. Doug Buttrey. 

Mr. Chairman, I thank you, again, for having me on the trip, 

with you and my friends and your colleagues in the Senate, to Iraq 

and to Israel, and you went on, obviously, to Jordan, and you went 

on to other countries, as well. I was particularly delighted to be the 

only House Member, although I was chagrined to have to carry 

people’s bags all the time. 

[Laughter.] 

Mr. FORD. So I appreciate you—— 

The CHAIRMAN. But you did such a fine job. 

[Laughter.] 

The CHAIRMAN. I’m always pleased to be in your company, Mr. 

Ford. I mean that. 

Mr. FORD. Thank you, sir. And the feeling is mutual. 

I bring greetings to you from Mr. Buttrey’s former boss and the 

leader of our business community back home and, for that matter, 

around the country, Fred Smith, to you, to Ranking Member Hollings, and to all the Members of the Committee. Thank you for giving me the chance to say hello, and welcome and introduce one of 

our city’s finest residents, my friend, Doug Buttrey. His wife, I 

know, is here as well, if she would just raise her hand, always delighted to see her, as well. We’re from the country, so we like doing 

those things, Mr. Chairman. 

As you know, Doug Buttrey works as an independent transportation consultant now after his many years of service at FedEx and 

its Government Affairs Office, where he was a senior representative. Before that, he was a managing director for properties and facilities at Airport Relations for FedEx, so he brings a tremendous 

understanding of the situations that arise on the ground in our 

transportation industry. He also has familiarity with the Congress 

6 

and government, having worked at the Council for the Senate Aviation Subcommittee, under former Senator James Pearson. 

A graduate of the Tennessee Technological University and a 

graduate of the University of Memphis School of Law, he is, indeed, a son of Tennessee and a proud citizen, dedicated citizen of 

our city. A devoted member of White Station Church of Christ, 

where he is in charge of the legal ministry there, active throughout 

our community, and we thank he and his family for that. 

His wealth of experience in the transportation industry, Chairman McCain, whether it’s by plane, train, or automobile, will benefit him greatly in what we hope will be his new post on the Surface Transportation Board. 

As I close, Mr. Chairman, coming from FedEx, a company that 

has built its reputation on customer service, it is our hope and belief that Mr. Buttrey will bring that same commitment to shippers 

and receivers and consumers as a member of the Surface Transportation Board. 

With that, I’m pleased to welcome and express my strong support 

for my fellow Memphian and constituent and friend, Mr. Doug 

Buttrey. 

With that, I—— 

The CHAIRMAN. Thank you very much. 

Mr. FORD.—thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Congressman Ford, and thank you 

for taking the time to come over today in behalf of this fine witness. Thank you. 

Mr. FORD. Thank you, sir. 

The CHAIRMAN. Now I’d like to ask Ms. Rhonda Keenum and Dr. 

Linda Combs, Mr. Douglas Buttrey, and Dr. Frank Mulvey to take 

seats, please. 

And while they’re doing that, I will have inserted in the record 

a statement by Senator Bill Frist regarding the nomination of Mr. 

Douglas Buttrey to be a member of the Surface Transportation 

Board. It’s a very laudable statement, and it’ll be included in the 

record. 

[The prepared statement of Senator Frist follows:] 

PREPARED STATEMENT OF HON. BILL FRIST, U.S. SENATOR FROM TENNESSEE

Mr. Chairman, I would like to thank you and the members of the Committee for 

considering William Douglas Buttrey’s nomination to serve as a Member of the Surface Transportation Board. I personally recommended Mr. Buttrey for this position, 

and I do not believe there is a more qualified candidate than my fellow Tennessean 

and friend here today. 

Doug Buttrey spent his entire career working with the transportation industry, 

and I strongly support his nomination to serve on the Surface Transportation Board. 

Mr. Buttrey understands the dynamics of regulatory and legislative decision making 

at the Federal and state levels, and he has consistently demonstrated his ability to 

implement sound policies and achieve positive results. 

Doug began his career in Washington working for the Civil Aeronautics Board. 

He then came to the United States Senate where he served as Counsel for the Commerce, Science and Transportation Committee’s Aviation Subcommittee. After a successful and highly praised tenure with the Subcommittee, Doug joined the Federal 

Express Corporation, where he ultimately served as the company’s Senior Government Affairs Representative. 

Doug Buttrey’s many years of experience in both the government and the private 

sector make him uniquely qualified to serve as a member of the Surface Transportation Board. Board members will be faced with many challenges, and Doug’s experiences will help him make informed decisions. Throughout his career, Doug has 

7 

played a direct role in policy development and legislative and regulatory decision 

making. Doug understands the complexities of intergovernmental challenges, and he 

is well equipped to handle anything put before him. 

Again, I very much appreciate the Committee’s consideration of Mr. Buttrey’s 

nomination, and I look forward to his confirmation by the full Senate. 

The CHAIRMAN. Now, for the most important part of this hearing, 

Ms. Keenum, if you would introduce your family who is with you 

here today. 

Ms. KEENUM. Mr. Chairman, thank you, and good afternoon. I’d 

like to introduce my husband of 20 years, Mark Keenum, over my 

right shoulder. And thank you for letting me do that. 

The CHAIRMAN. Welcome. 

Dr. Mulvey? 

Dr. MULVEY. Yes, I’d like to introduce my wife of 30 years next 

week, Petra Mulvey, my son Connor and his significant other, 

Tanya Jacobson. 

[Laughter.] 

The CHAIRMAN. Would you please stand? Thank you. Thank you, 

and welcome. 

Mr. Buttrey? 

Mr. BUTTREY. Mr. Chairman, I’d like to introduce my wife Margaret, if she’d please stand right here—hopefully trump everyone 

else, we’ve been married for 35 years. 

[Laughter.] 

The CHAIRMAN. Welcome, Ms. Buttrey. 

Dr. Combs? 

Dr. COMBS. Thank you, Mr. Chairman. And, yes, you do trump 

everyone else. 

[Laughter.] 

Dr. COMBS. My husband, David Combs—— 

The CHAIRMAN. Welcome. 

Dr. COMBS.—of 33 years. 

[Laughter.] 

The CHAIRMAN. My old friend, Senator Alan Simpson, who used 

to be Senator, is one of the more entertaining, as he said he and 

his wife Ann had been married for 35 years. He said it was truly 

a religious experience. He said it was a living hell. I’m sure that 

that doesn’t—— 

[Laughter.] 

The CHAIRMAN.—that it doesn’t apply to anyone here. 

[Laughter.] 

The CHAIRMAN. Welcome, Ms. Keenum, and please, we’d like to 

hear your opening statement. 

Ms. KEENUM. Mr. Chairman, on that note—— 

The CHAIRMAN. And could I just say welcome to the family members. I know this is a very proud time for all of you, and we share 

in your pride of the accomplishments and achievements of these 

fine people. 

Thank you. Please go ahead, Ms. Keenum. 

8 

STATEMENT OF RHONDA N. KEENUM, SENIOR ADVISOR TO 

THE UNDER SECRETARY, INTERNATIONAL TRADE 

ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE 

Ms. KEENUM. Thank you. Mr. Chairman and Members of the 

Committee, it is, indeed, an honor and privilege to come before you 

as the nominee for the position of Assistant Secretary and Director 

General of the United States and Foreign Commercial Service. I 

am humbled and honored that the President would nominate me 

for this role, and I’m eager to take on the challenge. 

I would first like to thank Senator Thad Cochran and Congressman Roger Wicker for their kind remarks. Both of these distinguished leaders mean a tremendous amount to me and my family, 

professionally and personally. I would also like to express my sincere thanks to Secretary of Commerce Donald Evans, former Deputy Secretary Samuel Bodman, and Under Secretary Grant 

Aldonas for their support of me and my nomination. 

What makes America the greatest Nation in the world is the entrepreneurial spirit of the American people, no matter what your 

background. 

Growing up in Mississippi, I was a first-hand observer of the 

power of that entrepreneurial spirit. My father, James Newman, 

left public service after almost a quarter of a century to pursue his 

dream of starting his own business. And pursue it, he did, risking 

limited family savings, stable employment, and my mom’s sanity in 

the process. His risk and investment some 25 years ago continue 

to generate precious dividends in the tangible evidence of community jobs, interstate commerce, and income that even now, some 4 

years after his death, provides a financial safety net that my family 

would not have otherwise had. 

This story, my story, illustrates the power of small businesses all 

over this great country. Small businesses create more than two out 

of every three new jobs, and generate about 50 percent of our Nation’s gross domestic product. 

In this time of great change in our domestic and international 

economies, it is imperative for our government to assist American 

businesses to obtain access for their products and services in the 

international marketplace. This is not only the mandate of the U.S. 

and Foreign Commercial Service, but also the dedicated focus of its 

programs and employees. 

The Commercial Services worldwide network achieves this goal 

every day by linking American suppliers with international buyers, 

advocating for their best interests with foreign governments, and 

ensuring a level playing field. The programs and expertise provided 

by the Commercial Service are critical to the success of American 

companies in competing and winning in global markets. I have observed the efforts of Commercial Service employees to assist American companies in often difficult circumstances, and have been impressed with their skills, dedication, and pride in public service. 

If confirmed, I commit to a continuous assessment of, and investment in, both the development of innovative trade programs and 

the complex network that delivers them. My goal will be ensure 

that the Commercial Service not only continues to meet the high 

expectations that our clients have of us, but that we exceed those 

expectations. 

9 

If confirmed, I will look to maximize the synergies we have with 

state partners, as well as local partners, industry associations, and 

sister Federal partners to provide companies in all states with access to the tremendous opportunities available to them through exporting. 

If confirmed, I welcome the challenge to lead the trade promotion 

arm of the Federal Government. My two decades of work experience have been driven exclusively by client, constituent, and consumer accountability. Those years of managing public relations 

campaigns, leading field-based organizations, developing and adhering to complex budgets, building coalitions, and motivating and 

mentoring staff have prepared me for the myriad of opportunities 

ahead. 

If confirmed, I pledge to conduct myself with unwavering commitment, taking ownership of every action, standing up for the entrepreneurial ideas, like those of my father, and standing by the 

over 1600 dedicated public servants that have long made the Commercial Service an organization that leads, rather than follows. 

If confirmed, I will pursue the stewardship of the service with 

energy, integrity, accountability, and a diligent awareness that we 

are here to serve our clients, American businesses. 

Mr. Chairman, thank you for the opportunity to be here today. 

And I also want to take this opportunity to express my appreciation to family and friends. I’d be happy to answer any questions 

you might have, and welcome your comments. 

Thank you. 

[The prepared statement and biographical information of Ms. 

Keenum follow:] 

PREPARED STATEMENT OF RHONDA N. KEENUM, SENIOR ADVISOR TO THE UNDER

SECRETARY, INTERNATIONAL TRADE ADMINISTRATION, U.S. DEPARTMENT OF

COMMERCE

Mr. Chairman, Senator Hollings and Members of the Committee, it is indeed an 

honor and privilege to come before you as the nominee for the position of Assistant 

Secretary and Director General of the United States and Foreign Commercial Service. 

I am humbled and honored that President Bush would nominate me for this role. 

And I am eager to take on the challenge. 

I would first like to thank Senator Thad Cochran and Congressman Roger Wicker 

for their kind remarks. Both of these distinguished leaders mean a tremendous 

amount to me and my family professionally and personally. 

I would also like to express my sincere thanks to Secretary of Commerce Donald 

Evans, former Deputy Secretary Samuel Bodman and Under Secretary Grant 

Aldonas for their support of my nomination. 

What makes America the greatest nation in the world is the entrepreneurial spirit 

of the American people, no matter what your background. 

Growing up in Mississippi, I was a first hand observer of the power of that entrepreneurial spirit. My father—James Newman—left public service after almost a 

quarter of a century to pursue his dream of starting his own business, and pursue 

it he did—risking limited family savings, stable employment and morn’s sanity in 

the process. His risk and investment some 25 years ago continue to generate precious dividends in the tangible evidence of community jobs, interstate commerce and 

income that even now some four years after his death—provides a financial safety 

net that my family would not have otherwise had. 

This story—my story—illustrates the power of small businesses all over this great 

country. Small businesses create more than two out of every three new jobs and 

generate about 50 percent of our Nation’s gross domestic product. 

In this time of great change in our domestic and international economies, it is imperative for our government to assist American businesses to obtain access for their 

products and services in the international marketplace. This is not only the manVerDate Nov 24 2008 08:35 Jul 11, 2016 Jkt 075679 PO 00000 Frm 00013 Fmt 6633 Sfmt 6621 S:\GPO\DOCS\20623.TXT JACKIE
10 

date of the U.S. and Foreign Commercial Service, but also the dedicated focus of 

its programs and employees. 

The Commercial Service’s worldwide network achieves this goal every day by linking American suppliers with international buyers; advocating for their best interests 

with foreign governments; and ensuring a level playing field. The programs and expertise provided by the Commercial Service are critical to the success of American 

companies in competing and winning in global markets. I have observed the efforts 

of Commercial Service employees to assist American companies in often difficult circumstances, and have been impressed with their skills, dedication, and pride in public service. 

If confirmed, I commit to a continuous assessment of, and investment in, both the 

development of innovative trade programs and the complex network that delivers 

them. My goal will be to ensure that the Commercial Service not only continues to 

meet the high expectations that our clients have of us, but that we exceed those 

expectations. 

If confirmed, I will look to maximize the synergies we have with state partners— 

as well as local partners, industry associations, and sister Federal partners—to provide companies in all states with access to the tremendous opportunities available 

to them through exporting. 

If confirmed, I welcome the challenge to lead the Trade Promotion arm of the Federal government. My two decades of work experience have been driven exclusively 

by client, constituent and consumer accountability. Those years of managing public 

relations’ campaigns, leading field-based organizations, developing and adhering to 

complex budgets, building coalitions, and motivating and mentoring staff have prepared me for the myriad of opportunities ahead. 

Further, my experience in developing successful strategic marketing and outreach 

programs will heighten the awareness and value of Commercial Service programs 

to American companies. 

If confirmed, I pledge to conduct myself with unwavering commitment-taking 

ownership of every action, standing up for the entrepreneurial ideas, like those of 

my father, and standing by the over 1,600 dedicated public servants that have long 

made the Commercial Service an organization that leads rather than follows. 

If confirmed, I will pursue the stewardship of the Service with energy, integrity, 

accountability and a diligent awareness that we are here to serve our clients— 

American businesses. 

Mr. Chairman, thank you for the opportunity to be here today. I also want to take 

this opportunity to express my appreciation to family and friends—I would not be 

here today if not for you. 

I will be happy to answer any questions you might have and welcome your comments. 

A, BIOGRAPHICAL INFORMATION

1. Name: (Include any former names or nicknames used.) Rhonda Newman 

Keenum (Rhonda Renee Newman). 

2. Position to which nominated: Assistant Secretary and Director General of the 

United States & Foreign Commercial Service. 

3. Date of nomination: December 9, 2003. 

4. Address: (List current place of residence and office addresses.) 

Residence: Information not released to the public. 

Office: Department of Commerce, 1401 Constitution Avenue, NW, WDC 20230. 

5. Date and place of birth: July 30, 1961; Waukegan, IL. 

6. Marital status: (Include maiden name of wife or husband’s name.) Mark Everett Keenum. 

7. Names and ages of children: (Include stepchildren and children from previous 

marriages.) 

Not Applicable. 

8. Education: (List secondary and higher education institutions, dates attended, 

degree received, and date degree granted.) 

08/1981 to 05/1983 Mississippi State University: Bachelor of Business Administration, May 1983. 

08/1979 to 0511981 Northeast Mississippi Community College: Associate Arts, 

May 1981. 

11 

9. Employment record: (List all jobs held since college, including the title or description of job, name of employer, location of work, and dates of employment.) 

12/2003 to Present Department of Commerce, International Trade Administration 

Senior Advisor to the Under Secretary 

01/2000 to 12/2003 Edelman Public Relations, Senior Vice President 

1875 Eye Street, NW, Suite 900, Washington, D.C. 20006 

12/1997 to 01/2000 Ketchum Public Relations, Vice President 

2000 L Street, NW, Suite 300, Washington, D.C. 20036 

04/1997 to 12/1997 Taggart & Associates, Associate 

1015 15th Street, NW, Washington, D.C. 20006 

01/1996 to 12/1996 Dole for President, Director of Surrogate Program 

840 First Street, SE, Washington, D.C. 

01/1995 to 01/1996 U.S. Congressman Roger Wicker, Administrative Assistant & Press Secretary 

206 Cannon House Office Building, Washington, D.C. 20515 

01/1993 to 01/1995 Republican National Committee, Deputy Director Convention & Meetings 

310 First Street, SE, Washington, D.C. 

11/91 to 01/1993 Bush Quayle Presidential Campaign, Political Operations 

15th Street, NE, Washington, D.C. 

03/1990 to 11/1991 Republican National Committee, White House Liaison 

310 First Street, SE, Washington, D.C. 

10/1989 to 03/1990 General Services Administration, Schedule C Appointment 

18th Street, NE, Washington, D.C. 

04/1985 to 04/1989 Deposit Guaranty National Bank, Customer Service Representative 

Main Street, Starkville, MS 39759 

09/1984 to 04/1985 Withit Retail Store, Sales Clerk 

Starkville, MS 39759 

07/1983 to 09/1984 Heritage CableVision, Purchasing Clerk 

Booneville, MS 38829 

10. Government experience: (List any advisory, consultative, honorary or other 

part-time service or positions with Federal, State, or local governments, other than 

those listed above.) 

Not Applicable. 

11. Business relationships: (List all positions held as an officer, director, trustee, 

partner, proprietor, agent, representative, or consultant of any corporation, company, firm, partnership, or other business enterprise, educational or other institution.) 

Officer—KS Associates, LLC (May, 9, 2003 to October 9, 2003) 

12. Memberships: (List all memberships and offices held in professional, fraternal, 

scholarly, civic, business, charitable and other organizations.) 

• Mississippi Society 

• Mississippi State Alumni Association 

• Junior League of Washington 

13. Political affiliations and activities: 

(a) List all offices with a political party which you have held or any public office 

for which you have been a candidate. 

Not Applicable. 

(b) List all memberships and offices held in and services rendered to all political 

parties or election committees during the last 10 years. 

Not Applicable. 

(c) Itemize all political contributions to any individual, campaign organization, political party, political action committee, or similar entity of $500 or more for the past 

10 years. 

Haley Barbour for Governor $1,000 (2003) 

George W. Bush $1,000 (2000) 

Mississippi Republican Party $1,200 ($300/annual) 

Gary Jackson for State Senate $300 (2003) 

Charles Walden for State Senate $250 (2003) 

Bill Hawks for Lt. Governor $1,500 (1999) 

Bob Dole for President $500 (1996) 

12 

14. Honors and awards: (List all scholarships, fellowships, honorary degrees, honorary society memberships, military medals and any other special recognitions for 

outstanding service or achievements.) 

Phi Theta Kappa. 

15. Published writings: (List the titles, publishers, and dates of books, articles, reports, or other published materials which you have written.) 

Not Applicable. 

16. Speeches: Provide the Committee with two copies of any formal speeches you 

have delivered during the last 5 years which you have copies of on topics relevant 

to the position for which you have been nominated. 

Not Applicable. 

17. Selection: 

(a) Do you know why you were selected for the position to which you have been 

nominated by the President? 

Yes. I believe that the President nominated me for this position because of my 

unique combination of management skills, specifically, my experience managing nation-wide field operations, my budgetary and fiscal planning acumen, my demonstrated leadership in building coalitions and my long-standing commitment and 

success in motivating, mentoring and developing employees. 

(b) What in your background or employment experience do you believe affirmatively qualifies you for this particular appointment? 

I believe that my 15-plus years of experience in managing national programs and 

field operations more than qualifies me for this position. I also have significant experience in developing and managing large and complex budgets; motivating and 

mentoring geographically dispersed employees; building strong partnerships with 

U.S. businesses, state and local governments and members of Congress; and setting 

clear priorities, goals and objectives. 

B. FUTURE EMPLOYMENT RELATIONSHIPS

1. Will you sever all connections with your present employers, business firms, 

business associations, or business organizations if you are confirmed by the Senate? 

Yes. 

2. Do you have any plans, commitments, or agreements to pursue outside employment, with or without compensation, during your service with the government? If 

so, please explain: No. 

3. Do you have any plans, commitments, or agreements after completing government service to resume employment, affiliation, or practice with your previous employer, business firm, association, or organization? No. 

4. Has anybody made a commitment to employ your services in any capacity after 

you leave government service? No. 

5. If confirmed, do you expect to serve out your full term or until the next Presidential election, whichever is applicable? Yes. 

C. POTENTIAL CONFLICTS OF INTEREST

1. Describe all financial arrangements, deferred compensation agreements, and 

other continuing dealings with business associates, clients, or customers. 

Not Applicable. 

2. Indicate any investments, obligations, liabilities, or other relationships which 

could involve potential conflicts of interest in the position to which you have been 

nominated. 

Not Applicable. 

3. Describe any business relationship, dealing, or financial transaction which you 

have had during the last 10 years, whether for yourself, on behalf of a client, or 

acting as an agent, that could in any way constitute or result in a possible conflict 

of interest in the position to which you have been nominated. 

Not Applicable. 

4. Describe any activity during the past 10 years in which you have engaged for 

the purpose of directly or indirectly influencing the passage, defeat, or modification 

of any legislation or affecting the administration and execution of law or public policy. 

Managed public affairs campaigns (earned media, coalition, grassroots activities) 

on behalf of client American Health Care Association—in 1999 and 2000. The objectives of the campaigns were to restore skilled nursing Medicare beneficiary funding 

that had been cut as result of Balanced Budget Act of 1998. In 1999, Congress 

passed the Balanced Budget Refinement Act (BBRA) that restored $2.7 billion to 

Medicare beneficiaries in skilled nursing facilities. In 2000, Congress passed the 

13 

Beneficiary Improvement and Protection Act that restored $1.9 billion to Medicare 

beneficiaries in skilled nursing facilities. 

5. Explain how you will resolve any potential conflict of interest, including any 

that may be disclosed by your responses to the above items. (Please provide a copy 

of any trust or other agreements.) 

Not Applicable. 

6. Do you agree to have written opinions provided to the Committee by the designated agency ethics officer of the agency to which you are nominated and by the 

Office of Government Ethics concerning potential conflicts of interest or any legal 

impediments to your serving in this position? Yes. 

D. LEGAL MATTERS

1. Have you ever been disciplined or cited for a breach of ethics by, or been the 

subject of a complaint to any court, administrative agency, professional association, 

disciplinary committee, or other professional group? If so, please explain: No. 

2. Have you ever been investigated, arrested, charged, or held by any Federal, 

State, or other law enforcement authority for violation of any Federal, State, county, 

or municipal law, regulation, or ordinance, other than for a minor traffic offense? 

If so, please explain: No. 

3. Have you or any business of which you are or were an officer ever been involved as a party in an administrative agency proceeding or civil litigation? If so, 

please explain: No. 

4. Have you ever been convicted (including pleas of guilty or nolo contendere) of 

any criminal violation other than a minor traffic offense? If so, please explain: No. 

5. Please advise the Committee of any additional information, favorable or unfavorable, which you feel should be disclosed in connection with your nomination. 

Not Applicable. 

E. RELATIONSHIP WITH COMMITTEE

1. Will you ensure that your department/agency complies with deadlines for information set by congressional committees? Yes. 

2. Will you ensure that your department/agency does whatever it can to protect 

congressional witnesses and whistle blowers from reprisal for their testimony and 

disclosures? Yes. 

3. Will you cooperate in providing the committee with requested witnesses, including technical experts and career employees, with firsthand knowledge of matters of 

interest to the Committee? Yes. 

4. Please explain how if confirmed, you will review regulations issued by your department/agency, and work closely with Congress, to ensure that such regulations 

comply with the spirit of the laws passed by Congress. 

Prior to implementation, I will ensure that any policies or procedures developed 

for or by the U.S. Commercial Service are in line with the intent of Congress, as 

expressed through its mandates, laws, regulations and directives. All such policies 

and procedures will be reviewed by my senior staff and planning office for compliance with Congressional mandates to ensure that no conflicts exist. When there are 

questions, we will work closely with members Congress and staff to clarify any 

issues. 

5. Are you willing to appear and testify before any duly constituted committee of 

the Congress on such. occasions as you may be reasonably requested to do so? Yes. 

F. GENERAL QUALIFICATIONS AND VIEWS

1. How does your previous professional experiences and education qualify you for 

the position for which you have been nominated? 

My 15-plus years of managing national programs and supervising field operations, 

developing and adhering to complex budgets, setting short and long term strategic 

operational objectives, building coalitions, and developing, motivating and mentoring 

staff have more than qualified me for this position. In addition, the contacts I have 

made in federal, state and local agencies will enable me to advance the goals of the 

U.S. Commercial Service by nurturing and leveraging partnerships. Further, my 

skills in developing successful, strategic marketing and outreach programs will 

heighten the awareness and value of U.S. Commercial Service programs to American companies. 

2. Why do you wish to serve in the position for which you have been nominated? 

This position will allow me to apply my extensive experience, skills and abilities 

to meet the significant challenge of increasing the number of small and mediumsized U.S. exporters. In doing so, my hope is that the U.S. Commercial Service will 

play a part in improving the prosperity of our country, including the addition of new 

14 

and higher paying jobs by small and medium-sized enterprises (the fastest growing 

segment of the U.S. economy), and by increasing local tax bases to help communities 

across the country. 

3. What goals have you established for your first two years in this position, if confirmed? 

I have four primary goals I want achieve in this position, if confirmed: 

• Increase the number of new exporters and help current exporters increase the 

number of markets to which they export. 

• Increase the number of exporters from traditionally under-served communities 

(minority-, rural- and women-owned businesses). 

• Improve the quality of export assistance provided to American companies by the 

U.S. Commercial Service by enhancing the skills of our employees through professional development opportunities. 

• Increase and deepen partnerships with other government agencies and the private sector. 

4. What skills do you believe you may be lacking which may be necessary to successfully carry out this position? What steps can be taken to obtain those skills? 

This position requires strong management, motivational, and strategic planning 

skills for a widely dispersed, worldwide network. These are skills that I have successfully cultivated throughout my career and I believe that they will serve me well 

in this position. If confirmed, I will continue to seek to opportunities to improve my 

skills in this capacity. 

5. Please discuss your philosophical views on the role of government. Include a 

discussion of when you believe the government should involve itself in the private 

sector, when society’s problems should be left to the private sector, and what standards should be used to determine when a government program is no longer necessary. 

While I do not believe that it is the role of the Federal government to duplicate 

what can be done more efficiently in the private sector, I do believe that there is 

a necessary role for Federal agencies to play in providing export assistance to small 

and medium-sized enterprises (with targeted emphasis to minority and rural communities).The cost of getting reliable market information from the private sector 

would preclude most small and medium-sized companies from exporting. It is for 

this reason that Congress created the Commercial Service, to provide American 

companies with reliable market information and export assistance at a reasonable 

price. In this capacity, the Commercial Service helps to improve the prosperity of 

our country, add new and higher paying jobs and increase local tax bases to help 

communities across the country. I believe that these are appropriate objectives for 

Federal Government agencies and programs. 

6. Describe the current mission, major programs, and major operational objectives 

6£ the department/agency to which you have been nominated. 

Mission: The mission of the U.S. Commercial Service is to place primary emphasis 

on the promotion of exports of goods and services from the United States, particularly by small and medium-sized businesses, and on the protection of United States 

business interests abroad. 

Major Programs: The major programs of the Commercial Service include: 

• Customer Service-improving service delivery, establishing quality standards and 

improving internal accountability for the U.S. Commercial Service’s small-and 

medium-sized clients 

• Communication and Outreach raising the profile of the wide array of Federal 

export assistance programs available to small and medium-sized American companies. 

• Rural Export Initiative-providing rural companies with better access to export 

assistance through a comprehensive network of partnerships, new technologies 

and unique products. 

• Global Diversity Initiative providing minority-owned and operated firms with 

access to export assistance through a comprehensive array of products, services 

and programs. 

• Professional Development and Retention-implementing programs to attract talented professionals and, once on board, retain and motivate employees through 

professional growth and development opportunities. 

• E-commerce -capitalizing on new technologies and developing new e-commerce 

products and services to provide American companies with more accessible, costeffect export solutions and opportunities. 

15 

Operational Objectives: The Commercial Service remains committed to achieving 

greater operational cost savings and efficiencies through automation and streamlining, while maintaining its high level of client service and satisfaction. 

7. What do you believe to be the top three challenges facing the department/agency and why? 

• Technological advances that will require the development of new and more effective ways to reach clients. 

• Globalization that will introduce a growing number of American companies to 

exporting. 

• Maintaining a level playing field for U.S. exporters-reducing corruption and 

human rights abuses, improving rule of law and encouraging U.S. companies to 

be ‘‘good’’ neighbors through corporate stewardship programs 

8. In reference to question number six, what factors in your opinion have kept 

the department/agency from achieving its missions over the past several years? 

The U.S. Commercial Service has, and continues to achieve its mission of promoting exports, supporting U.S. international commercial interests in the U.S. and 

abroad, and assisting the U.S. business community to identify new markets and expand sales and market share around the globe. 

The agency has been successful because it has been proactive in responding to 

changes in the world economy; adapted new technologies to improve both internal 

business processes and the range of products and services available to American 

companies; invested in its employees through professional development opportunities, and prioritized resources to get the most for its investments. 

9. Who are the stakeholders in the work of this department/agency? 

The Commercial Service’s primary stakeholders are its clients, namely, small-and 

medium-sized U.S. businesses with the initiative and resources to export. Other internal stakeholders include the International Trade Administration, the Department 

of Commerce, Congress and the Office of Management and Budget. 

10. What is the proper relationship between the position to which yon have been 

nominated, and the stakeholders identified in question number nine? 

Clients: I would lead the U.S. Commercial Service’s worldwide network in providing small and medium-sized U.S. businesses with customized export solutions. 

Internal Stakeholders: I would serve as their primary source of information on the 

U.S. Commercial Service for internal stakeholders. For all performance measures 

and results, I would assume and accept responsibility and accountability and provide regular access and updates. 

11. The Chief Financial Officers Act requires all government departments and 

agencies to develop sound financial management practices. 

(a) What do you believe are your responsibilities, if confirmed, to ensure that your 

department/agency has proper management and accounting controls? 

If confirmed, my responsibilities would be to institute and oversee management 

practices which promote compliance with management and accounting controls, to 

set an example by adhering to both the letter and spirit of laws and regulations, 

and to advise and support the ITA CFO as the CFO manages the agency’s fiscal 

and accounting systems. 

Management practices I would emphasize include: training to ensure staff are cognizant of applicable fiscal systems and compliance expectations; use of performance 

appraisals to hold staff accountable for compliance/non-compliance; internal systems 

development to ensure staff have the tools to comply and to document compliance; 

and implementation of systems and practices to detect non-compliance. 

(b) What experience do you have in managing a large organization? 

I have over 15 years of experience in managing large, primarily field-based promotions and programs. Much of this work required building national coalitions and 

supervising the efforts of a large field staff in implementing critical objectives. My 

collective experience includes developing and adhering to complex budgets, setting 

short and long-term strategic operational objectives, building coalitions, and developing, motivating and mentoring geographically dispersed staff. 

12. The Government Performance and Results Act requires all government departments and agencies to identify measurable performance goals and to report to 

Congress on their success in achieving these goals. 

(a) What benefits, if any, do you see in identifying performance goals and reporting on progress in achieving those goals? 

I believe that identifying relevant performance goals benefits both taxpayers and 

the Congress by increasing an organization’s accountability. Putting strong measures in place and reporting on those measures to the Congress ensures that tax dolVerDate Nov 24 2008 08:35 Jul 11, 2016 Jkt 075679 PO 00000 Frm 00019 Fmt 6633 Sfmt 6621 S:\GPO\DOCS\20623.TXT JACKIE
16 

lars are being spent effectively and helps the agency stay focused on its core mission 

and assess organization and individual performance. Strong and transparent performance measures also promote a stronger trust in Government. 

(b) What steps should Congress consider taking when a department/agency fails 

to achieve its performance goals? Should these steps include the elimination, privatization, downsizing, or consolidation of departments and/or programs? 

Congress should insist on an explanation of why the results were not achieved, 

and, depending on the information provided, insist on corrective action, mid-course 

changes to strategy and/or revised goals. Agency elimination, downsizing, privatization, and consolidation are broad policy concerns about the appropriate role and relationships of the Federal Government and how to best serve the taxpayer. Failing 

to achieve performance goals is but one factor when considering these areas. 

(c) What performance goals do you believe should be applicable to your personal 

performance, if confirmed? 

If confirmed, my personal performance goals should be in line with, if not identical to, the goals of the agency. The goals presented to the taxpayer through the 

Trade Promotion Coordinating Committee and the National Export Strategy are applicable. In addition, as the senior executive for the U.S. Commercial Service, I will 

periodically announce management initiatives based on needs and evolving challenges, and these are the basis for personal performance goals. 

13. Please describe your philosophy of supervisor/employee relationships. Generally, what supervisory model do you follow? Have any employee complaints been 

brought against you? 

As a manager, I believe in assembling and motivating a strong management team 

to help run the organization. In turn, the management team delegates responsibility 

to regional managers, commercial officers and trade specialists to deliver the highest 

quality service to our clients. Trust in the judgment of our field staff is essential 

to satisfy client needs in an organization that has more than 250 offices worldwide. 

My management style is highly collaborative and seems to work well in a diverse 

organization that has unionized foreign service officers and foreign service nationals 

representing more than 84 different nationalities. No employee complaints have 

been brought against me. 

14. Describe your working relationship, if any, with the Congress. Does your professional-experience include working with committees of Congress? If yes, please explain. 

I was the Administrative Assistant and Press Secretary for Congressman Roger 

Wicker (R–MS) during his time as the President of the Freshmen Class in 1995 an 

opportunity that allowed maximum interaction with the 73 Freshmen members and 

staffs-many of whom remain in the House (and in the Senate). In addition to my 

Hill experience, I interacted often with many members (and staffs) in my political 

and private sector positions. 

15. Please explain what you believe to be the proper relationship between yourself, if confirmed, and the Inspector General of your department/agency. 

My relationship with the Inspector General will be open and collegial. It will include a continuing dialogue to ensure issues identified by the IG are resolved appropriately and to use the IG as an asset to improve the organization. The U.S. Commercial Service will follow-up promptly and aggressively on recommendations provided in Inspector General reports, and will make referrals to the Inspector General 

in cases of possible wrong-doing. In addition, the Commercial Service will seek a 

dialogue with the Inspector General on relevant issues, ensure IG staff have ready 

access to staff and records, and invite IG staff to participate as observers or speakers at management conferences. 

16. In the areas under the department/agency’s jurisdiction to which you have 

been nominated, what legislative action(s) should Congress consider as priorities? 

Please state your personal views. 

Personally, I believe that there are three primary areas under the Department’s 

jurisdiction that Congress should consider as priorities: 

• Improving the quality and accessibility of export assistance programs to small 

and medium-sized American businesses. 

• Ensuring compliance with international trade agreements including technology, 

biotechnology, and intellectual property, to provide American companies with 

full and fair access to global markets. 

• Making U.S. companies as competitive as those of a number of our trading partners by providing more effective assistance and advocacy for a level playing 

field. 

17 

17. Within your area of control, will you pledge to develop and implement a system that allocates discretionary spending in an open manner through a set of fair 

and objective established criteria? If yes, please explain what steps you intend to 

take and a time frame for their implementation. If not, please explain why. 

If confirmed, I will pledge to develop and implement a system that allocates discretionary spending based on national priorities determined in an open fashion on 

a set of established criteria. 

In allocating resources, I will examine the U.S. Commercial Service’s programs, 

initiatives, priorities and staffing patterns to ensure that funding levels support the 

agency’s mission. My actions will be in accordance with budget timetables established by the Department and will be fully transparent and well documented. 

The CHAIRMAN. Thank you very much. 

Dr. Combs? 

STATEMENT OF LINDA MORRISON COMBS, NOMINEE FOR THE 

POSITION OF ASSISTANT SECRETARY FOR BUDGET, 

PROGRAMS, AND CHIEF FINANCIAL OFFICER, 

U.S. DEPARTMENT OF TRANSPORTATION 

Dr. COMBS. Thank you, Mr. Chairman. 

It’s, indeed, an honor to appear before your Committee today as 

you consider my nomination. I’m, too, very, very pleased to be nominated by the President and have the confidence of Secretary Mineta. And in the interest of your time today, I’d be pleased to submit my statement for the record. 

The CHAIRMAN. Without objection. 

Dr. COMBS. Thank you. 

[The prepared statement and biographical information of Dr. 

Combs follow:] 

PREPARED STATEMENT OF LINDA MORRISON COMBS, NOMINEE FOR THE POSITION OF

ASSISTANT SECRETARY FOR BUDGET, PROGRAMS, AND CHIEF FINANCIAL OFFICER, 

U.S. DEPARTMENT OF TRANSPORTATION

Mr. Chairman and Members of the Committee, thank you for the opportunity to 

appear before you today as you consider my nomination to be Assistant Secretary 

for Budget, Programs and Chief Financial Officer of the Department of Transportation. It is an honor to be here and a privilege to have been nominated by President Bush for this important post. I’d like to thank Secretary Mineta for his confidence in my ability, and if confirmed, I look forward to working with all of you 

and your staffs in addressing the transportation issues that affect all Americans. 

The position of Assistant Secretary for Budget, Programs and Chief Financial Officer of any organization or Department carries a tremendous responsibility. It’s a 

pivotal place in the Department where budget, accountability, and sound fiscal management all come together. It will be my goal, if confirmed, to build upon the 

progress that has already been made and continue to improve the management, performance, and results for the Department. 

Having gained invaluable experience in the management area while serving as 

the Deputy Under Secretary for Management at the Department of Education, Acting Associate Deputy Administrator for Management at the Department of Veterans 

Affairs, Assistant Secretary for Management and the first Chief Financial Officer 

at the Department of the Treasury, and most recently as the Chief Financial Officer 

at the Environmental Protection Agency, I welcome the opportunity, if confirmed, 

to face the challenges that lie before me at the Department of Transportation. 

In each of my public offices I have been guided by one over-riding principle: public 

service is a public trust. I am committed to upholding the highest standards of honesty, fairness, and integrity. The people of this great country deserve no less from 

those of us who serve in such honored positions. 

1 approach the challenges that lie before me with enthusiasm and eagerness to 

provide expert leadership for the Department of Transportation. Should you honor 

me with confirmation, I look forward to maintaining open lines of communication 

and a close working relationship with you. The Department of Transportation is 

very fortunate to have an outstanding, highly experienced budget and financial 

18 

staff. If confirmed, I look forward to working with these fine professionals and learning from them. I am eager to begin our work together. 

l again thank you for the opportunity to appear before you, and I look forward 

to answering any questions you may have. 

A. BIOGRAPHICAL INFORMATION

1. Name: (Include any former names or nick names used.) Linda Morrison Combs, 

Linda Combs, Linda M. Combs, Linda Morrison, Linda Gail Morrison. 

2. Position to which nominated: Assistant Secretary of Transportation for Budget 

and Programs and Chief Financial Officer. 

3. Date of nomination: November 25, 2003. 

4. Address: (List current place of residence and office addresses.) 

Residence: Information not released to the public. 

Office: Department of Transportation, 400 7th Street, SW, Room 10101, Washington, D.C. 20590. 

5. Date and place of birth: 06/29/46; Lenoir, NC. 

6. Marital status: (Include maiden name of wife or husband’s name.) 

David Michael Combs. 

7. Names and ages of children: (Include stepchildren and children from previous 

marriages.) 

None. 

8. Education: (List secondary and higher education institutions, dates attended, 

degree received and date degree granted.) 

1960–1964 Hudson High School Dip 1964 

1964–1966 Gardner—Webb University Boone, NC AA 1966 

1966–1968 Appalachian State Univ. Boiling Springs, NC BS 1966 

1973–1978 Appalachian State Univ. Boiling Spring. NC MA 1978 

1982–1985 VP and State University Blacksburg, VA Ed.D. 1985 

1984–1984 Harvard University Cambridge, MA Cert. 1984 

1975 American Mgmt. Assn. Cert. 1975 

1979 American Institute of Banking Cert. 1979 

9. Employment record: (List all jobs held since college, including the title or description of job, name of employer, location of work, and dates of employment.) 

11/03–pres. Advisor to the Secretary, DOT, Washington, D.C. 

11/01–11/03 Chief Financial Officer, USEPA, Washington, D.C. 

1991–2001 Combs Publishing & Consulting, self—sole proprietor, W–S, NC 

07/89–05/91 Assistant Secretary of Treasury for Management & CFO, Wash, D.C. 

08/88–07/89 Acting Assoc. Administrator for Management, DVA, Wash, D.C. 

10/87–08/88 Deputy Associate Administrator for Management, DVA, Wash, D.C. 

05/87–10/87 Combs Consulting Group, self employed, W–S, NC 

10/86–10/87 Int’l Education Systems of N.C., W–S, NC 

05/86–04/87 Public Education Advisor to the Governor of NC, Raleigh, NC 

09/84–05/86 Deputy Undersecretary for Management, Dept of Ed., Wash, D.C. 

02/83–09/84 Executive Secretary, Dept of Ed., Wash, D.C. 

05/82–02/83 Deputy Executive Secretary, Dept. of Ed., Wash, D.C. 

03/80–04/82 Mgr. National Direct Student Loan Operations, Wachovia Serv., NC 

09/79–02/80 Section Manager, Wachovia Services, Winston-Salem, NC 

12/80–05/82 Elected Member, Board of Education, Forsyth Co., NC 

08/77–08/79 Assistant Principal, Speas School, Forsyth Co., Winston-Salem, NC 

09/73–06/77 Reading Coordinator, Ardmore School, Forsyth Co. Winston-Salem, NC 

06/73–08/73 Director, Title I Summer Program, Forsyth Co. Winston-Salem, NC 

09/71–06/73 Reading Teacher, Clemmons School, Forsyth Co. Winston-Salem, NC 

01/70–06/71 6th Grade Teacher, Brown School, Forsyth Co., Winston-Salem, NC 

09/68–01/70 6th Grade Teacher, Kernersville School, Forsyth Co. W-Salem, NC 

06/69–08/60 Correspondence Clerk, Bowman Gray Sch. of Medicine, W-Salem, NC 

10. Government experience: (List any advisory, consultative, honorary or other 

part-time service or positions with Federal, State, or local governments, other than 

those listed above.) 

Included above in #9. 

11. Business relationships: (List all positions held as an officer, director, trustee, 

partner, proprietor, agent, representative, or consultant of any corporation, company, firm, partnership, or other business enterprise, educational or other institution.) 

1991–2001 Self Employed {Consultant/Writer/Speaker) Proprietor 

1991–2001 Co-Proprietor with David Combs of Combs Music 

19 

1999–2001 Gardner-Webb University. Unpaid member, Board of Trustees 

1992–2001 Appalachian State Univ. Unpaid member, Board of Directors 

1984–2001 Wake Forest Univ. Babcock Sch. of Mgmt. Unpaid mem., Bd of Visitors 

1995–1997 Piedmont Triad Alzheimer’s Association, Unpaid member Bd. of Dir. 

2000–2001 Kaesona, Inc. Unpaid member, Board of Directors 

2000–2001 Kybele, Inc. Unpaid member, Board of Directors 

501(c)(3) corporation, incorporated in the State of Kansas 

1996–2000 NC Jewish Home, Clemmons, NC (unpaid member while parents were residents—home now 

closed) 

12. Memberships: (List all memberships and offices held in professional, fraternal, 

scholarly, civic, business, charitable and other organizations.) 

1992–2001 Rotary International Club. Chaired the Devotional Committee 

1999–2001 Piedmont Women Executives 

1996–2000 National Speakers Association 

13. Political affiliations and activities: 

(a} List all offices with a political party which you have held or any public office 

for which you have been a candidate. 

1980 Elected to Board of Education for Forsyth County School System in Winston-Salem, NC 

1980/81 Vice President of Forsyth Young Republicans Club 

(b) List all memberships and offices held in and services rendered to all political 

parties or Election committees during the last 10 years. 

1972 & 1978 Actively worked in Jesse Helms for Senate Campaign as Precinct Organizer. Also served in 

subsequent campaigns in various capacities 

1974–1980 Co-chair of South Fork Republican Precinct 

1976–1980 Member of Forsyth Co. Republican Party Executive Committee 

1976 & 1980 Actively worked in the Reagan for President Campaign 

1980 Elected to Board of Education for Forsyth County School System in Winston-Salem, NC 

1980–1981 Vice President of Forsyth Young Republicans Club 

1982–1991 Active member of the North Carolina Republic Club of Washington 

1987 George H. W. Bush Presidential Campaign 

2000 George W. Bush Presidential Campaign 

1999 Elizabeth Dole for President—National Finance Committee 

1999–2000 George W. Bush for President Campaign (Educators for Bush) 

1970–Pres. Forsyth County Republican Women’s Club 

1995–1996 Forsyth County Republican Party Finance Committee 

(c) Itemize all political contributions to any individual, campaign organization, political party, political action committee, or similar entity of $500 or more for the past 

10 years. 

George W. Bush—2004 Presidential Campaign $2,000 

George W. Bush—2000 Presidential Campaign $1,000 

George H. W. Bush—1992 Presidential Campaign $1,000 

Elizabeth Dole—2000 Presidential Campaign $1,000 

14. Honors and awards: (List all scholarships, fellowships, honorary degrees, honorary society memberships, military medals and any other special recognition for 

outstanding service or achievements.) 

1963 Rural Electrification Assn. Scholarship for writing a prize winning essay 

1964 Graduated with honors from high school 

1974 Winston-Salem/Forsyth Co. School System Scholarship 

1977 Nominated ‘‘Teacher of the Year’’ by Speas School 

1978 Nominated ‘‘Teacher of the Year’’ by Speas School 

1997 Delta Kappa Gamma Honor Society 

1979 Phi Delta Kappa Honorary Society 

1983 Combined Federal Campaign Award 

1983 Combined Federal Campaign Outstanding Service Award 

1984 Phi Delta Kappa Service to Education Award 

1984 Secretary of Education’s Special Citation 

1985 Honorary Doctorate, Gardner Webb College 

1986 Distinguished Alumnus of the Year, Appalachian State Univ. 

1987 Alumnus of the Year, Gardner Webb College 

1986 Certificate of Appreciation, U.S. Secretary of Education 

1988 President’s Council on Management Improvement Award 

1988 Executive Performance Award, Veterans Administration 

1988 President’s Council on Management Improvement Outstanding Leadership 

1988 Outstanding Volunteer Award 

1989 Veterans Administration Appreciation Award 

1989 Pride in Public Service Achievement 

1996 Alzheimer’s Association Award from Nancy Reagan 

20 

1996 Piedmont Triad Alzheimer’s Association Volunteer of the Year 

1997 Special Service Award, Appalachian State University 

2002 Received the President’s Quality Award Program Finalist Award given in the area of budget and 

performance integration. (One of only seven awards presented government-wide.) 

2003 Received White House recognition for Leadership and accomplishments in improving financial 

performance. (One of three recognitions given government-wide.) 

15. Published writings: (List the titles, publishers, and dates of books, articles, reports, or other published materials which you have written.) 

Author.

Jan. 2001 .......... ‘‘Work Together to Ensure that No Child is Left Behind,’’ Article in Winston-Salem Journal 

Guest Column 

Dec. 1994 .......... ‘‘Reflections on Dealing with Alzheimers,’’ article by Linda Morrison Combs 

Dec. 1994 .......... ‘‘A Long Goodbye and Beyond. Coping with Alzheimers,’’ book by Linda M. Combs 

Dec. 1996 .......... ‘‘Fact and Commentary,’’ article on Alzheimer’s Disease Primary Psychiatry Journal 

Mar. 1984 ......... ‘‘An Analysis of Productivity Improvements and Trends in the Executive Secretariat,’’ paper, 

U.S. Department of Education 

Mar. 1985 ......... ‘‘Sharing Educational Responsibility,’’ article in Winston-Salem Sentinel 

1985 .................. ‘‘Developmental Education: The Federal Viewpoint.’’ Journal of Developmental Education, 

Volume 9, Issue 1 

Nov. 1985 .......... ‘‘Education in the Year 2035—A Delphi Study to Identify Possible Futures of the Public Secondary School’’ (Dissertation submitted to fulfill requirements for Ed.D. at Virginia Polytechnic and State University) 

Co-author.

Mar. 1985 ......... ‘‘An Inventory of Shared Administration Support,’’ New Perspectives on Federal Management 

for the President’s Council on Mgmt. Improvement (PCMI) Interagency Task Force Report 

Apr. 1985 .......... ‘‘Case Studies of shared Administrative Support,’’ New Perspectives on Federal Management 

for the PCMI Interagency Task Force Report 

Aug. 1985 .......... ‘‘Measuring Administrative Services: Assessing and Improving Productivity,’’ A PCMI Interagency Task Force Report 

Oct. 1985 .......... ‘‘Streamlining Internal Control Processes and Strengthening Management Controls with Less 

Effort,’’ A PCMI Interagency Study Report 

1985 .................. ‘‘Improving Federal Productivity: An Inventory of Agency Examples,’’ A PCMI Task Force Report 

16. Speeches: Provide the Committee with two copies of any formal speeches you 

have delivered during the last 5 years which you have copies of on topics relevant 

to the position for which you have been nominated. 

04/1999 ‘‘The Perfect Politician,’’ speech for Forsyth County Republican Club Monday luncheon, WinstonSalem, NC 

08/1999 ‘‘Facing a long Goodbye—Caring for Your Parents,’’ for the National Speaker’s Association Meeting in 

San Antonio, TX 

11/1999 Caregiver Renewal Day, speech Dallas TX 

11/1999 ‘‘Coping with Alzheimer’s Disease,’’ on-line chat event guest for Web Med, Inc. 

05/2002 Remarks during EPA Senior Executive Service Meeting, Washington, DC 

05/2002 ‘‘Emerging Issues in Environmental Protection’’ before the EPA Annual Planning and Budget Meeting, Washington, DC 

06/2002 ‘‘Getting Beyond Green: President’s Management Agenda,’’ for 7th Annual Treasury CFO Council Retreat, Washington, DC 

06/2002 ‘‘Careers in Federal Government,’’ during Caldwell Co. June Scholars Ceremony, Lenoir, NC 

08/2002 ‘‘President’s Management Agenda,’’ during EPA Regional Administrators Meeting on Improved Results, Washington, DC 

08/2002 ‘‘Rising to Excellence through Citizen-Centered Government,’’ during EPA’s 4th National Customer 

Service Meeting, Washington, DC 

08/2002 ‘‘Using Business Tools to Improve Results,’’ during Business Intelligence Team Kickoff Meeting, 

Washington, DC 

10/2002 ‘‘Getting Beyond Green-Financial Management’ before the Administrator’s Senior Staff Meeting in 

San Francisco, CA 

11/2002 Remarks before the ARA Meeting, Washington, DC 

01/2003 ‘‘Citizen-Centered Government,’’ during Cleveland County Manufacturer’s Council Meeting, Washington, DC 

02/2003 ‘‘Office of Chief Financial Officer’s Priorities for 2003,’’ before the Second Annual Customer Service 

Expo, Washington, DC 

03/2003 ‘‘Integrating Budget and Performance at EPA,’’ during JFMIP 32nd Annual Conference as panel session speaker, Washington, DC 

03/2003 Remarks before the Environmental Financial Advisory Board Annual Meeting in Washington, DC 

04/2003 ‘‘President’s Management Agenda,’’ at the EPA Assistant Regional Admin. Annual Conference, opening remarks, Washington, DC 

05/2003 ‘‘EPA Strategic Plan,’’ before State Commissioners and EPA Managers Workshop, welcoming remarks, Washington, DC 

05/2003 ‘‘Government Agencies Are Facing Accelerating Rates of Change,’’ at AFFIRM Post/Newsweek Panel 

Meeting 

05/2003 ‘‘Integrating Budget and Performance at EPA,’’ at logistics Management Institute Meeting, Tyson’s 

Corner, VA 

06/2003 ‘‘Strategic Business Partners: How Can we Be Good Partners,’’ before Association of Government Accountants (AGA) Conference, Chicago, Ill. 

21 

06/2003 ‘‘Partnering for Results’’ before the AGA Professional Development Development Conference in Chicago, IL 

10/2003 ‘‘Update on Implementation of the President’s Management Agenda’’ before the Environment Performance Summit Meeting in Wash., DC 

17. Selection: 

(a) Do you know why you were chosen for this nomination by the President? 

I believe that I was chosen for this nomination by the President because of my 

skills in managing other similar positions. 

(b) What do you believe in your background or employment experience affirmatively qualifies you for this particular appointment? 

I have worked in four different Federal agencies with oversight authority for financial management and budget. These positions include Deputy Undersecretary for 

Management at the Department of Education; Assistant Secretary for Management 

and Chief Financial Officer at the Department of Treasury; Acting Associate Administrator for Management at the Department of Veterans Affairs; and most recently 

as Chief Financial Officer at the U.S. Environmental Protection Agency. During my 

tenure at EPA, it became the third agency to ‘‘get to green’’ for status in financial 

management, receiving a clean audit opinion with no material weaknesses, an initiative on the President’s Management Agenda. 

B. FUTURE EMPLOYMENT RELATIONSHIPS

1. Will you sever all connections with your present employers, business firms, 

business associations or business organizations if you are confirmed by the Senate? 

I do not currently have any employment outside the Federal Government. 

2. Do you have any plans, commitments or agreements to pursue outside employment, with or without compensation, during your service with the government? If 

so, explain: No. 

3. Do you have any plans, commitments or agreements after completing government service to resume employment, affiliation or practice with your previous employer, business firm, association or organization? No. 

4. Has anybody made a commitment to employ your services in any capacity after 

you leave government service? No. 

5. If confirmed, do you expect to serve out your full term or until the next Presidential election, whichever is applicable? Yes. 

C. POTENTIAL CONFLICTS OF INTEREST

1. Describe all financial arrangements, deferred compensation agreements, and 

other continuing dealings with business associates, clients or customers. None. 

2. Indicate any investments, obligations, liabilities, or other relationships which 

could involve potential conflicts of interest in the position to which you have been 

nominated. 

See attached OGC letter following this page. [Not printed here.] 

3. Describe any business relationship, dealing, or financial transaction which you 

have had during the last 10 years, whether for yourself, on behalf of a client, or 

acting as an agent, that could in any way constitute or result in a possible conflict 

of interest in the position to which you have been nominated? None. 

4. Describe any activity during the past 10 years in which you have engaged for 

the purpose of directly or indirectly influencing the passage, defeat or modification 

of any legislation or affecting the administration and execution of law or public policy. None. 

5. Explain how you will resolve any potential conflict of interest, including any 

that may be disclosed by your responses to the above items. (Please provide a copy 

of any trust or other agreements.) 

I shall consult with DOT’s designated Ethics Official and either recuse myself, obtain a waiver, or take such other action as may be appropriate. 

6. Do you agree to have written opinions provided to the Committee by the designated agency ethics officer of the agency to which you are nominated and by the 

Office of Government Ethics concerning potential conflicts of interest or any legal 

impediments to your serving in this position? Yes. 

D. LEGAL MATTERS

1. Have you ever been disciplined or cited for a breach of ethics for unprofessional 

conduct by, or been the subject of a compliant to any court, administrative agency, 

professional association, disciplinary committee, or other professional group? If so, 

provide details: No. 

22 

2. Have you ever been investigated, arrested, charged or held by any Federal, 

State, or other law enforcement authority for violation of any Federal, State, county, 

or municipal law, regulation or ordinance, other than a minor traffic offense? If so, 

provide details: No. 

3. Have you or any business of which you are or were an officer ever been involved as a party in interest in an administrative agency proceeding or civil litigation? If so, provide details? 

In 1976 in the zoning appeal case of City of Winston-Salem and the Board of Alderman and Mayor V. the N.W. Stratford Neighborhood Planning Council and 

David M. Combs and wife, Linda, I was named as a party because my husband, 

then President of the N.W. Stratford Neighborhood Planning Council, was named 

as the party in interest, hence I was named due to NC marital estate law. The property was rezoned from a level one tract single residential zone to a level five tract 

highway business zone. The Planning Council filed a petition to challenge the vote 

citing that the Roberts Rules of Order were not being properly followed. In April 

1976, the Council lost on a motion for summary judgment, and an appeal was not 

pursued. 

4. Have you ever been convicted (including pleas of guilty or nolo contendere) of 

any criminal violation other than a minor traffic offense? No. 

5. Please advise the Committee of any additional information, favorable or unfavorable, which you feel should be considered in connection with your nomination. 

None. 

E. RELATIONSHIP WITH COMMITTEE

1. Will you ensure that your department/agency complies with deadlines set by 

Congressional committees for information? Yes. 

2. Will you ensure that your department/agency does whatever it can to protect 

Congressional witnesses and whistle blowers from reprisal for their testimony and 

disclosures? Yes. 

3. Will you cooperate in providing the committee with requested witnesses, to include technical experts and career employees with firsthand knowledge of matters 

of interest to the committee? Yes. 

4. Please explain how you will review regulations issued by your department/ 

agency, and work closely with Congress, to ensure that such regulations comply 

with the spirit of the laws passed by Congress. 

If confirmed, I will have the responsibility to review the budgetary impact of all 

significant DOT regulations. As the Assistant Secretary for Budget and Programs/ 

CFO it would be my responsibility to verify the financial ramifications of regulations 

for both the Department and private industry. I intend to work diligently with regulators as well as Departmental officials to comply with all aspects of the laws passed 

by Congress, and I will take responsibility to ensure that a thorough review process 

is followed within DOT’s Office of the Chief Financial Officer. 

5. Describe your department/agency’s current mission, major programs, and major 

operational objectives. 

The mission of the Department of Transportation is to provide a safe and efficient 

transportation system. If confirmed, I would be committed to ensure that this mission is carried out in an efficient manner with the use of all appropriate tools such 

as departmental regulations, safety inspections and services, investments in infrastructure and the development of new technologies and public education awareness. 

The Government Performance and Results Act (GPRA) commits the Department 

to managing for results, and this has been reflected in the strategic goals and performance plan. DOT already has been successful in reaching over 70 percent of its 

goals set forth in its strategic plan and I am committed to continue to strive to improve safety, mobility, economic growth, human and natural environment, and national security. 

6. Are you willing to appear and testify before any duly constituted committee of 

the Congress on such occasions as you may be reasonably requested to do so? 

I will. 

F. GENERAL QUALIFICATIONS AND VIEWS

1. How have your previous professional experience and education qualified you for 

the position for which you have been nominated? 

I feel that I am qualified to serve in the position of Assistant Secretary for Budget 

and Programs/Chief Financial Officer at DOT because of my training, experience, 

and commitment. During my career I have held numerous management positions 

with increasing levels of responsibility. I have had the opportunity to serve in equivVerDate Nov 24 2008 08:35 Jul 11, 2016 Jkt 075679 PO 00000 Frm 00026 Fmt 6633 Sfmt 6621 S:\GPO\DOCS\20623.TXT JACKIE
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alent positions at the Departments of Education, Veterans Affairs, Treasury, and 

most recently at EPA. 

The Chief Financial Officer position presents a tremendous opportunity to develop 

a careful balance between providing service and exercising control and discipline 

within the Agency. As the Assistant Secretary for Budget and Programs/CFO at 

DOT, I would have the responsibility of overseeing financial management, budgeting, performance measurement, analysis and accountability functions, all of which 

I have done in previous positions. 

I have a very strong commitment to public service. I believe that public servants 

have an obligation to set a good example and should uphold the highest ethical 

standards. I am always mindful of that public trust and will always strive to honor 

the public trust. 

2. Why do you wish to serve in the position for which you have been nominated? 

If confirmed, I hope to inspire the employees at DOT to strive to reach the Department’s goals and objectives of providing the safest, most efficient transportation 

system. This would be aided by improving the financial management initiatives and 

ultimately bringing that Department from ‘‘red’’ to ‘‘green’’ on the initiatives set 

forth as priorities by the President’s Management Agenda. 

3. What goals have you established for your first two years in this position, if confirmed? 

My personal goal would be to elevate DOT into the limelight as one of the best 

run financial management organizations in the Federal Government thereby helping 

DOT in achieving its goal of providing a safer, simpler and smarter transportation 

system for the benefit of all Americans. I hope to obtain this goal through providing 

guidance for appropriate funding recommendations. I believe my past experience in 

motivating employees to ensure the best teamwork will ultimately provide the development of transportation policies and programs that will contribute to providing 

fast, safe, efficient, and convenient transportation at the lowest cost. 

If confirmed, some of the things I want to accomplish in my role as Assistant Secretary for Budget and Programs/CFO would be to improve upon the financial management efforts of the Department to ensure that DOT receives and maintains a 

clean audit, to modernize and improve DOT’s financial systems for program management in a more efficient manner to benefit taxpayers and to provide DOT managers with real-time financial information that would be readily available to them 

from their desktops. 

4. What skills do you believe you may be lacking which may be necessary to successfully carry out this position? What steps can be taken to obtain those skills? 

I do not have extensive knowledge about transportation programs and activities, 

but I have worked in oversight positions in financial management in three Administrations at four Federal agencies (Education, Veterans Affairs, Treasury and EPA} 

and believe my knowledge of budgetary matters will allow me to have great insight 

into any relevant programs that need a good solid financial structure on which to 

accomplish its goals. 

I have witnessed some very outstanding skills from DOT employees, and I would 

want to learn from them in order to get the job done. I hope to be able to combine 

our knowledge and skills to obtain the goals set before us, and together I know we 

will succeed. A good working relationship with Departmental and Congressional officials is also a big step towards broadening my knowledge of relevant transportation 

programs. 

5. Who are the stakeholders in the work of this agency? 

The stakeholders of DOT are our fellow American citizens. Most Americans obtain 

a direct benefit from the Department in their daily lives-traveling to and from work 

each day, going on vacation, or dining out, made possible by delivery of foods via 

one or more modes of transportation. Other important stakeholders include Congress, state and local elected and appointed officials, and fellow Americans who are 

employed by the transportation industry sector. 

6. What is the proper relationship between your position, if confirmed, and the 

stakeholders identified in question number ten. 

If confirmed, I would certainly be accessible and responsive to the stakeholders 

I have mentioned above, and provide clear and ethical standards relating to budgetary and financial decisions. I would not allow special interests to dictate the policy 

and operations of the Department. 

7. The Chief Financial Officers Act requires all government departments and 

agencies to develop sound financial management practices similar to those practiced 

in the private sector. 

(a) What do you believe are your responsibilities, if confirmed, to ensure that your 

agency has proper management and accounting controls? 

24 

If confirmed as Assistant Secretary for Budget and Programs/Chief Financial Officer, I plan to ensure that DOT has state-of-the-art management and accounting control systems in place. I believe this is critical to obtain clean audit opinions and 

clear up material internal control weaknesses. To do this, we must have at our fingertips the most reliable, accessible and accurate financial information. I hope to be 

instrumental in making the Department’s accounting system more practical and 

user friendly. This, combined with a productive workforce will enable us to integrate 

the five mutually reinforcing goals into DOT’s culture as we strive for continuous 

management improvement as set forth by President Bush’s Management Agenda. 

Those goals are: (1) Strategic Management of Human Capital; (2) Budget and Performance Integration; (3) Competitive Sourcing; (4) Expanded E-Government; and 

(5) Improved Financial Management. 

To this end, I would be a shepherd for the department’s major priorities which 

are: 

Safety. DOT’s number one goal is to have a safe and efficient transportation system. In order for this priority to be realized, DOT components need to focus on improving safety, inspecting operations, issuing regulations, supporting research 

projects, supporting public education and maintaining all of the above functions 

without needing to worry about the soundness of their financial systems. I hope to 

enable all these functions to run smoothly. 

Mobility. One of the biggest problems facing our economy today is congestion. 

Traffic congestion and bottlenecks damage air quality, slow commerce, increase energy consumption and threaten our quality of life causing Americans to waste significant time and money. We all know that public transportation is one way to alleviate some of these problems. Better and more effective solutions are needed to 

address our growing mobility needs. I will work towards developing a reliable and 

financially viable system through more innovative finance programs. 

Global Connectivity. Recognizing that global connectivity is a vision of the future, 

we must open up our trade and economic growth exchange to expanded democracies 

around the world. Transportation is critical to opening up these worldwide exchanges. I hope to be instrumental in finding ways to increase these exchanges with 

better policies and programs installed into our performance plans. 

Environmental Stewardship. Energy consumption is an emerging concern for the 

transportation sector. Environmental streamlining and stewardship offer a new way 

of doing business that brings together the timely delivery of transportation projects 

and still protects the environment. We must remain consistent with the requirements of environmental law and our responsibilities to be good stewards of the environment. I intend to offer my assistance to Secretary Mineta in his role of chairman 

of the task force that has the goal to expedite priority projects to lessen transportation effects on the environment. 

Security. President Bush has asked DOT to work together with the Department 

of Homeland Security (DHS) on designing a world-class transportation security system. The aim is to maximize the opportunities presented by our regulatory enforcement activities when they expose security risks in the transport of goods or people. 

(b) What experience do you have in managing a large organization? 

I have managed large organizational structures at the Department of Education, 

at the Department of Treasury and at EPA. There were approximately 350 employees under my responsibility at EPA and over 1500 at Treasury. We managed to become one of the leading achievers in the Federal financial management field. I believe one of my strengths in managing is encouraging employees to do their very 

best always, and when employees are given the respect and encouragement to do 

their best, you usually attain the best results. A good supporting cast makes a great 

difference in achieving goals that you have set for your organization. 

8. The Government Performance and Results Act requires all government departments and agencies to identify measurable performance goals and to report to Congress on their success in achieving these goals. 

(a) Please discuss what you believe to be the benefits of identifying performance 

goals reporting on your progress in achieving those goals. 

I strongly believe in the spirit and intent of GPRA. I also believe that the law 

was identified to keep agencies in check. Without GPRA, an agency would have no 

way to measure its success. With reasonable goals laid out in the strategic plan, the 

agency benefits greatly in its work products because employees are going to strive 

to achieve those goals. By reporting on the status of those goals, you know where 

you are and where you need to be and also if there is a need for any changes. 

25 

(b) What steps should Congress consider taking when an agency fails to achieve 

its performance goals? Should these steps include the elimination, privatization, 

downsizing or consolidation of departments and/or programs? 

As usual, any actions that react to failure usually sound more drastic than they 

need to be. But if any of the suggested actions above will enhance the programs and 

make it possible to meet the performance goals, such options should be considered. 

However, 1 believe organizational factions should work together to sets goals that 

are both reasonable and challenging, and also agree with mission of the agency and 

the Administration. Goals should never be too reachable or too unattainable. 

(c) What performance goals do you believe should be applicable to your personal 

performance, if confirmed? 

If confirmed, I would personally accept responsibility for administering the GPRA 

performance plan, thusly holding myself accountable to all of the Department’s top 

goals. I would maintain close coordination with the Secretary and Deputy Secretary 

in the conformance of annual performance goals for my office. These goals would include being responsive to Congress and other stakeholders and at the same time 

maintaining proper implementation of the duties of the Assistant Secretary for 

Budget and Programs/CFO, specifically in achieving and maintaining a clean audit. 

9. Please describe your philosophy of supervisor/employee relationships. Generally, what supervisory model do you follow? Have any employee complaints been 

brought against you? 

My first and foremost philosophy on supervisor/employee relationship centers on 

mutual respect for one another. I like to practice innovative management techniques 

and institute management improvements and initiatives that result in actual and 

noticeable improvements. I believe that employees represent the greatest resource 

for any organization, and it is my opinion that in order for employees to achieve 

their highest potential and to take pride in their work, you must motivate them to 

want to do so. All organizational accomplishments are done by and through people, 

and as such, employees deserve professional treatment and respect. I believe in rewarding positive performance and encouraging innovation and creativity. I place a 

premium on ideas and suggestions from employees on ways to improve the efficiency 

and performance of an organization. I believe in listening to both the customer and 

to the people who serve the customer. 

I do not know of any employee complaints brought against me. 

10. Describe your working relationship, if any, with the Congress. Does your professional experience include working with committees of Congress? If yes, please describe. 

I have worked with Congress in previous positions within the Federal Government. In my roles as the chief financial officials in four previous departments and/ 

or agencies, it has been my honor to appear before several different oversight congressional committees to provide testimony and reports, both in oral and written 

communication. I know there is a genuine need for their oversight roles and I respect the process. I always try to be responsive to Congressional staff and members. 

If confirmed, I would strive to obtain and maintain positive working relationships. 

11. Please explain what you believe to be the proper relationship between yourself, if confirmed, and the Inspector General of your department/agency. 

I have always had a close working relationship with the Inspector Generals in the 

Departments in which I have served. If confirmed, I would want to maintain a close 

working relationship with the IG at DOT. One of the many goals of the IG is to 

ensure that the Department operates in a manner that is free of waste, fraud and 

abuse. This is certainly a goal of mine as well. I have spoken with DOT’s IG and 

if confirmed, I would welcome his offer to continue an open, candid relationship with 

me. 

12. Please explain how you will work with this Committee and other stakeholders 

to ensure that regulations issued by your department/agency comply with the spirit 

of the laws passed by Congress. 

I would feel privileged to work closely with this Committee and DOT officials to 

address any concerns about proposed regulations. As Assistant Secretary for Budget 

and Programs/CFO, I would accept the responsibility to review all regulations for 

budgetary impact on the Department as well as in the private sector. I would assure 

that Congress was notified of any obligations or resources needed by the department. 

When the Department of Transportation has legal authority or direction to impose 

regulations, I believe it would be important to assure that existing laws and regulations reflect Congressional intent. I believe it is important to work with DOT officials to address Congressional concerns with any proposed regulations. I feel strongVerDate Nov 24 2008 08:35 Jul 11, 2016 Jkt 075679 PO 00000 Frm 00029 Fmt 6633 Sfmt 6621 S:\GPO\DOCS\20623.TXT JACKIE
26 

ly that briefings with Congressional staff are important, and would strive to work 

with Congress and staff to communicate pending departmental actions. 

13. In the areas under the department/agency’s jurisdiction, what legislative action(s) should Congress consider as priorities? Please state your personal views. 

The most recent six-year surface transportation authorization act, the Transportation Equity Act for the 2181 Century (TEA–21), expired on October 1, 2003. A 

short-term extension of TEA–21, the Surface Transportation Extension Act of 2003, 

expires on February 29 of this year. 

Surface transportation reauthorization is a key priority of the Administration and 

DOT. A major component of the Department’s 2004 budget request includes the financial foundation for the proposed new multi-year surface transportation legislation and the recently enacted aviation reauthorization, Vision 100—Century of 

Flight Reauthorization Act. I look forward to working closely with Congress on swift 

enactment of the surface transportation reauthorization bill that will continue to 

keep our surface programs strong and responsive to the Nation’s transportation 

needs while continuing to focus on highway safety. 

One of my personal aspirations would be for Congress to look at ways to make 

Amtrak solvent so that it can serve its customers in a more efficient manner. 

14. Within your area of control, will you pledge to develop and implement a system that allocates discretionary spending based on national priorities determined in 

an open fashion on a set of established criteria? If not, please state why. If yes, 

please state what steps you intend to take and a time frame for their implementation. 

I am a firm believer that discretionary spending based on national priorities is 

a worthwhile objective to pursue. The criteria, however, would need to be based on 

existing laws and standards set by Congress. I would follow the direction of Congress, and laws that are passed by Congress. 

The CHAIRMAN. Thank you. 

Mr. Buttrey? 

STATEMENT OF W. DOUGLAS BUTTREY, MEMPHIS, TENNESSEE 

Mr. BUTTREY. Mr. Chairman, thank you very much for the opportunity to be here today before you, and to have an opportunity to 

thank the President and Senator Frist and Senator Alexander for 

having faith in me and helping with this nomination. I also wish 

to thank Congressman Ford for his very kind introduction today. 

I’d like to thank certain members of the staff at the Surface 

Transportation Board for assisting me over the last few weeks. Dan 

King and Mary Turek are here today and I’d like to thank both of 

them very much for being here and helping me prepared for this 

hearing. 

If confirmed, I look forward to working with the Committee, with 

other Members of the Congress and the staff, to take a good, hard 

look at the issues facing the freight rail industry. I’ll have a very 

steep learning curve, having spent my entire career in the air 

transportation industry. 

So, I look forward to working with my colleagues at the board, 

the staff at the board, and the Congress as we pursue the issues 

that come before the Board. 

Thank you very much. 

[The prepared statement and biographical information of Mr. 

Buttrey follow:] 

PREPARED STATEMENT OF W. DOUGLAS BUTTREY, NOMINEE TO BE A MEMBER OF THE

SURFACE TRANSPORTATION BOARD

Thank you, Mr. Chairman: I want to express my appreciation to you and the 

Committee for holding this hearing today and to Senator Frist and Senator Alexander for their support of my nomination. 

27 

I understand that they are not able to be here today due to other pressing Senate 

business and have submitted statements for the record. 

I also want to thank President Bush for sending up my nomination to the Senate. 

This is a great honor which I take very seriously. I also want to thank my Congressman, Harold Ford, Jr., for taking time from his busy schedule to come to the hearing today on short notice to introduce me and make a statement in support of my 

nomination. 

If I may, Mr. Chairman, I would also like to thank three members of the staff 

of the STB who have been very helpful to me during my preparation for this transition. They are Dan King, Mary Turek and Anne Quinlan. In the interest of time, 

I will be very brief. 

I look forward to working with the Committee and the staff of the Board to address the pressing issues in the freight rail industry. Having spent my entire career 

in the aviation industry, I have a very sharp learning curve ahead of me and i look 

forward to meeting that challenge. I plan to do a lot of listening to the varied interests which fall within the jurisdiction of the STB. 

I have been engaged in my own personal due diligence to help me prepare for my 

new responsibilities by touring an intermodal facility, A large classification yard and 

by meeting with some significant rail customers in Memphis. 

Thank you again Mr. Chairman and I will attempt to answer any questions that 

you may have. 

A. BIOGRAPHICAL INFORMATION

1. Name: (Include any former names or nicknames used.) 

William Douglas Buttrey. 

2. Position to which nominated: Member, Surface Transportation Board. 

3. Date of nomination: (TBD) 

4. Address: (List current place of residence and office addresses.) 

Residence: Information not released to the public. 

5. Date and place of birth: May 11, 1945; Weeksville, North Carolina. 

6. Marital status: (Include maiden name of wife or husband’s name.) 

Married (Sep. 28, 1968); Margaret Ann (Beasley) Buttrey. 

7. Names and ages of children: (Include stepchildren and children from previous 

marriages.) 

Nathan A. Buttrey (only child)—28. 

8. Education: (List secondary and higher education institutions, dates attended, 

degree received, and date degree granted.) 

University of Miami—Grad. Law, 09/1971–05/1972, No Degree, n/a 

University of Memphis School of Law, 09/1968–05/1971, JD, 05/1971 

Tennessee Technological University, 06/1964–08/1968, BS, 08/1968 

9. Employment record: (List all jobs held since college, including the title or description of job, name of employer, location of work, and dates of employment.) 

Consultant American Project Services Memphis 07/2002 09/2003 

Consultant Memphis Biotech Foundation Memphis 04/2002 09/2003 

Sr. Gov’t Affairs Rep. Federal Express Corporation Memphis/DC 02/1979–11/2001 

Counsel U.S. Senate Commerce Committee DC 03/1976–12/1978 

Attorney U.S. Civil Aeronautics Board DC 08/1972–03/1976 

Law Clerk Neely, Green, Fargarson Law Firm Memphis Summer 1970 

Counselor Memphis Park Commission Memphis Summer 1969 

10. Government experience: (List any advisory, consultative, honorary or other 

part-time service or positions with Federal, State, or local governments, other than 

those listed above.) None. 

11. Business relationships: (List all positions held as an officer, director, trustee, 

partner, proprietor, agent, representative, or consultant of any corporation, company, firm, partnership, or other business enterprise, educational or other institution.) 

See answer to Question A–9 above. 

12. Memberships: (List all memberships and offices held in professional, fraternal, 

scholarly, civic, business, charitable and other organizations.) 

Church of Christ at White Station Deacon—Over ten years 

Church of Christ at White Station Legal Ministry Leader—Over ten years 

Villas of River Oaks Homeowners Ass’n Vice President—2002 to present 

Tennessee Lobbyist Association Member—Five years 

Tennessee Bar Association Member—Over ten years 

28 

District of Columbia Bar Association Member—Over ten years 

Shelby County Republican Party Caucus Delegate—2003 

Student Bar Association Law School—President 

Moot Court Board Law School—Student Justice 

Friends of Charter Schools Board Member—1999/2000 

Republican Eagles Company Representative (Company Pac paid annual 

dues) 

Memphis Area Chamber of Commerce Member—Gov’t Affairs Committee (Company paid annual dues) 

Law Student Division—ABA 1969–1971 

Nomination & Election Committee Chairman—1970 

Alpha Tau Omega Fraternity College Social Chairman 

13. Political affiliations and activities: 

(a) List all offices with a political party which you have held or any public office 

for which you have been a candidate. 

None. 

(b) List all memberships and offices held in and services rendered to all political 

parties or election committees during the last 10 years. 

Shelby County Republican Party, Local Caucus Delegate. 

(c) Itemize all political contributions to any individual, campaign organization, political party, political action committee, or similar entity of$500 or more for the past 

10 years. 

Bush/Cheney 2004: $1,000 

FedEx Political Action Committee: 

2001: $404.25 

1995–2000: $414/year 

1993–1994: $240/year 

14. Honors and awards:(List all scholarships, fellowships, honorary degrees, honorary society memberships, military medals and any other special recognition for 

outstanding service or achievements.) 

Sam A. Meyer Memorial Law Scholarship 

Omicron Delta Kappa National Honor Society 

ABA—LSD, Silver and Gold Key Awards 

15. Published writings: (List the titles, publishers, and dates of books, articles, reports, or other published materials which you have written.) None. 

16. Speeches: Provide the Committee with two copies of any formal speeches you 

have delivered during the last 5 years which you have copies of on topics relevant 

to the position for which you have been nominated. None. 

17. Selection: 

(a) Do you know why you were selected for the position to which you have been 

nominated by the President? 

I expressed an interest in serving in this capacity to Senator Bill Frist, and he 

sent my name to White House Personnel. 

(b) What in your background or employment experience do you believe affirmatively qualifies you for this particular appointment? 

Business degree; Law degree; Attorney at U.S. Civil Aeronautics Board; Counsel 

to U.S. Senate Subcommittee on Aviation; 22 years experience at Federal Express 

Corporation. 

B. FUTURE EMPLOYMENT RELATIONSHIPS

1. Will you sever all connections with your present employers, business firms, 

business associations, or business organizations if you are confirmed by the Senate? 

Yes. 

2. Do you have any plans, commitments, or agreements to pursue outside employment, with or without compensation, during your service with the government? If 

so, please explain. No. 

3. Do you have any plans, commitments, or agreements after completing government service to resume employment, affiliation, or practice with your previous employer, business firm, association, or organization? No. 

4. Has anybody made a commitment to employ your services in any capacity after 

you leave government service? No. 

5. If confirmed, do you expect to serve out your fall term or until the next Presidential election, whichever is applicable? Yes. 

29 

C. POTENTIAL CONFLICTS OF INTEREST

1. Describe all financial arrangements, deferred compensation agreements, and 

other continuing dealings with business associates, clients, or customers. 

Collecting FedEx ‘‘defined benefit’’ pension—$4,322/month 

Unpaid ‘‘account receivable’’ from American Project Services—$70,000 

Potential ‘‘passive income/dividend’’ from American Project Services—TBD 

2. Indicate any investments, obligations, liabilities, or other relationships which 

could involve potential conflicts of interest in the position to which you have been 

nominated. None. 

3. Describe any business relationship, dealing, or financial transaction which you 

have had during the last 10 years, whether for yourself, on behalf of a client, or 

acting as an agent, that could in any way constitute or result in a possible conflict 

of interest in the position to which you have been nominated. None. 

4. Describe any activity during the past 10 years in which you have engaged for 

the purpose of directly or indirectly influencing the passage, defeat, or modification 

of any legislation or affecting the administration and execution of law or public policy. 

Prepared a white paper for the Memphis Biotech Foundation (MBF) setting forth 

a strategy for securing Federal appropriations to support biotech efforts in Memphis, Tenn. Attended two meetings in DC with MBF staff. 

5. Explain how you will resolve any potential conflict of interest, including any 

that may be disclosed by your responses to the above items. (Please provide a copy 

of any trust or other agreements.) 

Termination 

Divestiture 

Recusal 

Blind Trust 

6. Do you agree to have written opinions provided to the Committee by the designated agency ethics officer of the agency to which you are nominated and by 

the Office of Government Ethics concerning potential conflicts of interest or any 

legal impediments to your serving in this position? Yes. 

D. LEGAL MATTERS

1. Have you ever been disciplined or cited for a breach of ethics by, or been the 

subject of a complaint to any court, administrative agency, professional association, 

disciplinary committee, or other professional group? If so, please explain. No. 

2. Have you ever been investigated, arrested, charged, or held by any Federal, 

State, or other law enforcement authority for violation of any Federal, State, county, 

or municipal law, regulation, or ordinance, other than for a minor traffic offense? 

If so, please explain. 

Minor misdemeanor in Daytona Beach, Florida, while in college. 

3. Have you or any business of which you are or were an officer ever been involved as a party in an administrative agency proceeding or civil litigation? If so, 

please explain. No. 

4. Have you ever been convicted (including pleas of guilty or nolo contendere) of 

any criminal violation other than a minor traffic offense? If so, please explain. 

See response to Question D–2 above. 

5. Please advise the Committee of any additional information, favorable or unfavorable, which you feel should be disclosed in connection with your nomination. 

None. 

E. RELATIONSHIP WITH COMMITTEE

1. Will you ensure that your department/agency complies with deadlines for information set by congressional committees? Yes. 

2. Will you ensure that your department/agency does whatever it can to protect 

congressional witnesses and whistle blowers from reprisal for their testimony and 

disc1osures? Yes. 

3. Will you cooperate in providing the committee with requested witnesses, including technical experts and career employees, with firsthand knowledge of matters of 

interest to the Committee? Yes. 

4. Please explain how if confirmed, you will review regulations issued by your department/agency, and work closely with Congress, to ensure that such regulations 

comply with the spirit of the laws passed by Congress. 

30 

I will confer with STB legal staff and Congressional Committee counsel on an ‘‘as 

needed’’ basis. 

5. Are you willing to appear and testify before any duly constituted committee of 

the Congress on such occasions as you may be reasonably requested to do so? Yes. 

F. GENERAL QUALIFICATIONS AND VIEWS

1. How does your previous professional experiences and education qualify you for 

the position for which you have been nominated? 

My legal education has provided me with an understanding of and appreciation 

for the quasi-judicial nature of the agency’s statutory responsibilities. My experience 

as an attorney in the Office of General Counsel at the U.S. Civil Aeronautics Board 

provided me with an understanding of and appreciation for the functions of an Executive Branch agency operating pursuant to the provisions of the Administrative Procedures Act. My experience as counsel to the U.S. Senate Subcommittee on Aviation 

provided me with an understanding of and appreciation for the continuing oversight 

function of a committee of original jurisdiction. My experience in the private sector 

as a manager of a highly regulated industry provided me with an understanding of 

and appreciation for the critical importance of compliance with regulatory requirements. 

2. Why do you wish to serve in the position for which you have been nominated? 

I was taught and I personally believe that public service is an honorable endeavor 

which if properly executed results in benefits to the overall public interest. I have 

had meaningful and rewarding experience in the public and private sectors and I 

believe I can in concert with my colleagues at the agency translate those experiences 

into public policy in furtherance of the agency’s statutory mandate. The Congress 

has determined that there should be diligent economic oversight of the freight railroad industry in order to maintain a fair balance of the interests of all the stakeholders. Because the transportation industry has been the focus of all my professional career, this process is of interest to me. 

3. What goals have you established for your first two years in this position, if confirmed? 

Familiarize myself with the major administrative precedents which provide the 

regulatory framework for future decisions of the agency; familiarize myself with the 

decisional criteria employed in major proceedings before the agency; familiarize myself with the economics of the freight railroad industry; familiarize myself with the 

economics of major shippers; and, familiarize myself with the intricacies of labor 

protective provisions which are a major concern to the Congress. 

4. What skills do you believe you may be lacking which may be necessary to successfully carry out this position? What steps can be taken to obtain those skills? 

In my previous experience as an attorney at the Civil Aeronautics Board, I had 

the least contact with the rate cases coming before the Board. The rate cases were 

primarily domestic passenger fare cases which were complex and lengthy. The attorneys handling those cases were very specialized and skillful and were charged with 

the task of unraveling the cost structures of the commercial carriers in an attempt 

to divine fares that were fair to the traveling public and provided a reasonable rate 

of return to the carriers. While similar to freight railroad rate cases, there are considerable differences in the economics of the two industries. I believe I will have to 

spend considerable time with agency staff very early in my term understanding the 

intricacies of rail freight rate construction. This is a task I welcome and to which 

I look forward. 

5. Please discuss your philosophical views on the role of government. Include a 

discussion of when you believe the government should involve itself in the private 

sector, when society’s problems should be left to the private sector, and what standards should be used to determine when a government program is no longer necessary. 

There is a saying that is often repeated when discussing the proper role of government in a democracy. The saying is ‘‘The best government is the least government.’’ 

My basic view on the role of government generally follows this view. This does not 

mean, however, that there is never an occasion for government intrusion into the 

private sector. Where there is a compelling public interest to be served and where 

there is the realistic possibility that irreparable harm my result from inattention 

to a particular activity or pursuit it would appear that some measured application 

of intrusion could be justified. In my view, the free enterprise system should be 

trusted to the maximum extent to provide levels of competition and pricing that will 

serve the overall public interest. Unfortunately, the free enterprise organism has 

proved in some cases to have feet of clay and government intrusion has resulted. 

Consequently, the American economy is replete with examples of well intentioned 

31 

attempts to benignly engineer a result that would not likely occur in totally deregulated commerce. It would, in my view, be preferable if such tinkering were not necessary. But, the likelihood of irreparable harm compels those with oversight responsibilities to take precautionary and remedial measures to protect the public interest. 

Only when this protective desire is satisfied will we see the intrusions of government be reduced. 

6. Describe the current mission, major programs, and major operational objectives 

of the department/agency to which you have been nominated. 

Current Mission: In his October 23, 2003 testimony before the Senate Commerce 

Committee, STB Chairman, Roger Nober, noted that, ‘‘The Board is an economic 

regulatory agency that Congress charged with the fundamental missions of resolving railroad rate and service disputes and reviewing railroad mergers, line sales, 

abandonments and new construction. One of the main reasons the Board exists is 

to provide a regulatory backstop to assess the reasonableness of rates charged to 

captive shippers when those customers and their railroads are unable to successfully 

negotiate a contract for the transportation. 

Major Programs: Creation of the Rail Consumer Assistance Program within the 

Office of Compliance and Enforcement providing a forum for resolution of disputes 

short of a costly and lengthy formal proceeding; Possible creation of a meaningful 

process for quickly and surely deciding small rate cases pursuant to the Board’s 

small case guidelines adopted in 1996; Adoption of new procedures to streamline the 

administrative process in large rate cases to shorten and reduce the cost of such 

cases; and fully explore the opportunities available through the arbitration early in 

the life of any dispute. 

Major Operational Objectives: Fulfilling the Board’s statutory mandate with limited resources; assuring that due process requirements are vigorously protected; assuring that access to the regulatory process is not impeded; maintaining constant 

vigilance over quality processes and assuring that Board staff issues are properly 

addressed. 

7. What do you believe to be the top three challenges facing the department/agency and why? 

Finding ways to fulfill the Boards statutory mandate with limited resources; Properly and fairly balancing the competing interests of all the stakeholders in the 

freight rail industry; and, adequately considering the environmental issues that 

might arise during consideration of agency proceedings. These responsibilities form 

the very core of the regulatory process the failure of which would likely give rise 

to the initiation of oversight proceedings to protect the public interest. 

8. In reference to question number six, what factors in your opinion have kept 

the department/agency from achieving its missions over the past several years? 

I do not feel comfortable with or well positioned to be a critic of the Board’s activities over the past several years because I have had no professional contact with the 

industry or the Board. I have met the current Chairman and the immediate past 

Chairman and I know a few railroad employees. I am only now familiarizing myself 

with the industry and the Board. This level of knowledge does not, in my view, qualify me to be a critic. However, I have read Chairman Nober’s recent testimony before the Commerce Committee and I have taken note of some of his concerns. I 

would call attention to one issue in particular which has apparently considerable 

interest among Committee members. Chairman Nober referred to his conclusion 

that many ‘‘captive shippers’’ . . . ‘‘believe the Board has inadequately performed 

. . . (the Board’s) . . . core mission of ensuring that they have a forum for reaching 

a formal resolution of rate or service disputes. They feel that without a regulatory 

backstop, the transportation market for freight rail services does not properly function.’’ He went on to say that he agreed with that conclusion to some extent. This 

would appear to create a major oversight issue and, therefore, one that must be addressed. At this point, I am not prepared to render a judgment as to why the Board 

has not been able to achieve its mission with respect to this or any other issue. 

9. Who are the stakeholders in the work of this department/agency? 

Shippers, railroad companies, railroad employees, taxpayers, industries and businesses which require raw materials/commodities that travel on the railroads, consumers in general, the military, certain trucking company, moving van, and noncontiguous ocean shipping company rate payers, certain intercity passenger bus 

companies and consumers and certain pipeline users not covered by FERC. 

10. What is the proper relationship between the position to which you have been 

nominated, and the stakeholders identified in question number nine? 

Because of the adjudicatory nature of the STB, I consider the position to which 

I have been nominated to be comparable to the position of Federal Judge. The legendary Justice Oliver Wendell Holmes is credited with saying that a Supreme Court 

Justice should be ‘‘a combination of Justinian, Jesus Christ and John Marshall.’’ 

32 

That is a very high standard. In my view, the term ‘‘relationship’’ is inextricably 

connected to this very high standard which goes well, beyond the ‘‘good behavior’’ 

which is expected of Federal judges. Indeed, the term ‘‘relationship’’ is troubling to 

me in this context. I would expect to have no ‘‘relationship’’ with any of the stakeholders. Rather, I would expect to have a ‘‘responsibility’’ to every stakeholder. That 

responsibility would certainly include thoroughness, timeliness, impartiality and integrity. 

11. The Chief Financial Officers Act requires all government departments and 

agencies to develop sound financial management practices. 

(a) What do you believe are your responsibilities, if confirmed, to ensure that your 

department/agency has proper management and accounting controls? 

I believe my responsibility in this regard is to work with my fe11ow Members and 

STB staff to clearly articulate a policy of accountability and vigilance to make sure 

that the taxpayers’ money is spent wisely and that proper financial controls are in 

place to guard against mismanagement. 

(b) What experience do you have in managing a large organization? 

While at FedEx I was at one point a Managing Director of a team whose responsibility it was to locate, acquire, design, develop, operate and maintain operational facilities at major on-airport and off-airport locations. Our team was on a very aggressive development schedule with multiple projects in the U.S. and Europe. Our internal group numbered about 80 and we managed several hundred outside consultants, 

architects, engineers, construction firms, lawyers and other related professionals. 

That period experienced the most explosive growth in capital projects (other than 

aircraft acquisitions). 

12. The Government Performance and Results Act requires an government departments and agencies to identify measurable performance goals and to report to 

Congress on their success in achieving these goals. 

(a) What benefits, if any, do you see in identifying performance goals and reporting on progress in achieving those goals? 

No organization will long survive without having objective and measurable goals 

that are constantly reviewed and updated to support the short and long term mission of the organization. Goals are essential to the proper alignment of interdisciplinary tactics and strategy and to the proper allocation of resources to accomplish the 

mission of the organization. Goals provide vision, accountability and feedback which 

enable management to adjust to changing circumstances and data to make better 

judgments in the future. 

(b) What steps should Congress consider taking when a department/agency fails 

to achieve its performance goals? Should these steps include the elimination, privatization, downsizing or consolidation of departments and/or programs? 

In the proper exercise of its oversight responsibility, Congress would appear to 

have a full range of options available when an agency fails to meet its performance 

goals. Since agencies such as the STB are creatures of statute, the most severe action would be to completely abolish the agency and replace it with another regulatory body or deregulate the formerly regulated activity as was done in the case 

of the Civil Aeronautics Board in 1978. A more realistic approach would be to dearly 

identify specific areas of concern and request the agency to focus more resources on 

that activity and report more frequently on the progress of its efforts to bring the 

agency into compliance. This oversight might result in the Congress recognizing 

that more resources need to be authorized by the Congress or that certain resources 

need to be reallocated. In any event, there needs to be a frequent, open and candid 

exchange of views to avoid a situation where extreme measures are required by the 

Congress or the agency. 

(c) What performance goals do you believe should be applicable to your personal 

performance if confirmed? 

If confirmed, I will have a lot of catching up to do in order to prepare myself to 

be a fully functioning Board Member. In the early days of my term, I expect to be 

spending a considerable amount of time with Board staff familiarizing myself with 

the Board’s active case load and the decisional criteria employed in such cases. I 

also expect to be on a vigorous schedule to better understand the industry by visiting with shippers, railroad companies and other stakeholders to learn firsthand 

about their activities. I fully expect to be closely working with my fellow Board 

Members to prepare a plan of action to accomplish these goals within a reasonable 

time. I expect to have the support and assistance of Chairman Nober and the STB 

staff in this regard. 

33 

13. Please describe your philosophy of supervisor/employee relationships. Generally, what supervisory model do you follow? Have any employee complaints been 

brought against you? 

No employee complaints have been brought against me. My management style can 

best be described as ‘‘consultative/open door.’’ I prefer to involve subordinates in the 

management process by encouraging their input into setting organizational goals 

and objectives and determining measurement tools so as to achieve ‘‘buying’’ during 

the process. I prefer performance review sessions twice yearly where there is an 

open exchange of views and an opportunity for subordinates to suggest ways to improve communications and a team spirit. Keeping the air clear of unspoken issues 

seems to lead to a more productive working environment. 

14. Describe your working relationship, if any, with the Congress. Does your professional experience. include working with committees of Congress? If yes, please explain. 

As a former counsel to the Senate Aviation Subcommittee of the Committee on 

Commerce, Science and Transportation, I have had considerable experience working 

with the committee system on both sides of the Hill. While in the private sector I 

have had occasion to work with numerous committee staff over the years but very 

little in the last 10 to 12 years. In recent years, most of my work has been at the 

state level. Very recently, I had a client who was interested in some appropriations 

issues in the health and bio-sciences sector. I helped them develop a strategy and 

even accompanied them on two occasions when they had meetings in D.C. Those 

meetings were opportunities for the client to ’’tell their story’’ and appeal for funding. 

15. Please explain what you believe to be the proper relationship between yourself, if confirmed, and the Inspector General of your department/agency. 

I believe I have an affirmative obligation to bring to his/her office any issue that 

I believe needs further review. And, I believe I have an affirmative obligation to cooperate fully with his/her office if asked. 

16. In the areas under the department/agency’s jurisdiction to which you have 

been nominated, what legislative action(s) should Congress consider as priorities? 

Please state your personal views. 

At this moment, I do not feel that I have a proper frame of reference to respond 

to this question. 

17. Within your area of control, wi1l you pledge to develop and implement a system that allocates discretionary spending in an open manner through a set of fair 

and objective established criteria? If yes, please explain what steps you intend to 

take and a time frame for their implementation. If not, please explain why. 

At this moment, I do not feel that I have a proper frame of reference to respond 

to this question. 

The CHAIRMAN. Thank you. 

Dr. Mulvey? 

STATEMENT OF FRANK MULVEY, STAFF DIRECTOR, 

U.S. HOUSE OF REPRESENTATIVES, COMMITTEE ON 

TRANSPORTATION AND INFRASTRUCTURE, 

SUBCOMMITTEE ON RAILROADS 

Dr. MULVEY. Thank you very much, Mr. Chairman. 

I want to thank you for giving me the opportunity today to help 

you evaluate my qualifications to serve on the Surface Transportation Board. 

I want to thank Mr. Oberstar for his kind words and his strong 

support for my nomination. I also wish to express my thanks to 

Senator Daschle for recommending me, and to President Bush for 

nominating me for this position. 

Before continuing, I’d like to acknowledge a couple of people in 

the audience today who I’ve worked with over the years and/or will 

be working with in the future. First of all, John Scheib, who was 

a colleague of mine on the House Transportation and Infrastructure Committee, who is now Chief Counsel for the Board; Steve 

Gardner, who was an intern of mine on the T&I Committee and 

34 

now works for Senator Carper on transportation issues; Phyllis 

Scheinberg, who was a colleague of mine at the General Accounting 

Office, who is now the Chief Budget Officer at the Department of 

Transportation; Jack Wells, a colleague of mine at GAO, who is 

now the Chief Economist at the Bureau of Transportation Statistics; and, of course, former Chairman Linda Morgan, whose position I’ve been nominated to succeed. Having had the opportunity to 

work with such good, competent people over the years is a large 

part of the reason why I’m here today. 

I’ve spent nearly my entire professional life working in transportation issues, and much of it has been in government service. As 

Mr. Oberstar said, for the past 4 years I’ve been the Minority Staff 

Director for both the Railroad Issues Subcommittee on the House 

T&I Committee, and for pipelines and transit on the Pipelines, 

Transit, and Highways Subcommittee. In that capacity, I was instrumental in getting several bills passed, including pipeline safety 

reform legislation and railroad retirement reform legislation. In 

both of those cases, I had the opportunity and good fortune to work 

with Roger Nober, who is now the Chairman of the STB. Sounds 

like it’s a small world out there, but the experience that I got working with Roger and John Scheib tells me that we’ll have no difficulties working together, and I think we can bring about some important changes and developments at the STB. 

Prior to joining the Committee, I served as Deputy Assistant Inspector General for Railroads, Transit, and Special Programs in the 

Office of the Inspector General at the Department of Transportation where I had the opportunity to work with Ken Mead and his 

staff, and appeared before this Committee on several occasions. Before that, I spent more than a dozen years with the General Accounting Office, again working primarily in transportation. While 

at GAO, I directed studies, as Mr. Oberstar indicated, on numerous 

transportation issues, covering all modes of transportation and all 

areas, including economics, safety, performance issues, et cetera. 

During those years, I directed more than a hundred reports and 

testimonies, and had the opportunity to testify before numerous 

congressional committees, including this one. 

In addition to my government service, I also gained valuable experience in transportation as the Vice President for research with 

the American Bus Association, and as a Programs Manager at the 

National Academy of Sciences’ Transportation Research Board, 

where I directed several studies including one on the effectiveness 

of the 55 mile an hour speed limit. 

I also did considerable consulting while teaching, and one of my 

earliest consulting engagements, interestingly enough, was for this 

Committee. Back in 1975, I wrote a study for the Commerce Committee called ‘‘Intercity Transportation for Passengers and 

Freight,’’ which, I guess, indicated that I was going to be fairly 

broad-based in my transportation career. 

I believe my 30 years in working on problems and issues affecting virtually every mode of transportation qualifies me for the position as a Member of the Board. That experience has given me a 

deep appreciation of the criticality of our Nation’s transportation 

system to our Nation’s economic health and prosperity. 

35 

I promise that if I am confirmed, I will do my best to balance 

the interest of shippers, railroads, and other affected parties to best 

serve the needs of the American people for efficient and affordable 

rail service. I will strive to ensure that rates are fair, reasonable, 

and sufficient to meet railroad’s capital investment needs, and will 

do my best to see that rail services are adequate to meet shipper 

needs. 

Thank you, and I’m happy to answer any questions. 

[The prepared statement and biographical information of Dr. 

Mulvey follow:] 

PREPARED STATEMENT OF FRANCIS P. MULVEY, NOMINEE TO BE A MEMBER OF THE

SURFACE TRANSPORTATION BOARD

Mr. Chairman, Members of the Committee, I want thank you for giving me the 

opportunity to appear before you so that you may evaluate my qualifications to be 

a Member of the Surface Transportation Board. I want to thank my current boss, 

Mr. Oberstar for his kind words and strong support of my nomination. I also wish 

to express my thanks to Senator Daschle for recommending me and to President 

Bush for nominating me for this position. 

I have spent nearly my entire professional life working on transportation-related 

issues. Much of my career has been in government service. For the past 4 years, 

I have been Minority Staff Director for the Railroad Subcommittee and Minority 

Staff Director for Hazardous Materials and Pipelines for the Highway, Transit and 

Pipeline Subcommittee—both are Subcommittees of the House Committee on Transportation and Infrastructure. While in that position, I had the opportunity to help 

enact the pipeline safety and railroad retirement reform legislation. On both of 

these bills, I had the opportunity to work closely with Roger Naber, who is now the 

STB Chairman and John Scheib, who is now his Chief Counsel Those experiences 

indicate to me that we will be able to work well together at the STB. 

In addition, I have been very involved during the past 4 years in. the reauthorization of a number of Federal transportation programs including hazardous materials 

transportation, the Federal Railroad Administration’s safety program, and of course 

the Surface Transportation Board. I also played a major role in drafting the Transportation and Infrastructure Committee’s proposed high-speed rail funding legislation and legislation designed to provide funds to short line and regional railroads 

to help them upgrade their infrastructure. 

Prior to joining the Committee, I served as Deputy Assistant Inspector General 

for Railroads, Transit, and Special Programs in the Office of the Inspector General 

at the U.S. Department of Transportation. In that position, I directed the IG’s first 

departmental wide program evaluation of Hazardous Materials Transportation programs. I also directed audits of a number of major transit capital projects, the Federal Railroad Administration’s highway/rail grade crossing program, and the completion of the NEC high-speed rail infrastructure program. I also directed a review 

of the proposed acquisition of Conrail by the Norfolk Southern and CSX Railroads 

to determine whether they were ready to consummate the acquisition. 

Before joining the IG, I spent a dozen years with the U.S. General Accounting Office, primarily with the Transportation Group, although I spent my final two years 

with the agency working on Social Security and pension reform issues. At GAO, I 

directed numerous studies on such diverse topics as the state of competition in the 

airline industry in the aftermath of deregulation, the competitive challenges faced 

by U.S. airlines in the international marketplace, factors affecting the competitiveness of the railroad industry, highway safety, high speed rail and Maglev, Canadian 

and Mexican trucking, and many other transportation subjects. During those years, 

I directed the preparation of more than 100 GAO reports and congressional testimonies on a wide variety of transportation issues. I was privileged to appear before 

this and other congressional committees on numerous occasions accompanying the 

Transportation Issue Area Director. 

In addition to my government service in transportation, I also gained valuable experience in the transportation area as Vice President for Research at the American 

Bus Association, Programs Manager at the Transportation Research Board (where 

I directed a review of the effectiveness of the 55 mph speed limit) and as an expert 

consultant while teaching economics at universities in Ohio and Massachusetts. The 

projects on which I consulted ranged from passenger rail and personal mobility 

studies for the National Transportation Policy Study Commission to analysis of the 

36 

economic impacts from extending the Great Lakes navigation season for the U.S. 

Army, Corps of Engineers. In fact, one of my earliest consulting projects was for this 

Committee through Harbridge House (now part of Price Waterhouse Coopers 

Lybrand). I authored the passenger sections of the Commerce Committee report, 

Intercity Transportation for Passengers and Freight, 1975). 

I began my professional career in transportation when I began researching my 

doctoral thesis on the economics of intercity rail passenger service in America. I was 

able to secure an internship with the Federal Railroad Administration in 1972–73 

and thereby began a lifelong involvement in freight railroad issues. 

Therefore, I believe that my 30-plus years working on problems and issues affecting virtually every mode of transportation in a variety of capacities qualifies me for 

the position of Member of the Surface Transportation Board. That experience has 

also given me a deep appreciation of the criticality of our Nation’s transportation 

system to our country’s economic health and prosperity. In many ways, America’s 

transportation system is the envy of the world. But we did not achieve this status 

overnight. 

Our nation was blessed with many favorable geographic characteristics, excellent 

natural harbors and an extensive navigable system of rivers and waterways, but 

there were also many geographic challenges that had to be overcome as we settled 

the continent. The railroads, of course, played a vital role in overcoming these barriers and in the economic development of the United States. For nearly 100 years, 

the railroad was the dominant mode of freight and passenger transportation. But, 

because of monopolistic abuses, in 1887 the Congress decided that the Federal government needed to regulate the Nation’s railroads. Regulation of railroad rates and 

practices grew more far reaching in the first half of the 20th Century and economic 

regulation was extended to other forms as transportation as well. By 1940, the 

Interstate Commerce Commission was responsible for the economic regulation of 

rail, motor, water and oil pipeline transport, while the Civil Aeronautics Administration was responsible for regulating the Nation’s airlines. 

The American decision to regulate privately owned transportation companies differs from the road taken by most other developed nations. Typically, other nations 

elected for government ownership of the transport sector—especially railroads and 

airlines. Over the long term, both public ownership and strict economic regulation 

proved problematic and while other nations began privatizing, the U.S. began deregulating the various modes of transportation. Trucking and aviation were completely deregulated, but the Congress elected to retain some regulation of the nations’ railroads. The Interstate Commerce Commission was terminated in 1995 and 

replaced with the Surface Transportation Board whose mission is to balance the interests of shippers and railroads in situations where the market cannot be expected 

to always provide fair and reasonable rates. 

The traffic over which the STB exercises regulatory authority is not inconsequential—coal, grain, chemicals, forest products, ores—are all vitally important to the 

Nation’s economy. These products must move at reasonable rates if we are to maintain our global competitiveness. At the same time, the railroads must earn an adequate rate of return so that they may make the necessary investments in plant and 

equipment so that they can provide safe, efficient, and quality service to all rail 

shippers. Indeed, in the coming years we will need to rely more and more on our 

Nation’s railroads if we are to address the growing highway congestion problem. 

This will require substantial capital investment. 

I promise that if I am confirmed that I will do my best to balance the interests 

of shippers, the railroads, and other affected parties to best meet the needs of the 

American people for efficient and affordable rail service. Further, I will strive to ensure that rates are fair, reasonable, and sufficient to meet railroad capital investment needs and do my best to see that rail services are adequate to meet shipper 

needs. 

Thank you and I will be happy to take any questions. 

A. BIOGRAPHICAL INFORMATION

1. Name: (Include any former names or nicknames used.) 

Francis P. Mulvey (Frank). 

2. Position to which nominated: Commissioner, Surface Transportation Board. 

3. Date of nomination: November 17, 2003. 

4. Address: (List current place of residence and office addresses.) 

Residence: Information not released to the public. 

Office: 2251 Rayburn HOB, Washington, D.C. 20515. 

37 

5. Date and place of birth: May 5, 1944; New York City (Astoria, Queens), New 

York. 

6. Marital status: (Include maiden name of wife or husband’s name.) 

Married to Petra Karolina Mulvey (maiden name: Petra Karolina Huntley). 

7. Names and ages of children: (Include stepchildren and children from previous 

marriages.) 

Son, Conor Francis Mulvey, 24 years old. 

8. Education: (List secondary and higher education institutions, dates attended, 

degree received, and date degree granted.) 

High School: St. Francis Xavier 9/58–6/62 

College: New York University, 9/62–6/66, BS in economics, 6/66 

Graduate School: University of California at Berkeley, 1/67–6/68, MA in Economics, 8/68 

Graduate School: Washington State University, 9/70–6/72, PhD in economics, 

6/74 

9. Employment record: (List all jobs held since college, including the title or description of job, name of employer, location of work, and dates of employment.) 

Staff Director, Railroad Subcommittee, Committee on Transportation and Infrastructure, U.S. House of Representatives, Washington DC, (Also, serve as Staff 

Director for Subcommittee on Highways and Transit responsible for pipeline 

safety and hazardous materials issues.) 2/00 to present 

Deputy Assistant Inspector General for Rail, Transit, and Special Programs, 

U.S. Department of Transportation, Washington DC 3/99–2/00 

Adjunct faculty member, University of Maryland, RH Smith School of Business 

and Public Policy, College Park, MD 9/92 to present 

Assistant Director, U.S. General Accounting Office, Washington, D.C. 10/85– 

3/99 

Director for Economic Research, NY State Legislative Commission on Solid 

Waste Management, Albany, NY 11/84–10/85 

Programs Manager, National Academy of Sciences, Transportation Research 

Board, Washington, D.C. 3/83–10/84 

Vice President for Research, American Bus Association, Washington, D.C., 

11/82–3/83 

Assistant Professor, Department of Economics, Northeastern University, Boston, MA, 9/77–1/82 

Driver, Yellow Cab Company, Boston, MA, 7/77–8/77 

Assistant Professor, Department of Economics, Wheaton College, Norton, MA, 

9/75–6/77 

Assistant Professor, Department of Economics, Bowling Green State University, 

Bowling Green Ohio, 9/73–6/75 

Economist, U.S. Department of Transportation, Washington, D.C., 7/72–6/73 

Teaching Assistant, Department of Economics, Washington State University, 

Pullman, WA, 9/70–6/72 

Instructor, Golden Gate University, San Francisco, CA, 6/71–9/71; 1/67–9/69 

(part time) 

Supervisor, Claims, Continental Insurance Co., San Francisco, CA 5/70–9/70 

Driver, Yellow Cab Company, San Francisco, CA 3/70–5/70 

Management Consultant, George S. May Co., San Francisco, CA 10/69–3/70 

Economist, California Blue Cross/Blue Shield, San Francisco, CA 10/68–12/68 

Claims Adjuster Trainee, Metropolitan Life Insurance Co San Francisco, CA 

9/66–12/66 

Researcher, NASA/Oakland Budget Project, Berkeley, CA 6/66–9/66 

10. Government experience: (List any advisory, consultative, honorary or other 

part-time service or positions with Federal, State, or local governments, other than 

those listed above.) 

Consultant to New York State Legislative Commission on Solid Waste Management, 10/85–12/89 

Consultant on Rail Issues, U.S. General Accounting Office, Washington, D.C., 

3/85–10/85 

38 

Consultant, Transportation and Economic Research Associates Study for U.S. 

Army Corps of Engineers on Extending the Great Lakes Navigation Season, Arlington, VA, 3/79–8/79 

Consultant, National Transportation Policy Study Commission, Washington, 

D.C., 8/77–3/79 

Consultant, Harbridge House Study on Intercity Transportation for Passengers 

& Freight for U.S. Senate Commerce Committee, Boston, MA 9/75–1/77 

Consultant, Wisconsin State Department of Transportation, Madison, Wisconsin 

2/74–6/75 

11. Business relationships: (List all positions held as an officer, director, trustee, 

partner, proprietor, agent, representative, or consultant of any corporation, company, firm, partnership, or other business enterprise, educational or other institution.) None. 

12. Memberships: (List all memberships and offices held in professional, fraternal, 

scholarly, civic, business, charitable and other organizations.) 

Transportation Research Forum (President Washington Chapter, Vice-President, Programs Washington Chapter, Council Member for National Council and 

Vice President for Public Affairs) 

Transportation Research Board (Member Committee on Aviation Economics, 

Committee on Travel and Tourism Research Needs, Panel on ADA Compliance 

for Intercity Busses Committee on FA Scholarship Awards) 

American Economics Association 

Society of Government Economists 

International Aviation Club 

Pi Lambda Phi (college fraternity) 

13. Political affiliations and activities: 

(a) List all offices with a political party which you have held or any public office 

for which you have been a candidate. 

None. 

(b) List all memberships and offices held in and services rendered to all political 

parties or election committees during the last 10 years. 

None. 

(c) Itemize all political contributions to any individual, campaign organization, political party, political action committee, or similar entity of $500 or more for the past 

10 years. 

None. 

14. Honors and awards: (List all scholarships, fellowships, honorary degrees, honorary society memberships, military medals and any other special recognitions for 

outstanding service or achievements.) 

1999—Comptroller—General’s Team Award 

1998—Assistant Comptroller—General’s Award, HEHS Division 

1997—Special Recognition for Outstanding Performance HERS Division 

1997—Special Commendation Award HEHS Division 

1995—Special Commendation Award RCED Division 

1994—Special Commendation Award RCED Division 

1994—Special Recognition for Outstanding Performance RCED Division 

1994 Outstanding Team Award RCED Division 

1991—Special Recognition for Outstanding Performance RCED Division 

1989—Special Recognition for Outstanding Performance RCED Division 

1988—Outstanding Achievement Award RCED Division 

1962—New York State Regents’ Scholarship and Incentive Award 

1962—Full Tuition Scholarship New York University 

1958—U.S. Post Office Holy Name Society Scholarship to St. Francis Xavier 

Military Academy 

39 

15. Published writings: (List the titles, publishers, and dates of books, articles, reports, or other published materials which you have written.) 

‘‘International Airline Alliances: A Study of Codesharing’s Impact on Airlines 

and Consumers’’ (with T. Hannegan), Journal of Air Transport Management, 

London, Spring 1996. 

Batteries in New York’s Municipal Solid Waste Stream: A Report to the Commissioner of the New York State Department of Environmental Conservation, 

SS&B—Taconic Resources, Albany, NY, September 1988 

‘‘Demand and Cost Considerations in Domestic and International Recycling Programs’’, Waste Age, Washington, D.C. 1987 

The Economics of Recycling, New York State Legislative Commission on Solid 

Waste Management, Albany, NY, 1986 

‘‘New Directions in Materials Reclamation’’, Journal of Natural Resources and 

Technology, Vol. 14, No. 4, University of Pennsylvania, Philadelphia, Pennsylvania, December 1985 

The 55 mph Speed Limit: A Decade of Experience (with D. Kulash and S. Godwin), National Academy of Sciences, National Research Council, Washington, 

D.C., September 1984 

The Safety Benefits and Costs of Using Citizen-Band Radios on Intercity Buses 

(with L. Griffith and M. Heckard), National Academy of Sciences, National Research Council, Washington D.C., August 1984 

‘‘Performance Trends of Small Intercity Motor Coach Firms 1972–1981’’, Papers 

and Proceeding of the Transportation Research Forum, New Orleans, Louisiana, 

October 1982 

‘‘Public Agencies and Private Carriers: Competition or Cooperation’’, Private 

Sector Role in Public Transportation, Transportation Research Board, Washington, D.C., August 1982 

‘‘Unfair Competitive Marketing Practices in Intercity Surface Transportation’’, 

Papers and Proceedings of the Transportation Research Forum, San Francisco, 

California, November 1981 

Amtrak: The First Decade, University of Iowa Press, Iowa City, Iowa, 1981 

A Taxpayer’s Perspective on Amtrak, National Taxpayers’ Union, Washington, 

D.C. July 1981 

‘‘Amtrak Versus Intercity Bus’’, Challenge, Vol. 23, No.3, July/August 1980 

‘‘Passenger Transportation in the Year 2000’’, State Transportation Issues and 

Actions, Special Report No. 189. Transportation Research Board, Washington, 

D.C. 1980 

‘‘Interurban Helicopter Services: A Comment’’, Journal of the New England 

Business and Economics Association, Boston, Massachusetts, 1980 

‘‘Amtrak: A Cost-Effective Approach’’, Transportation Research, Vol. 13 October 

1979 

Intermodal Impacts of Great Lakes/St. Lawrence Seaway System Season Extension: A Report to the U.S. Army Corps of Engineers, Transportation and Economic Research Associates, Arlington, Virginia, 1979 

Amtrak: An Experiment in Rail Service, National Transportation Policy Study 

Commission, Washington, D.C., September 1979 

‘‘Capital Formation in the Airline and Railroad Industries’’, National Transportation Policy Study Commission Special Report No.1: Issues in Transportation, 

Washington, D.C., May, 1978 

‘‘Consolidation of Transportation Regulatory Agencies’’, National Transportation 

Policy Study Commission Special Report No.1: Issues in Transportation, Washington, D.C., May, 1978 

Intercity Domestic Transportation for Passengers and Freight: A Report to the 

U.S. Senate Committee on Commerce, Science, and Transportation (with A. 

LaMond), Washington, D.C. 1977 

The Northeast Corridor High Speed Rail System: Selected Impacts on Alternative Modes—a Report to the U.S. DOT Transportation Systems Center (with 

D. Hayman and G. O’Donohoe), Harbridge House, Boston, Massachusetts, 1975 

The Future of Rail Passenger Services in Wisconsin, Wisconsin State Department of Transportation, Madison, Wisconsin, August, 1975 

The Economic Future of Amtrak (doctoral dissertation), Washington State University, Pullman Washington, August 1974 

40 

16. Speeches: Provide the Committee with two copies of any formal speeches you 

have delivered during the last 5 years which you have copies of on topics relevant 

to the position for which you have been nominated. 

In the past several years I have addressed numerous groups on the House Transportation and Infrastructure Committee’s legislative agenda. However, all of these 

presentations were extemporaneous and none were formal. Therefore, there are no 

written copies. 

17. Selection: 

(a) Do you know why you were selected for the position to which you have been 

nominated by the President? 

I was selected by the President on the recommendation of Senator Daschle, Senate Minority Leader, for the minority position on the Surface Transportation Board. 

(b) What in your background or employment experience do you believe affirmatively qualifies you for this particular appointment? 

Virtually my entire professional life has been in the area of transportation. I have 

taught transportation economics at both the graduate and undergraduate levels. I 

am currently Staff Director, House Railroad Subcommittee, the congressional committee that authorizes and oversees the Board. As Deputy Assistant Inspector General at the Department of Transportation I was responsible for all IG audits of the 

freight railroad industry. At the U.S. General Accounting Office I directed a number 

of studies of the railroad industry. As a doctoral student at Washington State University, one of my concentrations was Transportation Economics. 

B. FUTURE EMPLOYMENT RELATIONSHIPS

1. Will you sever all connections with your present employers, business firms, 

business associations, or business organizations if you are confirmed by the Senate? 

Yes, I have notified both the House Transportation Committee and the University 

of Maryland that I will resign after I am confirmed by the Senate. 

2. Do you have any plans, commitments, or agreements to pursue outside employment, with or without compensation, during your service with the government? If 

so, please explain. 

I have no plans for outside employment during my service. 

3. Do you have any plans, commitments, or agreements after completing government service to resume employment, affiliation, or practice with your previous employer, business firm, association, or organization? 

I have no plans, commitments or agreements to resume any relationship with 

prior firms, associations, or organizations. 

4. Has anybody made a commitment to employ your services in any capacity after 

you leave government service? 

No one has made such a commitment. 

4. If confirmed, do you expect to serve out your full term or until the next Presidential election, whichever is applicable? 

I expect to serve my full 5-year term. 

C. POTENTIAL CONFLICTS OF INTEREST

1. Describe all financial arrangements, deferred compensation agreements, and 

other continuing dealings with business associates, clients, or customers. 

I have no financial arrangements with current employers except continuation of 

my current salaries until I assume my new position. 

2. Indicate any investments, obligations, liabilities, or other relationships, which 

could involve potential conflicts of interest in the position to which you have been 

nominated. 

I have no investments or obligations that could involve potential conflicts of interest. 

3. Describe any business relationship, dealing, or financial transaction which you 

have had during the last 10 years, whether for yourself, on behalf of a client, or 

acting as an agent, that could in any way constitute or result in a possible conflict 

of interest in the position to which you have been nominated. 

I have had no business relationships that could potentially involve conflicts of interest. 

4. Describe any activity during the past 10 years in which you have engaged for 

the purpose of directly or indirectly influencing the passage, defeat, or modification 

of any legislation or affecting the administration and execution of law or public policy. 

As a congressional staff member, it is my job to draft legislation and work to secure its passage or to defeat proposed legislation that the Ranking Member opposed. 

41 

With respect to the position for which I am being considered, the Ranking Member 

has introduced legislation to reauthorize the Board and to make changes in its operations. I have worked to secure the passage of the Railroad Retirement Reform Act 

and The Pipeline Safety Act of 2002. 

5. Explain how you will resolve any potential conflict of interest, including any 

that may be disclosed by your responses to the above items. (Please provide a copy 

of any trust or other agreements.) 

I have no conflicts that require resolution. 

6. Do you agree to have written opinions provided to the Committee by the designated agency ethics officer of the agency to which you are nominated and by the 

Office of Government Ethics concerning potential conflicts of interest or any legal 

impediments to your serving in this position? 

I agree to have the ethics officer of the Surface Transportation Board offer written 

opinions regarding any potential legal impediments or conflicts regarding my appointment. 

D. LEGAL MATTERS

1. Have you ever been disciplined or cited for a breach of ethics by, or been the 

subject of a complaint to any court, administrative agency, professional association, 

disciplinary committee, or other professional group? If so, please explain. 

I have never been cited, disciplined, or been the subject of a complaint for a 

breach of ethics. 

2. Have you ever been investigated, arrested, charged, or held by any Federal, 

State, or other law enforcement authority for violation of any Federal, State, county, 

or municipal law, regulation, or ordinance, other than for a minor traffic offense? 

If so, please explain. 

When I was 19 years old I was cited for climbing on a monument in Washington 

Square Park in Manhattan following a party. As I recall, the judge dismissed the 

charges on learning it was not a political demonstration. 

3. Have you or any business of which you are or were an officer ever been involved as a party in an administrative agency proceeding or civil litigation? If so, 

please explain. 

I was sued following a minor traffic accident (no damage to either vehicle) after 

the other party alleged back injuries. Because the other party had just had back 

surgery, he successfully collected (I believe $20,000) from my insurance provider. 

4. Have you ever been convicted (including pleas of guilty or nolo contendere) of 

any criminal violation other than a minor traffic offense? If so, please explain. 

No, never. 

5. Please advise the Committee of any additional information, favorable or unfavorable, which you feel should be disclosed in connection with your nomination. 

I have no additional information to offer. 

E. RELATIONSHIP WITH COMMITTEE

1. Will you ensure that your department/agency complies with deadlines for information set by congressional committees? 

As a congressional staff member and as a former Deputy Assistant Inspector General and GAO Assistant Director, I am very sensitive to the need for timely compliance with deadlines for congressionally requested information and will ensure my 

agency complies. 

2. Will you ensure that your department/agency does whatever it can to protect 

congressional witnesses and whistle blowers from reprisal for their testimony and 

disclosures? 

At the General Accounting Office, I was party to several confidentiality agreements and I will ensure the protection of whistle blowers and other witnesses. 

3. Will you cooperate in providing the committee with requested witnesses, including technical experts and career employees, with firsthand knowledge of matters of 

interest to the Committee? 

I will cooperate fully with the Committee in providing witnesses, technical experts, and other career employees with knowledge of interest to the Committee. 

4. Please explain how if confirmed, you will review regulations issued by your department/agency, and work closely with Congress, to ensure that such regulations 

comply with the spirit of the laws passed by Congress. 

As a congressional staff member, I often monitored the rules and regulations 

issued by the Federal Railroad Administration, the Research and Special Programs 

Administration, and the Surface Transportation Board to ensure that they were consistent with the letter and spirit of the law. Because I have been on the other side 

of the fence on this issue, I intend to work closely with those who drafted the legisVerDate Nov 24 2008 08:35 Jul 11, 2016 Jkt 075679 PO 00000 Frm 00045 Fmt 6633 Sfmt 6621 S:\GPO\DOCS\20623.TXT JACKIE
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lation directing the rules and regulations to ensure that we are meeting the legislative intent. 

5. Are you willing to appear and testify before any duly constituted committee of 

the Congress on such occasions as you may be reasonably requested to do so? 

I am very willing to appear before congressional committees and have done so numerous times in the past. While I was with the GAO, I drafted more than 50 congressional testimonies for our witnesses on a wide variety of transportation, Social 

Security and pension issues. In most cases, I accompanied the witness to the table 

and typically I answered questions from committee members. Before joining government and still an academic, I testified before congressional committees on several 

occasions as an expert witness. 

F. GENERAL QUALIFICATIONS AND VIEWS

l. How does your previous professional experiences and education qualify you for 

the position for which you have been nominated? 

I believe I can state without reservation and without taking anything from the 

fine individuals who have served on the Board previously, that my background is 

more directly relevant, of longer duration, and more detailed than any prior appointee. I have nearly 30 years as transportation professional. I have worked on economic and regulatory issues for virtually every mode of transportation. I directed 

numerous GAO studies monitoring the effects of airline deregulation. I am considered a national expert on Amtrak, high-speed rail, transportation competitive analysis, and other transportation-related topics. 

2. Why do you wish to serve in the position for which you have been nominated? 

I wish to serve because I believe I can make an important contribution to the future of intercity freight and passenger transportation in America. I have worked in 

the transportation policy arena as a consultant, auditor, congressional staffer, and 

as an academic. I would like now to be involved as a decisionmaker in resolving 

some of the difficult issues facing our Nation’s transportation system, especially our 

rail network. I believe I bring the skills and the experience needed to do the job 

well. 

3. What goals have you established for your first two years in this position, if confirmed? 

During the first two years I will serve in this position, the Nation will celebrate 

the 25th anniversary of the Staggers’ Rail Act and the 10th anniversary of the creation of the Surface Transportation Board. I believe that these anniversaries should 

be marked by reflection on and reassessment of the policies, processes,, and outcomes to date. I want to work closely with my fellow Board members and the agency 

staff to not only undertake an internal evaluation of the STB’s role and practices, 

but to identify outside parties that could provide an objective review of the agency. 

4. What skills do you believe you may be lacking which may be necessary to successfully carry out this position? What steps can be taken to obtain those skills? 

The Surface Transportation Board is a quasi-judicial agency and I am not a lawyer. Although as a congressional staffer, I helped draft legislation, I have not had 

formal legal training. However, my training is in economics, and the Board also 

must determine complex economic issues at arriving at their decisions. I will have 

legal counsel assigned to me to assist in working through legal nuances and I plan 

to intensely study the agency’s prior decisions. 

5. Please discuss your philosophical views on the role of government. Include a 

discussion of when you believe the government should involve itself in the private 

sector, when society’s problems should be left to the private sector, and what standards should be used to determine when a government program is no longer necessary. 

I am a firm believer in the free market economy. One of my fields of graduate 

study, and a subject about which I had the opportunity to teach, was Comparative 

Economic Systems. The clear message from that field is that private markets generally lead to an efficient allocation of society’s resources-unless there is market failure. Market failure comes about whenever reliance on the private sector would give 

us too little (or too much) of a good or service. Private markets can provide education, but not universal education. We can’t rely on the market for public goods 

such as national defense, police, and fire services. Also, when externalities (e.g., air 

or water pollution) are involved relevant on the free market alone could lead to suboptimal outcomes. When externalities are present, there is a role for government. 

I believe that the public sector’s role also extends to establishing the rules under 

which market participants can act. In general, these rules are designed to ensure 

that people are treated fairly and that the interests of those with less power are 

defended. Because I believe in free market solutions whenever possible, I also beVerDate Nov 24 2008 08:35 Jul 11, 2016 Jkt 075679 PO 00000 Frm 00046 Fmt 6633 Sfmt 6621 S:\GPO\DOCS\20623.TXT JACKIE
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lieve that competition is the sine qua non for the success of the market system. If 

monopolies are established or if there are significant barriers to market entry, competition will be thwarted and the benefits of the free market system will be lost. 

Finally, I also believe that when problems arise it is generally best that they be 

dealt with directly. Roundabout solutions nearly always make matters worse. 

With respect to the standards for terminating an agency, I believe that there are 

two basic principles: (1} the agency’s mission is no longer relevant because circumstances have changed or the agency might have achieved its purpose and (2) the 

agency has simply failed to accomplish its mission. In the first case, I think it is 

important to establish measures of success and communicate those as goals to agency managers. In the second case, I think the agency and its personnel need to be 

made aware of perceived failings and be given the opportunity to correct the problems. 

6. Describe the current mission, major programs, and major operational objectives 

of the department/agency to which you have been nominated. 

The Surface Transportation Board assumed the residual responsibilities of the 

Interstate Commerce Commission. While the other modes of transportation (truck 

and air) were almost entirely deregulated, the Congress elected to retain a regulatory structure to oversee the railroad industry. That structure was, however, much 

relaxed to give railroads greater freedom to act as Congress recognized that a significant proportion of rail traffic was not subject to the discipline of market competition and preserved some regulatory jurisdiction over railroad rates and service. I believe that agency’s primary mission is to balance the needs of the railroads to earn 

an adequate return with the need of shippers for reliable and affordable rail service. 

7. What do you believe to be the top three challenges facing the department/agency and why? 

I believe the three top challenges facing the Surface Transportation Board are: addressing the complaints of captive shippers; assessing the pluses and minuses of further industry consolidation; and finding ways to make the Board’s resources accessible to smaller shippers. First, there is clearly mounting pressure for a legislative 

response to the concerns of captive shippers. S. 919 calls for major changes in the 

relationship between the STB and the railroad industry. The railroads claim that 

the changes advanced in this legislation would destroy the industry. They would not 

be able to earn sufficient revenues to invest in their infrastructure and, as a result, 

service would decline. Shippers claim without such changes they will be forced out 

of business or will need to relocate, perhaps overseas. With respect to industry consolidation, the industry has already consolidated from more than 20 Class I carriers 

in 1980 to only 4 major and one minor Class I U.S. carriers and 2 Class I Canadian 

carriers with U.S. subsidiaries. Further consolidation could lead to a North American duopoly or a triopoly. Such an outcome might create pressure to truly re-regulate the industry. Finally, I believe the Board’s authority must be available to all 

shippers regardless of size. The existing processes make it relatively expensive for 

out small shippers to bring complaints before the Board. 

8. In reference to question number six, what factors in your opinion have kept 

the department/agency from achieving its missions over the past several years? 

I do not believe the Board has failed to achieve its mission although some would 

argue that it has not correctly balanced its objectives. 

9. Who are the stakeholders in the work of this department/agency? 

The principal stakeholders are the railroads, shippers, rail labor, and the American people. 

10. What is the proper relationship between the position to which you have been 

nominated, and the stakeholders identified in question number nine? 

A member of the Surface Transportation Board adjudicates disputes between railroads and shippers, oversees the terms and conditions of mergers, and performs 

other quasi-judicial functions. Therefore, the Board member must relate to stakeholders in much the same manner as judge—he or she must be fair, impartial, and 

maintain an arms length relationship. The member must balance the interests of 

the stakeholders based on the available facts submitted in the record. Objectivity, 

impartiality, and attention to the public interest are the bases for Board member 

behavior. 

11. The Chief Financial Officers Act requires all government departments and 

agencies to develop sound financial management practices. 

(a) What do you believe are your responsibilities, if confirmed, to ensure that your 

department/agency has proper management and accounting controls? 

I believe that, as a member of the board, I am fully responsible for ensuring that 

proper management and accounting controls are in place. As an Assistant Director 

at the U.S. General Accounting Office and as a Deputy Inspector General in the AuVerDate Nov 24 2008 08:35 Jul 11, 2016 Jkt 075679 PO 00000 Frm 00047 Fmt 6633 Sfmt 6621 S:\GPO\DOCS\20623.TXT JACKIE
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diting Division of the DOT’s Inspector General’s office, I am familiar with the requirements of the Chief Financial Officer’s Act and will strive to uphold the highest 

standards of financial integrity. 

(b) What experience do you have in managing a large organization? 

I have not managed an organization quite as large as the STB (130+ staff), but 

I managed a group of over 50 professionals at the Department of Transportation 

and I regularly had as many as 20 professionals reporting to me at the General Accounting Office. 

12. The Government Performance and Results Act requires all government departments and agencies to identify measurable performance goals and to report to 

Congress on their success in achieving these goals. 

(a) What benefits, if any, do you see in identifying performance goals and reporting on progress in achieving those goals? 

Performance goals are vitally important in monitoring progress toward achieving 

an agency’s mission. It is important that the overall agency performance goals be 

part of the expectations setting process for all employees. For example, while I was 

at GAO, we had a highly structured system of setting goals for individual staff and 

for providing periodic feedback. The result was that staff knew how well they were 

performing, what kind of merit increase or bonus they could expect, and what they 

needed to do to correct deficiencies. We could identify whether any additional training was necessary and, sometimes, whether an individual was assigned to the right 

projects. Moreover, periodic assessment and feedback also give supervisors the opportunity to provide positive feedback to superior staff—thereby further motivating 

them to give their best. 

(b) What steps should Congress consider taking when a department/agency fails 

to achieve its performance goals? Should these steps include the elimination, privatization, downsizing, or consolidation of departments and/or programs? 

If an agency fails to achieve its performance goals, the first question that should 

be answered is why it hasn’t? Are the goals achievable? Are they appropriately defined? If achievable and defined properly, then the next step would be to decide 

whether the right management team is in place and whether sufficient and appropriate resources are available. 

(c) What performance goals do you believe should be applicable to your personal 

performance, if confirmed? 

I believe that my performance goals should include the timely resolution of cases 

brought before the Board, evidence of thoughtful consideration and analysis in arriving at decisions, efficient management of assigned staff and agency resources, and 

leadership in helping direct the agency toward rigorous analysis of evidence to reach 

conclusions consistent with congressional intent. 

13. Please describe your philosophy of supervisor/employee relationships. Generally, what supervisory model do you follow? Have any employee complaints been 

brought against you? 

Perhaps because I have spent many years in academia, I have adopted a philosophy that a supervisor should be a mentor to his or her employees. But, I also 

strongly believe in providing individuals with as much responsibility as they can 

handle and I resist micromanaging them. I have usually been pleased with the results. On the few occasions when an employee has not done as well as I would have 

liked, I try to recognize that I share the responsibility for the sub par performance. 

In those cases, I would work more closely with the individual to help them attain 

the skills or confidence needed for the task. In the 35 years that I have been in supervisory positions, I never had an employee file a complaint against me. 

14. Describe your working relationship, if any, with the Congress. Does your professional experience include working with committees of Congress? If yes, please explain. 

I have always had an excellent relationship with congressional staff and Members. For the past 31⁄2 years, I have served as Staff Director for the Railroad Subcommittee of the House Committee on Transportation and Infrastructure and as 

Staff Director for Pipeline and Hazard us Materials Issues for the Subcommittee on 

Highways, Transit, and Pipelines. I also spent nearly 14 years as an Assistant Director at the U.S. General Accounting Office, the principal investigative arm of the 

Congress. At GAO, I directed the preparation of more than 100 studies and congressional testimonies before both House and Senate Committees. The subjects covered 

ranged from airline competition, highway safety, and railroad competitiveness to Social Security and pension reform. Virtually all of our work at GAO was performed 

at the request of either Chairman or Ranking Members of congressional committees 

and so I worked closely with the appropriate staff in undertaking the project. It was 

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not unusual for me to be overseeing as many as a dozen projects at a time for several different committees. 

15. Please explain what you believe to be the proper relationship between yourself, if confirmed, and the Inspector General of your department/agency. 

Because I was the Deputy Assistant Inspector General at the U.S. Department 

of Transportation for Rail, Transit, and Special Programs, I was the Deputy IG who 

had oversight responsibilities for the Surface Transportation Board. I firmly believe 

that agencies and departments of the Federal government have a duty to be responsive to requests for data and information so that the IG can conduct an audit or 

investigation. 

16. In the areas under the department/agency’s jurisdiction to which you have 

been nominated, what legislative action(s) should Congress consider as priorities? 

Please state your personal views. 

I believe that the Nation needs a healthy and prosperous railroad industry in 

order that it can accommodate the projected growth in freight and passenger traffic 

in the coming years. Unfortunately, at a time when more investment in the industry 

is needed, the industry’s infrastructure is shrinking. Congress needs to consider 

what must be done to ensure that the rail infrastructure will be there to meet future needs. We are also approaching the 25th anniversary of the Staggers Rail Act 

of 1980, which greatly changed the rail regulatory framework, and the 1Oth anniversary of the ICC Termination Act, which created the Surface Transportation 

Board. I believe this is an appropriate time for an independent assessment of how 

well the current system has worked and what legislative changes might be desirable 

to make it work better. 

17. Within your area of control, will you pledge to develop and implement a system that allocates discretionary spending in an open manner through a set of fair 

and objective established criteria? If yes, please explain what steps you intend to 

take and a time frame for their implementation. If not, please explain why. 

To the best of my knowledge I do not believe that I have say over much, if any, 

discretionary spending by the agency. To the extent that I do, I pledge that such 

spending will always be done I an open manner through fair and impartial criteria. 

I pledge to work with the agency’s ethics officer, the Inspector General, and the 

GAO to ensure that such procedures are in place. 

The CHAIRMAN. Thank you very much. 

I want to thank all the witnesses. As you can see by the large 

turnout, there’s a great deal of controversy associated with these 

nominations. 

[Laughter.] 

The CHAIRMAN. But please know that in the view of all Members 

of this Committee your appointments are very important to us and 

to the American people. 

Ms. Keenum, as we speak there’s amendments on the floor concerning curtailment of free trade, on closing open markets, and 

outsourcing of jobs, so I think you have some significant responsibilities that you are assuming. 

Dr. Combs, I think you will face budgetary and program pressures that probably we have not experienced in many years as we 

face looming deficits of trillions of dollars, and so you have a very 

tough decisionmaking process and some heavy responsibilities. 

Dr. Mulvey and Mr. Buttrey, as you know, the Surface Transportation Board has been moribund for some period of time, and with 

the addition of both of you, you’re going to have a very large backlog of issues to address, and I hope that you will work together to 

address the ongoing concerns that, in some ways, at least to me, 

are almost insoluble. We continue to be gridlocked here on the 

Committee and in the Congress on issues such as captive shipper 

problems and others, so I hope you can help us sort out some of 

these issues, as Dr. Mulvey pointed out, balancing the fact that we 

have to have a viable railroad industry, and, at the same time, we 

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have to take in consideration the rights and the need that consumers be treated in a fair and equitable fashion. 

So I welcome all of you. We will mark up your nominations on 

Tuesday morning, and try to get them to the Senate this week before we go out of session, as we are want to do every week or two. 

I thank you very much. Again, congratulations to you and to 

your families. 

This hearing is adjourned. 

[Whereupon, at 3:05 p.m., the hearing was adjourned.] 

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