a

GAO

United States General Accounting Office

Report to Congressional Requesters

October 2002 2000 CENSUS

Lessons Learned for 

Planning a More 

Cost-Effective 2010 

Census

GAO-03-40

Page i GAO-03-40 Census 2000 Planning

Contents

Letter 1

Results in Brief 2

Background 5

Total Funding for Bureau Planning Was Lower Than Requested 7

Funding and Other Factors Affected Planning Efforts 9

2000 Census Planning Provides Lessons Learned for The 2010 

Census 14

Conclusions 17

Recommendation for Executive Action 18

Agency Comments and Our Evaluation 18

Appendixes

Appendix I: Objectives, Scope, and Methodology 20

Appendix II: Analysis of Funding by Fiscal Year for Planning and 

Development of the 2000 Census 22

Appendix III: Comments From the Department of Commerce 38

GAO Comments 42

Tables Table 1: 2000 Census Planning and Development Funding 

Requested and Received for Fiscal Years 1991 Through 

1997 (dollars in millions) 8

Table 2: 2000 Census Planning and Development Funding for Fiscal 

Year 1992 (dollars in millions) 23

Table 3: 2000 Census Planning and Development Funding for Fiscal 

Year 1993 (dollars in millions) 25

Table 4: 2000 Census Planning and Development Funding for Fiscal 

Year 1994 (dollars in millions) 28

Table 5: 2000 Census Planning and Development Funding for Fiscal 

Year 1995 (dollars in millions) 30

Table 6: 2000 Census Planning and Development Funding for Fiscal 

Year 1996 (dollars in millions) 33

Table 7: 2000 Census Planning and Development Funding for Fiscal 

Year 1997 (dollars in millions) 35
Contents

Page ii GAO-03-40 Census 2000 Planning

Abbreviations

AIR American Indian Reservation

DADS Data Access and Dissemination System

DSF Delivery Sequence File

FTE full-time equivalent

ICM Integrated Coverage Measurement

MAF Master Address File

OMB Office of Management and Budget

TIGER Topologically Integrated Geographic Encoding and Referencing 
Page 1 GAO-03-40 Census 2000 Planning

United States General Accounting Office

Washington, D.C. 20548

A

October 31, 2002 Letr

The Honorable William Lacy Clay, Jr.

House of Representatives

The Honorable Carolyn B. Maloney

House of Representatives

This report responds to your request to review the funding of 2000 Census 

planning and development efforts and the impact it had on census 

operations. Total funding for the 2000 Census, referred to as the life cycle 

cost, covers a 13-year period from fiscal year 1991 through fiscal year 2003 

and is expected to total about $6.5 billion adjusted to 2000 year dollars. 

This amount was almost double the reported life cycle cost of the 1990 

Census of $3.3 billion adjusted to 2000 year dollars. Current life cycle 

unadjusted cost estimates of the 2010 Census range from $10 billion to $12 

billion. Considering these escalating costs, the experience of the U.S. 

Census Bureau in preparing for the 2000 Census offers valuable insights for 

the planning and development effort now occurring for the 2010 Census. 

This report is part of a series of GAO studies on lessons to be learned from 

the 2000 Census that can help bureau efforts to conduct an accurate and 

cost-effective census in 2010.

We classified 2000 Census efforts into the following three phases.

• The planning and development phase consisted of a variety of activities 

to prepare for the actual decennial census count on April 1, 2000. 

Although planning and development efforts continued into subsequent 

phases of the census, this phase involved 7 fiscal years from 1991 

through 1997 with actual funding of about $238 million adjusted to 2000 

year dollars, or about 4 percent of the total decennial life cycle cost. 

• The implementation phase included conducting the 1998 dress 

rehearsal, establishing 511 temporary local census offices in the 50 

states, hiring and training over 500,000 temporary personnel, and then 

conducting the actual census count. This phase involved 3 fiscal years 

from 1998 through 2000 with actual funding of about $5.6 billion 

adjusted to 2000 year dollars, or about 86 percent of the total decennial 

life cycle cost. 

• The postenumeration phase involves compiling and checking the 

census counts for public release by April 1, 2001, for subsequent use in 
Page 2 GAO-03-40 Census 2000 Planning

congressional redistricting, and for other postcensus studies. This 

phase covers 3 fiscal years from 2001 through 2003 with estimated 

funding of about $686 million adjusted to 2000 year dollars, or about 10 

percent of the total decennial life cycle cost. 

As agreed with your offices, our review focused on the planning and 

development phase of the 2000 Census and (1) the funding requested, 

received, and obligated, with funding received and obligated by major 

planning category,1

 (2) funding and other factors that affected planning 

efforts, and (3) lessons learned for the 2010 Census. Our analysis was 

based on unaudited budget and financial data provided by the U.S. Census 

Bureau. We performed our work between January 2001 and July 2001 at 

which time our review was suspended due to an inability to obtain access 

to certain budget records. After lengthy discussions with senior officials of 

the bureau, the Department of Commerce, and the Office of Management 

and Budget (OMB), and consultation with your staffs, this access issue was 

resolved in May 2002 and we completed our analysis in June 2002. Our 

work was done in accordance with U.S. generally accepted government 

auditing standards. Further details on our scope and methodology are 

presented in appendix I.

The Department of Commerce provided written comments on a draft of 

this report, including two attachments. We reprinted the comments in 

appendix III, except for the second attachment, Potential Life-Cycle 

Savings for the 2010 Census, which the bureau stated is currently under 

revision and is outside the scope of our review. 

Results in Brief Thorough and comprehensive planning and development efforts are crucial 

to the ultimate efficiency and success of any large, long-term project, 

particularly one with the scope, magnitude, and deadlines of the U.S. 

decennial census. For fiscal years 1991 through 1997, about $269 million 

was requested in the President’s Budgets for 2000 Census planning and 

development and the program received funding of about $224 million by 

the Congress, or about 83 percent of the amount requested. For fiscal years 

1

The bureau’s use of major categories evolved from 1 activity of general planning in fiscal 

year 1991, to 8 major study areas in fiscal years 1992 and 1993, to 8 to 15 broad categories 

called frameworks beginning in 1994. For internal management and reporting, the bureau 

further identified program efforts by activities and projects that have varied since fiscal year 

1991.
Page 3 GAO-03-40 Census 2000 Planning

1991 and 1992, OMB deemed the Department of Commerce requests to 

fund early census reform as insufficient and doubled the amounts to $1.5 

million and $10.1 million, respectively. These amounts were included in the 

President’s Budgets and the Congress concurred by authorizing the full 

amount requested. However, funding reductions by the Congress occurred 

every subsequent fiscal year from 1993 through 1997. According to the 

bureau, these reductions resulted in the elimination, deferral, or scaling 

back of certain projects in planning for the 2000 Census. The bureau 

obligated 99 percent of its appropriated 2000 Census funding through fiscal 

year 1997.

According to U.S. Census Bureau records, the bulk of the $86 million in 

funding received through the end of fiscal year 1995 was obligated for 

program development and evaluation methodologies, testing and dress 

rehearsals, and planning for the acquisition of automated data processing 

and telecommunications support. For fiscal years 1996 and 1997, bureau 

records indicated the bulk of $138 million of decennial funding received 

was obligated for planning for the establishment of field data collection and 

support systems, refining data content and products, evaluating test 

results, and procuring automated data processing and telecommunications 

support. For the planning and development phase, personnel costs 

consumed about 53 percent of total costs; contractual services consumed 

16 percent; and space, supplies, travel, and other expenses consumed the 

remaining 31 percent. 

The U.S. Census Bureau was responsible for carrying out its mission within 

the budget provided and bureau management determined the specific areas 

in which available resources were invested. We could not determine what 

effect, if any, that higher funding levels might have had on bureau 

operations as this is dependent upon actual implementation and the results 

of management decisions that may or may not have occurred. According to 

bureau officials, early planning and development efforts for the 2000 

Census were adversely affected by lower funding than requested for fiscal 

years 1993 through 1997. They identified 10 areas where additional funding 

could have been beneficial. These included difficulties in retaining 

knowledgeable staff, scaled back plans for testing and evaluating 1990 

Census data, delays in implementing a planning database, and limited 

resources to update address databases. While lower funding may have 

affected these areas, information from various bureau and GAO reports 

and testimony, as well as our current review, showed that operational, 

methodological, and other factors also contributed to weaknesses in the 

bureau’s planning efforts. 
Page 4 GAO-03-40 Census 2000 Planning

The bureau’s experience in preparing for the 2000 Census underscores the 

importance of solid, upfront planning and adequate funding levels to carry 

out those plans. As we have reported in the past, planning a decennial 

census that is acceptable to stakeholders2

 includes analyzing the lessons 

learned from past practices, identifying initiatives that show promise for 

producing a better census while controlling costs, testing these initiatives 

to ensure their feasibility, and convincing stakeholders of the value of 

proposed plans. A major contributing factor to the funding reductions was 

the bureau’s persistent lack of comprehensive planning and priority setting, 

coupled with minimal research, testing, and evaluation documentation to 

promote informed and timely decision making. Over the course of the 

1990s, the Congress, GAO, and others criticized the bureau for not fully 

addressing such areas as (1) capitalizing on its experiences from past 

decennial censuses to serve as lessons learned in future planning, (2) 

documenting its planning efforts, particularly early in the process, (3) 

concentrating its efforts on the few critical projects that significantly 

affected the census count, such as obtaining a complete and accurate 

address list, (4) presenting key implementation issues with decision 

milestones, and (5) identifying key performance measures for success.

In light of the challenges facing the bureau as it prepares for the next 

decennial census in 2010, we are recommending to the Secretary of 

Commerce that the bureau’s requests for funding of planning and 

development activity provide comprehensive information supported by 

sound data. This information would include, but is not limited to, such 

information as

• specific performance goals for the 2010 Census and how bureau efforts, 

procedures, and projects would contribute to those goals;

• detailed information on project feasibility, priorities, and potential 

risks;

• key implementation issues and decision milestones; and,

• performance measures.

2

Stakeholders include the Congress, federal agencies, state and local governments, the 

public, demographers, and others who rely upon census information.
Page 5 GAO-03-40 Census 2000 Planning

The department agreed with our recommendation and stated that the 

bureau is expanding documents justifying its budgetary requests.

Background As a result of controversy and litigation surrounding the 1990 Decennial 

Census, the U.S. Census Bureau recognized the need for a full-scale review 

of its decennial census program. The Congress, OMB, and GAO also agreed 

that this review was needed and that it must occur early in the decade to 

implement viable actions for the 2000 Census and to prepare for the 2010 

Census.3

 Early in the 1990s, in reports and testimonies, we stressed the 

importance of strong planning and the need for fundamental reform to 

avoid the risk of a very expensive and seriously flawed census in 2000.4

To address a redesign effort, in November 1990 the bureau formed the Task 

Force for Planning the Year 2000 Census and Census-Related Activities for 

2000-2009. The task force was to consider lessons learned from the 1990 

Census, technical and policy issues, constitutional and statutory mandates, 

changes in U.S. society since earlier decennial censuses, and the most 

current knowledge of statistical and social measurement. The bureau also 

established a Year 2000 Research and Development Staff to assist the task 

force and conduct numerous research projects designed to develop new 

approaches and techniques for possible implementation in the 2000 

Census. In June 1995, the task force issued its report, Reinventing the 

Decennial Census. 

Concerns about the 1990 Census also led the Congress to pass the 

Decennial Census Improvement Act of 1991 (Public Law 102-135) requiring 

the National Academy of Sciences to study the means by which the 

government could achieve the most accurate population count possible 

and collect other demographic and housing data. The academy established 

a panel on methods to provide an independent review of the technical and 

operational feasibility of design alternatives and tests conducted by the 

3

Global Report of the Task Force for Planning the Year 2000 Census, Reinventing the 

Decennial Census (Washington, D.C.: June 1995).

4

U.S. General Accounting Office, Census Reform Needs Attention Now, GAO/T-GGD-91-13

(Washington, D.C.: Mar. 12, 1991); Decennial Census: 1990 Results Show Need for 

Fundamental Reform, GAO/GGD-92-94 (Washington, D.C.: June 9, 1992); Decennial 

Census: Fundamental Reform Jeopardized by Lack of Progress, GAO/T-GGD-93-6

(Washington, D.C.: Mar. 2, 1993); and Decennial Census: Focused Action Needed Soon to 

Achieve Fundamental Breakthroughs, GAO/T-GGD-93-32 (Washington, D.C.: May 27, 1993).
Page 6 GAO-03-40 Census 2000 Planning

U.S. Census Bureau. The panel issued its final report in September 1994. A 

second academy panel on requirements examined the role of the decennial 

census within the federal statistical system and issued its final report in 

November 1994. 

In March 1995, the bureau conducted the 1995 Census Test which provided 

a critical source of information to decide by December 1995 the final design 

of the 2000 Census. These efforts resulted in a planned approach for 

reengineering the 2000 Census which was presented in a May 19, 1995, U.S. 

Census Bureau report, The Reengineered 2000 Census. 

In October 1995, we testified on the bureau’s plans for the 2000 Census. 5 In 

that testimony, we concluded that the established approach used to 

conduct the 1990 Census had exhausted its potential for counting the 

population cost-effectively and that fundamental design changes were 

needed to reduce census costs and to improve the quality of data collected. 

We also raised concerns about the bureau proceeding with design plans for 

the 2000 Census without input from the Congress. In the intervening 

months, the bureau was unable to come to agreement with the Congress on 

critical design and funding decisions. In February 1997, we designated the 

2000 Decennial Census a new high-risk area because of the possibility that 

further delays could jeopardize an effective census and increase the 

likelihood that billions of dollars could be spent and the nation be left with 

demonstrably inaccurate census results.6

 In July 1997, we updated our 

1995 testimony on bureau design and planning initiatives for the 2000 

Census and assessed the feasibility of bureau plans for carrying out the 

2000 Census.7

 

5

U.S. General Accounting Office, Decennial Census: Fundamental Design Decisions Merit 

Congressional Attention, GAO/T-GGD-96-37 (Washington, D.C.: Oct. 25, 1995).

6

U.S. General Accounting Office, The High-Risk Series, GAO/HR-97-2 (Washington, D.C.: 

Feb. 1997) is a special effort to review and report on the federal program areas we have 

identified as high risk because of their vulnerability to waste, fraud, abuse, or 

mismanagement. 

7

U.S. General Accounting Office, 2000 Census: Progress Made on Design, but Risks 

Remain, GAO/GGD-97-142 (Washington, D.C.: July 14, 1997).
Page 7 GAO-03-40 Census 2000 Planning

To respond to Title VIII of Public Law 105-18, which required the 

Department of Commerce to provide detailed data about the bureau’s plans 

by July 12, 1997, the bureau issued its Report to Congress, The Plan For 

Census 2000. This plan also incorporated the bureau’s Census 2000 

Operational Plan that was updated annually. In November 1997, Public 

Law 105-119 established the Census Monitoring Board to observe and 

monitor all aspects of the bureau’s preparation and implementation of the 

2000 Census.8

 Section 209 (j) of this legislation also required the bureau to 

plan for dual tracks of the traditional count methodology and the use of 

statistical sampling to identify historically undercounted populations of 

children and minorities. 

Census Appropriations As 1 of 13 bureaus within the Department of Commerce, the U.S. Census 

Bureau must submit its annual budget for review and inclusion in the 

department’s budget. The department must then make choices in 

consideration of its overall budget to OMB and will therefore make 

adjustments to bureau-requested budgets as deemed necessary. OMB will 

review and further adjust department and bureau budgets to consider the 

programs and priorities of the entire federal government that become the 

President’s Budget. The Congress may then adjust the President’s Budget 

through the appropriation process that becomes the budget of the 

departments and the bureaus after signature by the President. The 

appropriations for decennial census are no-year funds that are available 

until expended, rescinded, transferred, or until the account is closed.

Total Funding for 

Bureau Planning Was 

Lower Than Requested

As shown in table 1, the Department of Commerce requested a total of 

$268.7 million for 2000 Census planning and development in the President’s 

Budgets for fiscal years 1991 through 1997. The program received total 

funding of $223.7 million from the Congress, or about 83 percent of the 

amount requested. Although the 2000 Census received all of the funding 

requested in the President’s Budgets for fiscal years 1991 and 1992, it 

received reduced funding for each fiscal year from 1993 through 1997. 

According to the bureau, these reductions resulted in the elimination, 

deferral, or scaling back of certain projects in planning for the 2000 Census. 

The bureau subsequently obligated 99 percent of its appropriated 2000 

Census funding through fiscal year 1997.

8

Public Law 105-119, § 210, 111 Stat. 2483 (Nov. 26, 1997).
Page 8 GAO-03-40 Census 2000 Planning

Table 1: 2000 Census Planning and Development Funding Requested and Received for Fiscal Years 1991 Through 1997 (dollars 

in millions)

a

Amounts include prior year recoveries of $1.6 million.

b

Amounts include prior year recoveries and carry-in of $16.1 million.

Source: U.S. Census Bureau.

Bureau records indicated that the bulk of $86 million of decennial funding 

received through the end of fiscal year 1995 was obligated for program 

development and evaluation methodologies, testing and dress rehearsals, 

and planning for the acquisition of automated data processing and 

telecommunications support. For fiscal years 1996 and 1997, bureau 

records indicated that the bulk of $138 million of decennial funding 

received was obligated for planning the establishment of field data 

collection and support systems, refining data content and products, 

evaluating test results, and procuring automated data processing and 

telecommunications support. For the planning and development phase, 

personnel costs consumed about 53 percent of planning and development 

funds; contractual services consumed 16 percent; and space, supplies, 

travel, and other expenses consumed the remaining 31 percent. 

Because of different major program categories used by the bureau from 

fiscal years 1991 through 1997, we could not present a comprehensive table 

of funding for the period. However, we were able to analyze the funding by 

fiscal year and a detailed analysis of funding requested, received, and 

obligated, and funds budgeted by major program category for fiscal years 

1991 through 1997 are presented in appendix II. 

Fiscal year

2000 Census requested

funding (President’s

Budget)a

2000 Census appropriated

funding by Congressb

2000 Census requested

funding not appropriated

Percent of requested

annual funding received

1991 $1.5 $1.5 $0 100

1992 10.1 10.1 0 100

1993 19.4 13.7 5.7 71

1994 23.1 18.7 4.4 81

1995 48.6 42.0 6.6 86

1996 60.1 51.3 8.8 85

1997 105.9 86.4 19.5 82

Total $268.7 $223.7 $45.0 83
Page 9 GAO-03-40 Census 2000 Planning

Funding and Other 

Factors Affected 

Planning Efforts

The U.S. Census Bureau was responsible for carrying out its mission within 

the budget provided and bureau management determined the specific areas 

in which available resources were invested. We could not determine what 

effect, if any, that higher funding levels might have had on census 

operations as this is dependent upon actual implementation and the results 

of management decisions that may or may not have occurred. However, 

according to bureau officials, lower than requested funding levels for fiscal 

years 1993 through 1997 adversely affected the bureau’s planning and 

development efforts for the 2000 Census. As examples, they cited the 

following 10 areas where reduced funding levels caused the bureau to 

curtail planning initiatives. Although lower funding levels may have 

affected these areas, information from previous bureau and GAO reports 

and testimony indicated that operational, methodological, and other 

factors also contributed to weaknesses in the bureau’s planning efforts.

1. Difficulties in retaining knowledgeable staff. Although many key 

bureau personnel and project managers involved with the 2000 Census 

had also worked on the 1990 and earlier decennial censuses, bureau 

officials stated that many experienced people retired or left the bureau 

after the 1990 Census. According to the bureau, a contributing factor 

was lower funding levels to pay personnel compensation and benefits, 

which in turn affected the number of personnel with institutional 

knowledge of the decennial census to lend support to the 2000 Census 

planning and development effort. 

We noted that soon after a major event such as the decennial census 

count, it is not unusual for personnel to leave the bureau, as did three 

senior executives after the 2000 Census. In addition, Office of 

Personnel Management data indicated that over half of the bureau’s 

full-time, nonseasonal work force of 5,345 employees as of March 2002 

is eligible for retirement by 2010. Thus, the human capital issue will 

remain a key planning area to ensure that the bureau has the skill mix 

necessary to meet its future requirements.

2. Scaled-back plans for testing and evaluating 1990 Census data. A 

bureau official stated that the amount of qualitative and quantitative 

data from the 1990 Census was limited and hampered the quality and 

results of planning and development efforts for the 2000 Census. 

Additionally, many opportunities were lost in capitalizing on the 1990 

Census data that did exist and more funding to evaluate this data could 

have facilitated 2000 Census research and planning efforts. Bureau 
Page 10 GAO-03-40 Census 2000 Planning

officials stated that as they moved forward with planning for the 2000 

Census, they had to scale back plans for testing and evaluating 1990 

Census data because of a lack of funding. For example, they cited the 

inability to update a 1990 Census study of enumerator supervisor ratios. 

3. Delays in implementing a planning database. Bureau officials stated 

that they were unable to implement an effective planning database in 

the early years of the 2000 Census. In one of its first plans, the bureau 

conceived of a planning database that would capture data down to very 

small geographic levels and would be continuously updated over the 

decade for a number of census purposes. This database would have 

enabled the bureau to target areas where language resources were 

needed, identify areas where enumeration and recruiting could be 

difficult, and position data capture centers to support the most costefficient and effective infrastructure. However, according to bureau 

officials, with lower funding through fiscal year 1995, the planning 

database was put on hold. Later in the decade, the bureau resurrected 

the planning database but did not develop and use it fully. 

4. Limited resources to update address databases. According to bureau 

officials, sufficient resources to update and coordinate large databases 

of addresses and physical locations provided a continuous challenge to 

the bureau. At the end of the 1990 Census, the bureau’s database 

contained 102 million addresses, each assigned to the census block 

area in which it was located. At that point, the U.S. Census Bureau’s 

Geography Division initiated discussions with the U.S. Postal Service to 

utilize its Delivery Sequence File (DSF) that contained millions of 

addresses used to deliver the U.S. mail.9

 The bureau planned to use the 

DSF in updating its address database which became the Master 

Address File (MAF).10 With lower funding through 1995, bureau officials 

cited limited resources to update the MAF database and to assess the 

quality of entered information.

9

The Census Address List Improvement Act of 1994 (Public Law 103-430), required the U.S. 

Census Bureau to use the DSF and address lists from local and tribal governments to build 

the Census 2000 address list.

10MAF is a computer database of household addresses contained in the database from the 

1990 Census, various versions of the U.S. Postal Service’s DSF, and update information 

provided by state, local, and tribal governments. The MAF was to be updated throughout 

the decade to provide a basis for producing address labels needed to deliver 2000 Census 

questionnaires, to track questionnaires returned, and to identify addresses for later site 

visits by enumerators. 
Page 11 GAO-03-40 Census 2000 Planning

5. Program to identify duplicate responses was not fully developed. 

Bureau officials stated the program to identify duplicate responses was 

not fully developed for the 2000 Census and more emphasis and 

funding were needed to develop appropriate software and procedures. 

It is important to be able to identify duplications in the MAF and 

multiple responses from a person or household that contribute to a 

population overcount. This includes operations to identify multiple 

responses for the same address and computer matching of census 

responses received against all other people enumerated in the block. 

Duplications also occurred due to college students counted both at 

school and at home, people with multiple residences, and military 

personnel residing outside their home state. 

6. Abandoned plans to use administrative records. In early planning for 

the 2000 Census, the bureau funded efforts to use records from 

nonbureau sources of information (such as driver licenses, voter 

registrations, and other government programs) to supplement the 

census count. This administrative records project was the result of 

extensive research studies conducted by the bureau beginning in 1993 

that focused on initial plans for three uses of nonbureau information to

• derive census totals for some nonresponding households,

• enhance the coverage measurement operations, and

• help provide missing content from otherwise responding households.

Although bureau officials determined that administrative records had 

the potential to improve coverage, the bureau abandoned plans to fund 

and more fully develop an administrative records database in February 

1997. While the lack of funding may have been a contributing factor, 

bureau documents indicated that this action was primarily due to 

questions about the accuracy and quality of administrative records and 

issues of privacy protection. 

7. Problems with multiple language questionnaires. Bureau officials 

cited several funding and operational problems with census 

questionnaires in the five languages that were used other than 

English.11 In 1995, the bureau planned to mail forms in both Spanish 

11Questionnaires were available in Spanish, Chinese, Korean, Vietnamese, and Tagalog.
Page 12 GAO-03-40 Census 2000 Planning

and English to areas with high concentrations of Spanish speakers and 

produce forms in other languages as needed. In March 1997, in 

response to requests for forms in other languages, the bureau 

announced its intent to print questionnaires in multiple languages in an 

effort to increase the mail response rate. The bureau selected four 

additional languages as a manageable number based upon a perceived 

demand. However, the bureau could not determine how to pinpoint the 

communities that needed the non-English questionnaires. Instead, the 

bureau indicated in a mailing that the questionnaires were available in 

five languages and if an individual wanted a questionnaire in a language 

other than English, the individual had to specifically request the 

questionnaire in that language. As a result, the bureau did not know the 

number of questionnaires to print in the five languages until late in the 

process. Finally, the bureau did not have the time to comprehensively 

assess the demand for questionnaires in other languages. 

8. Cost-effective use of emerging data capture technology. Early bureau 

research assessed current and emerging data capture technologies, 

such as electronic imaging, optical mark recognition, and hand-held 

devices, which offered the potential for significant cost reductions in 

processing large volumes of data. Bureau officials indicated they were 

unsure of their exact requirements for the emerging data capture 

technologies, and this resulted in most contracts being costreimbursement contracts12 that required more funding than planned. 

The bureau estimated that it ultimately spent about $500 million on 

contracts to improve the data capturing process.

Bureau officials also stated that they did not have the time to fully 

develop and test the data capture systems or data capture centers, both 

of which were contracted for the first time in the 2000 Census. For 

example, the bureau said it could not adequately prepare for the full 

development and testing of the imaging contract. As a consequence, 

the first imaging test did not occur until 1998, and bureau officials 

stated that it became clear that imaging was not working due to 

technical and implementation problems. To some extent, this is not 

unexpected when implementing new technologies. Although the 

12Cost-reimbursement contracts allow for payment of all allowable incurred costs within a 

predetermined ceiling set in the contract. Cost-reimbursement contracts place less cost and 

performance risk on the contractor, as opposed to fixed-price contracts, which place more 

responsibility on the contractor for performance costs and resulting profit or loss. 
Page 13 GAO-03-40 Census 2000 Planning

contractor and the bureau felt the system was not ready, it was tested 

anyway due to the short time frame and major problems developed. 

Even though the system eventually became operational in time for the 

2000 Census count, bureau officials indicated that this occurred at a 

higher than anticipated risk and cost. 

9. More use of the Internet. In the early 1990s, the full impact of the 

Internet as a global communications tool was not yet envisioned. 

Officials indicated that the bureau did not have sufficient time and 

funding during the planning phase to fully understand and test all the 

implications of using the Internet as a vehicle for census responses. In 

addition, the bureau’s major concern was that computer security issues 

had not been adequately addressed, particularly since census 

information must be protected and significant penalties may be 

imposed for unauthorized disclosure.13 Also, the public perception of 

using the Internet as a response medium had not been fully explored. 

Nevertheless, in February 1999, the bureau established a means for 

respondents to complete the 2000 Census short forms on the Internet 

protected by a 22-digit identification number. According to bureau 

officials, they received about 60,000 short forms via the Internet. The 

rapid evolution of the Internet has the potential to significantly reduce 

bureau workload and the large volume of paper forms for the 2010 

Census.

10. Preparation for dress rehearsals. Bureau officials cited many 

problems during the fiscal year 1998 dress rehearsals for the 2000 

Census that were a direct result of funding levels in the early planning 

and development years. They stated that because of delays in receiving 

funding in the fall of 1997, they had to delay the dress rehearsal census 

day from April 4 to April 18, 1998. In addition, because many new items 

were incomplete or still under development, the bureau said it could 

not fully test them during the dress rehearsals with any degree of 

assurance as to how they would affect the 2000 Census.

13Title 13 U.S.C. § 9 prohibits (1) use of the information furnished under Title 13 for any 

purpose other than the statistical purposes for which it is supplied, (2) making any 

publication whereby the data furnished by any particular establishment or individual under 

Title 13 can be identified, or (3) permitting anyone other than sworn officers and employees 

of the Department of Commerce or agency thereof to examine individual reports. Title 13 

U.S.C. § 214 and 18 U.S.C. § 3551, et seq., provides for a fine of not more than $250,000 or 

imprisonment for not more than 5 years, or both, for disclosure of census information 

prohibited by 13 U.S.C. § 9.
Page 14 GAO-03-40 Census 2000 Planning

However, despite these problems, the bureau testified in March 1998 that 

all preparatory activities for the dress rehearsal—mapping, address listing, 

local updates of addresses, opening and staffing offices, and printing 

questionnaires—had been completed.14 In 1999, the bureau issued an 

evaluation that concluded that all in all, the Census 2000 dress rehearsal 

was successful.15 The evaluation also stated that the bureau produced 

population numbers on time that compared favorably with independent 

benchmarks. It also acknowledged some problems, but devised methods 

to address those problems. Although the bureau conceded that planning 

efforts could be improved, the lack of funding did not appear to be a 

significant issue, except as it affected the ability to earlier plan the dress 

rehearsal. 

2000 Census Planning 

Provides Lessons 

Learned for The 2010 

Census 

The bureau’s experience in preparing for the 2000 Census underscores the 

importance of solid, upfront planning and adequate funding levels to carry 

out those plans. As we have reported in the past,16 planning a decennial 

census that is acceptable to stakeholders includes analyzing the lessons 

learned from past practices, identifying initiatives that show promise for 

producing a better census while controlling costs, testing these initiatives 

to ensure their feasibility, and convincing stakeholders of the value of 

proposed plans.

Contributing factors to the funding reductions for the 2000 Census were the 

bureau’s persistent lack of comprehensive planning and priority setting, 

coupled with minimal research, testing, and evaluation documentation to 

promote informed and timely decision making. Over the course of the 

decade, the Congress, GAO, and others criticized the bureau for not fully 

addressing such areas as (1) capitalizing on its experiences from past 

decennial censuses to serve as lessons to be learned in future planning, 

(2) documenting its planning efforts, particularly early in the process, 

(3) concentrating its efforts on a few critical projects that significantly 

affected the census count, such as obtaining a complete and accurate 

14U.S. Census Bureau, Prepared Statement of James F. Holmes, Acting Director 

(Washington, D.C.: Mar. 26, 1998).

15U.S. Census Bureau, Census 2000 Dress Rehearsal Evaluation Summary (Suitland, MD: 

1999).

16 GAO/GGD-97-142.
Page 15 GAO-03-40 Census 2000 Planning

address list, (4) presenting key implementation issues with decision 

milestones, and (5) identifying key performance measures for success. 

• Capitalizing on experiences from past censuses. In a fiscal year 1993 

conference report,17 the Congress stated that the bureau should direct 

its resources towards a more cost-effective census design that would 

produce more accurate results than those from the 1990 Census. 

Further, the Congress expected the bureau to focus on realistic 

alternative means of collecting data, such as the use of existing surveys, 

rolling sample surveys, or other vehicles and that cost considerations 

should be a substantial factor in evaluating the desirability of design 

alternatives. 

In March 1993 we testified18 that time available for fundamental census 

reform was slipping away and important decisions were needed by 

September 1993 to guide planning for 1995 field tests, shape budget and 

operational planning for the rest of the census cycle, and guide future 

discussions with interested parties. We noted that the bureau’s strategy 

for identifying promising census designs and features was proving to be 

cumbersome and time consuming, and the bureau had progressed 

slowly in reducing the design alternatives for the next census down to a 

manageable number. 

• Documenting early planning efforts. It is particularly important early 

in the planning process to provide a roadmap for further work. We 

found that the bureau did not document its 2000 Census planning until 

late in the planning phase. While the U.S. Census Bureau prepared a 

few pages to justify its annual budget requests for fiscal years 1991 

through 1997, it did not provide a substantive document of its 2000 

Census planning efforts until May 1995, and this plan was labeled a 

draft.19 Finally, the Congress mandated that the bureau issue a 

comprehensive and detailed plan for the 2000 Census within 30 days 

from enactment of the law. 20 On July 12, 1997, the bureau issued its 

17U.S. House of Representatives, Making Appropriations for the Departments of 

Commerce, Justice, and State, the Judiciary, and Related Agencies for the Fiscal Year 

Ending September 30, 1993, Report 102-918 (Washington, D.C.: Sep. 28, 1992).

18 GAO/T-GGD-93-6.

19U.S. Census Bureau, The Reengineered 2000 Census (Suitland, MD: May 19, 1995).

20Public Law 105-18, Title VIII (June 12, 1997).
Page 16 GAO-03-40 Census 2000 Planning

Report to the Congress—The Plan for Census 2000, along with its 

Census 2000 Operational Plan.21

• Concentrating efforts on a few critical projects. While the bureau 

required many activities to count a U.S. population of 281 million 

residing in 117.3 million households, a few critical activities 

significantly affected the Census 2000 count, such as obtaining a 

complete and accurate address list. Although the bureau was aware of 

serious problems with its address list development process, it did not 

acknowledge the full impact of these problems until the first quarter of 

1997. Based upon its work with the postal service database, the 1995 

Census Test, and pilot testing at seven sites, the bureau had gained 

sufficient evidence that its existing process would result in an 

unacceptably inaccurate address list due to 

• inconsistencies in the quality of the postal service database across 

the nation;

• missing addresses for new construction;

• difficulties in identifying individual units in multiunit structures, such 

as apartment buildings; and

• inability of local and tribal governments to provide usable address 

lists.

In September 1997, the bureau acknowledged these problems and 

proposed changes.22 However, we believe that this action occurred too 

late in the planning process and was not given a higher priority to 

benefit the 2000 Census enumeration. 

• Presenting key implementation issues and decision milestones. The 

bureau discussed program areas as part of its annual budget requests 

for fiscal years 1991 through 1997, but the requests did not identify key 

implementation issues with decision milestones to target its planning 

activities. Decision milestones did not appear until July 1997, when the 

21The bureau distributed a revised and reissued version of this report in August 1997.

22U.S. Census Bureau, Census 2000 Address List Reengineering, (Suitland, MD: Sept. 24, 

1997).
Page 17 GAO-03-40 Census 2000 Planning

bureau issued its Census 2000 Operational Plan. Stakeholders such as 

the Congress are more likely to approve plans and funding requests 

when they are thoroughly documented and include key elements such 

as decision milestones. 

• Identifying key performance measures. Census planning documents 

provided to us through fiscal year 1997 did not identify key 

performance measures. We believe that identifying key performance 

measures is critical to assessing success in the planning phase of the 

census and can provide quantitative targets for accomplishments by 

framework, activity, and individual projects. Such measures could 

include performance goals such as increasing mail response rates, 

reducing population overcount and undercount rates, and improving 

enumerator productivity rates. 

Conclusions The lessons learned from planning the 2000 Census become even more 

crucial in planning for the next decennial census in 2010, which has current 

unadjusted life cycle cost estimates ranging from $10 billion to $12 billion. 

Thorough and comprehensive planning and development efforts are crucial 

to the ultimate efficiency and success of any large, long-term project, 

particularly one with the scope, magnitude, and deadlines of the U.S. 

decennial census. Initial investment in planning activities in areas such as 

technology and administrative infrastructure can yield significant gains in 

efficiency, effectiveness, and cost reduction in the later implementation 

phase. The success of the planning and development activities now 

occurring will be a major factor in determining whether this large 

investment will result in an accurate and efficient national census in 2010. 

Critical considerations are

• early planning;

• a comprehensive and prioritized plan of goals, objectives, and projects;

• milestones and performance measures; and

• documentation to support research, testing, and evaluation.

A well-supported plan early in the process that includes these elements will 

be a major factor in ensuring that stakeholders have the information to 

make funding decisions.
Page 18 GAO-03-40 Census 2000 Planning

Recommendation for 

Executive Action

As the U.S. Census Bureau plans for the 2010 Census, we recommend that 

the Secretary of Commerce direct that the bureau provide comprehensive 

information backed by supporting documentation in its future funding 

requests for planning and development activities, that would include, but is 

not limited to, such items as 

• specific performance goals for the 2010 Census and how bureau efforts, 

procedures, and projects would contribute to those goals;

• detailed information on project feasibility, priorities, and potential 

risks;

• key implementation issues and decision milestones; and

• performance measures.

Agency Comments and 

Our Evaluation

In commenting on our report, the department agreed with our 

recommendation and stated that the bureau is expanding the documents 

justifying its budgetary requests. For example, the bureau cited a 

document which outlines planned information technology development 

and activities throughout the decennial cycle of the 2010 Census. The 

bureau also included a two-page document, Reengineering the 2010 

Census, which presented three integrated components and other plans to 

improve upon the 2000 Census. In this regard, it is essential that, as we 

recommended, the bureau follow through with details and documentation 

to implement these plans, define and quantify performance measures 

against goals, and provide decision milestones for specific activities and 

projects.

As agreed with you office, unless you announce its contents earlier, we plan 

no futher distribution of this report until 7 days after its issuance date. At 

that time, we will send copies of this report to the Chairman and Ranking 

Minority Member of the Senate Committee on Governmental Affairs, the 

House Committee on Government Reform, and the House Subcommittee 

on Civil Service, Census, and Agency Organization. We will also send 

copies to the Director of the U.S. Census Bureau, the Secretary of 

Commerce, the Director of the Office of Management and Budget, the 

Secretary of the Treasury, and other interested parties. This report will also 

be available on GAO’s home page at http://www.gao.gov.
Page 19 GAO-03-40 Census 2000 Planning

If you or your staffs have any questions concerning this report, please 

contact Gregory D. Kutz at (202) 512-9095 or kutzg@gao.gov, Patricia A. 

Dalton at (202) 512-6806 or daltonp@gao.gov, or Roger R. Stoltz, Assistant 

Director, at (202) 512-9408 or stoltzr@gao.gov. Key contributors to this 

report were Corinne P. Robertson, Robert N. Goldenkoff, and Ty B. 

Mitchell.

Gregory D. Kutz

Director

Financial Management and Assurance

Patricia A. Dalton

Director

Strategic Issues
Page 20 GAO-03-40 Census 2000 Planning

Appendix I

Objectives, Scope, and Methodology ApApenednxidexiIs

The objectives of our review focused on the planning and development 

phase of the 2000 Census that we classified as covering fiscal years 1991 

through 1997 and (1) the funding requested, received, and obligated with 

funding received and obligated by major planning category, (2) funding and 

other factors that affected planning efforts, and (3) lessons learned for the 

2010 Census.

To determine the amount of 2000 Census planning and development 

funding requested, received, and obligated, we obtained and analyzed 

annual decennial census budgets included in the President’s Budgets for 

fiscal years 1991 through 1997, budgets subsequently received after 

appropriation by the Congress, and amounts later obligated for the 

purchase of goods and services by the bureau against those budgets. We 

then obtained explanations from senior bureau officials for significant 

variances in these budgets and the effect on decennial planning and 

development. However, we did not assess the efficiency of the budgeting 

process and the validity, accuracy, and completeness of obligations against 

budgeted amounts received. 

To determine the funding received and obligated by major planning 

category for 2000 Census planning and development, we obtained and 

analyzed funding requested, received, and obligated by framework, activity, 

project, and object class and examined annual operational plans. However, 

our analysis was hampered by the bureau’s inconsistent use of categories 

that evolved from 1 activity of general planning in fiscal year 1991, 8 major 

study areas in fiscal years 1992 and 1993, and 8 to 15 broad categories 

called frameworks beginning in 1994. For internal management and 

reporting, the bureau further identified program efforts by activities and 

projects that have varied since fiscal year 1991.23 Additionally, the bureau 

expanded, contracted, or modified program names and descriptions 

making comparisons more difficult. We also obtained explanations from 

bureau officials for significant efforts and variances in its funding received 

and obligation of planning and development funding for the 2000 Census. 

However, we did not assess the merits of budgeting by program and the 

subsequent validity, accuracy, and completeness of obligations. 

To identify funding and other factors that affected planning efforts, we 

analyzed significant changes in funding requested, received, and obligated 

23 For example, in fiscal year 2000, within the 8 decennial census frameworks, the 

bureau identified 23 activities and 119 projects.
Appendix I

Objectives, Scope, and Methodology

Page 21 GAO-03-40 Census 2000 Planning

at the framework level; identified initiatives that were reduced, eliminated, 

or severely curtailed; discussed the effect of these areas with bureau 

officials; and evaluated bureau responses. We also reviewed various 

reports, testimony, and supporting documents prepared by the bureau, 

GAO, and others. However, we could not determine what effect, if any, that 

higher levels of funding might have had on 2000 Census operations. These 

factors are dependent upon actual implementation and the results of 

management decisions that may or may not have occurred. 

To provide lessons learned for the 2010 Census, we identified areas for 

improvement and obtained support from bureau, GAO, and congressional 

reports, testimony, interviews, and other documents. 

Our work was performed in Washington, D.C. and at U.S. Census Bureau 

headquarters in Suitland, Maryland between January and July 2001 when 

our review was suspended due to an inability to obtain access to certain 

budget records. After lengthy discussions with senior officials of the 

bureau, Department of Commerce, and OMB, and consultation with your 

staffs, this access issue was resolved in May 2002 and we completed our 

analysis in June 2002. Our work was done in accordance with U.S. 

generally accepted government auditing standards, except that we did not 

audit budget and other financial data provided by the U.S. Census Bureau. 

On October 16, 2002, the Department of Commerce provided written 

comments on a draft of this report, including two attachments. These 

comments are presented in the “Agency Comments and Our Evaluation”

section of the report and are reprinted in appendix III, except for the 

second attachment, Potential Life-Cycle Savings for the 2010 Census, 

which is currently under revision and is outside the scope of our review. 
Page 22 GAO-03-40 Census 2000 Planning

Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 Census ApendxiI

This appendix includes our analysis of 2000 Census funding requested, 

received, and obligated, and funding received and obligated by major 

planning category for fiscal years 1991 through 1997. Our analysis was 

hampered by the bureau’s inconsistent use of major planning categories 

that evolved over the period as follows:

• 1 activity of general planning in fiscal year 1991,

• 8 major study areas in fiscal years 1992 and 1993, and 

• 8 to 15 broad categories called frameworks beginning in 1994. 

For internal management and reporting, the bureau further identified 

program efforts by activities and projects that have varied since fiscal year 

1991. In addition, the bureau expanded, contracted, or modified program 

names and descriptions making comparisons more difficult. 

Fiscal Year 1991 and 1992 

Funding 

In March 1991 we testified24 that fundamental census reform was needed 

because escalating costs and the apparently increased undercount of the 

1990 Census suggested that the current census methodology may have 

reached the limits of its effectiveness. Of three principles we presented, 

the last was that the Department of Commerce must be willing to invest 

sufficient funds early in the decade to achieve cost savings and census 

improvements in 2000. In fact, OMB deemed some of the Department of 

Commerce requests to fund early census reform as insufficient and 

doubled the department’s requested amounts to $1.5 million for fiscal year 

1991 and $10.1 million for fiscal year 1992. These amounts were included in 

the President’s Budgets and the Congress concurred by authorizing the full 

amount requested. Census planning officials said that if OMB had not 

augmented the department’s request, testing of reform options for 2000 

would have been constrained. 

For the first year of the 7-year 2000 Census planning and development 

phase, the fiscal year 1991 funding received was $1.5 million and the bureau 

obligated the entire amount. The funding contained only one category of 

general planning for the 2000 Census with funds to be used for:

24 GAO/T-GGD-91-13.
Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 

Census

Page 23 GAO-03-40 Census 2000 Planning

• completion of detailed cost-benefit studies of alternatives designs for 

conducting the decennial census;

• exploration of new technologies to improve the 2000 Census;

• establishment of research and development efforts for administrative 

methods and modeling and estimation techniques; and

• planning of field tests in fiscal year 1993 to include new census content, 

methods, technologies, and field structures.

Because total amounts were small and involved only general planning, 

there were no significant variances. We noted that about 46 percent of the 

funding was obligated for personnel costs relating to 19 full-time equivalent 

(FTE) staff, 29 percent for services including consultants; and the 

remaining 25 percent for space, supplies, travel, and other costs.

Fiscal year 1992 funding received was $10.1 million and the bureau 

obligated $9.4 million against it. The funding now identified eight major 

study areas for the 2000 Census as indicated in table 2.

Table 2: 2000 Census Planning and Development Funding for Fiscal Year 1992 

(dollars in millions)

a

Activity or amounts were less than $.1 million.

b

Topologically Integrated Geographic Encoding and Referencing system.

Source: U.S. Census Bureau.

Major study 

area Description Amount

1 Simplify questionnaire $1.0

2 Administrative records, modeling, and estimation 2.8

3 Technology options for questionnaire distribution and 

collection

3.5

4 Various uses of sampling .9

5 Techniques for special areas and subpopulations .3

6 TIGERb

 enhancements a

7 Address list maintenance .8

8 Administration .8

Total $10.1
Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 

Census

Page 24 GAO-03-40 Census 2000 Planning

For fiscal year 1992, the bureau experienced almost a six-fold increase in 

its funding received of $10.1 million over the $1.5 million for fiscal year 

1991. About half of the fiscal year 1992 funding was obligated for personnel 

costs as a result of almost a five-fold increase in FTE staff from 19 in fiscal 

year 1991 to 111 in fiscal year 1992 to work on decennial planning and 

development issues. Services, including consultants, accounted for 

another quarter of the obligations with the remaining quarter for space, 

supplies, travel, and other costs. Technology options included a $1.7 

million services contract to develop emerging data capture technology to 

compile census statistics. 

Fiscal Year 1993 Funding For fiscal year 1993, the Congress reduced the President’s Budget request 

of $19.4 million for 2000 Census planning and development to $13.7 

million,25 for a reduction of about 29 percent. As a result of this $5.7 million 

reduction, the bureau made significant cuts in its funding of techniques for 

special areas and subpopulations by $2.2 million, or about 70 percent, and 

also eliminated activities to:

• establish contacts with state and local government budgeted for $1.6 

million,

• assess customer needs budgeted for $1.0 million,

• survey public motivation budgeted for $.8 million, and

• prepare infrastructure for a 1995 Census Test budgeted for $.5 million.

In a fiscal year 1993 conference report,26 the Congress stated that the 

bureau should direct its resources towards a more cost-effective census 

design that will produce more accurate results than those from the 1990 

Census. For example, the bureau’s research in fiscal year 1992 indicated 

that reducing the number of questions on the census form is an important 

way to increase response, thereby increasing accuracy and reducing cost. 

25$13.0 million of funding plus $.7 million for prior year recoveries and carry-in.

26U.S. House of Representatives, Making Appropriations for the Departments of 

Commerce, Justice, and State, the Judiciary, and Related Agencies for the Fiscal Year 

Ending September 30, 1993, Report 102-918 (Washington, D.C.: Sep. 28, 1992).
Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 

Census

Page 25 GAO-03-40 Census 2000 Planning

Therefore, the Congress expected the bureau to focus on realistic 

alternative means of collecting data, such as the use of existing surveys, 

rolling sample surveys, or other vehicles and that cost considerations 

should be a substantial factor in evaluating the desirability of design 

alternatives. 

In March 1993 we testified27 that time available for fundamental census 

reform was slipping away and important decisions were needed by 

September 1993 to guide planning for 1995 field tests, shape budget and 

operational planning for the rest of the census cycle, and guide future 

discussions with interested parties. The bureau’s strategy for identifying 

promising census designs and features was proving to be cumbersome and 

time consuming, and the bureau had progressed slowly in reducing the 

design alternatives for the next census down to a manageable number. 

Fiscal year 1993 funding received was $13.7 million and the bureau 

obligated $13.5 million against it. The budget continued to identify eight 

major study areas for the 2000 Census as indicated in table 3.

Table 3: 2000 Census Planning and Development Funding for Fiscal Year 1993 

(dollars in millions)

a

Activity or amounts were less than $.1 million.

b

Topologically Integrated Geographic Encoding and Referencing system.

Source: U.S. Census Bureau.

27 GAO/T-GGD-93-6.

Major 

study area Description Amount

1 Simplify questionnaire $1.2

2 Administrative records, modeling and estimation 4.0

3 Technology options for questionnaire distribution and collection 4.3

4 Various uses of sampling 1.6

5 Techniques for special areas and subpopulations .9

6 TIGERb

 Support .4

7 Address list maintenance a

8 Administration 1.3

Total $13.7
Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 

Census

Page 26 GAO-03-40 Census 2000 Planning

For fiscal year 1993, the bureau experienced a 36 percent increase in its 

funding received of $13.7 million over the $10.1 million for fiscal year 1992. 

About 53 percent of the fiscal year 1993 funding was obligated for 

personnel costs as a result of a 48 percent increase in FTE staff from 111 in 

fiscal year 1992 to 164 in fiscal year 1993 to work on decennial planning and 

development issues. Services, including consultants, accounted for about 

11 percent of the funding with the remaining 36 percent used for space, 

supplies, travel, and other costs. Fiscal year 1993 was identified by the 

bureau as the beginning of a 3-year period to identify the most promising 

changes to be integrated in the 1995 Census Test. 

Fiscal Year 1994 Funding For fiscal year 1994, the Congress reduced the President’s Budget request 

of $23.1 million for 2000 Census planning and development to $18.7 

million,28 for a reduction of about 19 percent. As a result of this $4.4 million 

reduction, the bureau eliminated decennial operational preparation for $2.5 

million, and reduced funding for questionnaire design and cost modeling by 

$1.6 million or 70 percent.

In May 1993 we testified29 that the U.S. Census Bureau had altered its 

decision-making approach and refocused its 2000 Census research and 

development efforts. Driven by its impending September 1993 deadline for 

deciding which designs to test in 1995 for the 2000 Census, the bureau 

recommended rejecting all 14 design alternatives that had formed the 

framework of its research program that was under study for a year. 

Instead, the bureau reverted to an earlier approach of concentrating 

favorable features into the design for application in the 2000 Census. 

28 $8.1 million of funding plus $10.6 million for prior year recoveries and carry-in.

29 GAO/T-GGD-93-32.
Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 

Census

Page 27 GAO-03-40 Census 2000 Planning

A fiscal year 1994 House Appropriations Committee report30 cited our May 

1993 testimony and stated that it was unacceptable for the bureau to 

conduct the 2000 Census under a process that followed the general plan 

used in the 1990 Census. A fiscal year 1994 conference report31 expressed 

concern that the U.S. Census Bureau had not adequately addressed cost 

and scope issues for the 2000 Census and expected the Department of 

Commerce and OMB to take a more active role in planning for the 

decennial census to ensure that data requirements for federal agencies and 

state and local government were considered in the planning effort. 

In October 1993 we testified32 that the U.S. Census Bureau’s research and 

development efforts had been slowed by its changing planning strategy and 

that the bureau still faced the difficult task of integrating its Test Design 

Recommendation proposals into a detailed implementation plan for the 

1995 census test. We noted that the bureau’s plans to conduct research and 

evaluations for such promising proposals as the one-number census,33

sampling for nonresponse, and defining the content of the census were in a 

state of flux. Other important research and planning activities, such as 

improving the address list and using new automated techniques to convert 

respondent answers to machine-readable format, were behind schedule. 

Funding for research and test census preparation in fiscal years 1994 and 

1995 was in doubt as evidenced by the budget cuts proposed by the House 

Appropriations Committee and the opinions expressed in its report 

accompanying the fiscal year 1994 appropriations bill.34

30U.S. House of Representatives, Departments of Commerce, Justice, and State, the 

Judiciary, and Related Agencies Appropriations Bill, Fiscal Year 1994, Report 103-157 

(Washington, D.C.: June 24, 1993).

31U.S. House of Representatives, Making Appropriations for the Departments of 

Commerce, Justice, and State, the Judiciary, and Related Agencies for the Fiscal Year 

Ending September 30, 1994, H.R. Conference Report 103-293 (Washington, D.C.: Oct. 14, 

1993).

32U.S. General Accounting Office, Decennial Census: Test Design Proposals Are 

Promising, But Fundamental Reform is Still at Risk, GAO/T-GGD-94-12

(Washington, D.C.: Oct. 7, 1993).

33A one-number census combines the features of both the traditional head count and 

statistical methods to produce a single population count.

34U.S. House of Representatives, Departments of Commerce, Justice, and State, the 

Judiciary, and Related Agencies Appropriations Bill, Fiscal Year 1994, Report 103-157 

(Washington, D.C.: June 24, 1993).
Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 

Census

Page 28 GAO-03-40 Census 2000 Planning

The bureau obligated the entire amount of its fiscal year 1994 funding 

received of $18.7 million. Funding originally contained 6 design areas for 

2000 Census research and development, the 1995 Census test, and 

decennial operational preparation but was later revised to present funds 

received and obligated in 13 frameworks of effort as indicated in table 4.

Table 4: 2000 Census Planning and Development Funding for Fiscal Year 1994 

(dollars in millions) 

a

Activity or amounts were less than $.1 million.

Source: U.S. Census Bureau.

For fiscal year 1994, the bureau experienced a 36 percent increase in its 

funding received of $18.7 million over the $13.7 million for fiscal year 1993. 

About 44 percent of the fiscal year 1994 funding was obligated for 

personnel costs as a result of a 34 percent increase in FTE staff from 164 in 

fiscal year 1993 to 220 in fiscal year 1994 to work on decennial planning and 

development issues. Services, including consultants, accounted for 

another 13 percent of obligations with the remaining 43 percent for space, 

supplies, travel, and other costs. We noted that six frameworks received 

little or no funding and three frameworks accounted for 89 percent of the 

fiscal year 1994 funds received and obligated as follows:

Framework 

number Description Amount

1 Program development and management information $1.1

2 Content requirements and public use forms .7

3 Test censuses & dress rehearsal 5.5

4 Decennial geographic support a

5 Evaluation & development 7.1

6 Address list compilation .1

7 Precensus day operations & support systems a

8 Stakeholder education and consultation .2

9 Puerto Rico & outlying areas a

10 Tabulation, publication, & data user services a

11 Automated/telecommunication support 4.0

12 Year 2001 and beyond a

13 Cooperation with the U.S Postal Service a

Total $18.7
Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 

Census

Page 29 GAO-03-40 Census 2000 Planning

Framework 5 - Evaluation and development consumed $7.1 million or 38 

percent of funding received and obligated for research and developmental 

work to support the 1995 census test. This included

• research on the use of matching keys beyond just a person’s residence 

address to develop matching procedures that would allow the bureau to 

make use of person-based administrative records files that do not have a 

current residential address;

• research on various uses of sampling including technical and policy 

issues on conducting the entire census on a sample basis and 

conducting only the nonresponse follow-up portion of the census on a 

sample basis; and

• race and ethnicity studies including extensive consultation with 

stakeholders, focus group testing, and planning of field tests.

Framework 3 - Test census and dress rehearsal consumed $5.5 million or 

29 percent of funding received and obligated to increase 1995 Census Test 

activities from preliminary studies and planning to the full-scale 

preparatory level program. These included such activities as

• completion of questionnaire content determination,

• analysis of a database of population characteristics by geographic area 

to make selections of test sites,

• determination of evaluation program objectives for the test, and

• determination of objectives for and design stakeholder consultation. 

Framework 11 - Automation/telecommunication support consumed $4.0 

million or 21 percent of funding received and obligated for automated 

systems design and acquisition of data capture technology to upgrade the 

1990 Census system (FACT90) to a 2000 Census system (DCS 2000).

Fiscal Year 1995 Funding For fiscal year 1995, the Congress reduced the President’s Budget request 

of $48.6 million for 2000 Census planning and development to $42.0 million 

for a reduction of about 14 percent. As a result of this $6.6 million 

reduction, the bureau eliminated $9.0 million for decennial operation 
Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 

Census

Page 30 GAO-03-40 Census 2000 Planning

preparation and $.8 million for 1996 testing while increasing funding for 

program development and other areas by $3.2 million.

In January 1994 we testified35 that while we were encouraged by the U.S. 

Census Bureau’s recent focus on testing specific proposals to modify the 

census methodology, we believed that the bureau must aggressively plan 

for and carefully implement its research, testing, and evaluation programs. 

Further, the results of those efforts must be available to make fully 

informed and timely decisions and build needed consensus among key 

stakeholders and customers for changes in the 2000 Census. 

A fiscal year 1995 Senate Appropriations Committee report36 strongly 

recommended that the bureau adopt more cost-effective means of 

conducting the next census as the budgetary caps and strict employment 

ceilings adopted by the President and the Congress would not 

accommodate a repeat of the process used in the 1990 Census. 

Fiscal year 1995 funding received was $42.0 million and the bureau 

obligated $40.9 million against it. The number of frameworks increased to 

15 as indicated in table 5.

Table 5: 2000 Census Planning and Development Funding for Fiscal Year 1995 

(dollars in millions) 

35 U.S. General Accounting Office, Decennial Census: Promising Proposals, Some Progress, 

But Challenges Remain, GAO/T-GGD-94-80 (Washington, D.C.: Jan. 26, 1994).

36 U.S. Senate, Departments of Commerce, Justice, and State, the Judiciary, and Related 

Agencies Appropriation Bill, 1995, Report 103-309 (Washington, D.C.: July 14, 1994).

Framework 

number Description Amount

1 Program development and management 

information

$2.5

2 Content requirements and public use forms 1.7

3 Test censuses & dress rehearsal 30.0

4 Decennial geographic products & services 1.3

5 Evaluation & development 5.1

6 Address list compilation a

7 Precensus day operations & support systems a
Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 

Census

Page 31 GAO-03-40 Census 2000 Planning

a

Activity or amounts were less than $.1 million.

Source: U.S. Census Bureau.

For fiscal year 1995, the bureau experienced a 125 percent increase in its 

funding received of $42.0 million over the $18.7 million for fiscal year 1994. 

About 51 percent of the fiscal year 1995 funding was obligated for 

personnel costs as a result of a 211 percent increase in FTE staff from 220 

in fiscal year 1994 to 685 in fiscal year 1995 to work on decennial planning 

and development issues. Services, including consultants, accounted for 

about 7 percent of the obligations with the remaining 42 percent for space, 

supplies, travel, and other costs. We noted that eight frameworks received 

little or no funding and Framework 3 accounted for over 70 percent of 

fiscal year 1995 funds received and obligated. The main focus of 

Framework 3 was conducting the 1995 Census Test, in order to select by 

December 1995 the features to be used for the 2000 Census. According to 

census plans and our discussions with officials, the bureau focused on the 

following major areas.

• Complete preparation for the 1995 Census Test, conduct the test, and 

begin evaluations in order to select the features to be used for the 2000 

Census. In addition, the bureau would conduct a full-scale census test 

in four district office areas that would be the culmination of the 

research and development program.

• Investigate, develop, test, and evaluate components of a continuous 

measurement system as a replacement for the 2000 Census sample data 

questionnaire.

8 Postcensus day operations a

9 Census marketing, communications, & partnership .5

10 Puerto Rico & other island territories a

11 Tabulation, dissemination, & customer services a

12 Automation/telecommunication support a

13 Year 2001 & beyond a

14 Cooperation with the U.S. Postal Service a

15 Follow-on surveys .9

Total $42.0

(Continued From Previous Page)

Framework 

number Description Amount
Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 

Census

Page 32 GAO-03-40 Census 2000 Planning

• Develop, test, and evaluate various matching keys for the automated 

and clerical matching and unduplicating37 systems developed under the 

direction of the matching research and specifications working group.

• Conduct activities independent of the research and development 

program; these are preparatory activities required to implement the 2000 

Census regardless of the design. This included such activities as 

planning the address list update activities as necessary to supplement 

the Master Address File (MAF) for use in the 2000 Census and begin 

initial planning of the field organization structure for the 2000 Census.

• Recommend the broad scope of content that should be included in the 

2000 Census questionnaire based on consulting with both federal and 

nonfederal data users, and begin planning for small special purpose 

tests to supplement or follow up on the 1995 Census Test.

Fiscal Year 1996 Funding For fiscal year 1996, the Congress reduced the President’s Budget request 

of $60.1 million for 2000 Census planning and development to $51.3 

million,38 for a reduction of about 15 percent. As a result of this $8.8 million 

reduction, the bureau reduced funding for field data collection and support 

systems by $9.9 million or 43 percent while increasing funding in other 

areas.

In October 1995 we testified39 that the U.S. Census Bureau had decided to 

make fundamental changes to the traditional census design such as 

shortening census questionnaires, developing an accurate address list, and 

sampling households that fail to respond to questionnaires. However, we 

noted that successful implementation of these changes would require 

aggressive management by the bureau and that the window of opportunity 

for the Congress to provide guidance on these changes and applicable 

funding was closing.

37The bureau uses unduplication to refer to the process of detecting duplicate census 

responses that contribute to a population overcount. Causes of duplication include multiple 

responses for the same address, college students counted both at school and at home, 

people with multiple residences, and military residing outside their home state. 

38$48.8 million of funding plus $2.5 million for prior year recoveries and carry-in.

39 GAO/T-GGD-96-37.
Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 

Census

Page 33 GAO-03-40 Census 2000 Planning

A fiscal year 1996 conference report40 continued to express concern about 

progress related to the next decennial census. It cautioned the bureau that 

the cost of the 2000 Census had to be kept in check and only through early 

planning and decision making could costs be controlled. The report further 

recognized that fiscal year 1996 was a critical year in planning for the 

decennial census, and that numerous decisions will be made and 

preparations taken which will have a significant bearing on the overall cost 

of conducting the census, as well as the design selected. 

The bureau obligated the entire amount of its fiscal year 1996 funding 

received of $51.3 million. Beginning with fiscal year 1996, the number of 

frameworks was reduced to eight as indicated in table 6 below.

Table 6: 2000 Census Planning and Development Funding for Fiscal Year 1996 

(dollars in millions) 

Source: U.S. Census Bureau.

For fiscal year 1996, the bureau experienced a 22 percent increase in its 

funding received of $51.3 million over the $42.0 million for fiscal year 1995. 

About 44 percent of the fiscal year 1996 funding was obligated for 

personnel costs as a result of a 5 percent decrease in FTE staff from 685 in 

40U.S. House of Representatives, Making Appropriations for the Departments of 

Commerce, Justice, and State, the Judiciary, and Related Agencies for the Fiscal Year 

Ending September 30, 1996, H.R. Conference Report 104-378 (Washington, D.C.: Dec. 1, 

1995).

Framework 

number Description Amount

1 Program development and management $8.2

2 Data content and products 9.6

3 Field data collection and support systems 13.3

4 Address list development 2.3

5 Automated data processing and 

telecommunications support

6.8

6 Testing, evaluation, and dress rehearsal 9.4

7 Puerto Rico, Virgin Islands, and Pacific areas .3

8 Marketing, communications, and partnerships 1.4

Total $51.3
Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 

Census

Page 34 GAO-03-40 Census 2000 Planning

fiscal year 1995 to 653 in fiscal year 1996 to work on decennial planning and 

development issues. Services, including consultants, accounted for about 

13 percent of the obligations with the remaining 43 percent for space, 

supplies, travel, and other costs. Three frameworks incurred over 60 

percent of funding received and obligated for the following.

• Framework 3 - Field data collection and support systems incurred 

costs of $13.3 million including $4.4 million to develop personnel and 

administrative systems for field office enumeration; $3.1 million for 

precensus day data collection activities; and $2.0 million for automation 

acquisition and support for field offices.

• Framework 2 - Data content and products incurred costs of $9.6 

million including $4.4 million to develop and produce questionnaires 

and public use forms for the census including conduct of a National 

Content Test; $2.9 million for race and ethnicity testing of concepts and 

respondent understanding and wording of the race and ethnicity 

questions; and $1.6 million for continued work with federal and 

nonfederal data users in the content determination process to prepare 

for the congressional submission by April 1, 1997.

• Framework 6 - Testing, evaluations, and dress rehearsals incurred 

costs of $9.4 million including $3.3 million for an Integrated Coverage 

Measurement (ICM) special test;41 $2.6 million for research and 

development on sampling and sampling methods for the 2000 decennial 

count; and $2.1 million for 1995 Census Test coverage and evaluation.

Fiscal Year 1997 Funding For fiscal year 1997, the Congress reduced the President’s Budget request 

of $105.9 million for 2000 Census planning and development to $86.4 

million,42 for a reduction of about 18 percent. As a result of this $19.5 

million reduction, the bureau reduced funding for marketing, 

communications, and partnerships by $14.4 million or 76 percent, and field 

data collection and support systems by $23.6 million or 53 percent, while 

increasing amounts in other areas by $18.5 million.

41The ICM Special Test used cognitive questionnaire testing methods to refine the count 

interview instrument and to gather data from the 1995 Census Test to conduct estimation 

research.

42$84.1 million of funding plus $2.3 million for prior year recoveries and carry-in.
Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 

Census

Page 35 GAO-03-40 Census 2000 Planning

A fiscal year 1996 House Appropriation Committee report43 expressed 

concern that the bureau appeared not to have developed options and 

alternative plans to address issues of accuracy and cost. In addition, 

sufficient progress had not been made on issues the committee had 

highlighted many times—the number of questions on the long-form and 

reimbursement from other agencies for inclusion of such questions to 

assure that the question is important.

The bureau obligated the entire amount of its fiscal year 1997 budget of 

$86.4 million. Planning continued in eight frameworks as indicated in table 

7.

Table 7: 2000 Census Planning and Development Funding for Fiscal Year 1997 

(dollars in millions) 

Source: U.S. Census Bureau.

For fiscal year 1997, the bureau experienced a 68 percent increase in its 

funding received of $86.4 million over the $51.3 million for fiscal year 1996. 

About 63 percent of the fiscal year 1997 funding was obligated for 

personnel costs as a result of a 36 percent increase in FTE staff from 653 in 

fiscal year 1996 to 891 in fiscal year 1997 to work on decennial planning and 

development issues. Services, including consultants, accounted for about 

43U.S. House of Representatives, Departments of Commerce, Justice, and State, the 

Judiciary, and Related Agencies Appropriations Bill, Fiscal Year 1997, Report 104-676 

(Washington, D.C.: July 16, 1996).

Framework 

number Description Amount

1 Program development and management $5.4

2 Data, content, and products 12.3

3 Field data collection and support systems 20.9

4 Address list development 2.5

5 Automated data processing and 

telecommunications support

20.2

6 Testing, evaluation, and dress rehearsal 19.8

7 Puerto Rico, Virgin Islands, and Pacific areas .8

8 Marketing, communications, and partnerships 4.5

Total $86.4
Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 

Census

Page 36 GAO-03-40 Census 2000 Planning

25 percent of the obligations with the remaining 12 percent for space, 

supplies, travel, and other costs. 

The bureau viewed fiscal year 1997 as pivotal, since this was the year when 

research and testing activities culminated into operational activities and 

marked the end of the planning and development phase of the 2000 Census. 

For the fiscal year, four frameworks incurred about 85 percent of funding 

received and obligated as follows.

Framework 3 - Field data collection and support systems incurred $20.9 

million for activities under precensus day operations and support systems, 

and postcensus day operations. Projects included:

• $4.1 million for geographic patterns including questionnaire delivery 

methodologies by area and corresponding automated control systems;

• $4.0 million for planning of data collection efforts including activities for 

truncation and/or the use of sampling for nonresponse follow-up and 

increased efforts to develop procedures for enumerating special 

populations such as the military, maritime, institutional, migrant, 

reservation, and those living in other than traditional housing units;

• $3.8 million for direction and control by 12 regional offices that would 

provide logistical support and direct enumeration efforts by local 

census offices; and 

• $3.1 million for planning and developing personnel and administrative 

systems to support 2000 Census data collection and processing 

activities, such as types of positions, pay rates, personnel and payroll 

processes, and systems, space, and security requirements.

Framework 5 - Automation/telecommunication support incurred $20.2 

million for activities to include evaluating proposals for the acquisition of 

automation equipment and related services, funding the development of 

prototype systems, and moving toward awarding contracts to implement 

such systems for the 2000 Census. Projects included setting up data 

capture systems and support to process census questionnaire responses 

and telecommunication systems required to provide nationwide toll-free 

800 number services to answer respondent questions and to conduct 

interviews.
Appendix II

Analysis of Funding by Fiscal Year for 

Planning and Development of the 2000 

Census

Page 37 GAO-03-40 Census 2000 Planning

Framework 6 - Testing, evaluation, and dress rehearsal incurred $19.8 

million for the following activities:

• $3.7 million to begin gearing up for the 1998 dress rehearsal in order to 

prepare personnel to conduct the census testing efficiently and 

effectively; and

• $7.0 million to conduct activities for ICM special testing and American 

Indian Reservation (AIR) test census such as

• questionnaire delivery and mail return check-in operations,

• nonresponse followup,

• data capture operations,

• ICM computer-assisted personal visit interviews,

• computer and clerical matching,

• follow-up and after follow-up matching, and

• evaluation studies.

Framework 2 - Data content and products incurred $12.3 million for 

activities related to the development of computer programs and systems 

for data tabulation and for the production of paper, machine-readable, and 

on-line data products. Projects included: 

• $4.5 million to move from research in fiscal year 1996 to implementation 

in fiscal year 1997 of the Data Access and Dissemination System 

(DADs), including development of the requirements for Census 2000 

tabulations from DADs, and development of computer programs and 

control systems that will format the processed Census 2000 data for use 

in DADs; and

• $2.2 million towards development of a redistricting program for Census 

2000.
Page 38 GAO-03-40 Census 2000 Planning

Appendix III

Comments From the Department of 

Commerce ApendxiI

Note: GAO comments 

supplementing those in the 

report text appear at the end 

of this appendix.
Appendix III

Comments From the Department of 

Commerce

Page 39 GAO-03-40 Census 2000 Planning

See comment 1.

See comment 2.
Appendix III

Comments From the Department of 

Commerce

Page 40 GAO-03-40 Census 2000 Planning
Appendix III

Comments From the Department of 

Commerce

Page 41 GAO-03-40 Census 2000 Planning
Appendix III

Comments From the Department of 

Commerce

Page 42 GAO-03-40 Census 2000 Planning

The following are GAO’s comments on the letter dated October 16, 2002, 

from the Department of Commerce.

GAO Comments 1. The objectives of our report did not include assessing the degree of 

success of the 2000 Census.

2. See “Agency Comments and Our Evaluation” section of this report.

(192008)
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