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+[House Hearing, 109 Congress] +[From the U.S. Government Publishing Office] + + + + FISCAL AND MANAGEMENT PRACTICES OF + THE U.S. COMMISSION ON CIVIL RIGHTS + +======================================================================= + + HEARING + + BEFORE THE + + SUBCOMMITTEE ON THE CONSTITUTION + + OF THE + + COMMITTEE ON THE JUDICIARY + HOUSE OF REPRESENTATIVES + + ONE HUNDRED NINTH CONGRESS + + FIRST SESSION + + __________ + + MARCH 17, 2005 + + __________ + + Serial No. 109-22 + + __________ + + Printed for the use of the Committee on the Judiciary + + + Available via the World Wide Web: http://www.house.gov/judiciary + + + ______ + + U.S. GOVERNMENT PRINTING OFFICE +20-017 WASHINGTON : 2005 +_____________________________________________________________________________ +For Sale by the Superintendent of Documents, U.S. Government Printing Office +Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512�091800 +Fax: (202) 512�092250 Mail: Stop SSOP, Washington, DC 20402�090001 + + COMMITTEE ON THE JUDICIARY + + F. JAMES SENSENBRENNER, Jr., Wisconsin, Chairman +HENRY J. HYDE, Illinois JOHN CONYERS, Jr., Michigan +HOWARD COBLE, North Carolina HOWARD L. BERMAN, California +LAMAR SMITH, Texas RICK BOUCHER, Virginia +ELTON GALLEGLY, California JERROLD NADLER, New York +BOB GOODLATTE, Virginia ROBERT C. SCOTT, Virginia +STEVE CHABOT, Ohio MELVIN L. WATT, North Carolina +DANIEL E. LUNGREN, California ZOE LOFGREN, California +WILLIAM L. JENKINS, Tennessee SHEILA JACKSON LEE, Texas +CHRIS CANNON, Utah MAXINE WATERS, California +SPENCER BACHUS, Alabama MARTIN T. MEEHAN, Massachusetts +BOB INGLIS, South Carolina WILLIAM D. DELAHUNT, Massachusetts +JOHN N. HOSTETTLER, Indiana ROBERT WEXLER, Florida +MARK GREEN, Wisconsin ANTHONY D. WEINER, New York +RIC KELLER, Florida ADAM B. SCHIFF, California +DARRELL ISSA, California LINDA T. SANCHEZ, California +JEFF FLAKE, Arizona ADAM SMITH, Washington +MIKE PENCE, Indiana CHRIS VAN HOLLEN, Maryland +J. RANDY FORBES, Virginia +STEVE KING, Iowa +TOM FEENEY, Florida +TRENT FRANKS, Arizona +LOUIE GOHMERT, Texas + + Philip G. Kiko, Chief of Staff-General Counsel + Perry H. Apelbaum, Minority Chief Counsel + ------ + + Subcommittee on the Constitution + + STEVE CHABOT, Ohio, Chairman + +TRENT FRANKS, Texas JERROLD NADLER, New York +WILLIAM L. JENKINS, Tennessee JOHN CONYERS, Jr., Michigan +SPENCER BACHUS, Alabama ROBERT C. SCOTT, Virginia +JOHN N. HOSTETTLER, Indiana MELVIN L. WATT, North Carolina +MARK GREEN, Wisconsin CHRIS VAN HOLLEN, Maryland +STEVE KING, Iowa +TOM FEENEY, Florida + + Paul B. Taylor, Chief Counsel + + E. Stewart Jeffries, Counsel + + Hilary Funk, Counsel + + Mindy Barry, Full Committee Counsel + + David Lachmann, Minority Professional Staff Member + + + C O N T E N T S + + ---------- + + MARCH 17, 2005 + + OPENING STATEMENT + + Page +The Honorable Steve Chabot, a Representative in Congress from the + State of Ohio, and Chairman, Subcommittee on the Constitution.. 1 +The Honorable John Conyers, Jr., a Representative in Congress + from the State of Michigan..................................... 3 + + WITNESSES + +Mr. Russell G. Redenbaugh, Commissioner, U.S. Commission on Civil + Rights + Oral Testimony................................................. 6 + Prepared Statement............................................. 8 +Mr. Michael Yaki, Commissioner, U.S. Commission on Civil Rights + Oral Testimony................................................. 9 + Prepared Statement............................................. 10 +Mr. Kenneth L. Marcus, Staff Director, U.S. Commission on Civil + Rights + Oral Testimony................................................. 13 + Prepared Statement............................................. 15 +Mr. George Harbison, Director of Human Resources, and Acting + Chief of Budget and Finance, U.S. Commission on Civil Rights + Oral Testimony................................................. 18 + Prepared Statement............................................. 35 + + APPENDIX + Material Submitted for the Hearing Record + +Prepared Statement of George Harbison, Director of Human + Resources, and Acting Chief of Budget and Finance, U.S. + Commission on Civil Rights..................................... 35 +Response to post-hearing questions submitted by Chairman Steve + Chabot to Michael Yaki, Commissioner, U.S. Commission on Civil + Rights......................................................... 39 +Response to post-hearing questions submitted by Chairman Steve + Chabot to Kenneth L. Marcus, Staff Director, U.S. Commission on + Civil Rights................................................... 43 +Response to post-hearing questions submitted by Chairman Steve + Chabot to George Harbison, Director of Human Resources, and + Acting Chief of Budget and Finance, U.S. Commission on Civil + Rights......................................................... 68 +Letter of Resignation from Russell G. Redenbaugh, Commissioner, + U.S. Commission on Civil Rights, to Majority Leader Bill Frist. 73 +Letter to Chairman Steve Chabot from Abigail Thernstrom, Vice + Chairman, and Jennifer C. Braceras, Commissioner, U.S. + Commission on Civil Rights..................................... 74 + + + FISCAL AND MANAGEMENT PRACTICES OF + THE U.S. COMMISSION ON CIVIL RIGHTS + + ---------- + + + THURSDAY, MARCH 17, 2005 + + House of Representatives, + Subcommittee on the Constitution, + Committee on the Judiciary, + Washington, DC. + The Subcommittee met, pursuant to notice, at 9:08 a.m., in +Room 2143, Rayburn House Office Building, Hon. Steve Chabot +(Chair of the Subcommittee) presiding. + Mr. Chabot. The Committee will come to order. If somebody +wants to get the door back there. Thank you. + First of all, I want to wish everyone here happy St. +Patrick's Day, one of the big occasions in our country and +world history, and so we appreciate everybody--I even have my +green on here today. I'm sure we'll be seeing a lot of folks +the rest of the day that are so dressed. + We are here today for our Constitution Subcommittee +oversight hearing on the United States Commission on Civil +Rights. While this type of agency oversight hearing typically +occurs every year, we have not held an oversight hearing for +the Civil Rights Commission since 2002. While this gap can be +attributed to a number of reasons, the period was not marked by +a lack of oversight. In fact, during this time the Government +Accounting Office, the GAO, has conducted four investigations +on our behalf, and staff of the House and Senate Committees on +the Judiciary have been actively engaged in a direct +investigation as well. All of these investigations have +included looking into allegations of financial and +administrative mismanagement by Commission leadership. + We are here today to obtain additional information +regarding the current status of the Commission from Commission +representatives. I know you have a monthly Commission meeting +tomorrow and recognize that your time is precious. So we thank +you very much for being here today. + The Civil Rights Act of 1957 established the United States +Commission on Civil Rights as a nonpartisan fact-finding +agency. The Commission is composed of eight members: four +Commissioners are appointed by the President, two by the +Speaker of the House, and two by the President pro tem of the +Senate. Even though the Commission is an independent agency, +its structure was designed to ensure that both Congress and the +executive branch are stakeholders and have continued input into +the Commission. The Commission has no enforcement power. The +Commission fulfills its statutory mission by, first, +investigating discrimination claims on the basis of color, +race, religion, sex, age, disability, or national origin; +second, collecting and studying information; third, appraising +laws and policies of the Federal Government; fourth, serving as +a national clearinghouse for information; and, fifth, preparing +public service announcements and advertising campaigns. As an +agent both of Congress and the executive branch, the Commission +must submit reports of its findings to Congress and the +President. + Since the Commission's inception in 1957, Congress has +extended the life of the Commission nine times. The +Commission's latest authorization expired on September 30, +1996. Despite the lack of authority, Congress continues to +appropriate the Commission roughly $9 million each year. + I have been personally involved in oversight of the +Commission over the last several years in my capacity as +Chairman of this Committee. This is my third term as such. I've +witnessed the decline in the public's confidence in the +Commission's work product under the previous Chair's direction. +Nevertheless, I have high expectations for this Commission and +for the important work of protecting civil rights. I am +concerned, however, with reports that reforms, which were +promised, have not yet been undertaken since new leadership has +taken charge of the Commission. + I believe that protecting civil rights is vital to +protecting all of the rights afforded by the Constitution and +codified in the Civil Rights Act. Thus, civil rights must +continue to play a prominent role in American society. + In my position as Chairman of the Subcommittee, I'm +committed to working to ensure that the Civil Rights Commission +does the best work possible, not just for Congress and the +President but for the American public. + I look back at how many times I and my Republican and +Democratic predecessors were assured that the Commission was +going to implement reforms that would allow the agency to +function in a credible and efficient manner. I'm to date not at +all satisfied with the Commission's reform efforts. Much needs +to be done. + As we sit here today, changes have yet to be made. Let me +be clear: My concern is not just with the financial and +management practices that have been the subject of many +investigations. I am also concerned deeply about the project +process used by the Commission results in substantive material +that does not stand up to academic scrutiny. This means that +reports are being issued under the seal of the Federal +Government that have not been tested for accuracy of bias. I +believe that these practices, along with the financial and +management changes, must be made so that the credibility of the +Commission can be restored. + The mismanagement that has plagued the Commission for years +undermines public confidence in the Commission's work. Unless +the Commission institutes reforms to its operating practices, +including to the methods that it uses to fulfill its statutory +mission, the Commission will not be able to be a serious fact- +finding agency that informs the public about the state of civil +rights in America. In view of these concerns, I know that all +Members look forward to hearing from our witnesses here this +morning, and there will be a time for the issuing of subpoenas +a bit later when we have a reporting and--a working and +reporting quorum, and then there is--on an unrelated matter, on +CIANA, there will be another hearing--actually, not a hearing +but a markup later on in this by the same Committee. + Those are my remarks. Mr. Nadler is not yet here, so I +don't know if Mr. Conyers or Mr. Watt would like to make an +opening statement. Mr. Conyers? + Mr. Conyers. Yes, thank you, Mr. Chairman. Good morning---- + Mr. Chabot. Good morning. + Mr. Conyers. --to all of our Committee Members and +witnesses. I'd like to welcome you here and just suggest some +things that we need to try to put in perspective. + First of all, we have a number of Commissioners that at +least I haven't heard from or talked with, and what it suggests +to me, Chairman Chabot, is that we may need another hearing +just to get the lay of the new Commissioners and what their +points of view are and who they are, really. We have missing-- +or we haven't met with yet Commissioners Kirsanow, McReynolds, +Taylor, and Meeks, and I think that that would be important for +all of us to begin to get acquainted. + Now, how do we get the Civil Rights Commission on its feet +again? Well, they only get $9 million, so this is not one of +the world's greatest challenges that the Congress faces. It +would seem to me that the unfreezing of the Commission budget +would be incredibly important, and probably the sooner the +better. + We are going to have a meeting on the issuance of +subpoenas, and, of course, the interesting thing is, is it to +end the cycle of blame or is it going to continue the cycle of +blame? I'd like all of you distinguished people here today to +try to make sure I understand what it is--where can we cut it +off at from the past and get moving for the present. + In a more perfect world, I would probably like to see an +independent manager that would relieve the Commissioners of the +responsibility of trying to micromanage and deal with these +large issues as well. + The other thing we have to develop is an agenda, Mr. +Chairman, or the discussion around an agenda, and for that we +probably would need Mr. McReynolds, and we'd like to get ideas +from everybody as to what they see as the goal and role of the +U.S. Commission on Civil Rights. + Now, let's assume that in the august chambers of the +Judiciary Committee we could--we'd come to this wonderful new +agreement that I'm trying to outline here. Without State +advisory commissions being re-energized, it's going to be very +hard to get to the base of your work. So it seems to me that +that could be one of the very important things that maybe the +independent manager, if there were one, or the Commission +itself could quickly take care of. + So that's how I view us starting off, Mr. Chairman, and I +hope that we'll be able to work cooperatively toward that goal. + Mr. Keenan Keller suggests that I ask for permission, +unanimous consent so that if there are additional questions +that we want to send the Commissioners, we'd be able to do +that. + Mr. Chabot. Without objection, so ordered. + Mr. Conyers. Thank you very much. + Mr. Chabot. Thank you very much, and I share many of the +things which you stated in your opening statement, and I would +hope that to the extent possible, although we don't do a lot of +things in this august body in a bipartisan manner, with respect +to civil rights it ought to be done in a bipartisan manner. And +I look forward to working both with Mr. Nadler and yourself and +any other Members that would like to do that. + Mr. Conyers. Thanks so much. + Mr. Chabot. We thank you as well. + Are there any other Members that would like to make opening +statements? If not, we'll proceed with the introduction of the +witnesses. + Our first witness here this morning will be Commissioner +Russell Redenbaugh, and on a personal note, I'd like to +recognize Commissioner Redenbaugh for his contributions to the +Commission over the last 15 years. We were, I think, all +disappointed to learn of his resignation and wish him the best +in his future endeavors. + Mr. Redenbaugh is a financial and economic strategist, +and--excuse me, economic and business adviser in building +wealth and power, executive, author, teacher, and Commissioner +on the U.S. Civil Rights Commission. He is the managing +director of Kairos, Inc., in Philadelphia, PA, which both +invests in and advises companies that are undergoing +fundamental changes, all of which are producing innovations in +either or both their products and business models. He has been +a Commissioner, as I mentioned, of the U.S. Commission on Civil +Rights for 15 years since being appointed on February 8, 1990. +Commissioner Redenbaugh has served as an instructor at the +University of Pennsylvania School of Arts and Sciences where he +designed and taught a graduate course entitled ``Work Process +Redesign Theory and New Practices in the Dynamics of +Organization Program.'' He is currently a director of the +Joseki Group in Menlo Park, CA, Associated Services for the +Blind in Philadelphia, PA, and the Lexington Institute in +Washington, D.C. He is a recipient of the Louis Braille Award +given by Associated Services for the Blind in Philadelphia, PA. +In his spare time, Commissioner Redenbaugh became the 1997 +National Jujitsu Federation Champion, the 2003 and 2004 World +Jujitsu Federation World Champion, and participated in running +the torch across America for the U.S. Olympic Committee in +advance of the 2002 Winter Olympics. Finally, Commissioner +Redenbaugh is widely published on topics ranging from +management reforms to financial strategy to civil rights. He is +a chartered financial analyst and a chartered investment +counselor and received his MBA from the Wharton School at the +University of Pennsylvania and his B.S. from the University of +Utah. And we thank you and appreciate your being here this +morning, Mr. Redenbaugh. + The second witness will be Commissioner Michael Yaki. +Commissioner Yaki was appointed to the U.S. Commission on Civil +Rights in February 2005. He is a partner in the San Francisco +law firm of Jeffer, Mangels, Butler & Marmo, and prior to +joining his present firm was a partner in another law firm. +Since 1999, he has been a freelance writer, authoring +editorials for the San Francisco Chronicle on sports, politics, +and international relations. He has contributed to The New York +Times Opinion/Editorial section and has been a commentator on +several radio stations. Commissioner Yaki was a member of the +San Francisco Board of Supervisors from 1996 to 2001. He was +the convener and Chair of the first citywide Summit on Children +and Youth in 1996. He also was the Chair of San Francisco +Transportation Authority, the director of the Golden Gate +Bridge and Highway District, of the California State +Association of Counties, of the Bay Area Air Quality Management +District, and of the San Francisco Employee Retirement System. +He has been a lecturer of political science and urban studies +at San Francisco State University. He also was the district +director for Congresswoman Nancy Pelosi. Commissioner Yaki +received a B.A. from the University of California, Berkeley, a +J.D. from Yale Law School, and was a law clerk to the Honorable +Harry Low in the California Court of Appeals. + In his spare time, Commissioner Yaki is a director of the +San Francisco Zoological Society and was the founder of the +Presidio Day Camp for Underprivileged Children, was an +elementary school volunteer reader, was the host and a +fundraiser for the Tiger Woods Community Foundation Golf +Clinic, and was the fundraising campaign Chair for the Say Yes +Summer Youth Jobs Program. He is the recipient of the San +Francisco Bay Area YMCA Building Strong Kids Award, a two-time +recipient of the FDR Club for Persons with Disabilities +Legislator of the Year Award, and the Organization of Chinese +Americans Community Service Award. And we welcome you here this +morning, Mr. Yaki. + Our third witness is the U.S. Commission on Civil Rights +Staff Director, Kenneth Marcus. Mr. Marcus was appointed to +this position by President George W. Bush with the concurrence +of the Commission on December 6th, so he's actually only been +in this position for several months now. As Staff Director, he +serves as the agency's chief executive officer, responsible for +providing leadership and direction to the agency staff. In this +position, Mr. Marcus continues his long-time work of combating +discrimination and working on behalf of those who have been +denied basic constitutional and civil rights. Mr. Marcus is an +experienced civil rights attorney, litigator, and leader. + Before assuming his current duties, Mr. Marcus was +delegated the authority of Assistant Secretary of Education for +Civil Rights and served as the Deputy Assistant Secretary of +Education for Enforcement. As head of the Education +Department's Office for Civil Rights, Mr. Marcus was the +principal civil rights adviser to the U.S. Secretary of +Education and oversaw the resolution of approximately 5,000 +civil rights cases per year through the office's 12 enforcement +offices. + While in this position, he developed and implemented +proactive enforcement initiatives and issued policy guidance in +several areas. Mr. Marcus also served at the time as a +Commissioner on the U.S. Commission on Brown v. Board of +Education. + Prior to joining the Department of Education, Mr. Marcus +served in the U.S. Department of Housing and Urban Development +as the General Deputy Assistant Secretary for Fair Housing and +Equal Opportunity. As head of HUD's Office of Fair Housing and +Equal Opportunity, Mr. Marcus was the principal civil rights +adviser to the U.S. Secretary of Housing and Urban Development +and oversaw the work of the office's 54 offices. + As HUD's civil rights chief, Mr. Marcus developed +initiatives and oversaw HUD's Office of Departmental Equal +Employment Opportunity in its section 3 program office. Before +entering public service, Mr. Marcus served as a litigation +partner in two law firms, where he successfully represented +individuals who had been denied constitutional and civil +rights. Mr. Marcus is a graduate of Williams College and the +University of California at Berkeley School of Law. We welcome +you here this morning, Mr. Marcus. + And our final witness here is George Harbison. Mr. Harbison +is the Acting Director of Budget and Finance and is the +Director of Human Resources for the Civil Rights Commission. +Prior to assuming these positions, he was the Director of +Budget and Finance for the Commission for approximately the +past 14 years, and we welcome you here, Mr. Harbison. + It's the practice of this Committee to swear in all +witnesses appearing before it, so if you would all please stand +and raise your right hand. + [Witnesses sworn.] + Mr. Chabot. All witnesses have answered in the affirmative, +and you can all be seated. + We appreciate, as we said, your presence here this morning. +I know that you have a meeting tomorrow, so we know it is +perhaps inconvenient to do two things of such importance in +such close proximity, so we do appreciate your presence. And as +I know that you're aware, we have a 5-minute rule here where we +would ask each witness to testify for up to 5 minutes. We will +give you a little leeway beyond that if you need to wrap up. We +have a lighting system. It will be green for 4 minutes, turn +yellow when you have 1 minute, and then red when your 5 minutes +is complete, and we'd ask that you please wrap up as close to +that time as possible. + And, Mr. Redenbaugh, you would be our first witness here +this morning, so you are recognized for 5 minutes. + + TESTIMONY OF RUSSELL G. REDENBAUGH, COMMISSIONER, U.S. + COMMISSION ON CIVIL RIGHTS + + Mr. Redenbaugh. Well, thank you, Chairman Chabot, and +Subcommittee Members and staff. Thank you for holding this +hearing and for inviting me here. + As you all know, I am resigning from the Commission. What I +would like to make clear is I'm resigning not because I object +to the particular projects or programs that have been put +forward, but because I object to us not making reform our +highest and most urgent priority. + In my private life, I advise companies on how to manage +themselves. I've managed a half a dozen companies. And I look +at organizations through the lens of purpose, processes, and +people--the purpose being, you know, that mighty theme or that +mighty objective that unifies us. The processes define how +we're going to work together to accomplish that purpose. It +defines the accountabilities, who will do what by when. And the +people, and the people must work through those processes and +share that purpose. And an organization that gets all three of +those right can do truly remarkable things. + At the Commission we don't have a clear purpose. We have +agendas. As you all know, we don't have processes. We don't +have a process for financial accountability. We don't have a +process for accountability with respect to our projects. And +given that we don't have the purpose or processes, the people +can't possibly work together as a team. And, you know, we have +never been a team. + But there's something about the design of the organization +and of the organization that's even more of a fatal flaw than +any of that, and that is, this agency has defined itself as a +special independent agency, independent of the executive +branch, independent of the Congress, certainly independent of +its oversight Committee, independent from GAO recommendations, +from OMB, and independent from GPRA, in fact, even independent +from some of the civil rights laws that we support. You can see +this by examining some of our EEOC cases. + And this independence, the way we've interpreted it, means +that we can never reform ourselves because we don't have +clients or customers. + Now, I think tomorrow, in tomorrow's meeting, there will be +a new enthusiasm for reform, and I suspect there will be a +great many reform measures adopted, probably unanimously. But I +caution that that which is adopted tomorrow can be ignored next +month or unadopted next year. + So if you're inclined to give this Commission yet another +chance, my recommendation would be that you collateralize those +promises of reform with changes in the statute that give this +Commission the accountability that all organizations need to +have. + My own recommendation, though, is that you close this +Commission and start another one. For far too long, Congress +has felt that having a bad Civil Rights Commission was better +than having no Civil Rights Commission. And I commend this +Subcommittee for not accepting such a low standard. The country +does deserve far better. + And I'd take out a blank sheet of paper, and I'd ask you to +do this as Congressman Conyers suggested, in a nonpartisan way, +and ask the question: What is the purpose of the Civil Rights +Commission today? Because when this Commission was originally +constituents in the 1950's, its purpose was a mighty one. It +was to be the conscience of America, and America needed a +conscience. And through the work of many people and this +Commission in part, that conscience manifest and produced the +civil rights legislation that we have today. + So the situations are very different. We still have +discrimination and too much of it. But those of us who are +discriminated against have many powerful remedies. We don't +need, as one of those remedies, the weak, inconsistent, anemic, +conflicted voice of this Commission. We deserve better. The +country deserves better. + And so to misquote someone who's a far better communicator +than I am, my advice to you would be to ``End it, don't mend +it.'' + I'll be happy to answer any of your questions, and I'd like +to submit additional written testimony for the record, if I +may. + Mr. Chabot. Without objection, it will be so submitted. + [The prepared statement of Mr. Redenbaugh follows:] + Prepared Statement of Russell G. Redenbaugh + Mr. Chairman, members of the Subcommittee, thank you for holding +this hearing and for inviting me to testify today. As you know, I have +resigned from the commission. I did this because I became convinced +that the problem with this commission is structural and unfixable. I +used to believe that the problem was political or based on +personalities, but it is neither of those. + Let me say a little bit about my background, I understand +organizations. I've studied them for 35 years. I've written widely on +them. I've managed several companies and have consulted many on +organizational design. I know what it takes to produce remarkable +results. Remarkable results are produced by patters of behavior, and +it's the organization's structure and processes that determine those +patterns of behavior. I know if I want to change the results in a +company, I need to change the structure. + In the organizational design business we use the short hand of the +3 p's: purpose, process, people. To be a high performance organization +you must get all 3 right. From time to time every organization needs to +be reformed, that means a new structure and new processes. In business +strong organizations are built by having many satisfied customers and +in business the incentive to reform comes from defecting customers. + Now let's talk about the civil rights commission. We don't have a +clear purpose, we don't have clear processes, we don't have the minimal +financial controls, and our structure is fatally flawed. Our structure +allows us to cloak ourselves with the myth of our independence. It's +lent some commissioners to believe that we don't have customers. Well +if we don't have customers then we don't have any consequences for not +reforming or any incentive to make those necessary changes. + The commission has no clear purpose. Purpose, the first of the 3 +p's, is the glue that unifies and binds an organization together. An +organization's purpose is what we are willing to work hard for in order +to produce remarkable results. This commission doesn't have a clear +purpose. The conditions that existed in this country when the +commission was put in place have changed dramatically. This structure +may have been the right structure for dealing with those conditions, +which were state supported institutional racism, but the structure does +not work for what is needed to combat discrimination and disparities +today. Congress tweaked the structure in 1983 but adopted another +inappropriate model. We still have much discrimination, but the +government now runs a multibillion-dollar apparatus to protect our +rights. Think of all the bulwarks against discrimination in the major +federal and state agencies and all the volumes of antidiscrimination +laws on the books. People who are discriminated against deserve these +remedies. They don't deserve the inarticulate, confused, and conflicted +voice of the civil rights commission. + The commission's processes are fatally flawed and cannot be +reformed. I do not believe that this commission will ever reform +itself. The changes that need to be made are structural. The principle +structural problem is the claim by some commissioners' that +``independence'' means that we don't have customers. Another structural +problem is that commissioners are appointed by the executive branch and +the congress, which leaves the political accountability splintered. The +commission is composed of an even number of commissioners; this makes +for gridlock. Another problem is that commissioners are part-time and +staff is full-time. Given this structure there need to be clear +processes that prevent a staff director from hijacking the +commissioners' agenda. These processes do not exist at the civil rights +commission. + ``End it, don't mend it'' I could say much more. The mismanagement, +the corruption, the arrogance, the disregard of the statute, of GPRA, +of OMB, and of GAO recommendations is well documented. This is an +agency that considers itself above the law and above civil rights laws, +just look at our EEOC record. I believed for many years that these were +problems of politics and personalities, but as I said before I am +completely convinced that this is a problem of structure and process. +That we didn't move immediately to correct these institutional problems +convinces me that we never will. I can no longer associate myself with +an organization that is both a national and a personal embarrassment. +To misquote a far better communicator than myself, ``End it don't mend +it'' + + Mr. Chabot. We appreciate your testimony this morning. + Commissioner Yaki, you are recognized for 5 minutes. + + TESTIMONY OF MICHAEL YAKI, COMMISSIONER, + U.S. COMMISSION ON CIVIL RIGHTS + + Mr. Yaki. Thank you very much, Mr. Chair, and I want to +thank the Chair and the Ranking Member for inviting me to +testify today. As you know, I'm the newest member of the +Commission, and I am actually deeply honored to have joined the +Commission on Civil Rights last month. + As a first matter of business, I want to thank Commissioner +Redenbaugh for his 15 years of service. Although I disagree +with his conclusion today, no one can deny that the 15 years of +service to the Commission and to this country is beyond +reproach, and I just want to thank him for all the inspiration +that he has provided to people in this country. + But I disagree with his conclusions because during the past +half-century, the Civil Rights Commission has taken its +independent fact-finding and recommendation powers seriously +and substantively. Its 1961 report was the basis for the +landmark 1964 Civil Rights Act. Its hearings on +disenfranchisement of African Americans in the South led to the +Voting Rights Act of 1965. And over time, the Commission has +adapted to the changing face of bias and discrimination in +America. Its 1978 Commission report on domestic violence put +that issue on the national agenda for the first time, and its +1983 Commission report on the challenges that Americans with +disabilities faced led to the adoption of the Americans with +Disabilities Act. + Has it been perfect in how and why it addresses certain +issues? Absolutely not. But has it provoked debate, discussion, +and made policymakers stand up and take notice? Absolutely yes. +And that is why I am here today. I'm here to speak on my own +behalf as a new Commissioner, to say that while the business of +this Committee with respect to ensuring fiscal responsibility +and management is important, it is equally important that the +business of the Commission be allowed to continue. + I am unable because I am new to substantiate or deny the +charges of financial mismanagement at the Commission. I come +basically with a clean slate. But I can tell you as a former +local legislator who bore responsibility for a $4 billion +budget with 25,000 employees, this type of hearing is not +unfamiliar to me. It is a very serious responsibility that we +undertake to ensure that taxpayer funds are not squandered +needlessly, especially during tough budgetary times. + I have read the GAO reports, and I can assure you that as a +former congressional aide and a former local legislator that no +one takes the GAO lightly. But when faced with these +allegations at the local level, it is important to take swift +and corrective action, which this Committee is working to do. +It is important to ascertain whether it is isolated or +systemic. It is important to put in appropriate controls and to +assure the public that we responded on their behalf. + But equally important is to understand that the department, +agency, or bureau in question still has a public mission to +perform. And, therefore, it is important to ensure that any +remedial or corrective action be carefully and narrowly +tailored to ensure that it does not hinder the public function +of that particular agency. + I am not here to understate the GAO or the hearings and +intent of this Committee. But I think it's important to put in +relative scale that it is going to be far easier to treat the +problems of a $9 million Commission than a multi-billion-dollar +department. Mr. Marcus to my left has outlined a response, and +I will be in support of these reasonable reforms that will put +the Commission back on track fiscally and managerial. But +consider that just last year the GAO reported that between 1997 +and 2003, the Defense Department lost more than $100 million in +taxpayer money on unused airplane tickets. Now, let me repeat +that. That's $100 million in airplane fares that they could +have cashed in, and that is 10 times more than the entire +budget of the Commission on Civil Rights. + But just as it would not make any sense to stop the DOD +from protecting our homeland simply because they made financial +mistakes, albeit on a possibly mind-boggling scale to a +taxpayer, it does not make any sense to impose actions or +controls on the Commission that hampers its investigative and +fact-finding functions. It is, therefore, my plea to this +Committee that you recognize that not only must the mission of +this Commission go on, but also recognize that the Commission +actually needs additional resources, guarded by appropriate and +adequate fiscal controls to continue its mission. + In fact, it is astonishing that the Commission and staff +have been able to do what they have done over the past few +years, given its very low staffing and fiscal constraints. + As an independent agency, the Commission can venture where +Department Secretaries and administrative heads fear to tread. +It can question the efficacy of existing Government programs, +policies, and enforcement. The targets of discrimination, the +tools used to discriminate have changed and evolved. But the +fact that discrimination remains, as Commissioner Redenbaugh +has said, cannot be seriously disputed. And thus the need for +the Commission remains. + As a watchdog, fact-finder, and policy conscience, there's +much that the Commission can and will do in the future to help +Congress and the executive branch and the general public to +assure that there is true equal protection under the laws. And +while I commend this Committee in protecting the taxpayer +dollar and working to reform this Commission, this Commission +also has its continuing duty to protect civil rights of our +country. These goals are not mutually exclusive, and with +mutual cooperation and assistance, we can achieve both these +goals. And the Commission will continue, as President +Eisenhower's Attorney General said in 1957, to continue to +``chart a course of progress to guide us in the years ahead.'' + Thank you for your time and consideration of my views, and +I'm available for your questions. + [The prepared statement of Mr. Yaki follows:] + + Prepared Statement of Michael Yaki + + I want to thank the Chair and the Ranking Member for inviting me to +testify today. As a preliminary matter, I am deeply honored to have +joined the Commission on Civil Rights last month. The responsibility +first placed upon the Commission by President Eisenhower nearly fifty +years ago is a mantle I will wear with pride. Briefly, my background +includes having recently been a local elected legislator for the City +and County of San Francisco for 5 years, overseeing with my colleagues +an annual budget of over $4 billion with nearly 25,000 employees. I +have also served as a Congressional Staff Director for the Minority +Leader and been a practicing securities attorney after completion of my +legal education at the Yale Law School and clerkship with California +Court of Appeal Judge Harry Low in California. I am now practicing as a +partner at a California-based business law firm. + The United States Commission on Civil Rights has been called the +``watchdog'' of civil rights for this country. Created in the 1957 +Civil Rights Act--the first meaningful, if tentative step this country +took towards ending the Jim Crow era--it was envisioned by President +Eisenhower as a bipartisan, fact-finding panel charged with +investigating and making recommendations to the Executive and +Legislative branches on how to end discrimination in this country. + Over the past half-century, the Civil Rights Commission has taken +its fact-finding and recommendation powers seriously and substantively. +Its 1961 Report was considered by the Congress and the Supreme Court as +the intellectual and factual grounding for the provisions of the +landmark 1964 Civil Rights Act. Its hearings on the blatant, deliberate +disenfranchisement of African Americans in southern precincts and +parishes formed the basis of the Voting Rights Act of 1965. + Over time, the Commission has helped America recognize the changing +face of bias and discrimination. In 1978 a Commission Report +challenging law enforcement agencies to recognize domestic violence as +a crime put it on the national agenda, and by the late 1980's Congress +mandated the Law Enforcement Assistance Administration to focus on the +``role of the criminal justice system in preventing and controlling +violence and abusive behavior in the home. And the Congress relied on a +1983 Civil Rights Commission report on the challenges disabled persons +faced in their daily lives in enacting the Americans with Disabilities +Act. + In the 90's and through the dawn of this new century, the +Commission has begun tackling many other challenges, including studying +civil rights matters facing Native Americans and Native Hawaiians and +issuing reports to Congress detailing policy and legislative failures +and loopholes that continue to deny equal protection under the law to +these most ancient Americans. Has it been perfect in how and why it +addresses certain issues? Absolutely not. Has it provoked debate, +discussion, and made policymakers stand up and notice? Absolutely yes. + Herbert Brownell, President Eisenhower's Attorney General, summed +up the scope of the Commission best when he testified before this very +Subcommittee 48 years ago this February in stating that: + + ``Above and beyond the need for improving the legal remedies + for dealing with specific civil rights violations is the need + for greater knowledge and understanding of all of the complex + problems involved. . . . [T]here is no agency anywhere in the + executive branch of the federal government with authority to + investigate general allegations of civil rights. . . . [T]he + Commission proposed by the President would present the means of + securing this vitally needed information.'' + + The Jim Crow era may have ended, but anyone who believes that we +have become a nation completely without malice towards people of color, +towards new immigrants, towards those who believe or worship +differently is, with all due respect, deliberately hiding their head in +the proverbial sand. All we need to do is look at the incredible jump +in hate crimes towards Arabs and Muslim Americans since 9/11; but we do +not need to confine ourselves to the most obvious victims to know what +is true. Neo-Nazism and anti-Semitism still exists; there remain school +districts where inequalities remain divided by race; and minority- and +women-owned businesses still encounter substantial hurdles to economic +parity left over from decades of exclusion. + And that is why I am here today. I am here to speak on my own +behalf, as a Commissioner, to say that while the business of this +Committee with respect to ensuring fiscal responsibility is important, +it is equally important that the business of the Commission be allowed +to continue. + I am unable to substantiate or deny the charges of financial +mismanagement at the Commission. I come, if you may, with a clean +slate. As a former local legislator in who bore responsibility for a $4 +billion dollar city and county budget, this type of hearing is not +unfamiliar territory. It is a deep and very serious responsibility to +ensure that taxpayer funds are not squandered needlessly at any time, +including and especially in pressing budgetary times. + I have read the GAO reports and I can assure you that as a former +congressional staffer and a former local legislator that I do not take +any GAO report lightly. + I can communicate to you my impression that the present Commission +views its duty to ensure fiscal responsibility very seriously. In my +very first meetings after being told of my appointment, both the +Chairman and the Staff Director were very frank about their intent to +hold the agency accountable in the ways detailed in the GAO reports. In +my conversations with my new colleagues, the manner of fiscal +accountability is very important. + However, it is equally important to separate the past from the +present and the future. Even if there was mismanagement--which I cannot +deny nor confirm--the fact is, that these allegations are associated +with a regime that no longer exists at the Commission. And, in the +interests of full disclosure, I should also state that I am an admirer +of Ms. Berry's lifelong commitment to civil rights and to minority +communities in this country. + But I understand the scope of this hearing. When I was faced at the +local level with allegations of mismanagement of government resources, +it was important to take swift corrective action. It was important to +ascertain whether it was an isolated, or systemic problem. It was +important to put in appropriate controls to ensure that it did not +happen again. It was important to assure the public that we had +responded on their behalf. + But equally important was to understand that the department, +agency, or bureau still had a mission to perform. Missions that were +important to members of the public. And, therefore, it was important to +ensure that any remedial or corrective action be carefully and narrowly +tailored to ensure that it did not hinder the public function that all +government agencies perform. + It is easy to punish an entire agency, especially one as small as +the Commission. In San Francisco, as with many cities and counties of +size in this country, the Commission's $9 million budget would be +dwarfed by health, public safety, and other departments. In comparison +to the trillion dollar federal budget, $9 million may be barely +noticed. + Understanding the scale of the problem--and the scale of the +solution--is paramount in this case. The cure cannot kill the patient. + To be perfectly honest, we may go on about lack of controls. We may +pontificate about waste of taxpayer assets. But can we honestly say +that our concern about misspending in a $9 million dollar agency should +outstrip concern for waste that is in the tens, or hundreds of +millions? It is not to belittle the findings of the GAO or the hearings +of this Committee. It is to put in relative scale, however, that it is +far easier to treat the problems of a $9 million dollar Commission than +a multi-billion dollar Department. + Just last year the GAO reported that between 1997 and 2003 the +Defense Department lost more than $100 million dollars in unused +airplane tickets. Let me repeat that. The DoD forgot to cash in more +than $100 million dollars in plane fares. For the average taxpayer--the +person in whose shoes I stood as a legislator and you stand as Members +of this esteemed House--$100 million dollars is waste on a massive +scale. + But the ultimate mission, the purpose of the organization must go +on. Just as it would not make any sense to stop the Department of +Defense from protecting our homeland, or liberating a foreign country +from the yoke of tyranny, simply because they made financial mistakes-- +in the case of airline tickets, on a truly grand and mind-boggling +scale--it does not make any sense to impose actions or controls on the +Civil Rights Commission that hampers its investigative and fact-finding +functions. + It is therefore my heartfelt plea to this Committee that you +recognize that not only must the mission of the Commission go on, but +also recognize that the Commission needs additional resources--guarded +by appropriate and adequate fiscal controls--to continue its mission. + The fact is that as a Commission, we are starved for resources. Let +me elaborate, based again only upon my short tenure with the +Commission. + Our State Advisory Committees are languishing from neglect, neglect +caused by a paucity of funding. The State Advisory Committees are one +of the most important means of obtaining information and insight on +civil rights issues on the ground. With the number of issues +confronting our limited time and agendas, the SACs have produced and +will continue to produce some of the most important civil rights +reports for this country. Yet we have barely staffing for one or two +professional staff responsible for multi-state jurisdictions totaling +tens of millions in population. The SAC's can't meet because we can't +afford to reimburse them for plane, train, and car fares--the least we +could contribute given the volunteer time and commitment of SAC +members. When we consider, as Justice Brandeis did, that the states are +the ``laboratories of democracy,'' the fact that the Commission, and, +therefore, the Executive and Legislative branches of the federal +government are deprived of their information, experience, and input due +to lack of funding is a loss on a truly national scale. Can we truly +say that this programmatic and mission loss is the price we must pay +for any past financial transgressions? + I cannot speak for the entire Commission, but I can also say that +it is already apparent to me that the agenda of the Commission itself +has been affected by the constant demand for documents, the need for +retasking already overworked employees. The fact is that attention must +be paid to answering complaints, preparing reports, and crafting policy +recommendations. But the reality is that critical resources must be +diverted just to keep the bare functionality of the Commission. It is +somewhat astonishing that the Commission and its staff have been able +to accomplish producing reports and conducting hearings given its +recent staffing and fiscal constraints. + As an independent agency, the Commission can venture where +Department Secretaries and Administrative heads fear to tread--it can +question the efficacy of existing government programs and policies. The +targets of discrimination, the tools used to discriminate may have +changed or evolved. But the fact that discrimination remains cannot be +seriously disputed. And thus the need for the Commission remains. + I am hoping the Commission will investigate the collateral damage +to civil rights as a result of the Patriot Act, which is up for +reauthorization this year. The Voting Rights Act comes up for +reauthorization in 2007, and rather than have talking heads trade +insults on its continued vitality, we need to take a fact-based look at +disenfranchisement issues in all communities of our country. And there +are many issues relating to educational and economic equality for +minorities, women and the disabled, and other communities that I +believe still need to be addressed. + There are issues that some Commissioners will agree with, and +others in which we will disagree. Reasonable people can come to +different conclusions from the same set of facts and circumstances, but +it requires resources to access those facts and circumstances. + I close again with the words of Herbert Brownell. In urging the +Senate to pass the Civil Rights Act of 1957, and in specific, to pass +Title I creating the Civil Rights Commission, he stated in a letter to +the Senate: + + ``[W]e must find out all of the facts--the extent, the methods, + the result. . . . Civil rights are of primary concern to all + our people. To this end, the Commission's membership must be + truly bipartisan. . . . The Commission will have authority to + hold public hearing. Knowledge and understanding of every + element of the problem will give greater clarity and + perspective to one of the most difficult problems facing our + country. . . . Investigation and hearings will bring into + sharper focus the areas of responsibility of the federal + government and of the states under our constitutional system. + Through greater public understanding, therefore, the Commission + may chart a course of progress to guide us in the years + ahead.'' + + As watchdog, fact-finder, and policy conscience, there is much that +the Commission can and will do in the future to help Congress, the +Executive Branch and the general public ensure that there is true equal +protection under the laws of our country for all Americans. While I +commend the zeal of this Committee in protecting Americans' tax +dollars, this Commission also has a duty to protect the civil rights of +our country. These goals are not mutually exclusive and with mutual +cooperation and assistance, we can achieve both these goals. And the +Commission will continue to chart a course of progress to guide us in +the years ahead. + Thank you for your time and consideration of my views. I am +available for your questions. + + Mr. Chabot. Thank you very much, Commissioner Yaki. We +appreciate your testimony. + Mr. Marcus, you are recognized for 5 minutes. + + TESTIMONY OF KENNETH L. MARCUS, STAFF DIRECTOR, + U.S. COMMISSION ON CIVIL RIGHTS + + Mr. Marcus. Thank you, Mr. Chairman, Mr. Ranking Minority +Member. I am also delighted to have an opportunity to address +you today, and I am also saddened that this will be one of my +last opportunities to work with Commissioner Redenbaugh, whose +departure I am sad to acknowledge. On the other hand, we are +certainly delighted to have Commissioner Yaki now on board to +join us. + Many have found fault with the Commission's management and +finances, and I certainly join in acknowledging that there are +many, many respects in which the Commission requires very +substantial systematic reform. I would like to emphasize, +though, by way of preface that this agency has over a period of +nearly 50 years had extraordinary accomplishments in bringing +public attention to matters which otherwise in many instances +would not have received attention. In all of the 50 States and +at a national level, the U.S. Commission on Civil Rights has +countless times over the decades reminded us of our basic +obligations under the Constitution and laws of the United +States. + At the same time, the present is a very difficult time for +the Commission on Civil Rights. Those of us who are new to the +Commission have inherited an agency in crisis with profound +management and financial challenges as well as challenges +regarding project planning that we must face in short order. +Many of the challenges have been well documented over a period +of years by the Government Accountability Office in the reports +to which the Chairman made reference earlier this morning. +These challenges include weak internal financial and project +planning controls as well as an unsustainable budgetary +situation. + At the same time, we have a committed staff which is +working very hard under difficult circumstances based on their +commitment to civil rights and their belief that it is +important that they work as hard as they can, even under these +uncertainties, to try and protect those who would otherwise +face discrimination, hatred, and injustice. + The GAO reports which have been referenced have described a +lack of good project management and transparency in contracting +procedures and elsewhere, have referred to weaknesses in the +way in which resources have been used, have described a lack of +strategic planning, and have in general painted a portrait of +an agency that has had little financial control, weak +management, and little accountability. + Those reports go to a period of time at which I was, of +course, not present at the agency, and I cannot speak to things +that happened before I was here. What I can say is that it is +clear to me, as to the Commissioners, that fundamental changes +do need to be made, need to be made deliberately, need to be +made thoughtfully, and need to be made quickly. + We have already in a short 3 months begun to tackle the +task of solving the problems that developed over a period of +years and even decades. But it is a process that will take some +time, both because the problems are difficult and also because +the body is, of course, a deliberative one which works as a +panel. + Some of the changes that we have looked at and even +instituted involve implementation of GAO recommendations. For +instance, we have already implemented or issued directives to +implement over 20 of the recommendations that GAO has made, +even within the first couple of months. It is certainly my +highest priority to reform the management and financial +structure of the Commission starting with those challenges +which have been identified by the GAO and the Office of +Personnel Management, and I think that we have at least made a +step forward in addressing those. + Commissioner Redenbaugh also indicated that there are other +reforms which have been discussed and may be raised during the +meeting tomorrow. The Commission, as one of its very first +acts, established a working group on reform to address internal +and external communication matters and project planning. +Commissioner Redenbaugh has chaired the meetings of that body, +and I expect that through the working group on reform there +will be additional substantial reforms that are recommended to +the full Commission, which I hope will address many of the +concerns that have been raised today. + In general, I would say that the challenges that we have in +terms of our internal structure are very serious ones, but +there is a very strong commitment by the Commissioners that I +share to acknowledging those problems, identifying them, and +solving them deliberately but quickly. + In addition to the structural problems, we also, of course, +have very serious budgetary constraints within this fiscal +year. We had been spending money at a pace which is +unsustainable within our current appropriations. In fact, as of +the time that I arrived, we were spending money at a pace which +would exhaust our budget far before the end of the fiscal year. +So our most urgent concern is to establish cost-cutting +constraints to make sure that we live within our budget. Beyond +that, we are very highly focused on establishing reforms to +make sure that we are functioning properly as an agency not +only because it's required by law and by the GAO +recommendations, but also because our commitment is to ensuring +that this agency is able managerially and financially to +achieve its mission. + We all believe that the mission of this agency is vitally +important, and I am dedicated to ensuring that we have the +level of management necessary in order to meet that mission. + I thank you for the opportunity to speak and, of course, +will be available to answer questions. + [The prepared statement of Mr. Marcus follows:] + + Prepared Statement of Kenneth L. Marcus + + Thank you, Mr. Chairman. I am Kenneth L. Marcus, and I have served +as Staff Director of the United States Commission on Civil Rights since +mid-December 2004. The Commission is an independent bipartisan agency +established by Congress in 1957 to investigate complaints alleging that +citizens are being deprived of their right to vote for reason of their +race, color, religion, sex, age, disability, or national origin, or by +reason of fraudulent practices; to study and collect information +relating to discrimination or a denial of equal protection of the laws +under the Constitution because of the same bases; to appraise federal +laws and policies with respect to discrimination or denial of equal +protection of the laws because of the same bases; to serve as a +national clearinghouse for information in respect to discrimination or +denial of equal protection of the laws because of the same bases; to +submit reports, findings, and recommendations to the President and +Congress; and to issue public service announcements to discourage +discrimination or denial of equal protection of the laws. The +Commission has been called the ``conscience of the Nation'' on civil +rights matters, and our recommendations to Congress have often led to +the enactment of critical legislation. + I would like to preface my remarks today by thanking the Chairman +and the Subcommittee for the opportunity to address today the +challenges we face as an agency and the internal reforms we are +implementing at the Commission. As you are certainly aware, the +Commission has some extraordinary organizational and financial +challenges to address. + + CURRENT CHALLENGES + + Those of us who are new to the Commission have inherited an agency +in crisis, with profound management and financial challenges that we +must face in short order. Many of these challenges have been well +documented, over a period of years, by the Government Accountability +Office, the Office of Personnel Management, and other entities. The +challenges include weak internal, financial and project planning +controls, as well as an unsustainable budgetary situation. These +challenges pose a need for serious and significant reform. The GAO has +issued three reports on the Commission since 1997 that bring a number +of problem areas into focus--most notably management, financial +accountability, and the quality and integrity of Commission projects. + The July 1997 GAO report, U.S. Commission on Civil Rights: Agency +Lacks Basis Management Controls (GAO/HEHS-97-125), found broad +management problems at the Commission, including limited awareness of +how its resources were used. The GAO used blunt language to describe +the status of this agency announcing, ``the Commission appears to be an +agency in disarray with limited awareness of how its resources are +used.'' At the time, the GAO reported that the Commission could not +provide key cost information for its regional offices, complaints +referral process, clearinghouse, public service announcements, and at +least one project. It also reported that the Commission had not +established accountability for resources and did not maintain +appropriate documentation of agency operations. + An October 2003 GAO report, U.S. Commission on Civil Rights: More +Operational and Financial Oversight Needed (GAO-04-18), found that the +Commission lacked good project management and transparency in its +contracting procedures. This report also found that the Commission had +made a number of management improvements, including establishing +policies that clarify the roles of senior management, preparing more +detailed budget information for better fiscal administration, and +instituting various project management procedures to meet target +deadlines, since the GAO's last report in 1997. + The October 2004 GAO report, U.S. Commission on Civil Rights: +Management Could Benefit From Improved Strategic Planning and Increased +Oversight (GAO-05-77), found that the Commission had not fully complied +with the requirements of the Government Performance and Results Act +(GPRA). For example, the report had found that the Commission had not +updated or revised its strategic plan since 1997. This report +recommended improved strategic planning and increased oversight. + In general, the GAO's reports paint a portrait of an agency that +was run out of control with little financial control, weak management, +and little accountability. They are a wake-up call for this agency that +we must implement substantial change and reform in order to meet our +fiscal responsibilities and to restore public trust and confidence in +us as ``the conscience of the Nation'' on civil rights. + When I arrived at the Commission in December 2004, I found little +that was inconsistent with the GAO's highly critical assessment. The +Treasury Department's Bureau of Public Debt previously provided +accounting services to the Commission, but terminated its relationship +with the Commission effective fiscal year 2004, citing concerns +regarding the agency's financial responsibility. + A September 9, 2003 letter from the Department of Treasury to my +predecessor, the Honorable Leslie Jin, provided to me by the Department +of Treasury, reads in part as follows: + + As an accounting service provider, we are assuming a high level + of responsibility for management and control of federal + government resources. To effectively perform our services, we + must rely upon a strong system of internal controls, which + includes prudent oversight and management of budgetary + resources by our customer agencies . . . Based upon our + experience in servicing your agency, we believe there is + inadequate management and control oversight of your agency's + funds. + + At the time, the Department of the Treasury was particularly +concerned about the Commission's over obligation of its fiscal year +2003 budget authority and its failure to take adequate corrective +action to avoid violating the Anti-Deficiency Act. In short, the +Commission's financial controls had deteriorated to the point last +fiscal year that another agency of the federal government refused to +continue to service its account. + My predecessor was forced to seek a new accounting services +provider in the midst of these challenges. The agency entered into an +agreement with Booth Management Corporation in the middle of the fiscal +year. That contractor is a small company seriously challenged by the +difficulties of entering into a relationship in the midst of a fiscal +year. Compounding this difficulty is the limited experience that it has +with providing full service accounting to a federal agency and the +difficult relationship that it had developed with Commission staff and +other contractors. + Additionally, the Commission had not had an independent audit of +its books for many years. The agency now finally is currently in the +process of obtaining its first independent audit. The Parker, Whitfield +firm is conducting the limited scope audit of the agency's balance +sheet. Mr. Ernest Parker of the Parker, Whitfield firm has taken charge +of the audit personally. This audit, originally scheduled for +completion within a three to four-week time frame, is now in its fourth +month, and his firm is not able to predict the length of time required +to conclude the audit. Mr. Parker has attributed this difficulty in +completing the audit to the Commission's failure to be forthcoming with +financial records prior to my arrival. He has not leveled this charge +specifically at any employee of the Commission but to at least one +outside firm working on behalf of the Commission. More troubling, this +independent audit informed me that, as of fall 2004, the Commission's +financial records were in such disarray that it had no financial ledger +whatsoever. This has since been remedied, but many other accounting +practices are difficult or impossible to reform during the middle of a +fiscal year. + As a result of the lack of accountability and transparency, the +financial condition of the agency has been a substantial challenge for +quite some time. The Commission's current budget for fiscal year 2005 +is $9,023,232. This is essentially unchanged from the prior fiscal year +and has been held flat now for many years. At the same time, our +primary expenses, specifically salaries and benefits, have continued to +rise. Moreover, we are saddled with various expenses incurred during +prior fiscal years but not yet paid. For example, the Commission's +prior management deferred payment of approximately $75,000 for 2004 +rent, which we must pay this year. Similarly, we are now obligated this +year to pay approximately $188,000 in equal employment opportunity +claims against the Commission's former management out of $355,000 in +civil rights claims resolved against or settled by prior management +over the last five years. As of my arrival, the spending plans and +assumptions of the Commission placed the agency on course to overspend +its appropriations by a considerable sum. We are now working on cost- +cutting measures to close this gap and provide us with a sufficient +cushion against unexpected costs that we can assure that we are living +within our means. + + CURRENT REFORMS + +Administrative Instructions Addressing Integrity and Accountability + The Commission has begun to implement many reforms to strengthen +accountability and transparency at the Commission, as well as address +GAO recommendations in those areas. In my short time at the Commission, +I have already issued three administrative instructions (AIs) that +begin the long process of curing the substantial deficiencies at the +Commission. + These administrative instructions--AI's 3-15, 3-16 and 4-21, all +issued on March 11, 2005--implemented 29 GAO recommendations with +respect to financial accounting and expense tracking, with AI 3-16 +alone implementing approximately 21 of those 29. + AI 3-15 establishes guidelines to ensure that the Commission +recognizes payroll expenses in the proper period for accounting +purposes. Specifically, AI 3-15: + +Asks Commissioners to submit timesheets to the + Commission tracking their billable hours, either on a once-per- + pay-period or monthly basis; + + Provides for submission of the timesheets to the + Office of the Staff Director for signature in a timely fashion + and eventual submission of the signed timesheet to the Human + Resources Division; and + + Requires the Executive Secretary for the Staff + Director to follow up on Commissioners' timesheets that have + not yet been received by the second Thursday of a pay period. + + AI 3-16 embraces a wide variety of reforms to ensure that non- +salary expenditures have proper authorization, approval, and supporting +documentation. Among other things, these reforms direct the Chief of +the Budget and Finance Division to: + + Periodically review accounts to identify unusual + balances; + + Keep appropriate documentation in transaction files + to support accounting entries made to adjust or write off + assets and liabilities; + + Retain sufficient evidence in transaction files to + show that all transactions have been properly approved for + payment; + + Prepare purchase authorizations in advance of the + expenditure to be approved; + + Have evidence of receipt of goods and services prior + to approving transactions of payment; + + Provide travel vouchers and ensure that travelers + provide documentation to indicate the trip was taken; and + + Require that all financial transactions be properly + approved and supported before being processed. + +This particular administrative instruction implements approximately 21 +of the GAO's recommendations. + AI 4-21 directs the Chief of the Administrative Services and +Clearinghouse Division to: + + Prepare and maintain contract files to document the + basis for Commission decisions in acquiring good and services; + + Ensure that all statements of work contain a + provision on organizational conflict of interest; + + Provide training to appropriate employees on federal + procurement rules, regulations, procedures, and issues; + + Require that all aspects of the Commission's + procurement be documented in accordance with Federal + Acquisition Regulations; and + + Report fiscal year procurement data for fiscal years + 2003 through 2005 into the Federal Procurement Data Center and, + going forward, to report such data annually into the Center. + +These are the first in what will be a lengthy series of reforms that we +will adopt in order to ensure that the Commission complies with all +legal requirements and that its management is sound. Between now and +February 2006, we plan to implement GAO's pending recommendations and +to establish significantly stronger internal controls and project +planning procedures. + + CONCLUSION + + The U.S. Commission on Civil Rights has an illustrious history and +a deeply important mission. As we approach the vital task of reform, +our challenge is to establish the controls that are necessary to ensure +the success of our mission. It is important that we carry out this +mission with a high degree of integrity in order to ensure public +confidence and trust in the Commission as ``the conscience of the +Nation'' on civil rights matters. + I would be happy to answer any questions you may have. + + Mr. Chabot. Thank you very much. We appreciate your +testimony. + [The Subcommittee proceeded to other business, to reconvene +at the conclusion of that business.] + Mr. Chabot. At this time we will go back into our hearing +relative to the Civil Rights Commission, and Mr. Harbison, you +are recognized for 5 minutes. + +TESTIMONY OF GEORGE HARBISON, DIRECTOR OF HUMAN RESOURCES, AND + ACTING CHIEF OF BUDGET AND FINANCE, U.S. COMMISSION ON CIVIL + RIGHTS + + Mr. Harbison. Mr. Chairman, honorable Members of the +Subcommittee, good morning. My name is George Harbison, and I +appear here today in acceptance of your invitation to express +my thoughts relative to the fiscal and management practices of +the United States Commission on Civil Rights. I have +approximately 30 years of service in the Federal sector in the +areas of financial management. From 1989 to 2005, I served with +the Commission on Civil Rights as Chief of the Budget and +Finance Division. Since February of 2005, I am currently +serving as the Director of Human Resources and Acting Director +of Budget and Finance. + During this time span, this 30-year time span, I also +served---- + Mr. Watt. Mr. Chairman, we are having a little trouble +hearing him, if he could pull his---- + Mr. Chabot. Could you pull the mike a little bit closer, +Mr. Harbison? Thank you very much. + Mr. Watt. Thank you so much. + Mr. Harbison. During the 30-year career that I've had so +far, I've also held other positions to include auditor, senior +auditor, audit manager, and acting chief of an area audit +office. + Upon my arrival here at the Commission, the Budget and +Finance Division consisted roughly of four professional staff. +This staff was responsible for managing the day-to-day fiscal +activities of the Commission, and more specifically the +division prepared, presented, justified, and executed the +annual budgets of the Commission. We ensured preparation of +required financial reports. We prepared ad hoc reports +necessary for internal financial management. We implemented +procedures as required by the Office of Management and Budget, +the Department of Treasury, General Services Administration, +and other agencies relative to financial management. We +received certified payment and monitored invoice payments. We +received certified and monitored travel for the Commission on +Civil Rights. We ensured the establishment of a system of +accounts compliant with Federal guidelines to account for all +Commission expenditures. + I also served as security officer to safeguard individual +privacy and agency financial information. At the same time I +was serving as Commission liaison to Federal and private sector +industries in matters related to finance and budget. + During the same period of time, from the period 1989 to +2005, staffing within the division dwindled from four to three +in 1989, from three to two in 2001, and from two to one in +2005, and currently consists of one individual, who is me, in +fact, for 2005. + With regards to the fiscal practices, the Commission on +Civil Rights uses a centralized budgeting concept, meaning that +essentially while budgeting, reporting, and monitoring of +expenditures are done internally at the individual cost center +level, control of the budget has rested with the Office of +Staff Director, where all expenditures are approved, +contractual arrangements negotiated, contractual contracting +officer responsibilities are handled, contractor invoices are +received, and contractor payments certified. + When the Commission changed the accounting service +providers in fiscal year 2004, much of the accounting and +reporting and monitoring functions previously done by the +Budget and Finance Division were accomplished by a new +contractor. This contractor also reported directly to the +Office of the Staff Director. In essence, the Budget and +Finance Division essentially became an instrument for +processing travel documents, agenda payments, and related +documents, and to answer questions related to these various +issues. + Issues related to contractor performance and most liaison +functions were handled by the Office of the Staff Director. As +a result, the historical knowledge base relative to contractor +performance rested with the Office of the Staff Director as +well. The downside to a centralized budget is that it limits +accountability of office heads to be responsible for the +operation of their programs. + May I continue? + Mr. Chabot. Yes. Could you wrap up, though? Because your 5 +minutes are up. + Mr. Harbison. In summary, the Commission on Civil Rights is +a viable organization, and while no one has specifically +questioned my professional qualifications, I would say that 30 +years' background in fiscal management as well as auditing +multi-billion-dollar contracts and multi-system weapons system +well establishes my qualifications and credentials. + I think that, in summary, the Commission can best move +forward through a systematic process of planning, obtaining +human capital, inclusion of all stakeholders in its +decisionmaking processes, and being provided with sufficient +fiscal resources, i.e., money, to get the job done. + That concludes my testimony, Mr. Chairman. + [The prepared statement of Mr. Harbison was not available +at the time of the hearing but is printed in the Appendix.] + Mr. Chabot. Thank you, Mr. Harbison. + Members of the panel now have 5 minutes each to ask +questions, and I recognize myself for 5 minutes for that +purpose. + Mr. Marcus, if I could start with you, as you know, I had +an opportunity to stop down and visit your headquarters this +past week, and you were kind enough to take me around the +office and introduce me to some folks and see the space that is +occupied. And as you know, a fair amount of the appropriations +that your office receives is for rent, and one of the things +that we had discussed was the three floors that you're on. And +there are a fair number of, a pretty significant number of +empty offices in there because of staff turnover and reductions +of staff and for various reasons. And the actual layout of the +office itself is probably not terribly efficient. And I would +be interested to know what plans you have for maybe formulating +for being more efficient in that area. And would you agree +there's a considerable amount of waste in so much vacancy +within the area? + Mr. Marcus. Yes, Mr. Chairman, I would agree, and let me +say we were delighted to welcome you, and it was very good to +see the Chairman of the Subcommittee actually coming over and +being interested enough to look in detail at the facility and +what's going on at the Commission. So I was delighted by your +interest. + One of the first things that occurred to me as I took the +position, looking around the agency, is that when I looked at +the offices of the Congressional Affairs Unit and saw that we +had offices but no staff, when I looked at the offices of the +Public Affairs Unit, we have offices but no staff; similarly +for many other parts of the organization. Our staffing has +dwindled to the point that some of our divisions or +subdivisions are entirely empty of staff, and yet we are paying +rent both at headquarters and in some of our regions for space +that is not being used or not being used as efficiently as we +could. I think we need to change that. + Now, one of the ironies that we have in terms of fiscal +management is that when we make a move, we have immediate costs +during the current fiscal year; the savings, of course, will be +appreciated in future years. For fiscal year 2005, I don't +believe that we can afford to make any moves right now because +the costs would exceed our ability to pay. But I do think that +at least with headquarters, we will need in the next fiscal +year to seriously look at either consolidation of offices +within our current space or, alternatively, with occupying a +different space which is more appropriate to our staff size. + Mr. Chabot. You also have, for lack of a better term, +satellite offices around the country, and you have five-- +actually, six, counting one that's within the same plan here in +Washington. + Mr. Marcus. Yes, Mr. Chairman, that's exactly right. + Mr. Chabot. And do you have any thoughts relative to that, +as to whether that's necessary or is an area that should be +looked into as to the necessity for that many branches and +whether or not it might be easier to occupy the folks in one +location? + Mr. Marcus. The number of offices that we have had has +expanded and contracted over the years. There have been times +where we have had as few as three regional offices and times +where we have had many more offices than we currently have. + The main work of our regional offices is to work closely +with the State advisory committees in each of the States to +enable them to be the eyes and ears of the Commission. They +prepare reports and analyses that are close to the ground, as +it were, in States around the country. + That work is mandated by our statute, and it does have to +be done. There is no legal reason why we need to have field +offices, and certainly no reason why we need to have the number +of offices that we have now. + Mr. Chabot. And you're, for example, paying rent at those +various locations and---- + Mr. Marcus. We are paying rent at those locations, and so +as we make difficult decisions regarding how we can live within +our financial means, even in the very short term, of course, we +will have to ask questions about whether we can continue to +afford the number of offices that we have now. + Mr. Chabot. Okay. Thank you. + Mr. Redenbaugh, let me shift over to you, if I can. Again, +I want to say that, you know, we were disappointed to hear +about your resignation, and we're very grateful to the 15 years +that you put in at the Commission. We really appreciate it, and +we've heard many good things about you in particular. + I know you've tried to propose a number of reforms and met +with some opposition. Could you describe for us why you think +there is opposition to some of the common-sense financial and +managerial reforms that you proposed? And what type of reforms +did you propose that were rejected? + Mr. Redenbaugh. Well, the more recent round of reforms were +proposed by Commissioner Kirsanow and myself, and they really +went to the--I think five areas, perhaps four: the need for a +full audit, the need for an Inspector General, a change in the +way we do our program policies is another area. But I think +that what I came to realize--and I'm a little bit embarrassed +to admit it took me 15 years to figure this out--that the +problem of the Commission is not a problem of partisanship or +personalities. It's a problem of accountability, and no +organization will ever reform itself voluntarily. It is just +far too painful to do that. You know, organizations that lose +customers or lose clients are compelled to change. The +structure of incentives works that way. But an agency that has +no customers and is so independent exempts itself from the +necessity of reform. And I think it doesn't matter who the +people are or their ideology. It's the nature of human beings +to resist change. + Mr. Chabot. Thank you. My time has expired. + The gentleman from New York, Mr. Nadler, is recognized for +5 minutes. + Mr. Nadler. Thank you. I'd like to continue this line of +questions to Commissioner Redenbaugh for a couple of minutes. + Yes, people resist change. That's human nature, except for +certain individuals. Most people resist change. But when you +get a Commission even without customers and so forth and +wholesale change in who the Commissioners are, for the new +Commissioners that's not change. They come in. They want to +clean house, et cetera. So why do you think that that can't +happen? + Mr. Redenbaugh. You mean why do I think it hasn't been +happening? + Mr. Nadler. Well, recently there's been a rather wholesale +change in the Commission membership, a change in orientation, a +change in--why do you think that that new Commission membership +is unamenable to the kind of change you think is necessary? + Mr. Redenbaugh. Well, you know, actually I don't know that +the newest Commissioners are not amenable to that, and I +suspect perhaps that they are. It's some of my longer-standing +colleagues that have been reluctant, but I suspect they will +now be more enthusiastic about that. + Mr. Nadler. So why do you think it is impossible to reform +the Commission, as you stated, the new Commission--the current +one is impossible? + Mr. Redenbaugh. Because anything we do to adopt motions +tomorrow, for example, can be ignored next month or, as I said, +unadopted next year. That's a change but not a difference. + Mr. Nadler. But what I don't understand is--yes, that is +possible, obviously. Anybody can do something today and ignore +it next month. + Mr. Redenbaugh. Right. + Mr. Nadler. But you said, I think, in your testimony that +you think it is necessary to have a Civil Rights Commission, +you'd like to start over again. + Mr. Redenbaugh. Yes. + Mr. Nadler. Okay. I don't understand how--let's assume you +abolish this Commission and set up a new one. How do we set it +up differently so it wouldn't have the same problems as opposed +to simply making a change in who the Commissioners are to +change it in any event? I don't understand the difference +there. In other words, what would change? Why would one method +work and not what has just been---- + Mr. Redenbaugh. Well, I think you'd want to do three things +differently: have a clear purpose that was really understood, +specify the processes by which people would work and the +accountability, and that then would attract people who shared +that purpose and would work through those processes. + Mr. Nadler. You're saying that the statutory purpose is not +sufficient or is not clear enough? + Mr. Redenbaugh. I think it's not clear enough, and I think +the line of accountability and responsibility is very unclear. + Mr. Nadler. All right. But lines of responsibility and +accountability can be changed without a statutory change. That +can be changed within an existing Commission by the +Commissioners if they want to. What you're really saying is +that what is fundamentally wrong with the current Commission is +that the statutory purpose is not sufficient. + Mr. Redenbaugh. I think the statutory purpose is not +sufficient and the line of authority to Congress is not +sufficient. + Mr. Nadler. Okay. Thank you very much. + Mr. Harbison, there's been a lot of criticism of the +Commission for lack of financial controls, accountability, and +so forth. You've heard all that. You stated that as the person +in charge of the department in charge of finances, your staff +has gone from three to zero, that is, from four to one, you +being the one. + Is that--do you think that it would be fair to say that the +problems with financing are because there's essentially no +financing staff? Or was financing staff reduced because the +financing function was parceled out to somebody else? I mean, +which is first? What do you think is the problem? + Mr. Harbison. I think the problem, or at least a semblance +of the problem, you've hit on both. You can't run a division +without fiscal resources, without the people resources. You +cannot do that. It's just too much. Even with three staff on-- +three people on staff, we were working 14-, 15-hour days, and +on Saturdays and Sundays. + Mr. Nadler. Let me ask you a different question because my +time is going to run out. When you had that full staff of four +people prior to whenever you said it changed, would it be fair +to say that there were no--that there were not greatly +expressed concerns about financial accountability and +practices? Did these problems or the perception of these +problems arise after the staff was decimated? + Mr. Harbison. I would say that is correct. However, in the +same breath, I would say that we have always been concerned +with fiscal management. + Mr. Nadler. Physical or fiscal? + Mr. Harbison. Fiscal management. We are very much aware of +the interest that Congress and the various Subcommittees have +taken in the Commission on Civil Rights. So many of the +things---- + Mr. Nadler. No, no, but let me just, if I may for one +further moment. I hope and I presume that the department of +fiscal affairs, or whatever the title is, would be very +concerned with fiscal affairs. My question is: Do you think +that--and do you think--do you think that it is true that and +do you think it is perceived from the outside that prior to the +great reduction in staff that you had the fiscal affairs +relatively well in hand and that--and, in effect, what I'm +asking, I suppose, is: Did the problems or the perceived +problems arise because there was no longer an adequate staff to +handle it? Or was there some other problem? + Mr. Harbison. Yes. + Mr. Nadler. Yes to the first? + Mr. Harbison. Yes. + Mr. Nadler. Okay. Thank you very much. + Mr. Chabot. The gentleman's time has expired. + Okay. The gentleman from Arizona, Mr. Franks, is recognized +for 5 minutes. + Mr. Franks. Thank you, Mr. Chairman. And thank you, +gentlemen, for coming before the Committee. + Commissioner Redenbaugh, I know that, you know, this is +kind of a unique day for you in that it perhaps it may be the +last time you will speak before the Congress as the member of +the Commission, and certainly many of us are very disappointed +in your resignation and appreciate your efforts to try to +reform the Commission. And I guess with 15 years of +perspective, sometimes, you know, we like to just say to a +person like that, if you were emperor for a day, what are the +changes that you would make? And I know you've stated in your +testimony that the Commission should be shut down and perhaps +restarted. But if you had the opportunity to rewrite the +statutory mission of this Commission and to rewrite or +restructure it entirely and to be the one to suggest what the +funding of the Commission should be, how would you as emperor +for the day fix this thing? + Mr. Redenbaugh. You know, that is a very large and +important question, and I don't think I can do it justice in +the time we have. I'd be happy to continue the discussion with +you later. I think that's the right question: How would you--if +you didn't have this one, how would you create the right one? +And I'd be happy to continue later with that. + Mr. Franks. All right. Well, perhaps I could try to narrow +it just a little bit. If you could make just one change-- +sometimes, you know, we get so caught up in the inertia of an +organization, especially with new members and the changes in +personnel, and, of course, pressures from the outside and the +inside. If you could just make one critical change to the +Commission that you think would give it the best chance of +fulfilling its ostensible purpose, what would that one change +be? + Mr. Redenbaugh. Rethink the purpose and have the purpose be +endorsed and shared by the eight Commissioners. + Mr. Franks. And not to be insistent here, but if you were +to write--or just to say what you think the purpose should be, +how would Commissioner Redenbaugh write that purpose? + Mr. Redenbaugh. Well, rather than what I think it should +be, it needs to be generated by the sitting Commissioners. + Mr. Franks. You think that the sitting Commissioners should +just come together and find some sort of new collective +approach or new collective mission that they could all buy into +and that somehow that would create the continuity and the +commonality among the members that would help it go forward +in---- + Mr. Redenbaugh. If you're limiting me to one thing, that's +the one thing, because Staff Director Marcus is a good manager. +He does know how to put those processes in place. But in the +absence of a clear and shared purpose, it'll be difficult. + Mr. Franks. That's always one of the great challenges in +life, is to not know what you want and breaking your neck to +get it. But thank you, Mr. Commissioner, and thank you all. + Mr. Chabot. Does the gentleman yield his time back? + Mr. Franks. Yes, I do. + Mr. Chabot. Okay. Thank you. The gentleman's time has +expired. + It's my understanding that the gentleman from North +Carolina, Mr. Watt, has to go to another Committee, so Mr. +Conyers is okay with calling on Mr. Watt next. So we will do +so. The gentleman is recognized. + Mr. Watt. Thank you, Mr. Chairman. Actually, I just had my +staff person tell me that they're about to shortly take up the +Congressional Black Caucus' budget on the floor, so I would +just say that the questions that have been directed to Mr. +Marcus and Mr. Harbison, while critically important from a +management perspective, I would not even go into the +micromanagement at that level about whether you've got too much +office space or, you know, those kinds of things. + I think the more important questions really are the ones +that have been pursued by my colleague who just got through +asking questions, and that's the important debate--and I'm not +sure it's a debate--between Commissioner Redenbaugh and +Commissioner Yaki, both of whom, it seems to me, agree that +there needs to be something, whether it's the existing Civil +Rights Commission or some successor to the Civil Rights +Commission with a different portfolio structure mechanism. + And I think we probably benefit more from allowing and +asking Commissioner Redenbaugh and Commissioner Yaki to give us +their vision. I'm not sure that we have the luxury of saying to +the Commission you can write your own charter, because the +Commission was a creation of the Congress and the executive +branch at some point. And Commissioners don't sit down and +decide what they are going to do. There is a mission here, and +I think what has happened with this Civil Rights Commission and +predecessor Civil Rights Commissions, whatever their +composition, is much of what has happened in this Congress. + We've got a wonderful purpose. We have some wonderful +people. But the processes have just--you know, and we had--we +could sit here and blame the Commission for that, but we had a +tremendous meltdown in our process just yesterday in this very +Judiciary Committee, where we sat from 10 o'clock in the +morning until 5:30 yesterday afternoon going through a charade. +That doesn't mean that we should do away with the Judiciary +Committee. We have meltdowns in the processes of the House that +deprive us of being able to participate effectively in the +democratic process. It doesn't mean we ought to do away with +the House. The purpose, the democratic purpose of the House is +one that people around the world fight, die, and, you know, +bleed for. But the processes have fallen prey to partisan +divides and philosophical divides that have made it impossible +for us to talk to each other and honor the processes that +should be in place to facilitate our talking to each other. + And so I'm hopeful as a result of this we won't get so tied +up on what document we are subpoenaing and whether we got too +much office space or, you know, whether this comma or that +period fits in the right place. I hope we can spend some time +focusing on this broader debate that Commissioner Yaki and +Commissioner Redenbaugh have opened for us, and if we do a +better job in this Committee of creating a bipartisan +perspective on the mission and purpose of the Civil Rights +Commission, I suspect that the Civil Rights Commission can do a +better job of playing out what that mission is. + And while I'm disappointed that the Commission has reached +this fork in the road, I'm no more disappointed about that and +the $8 million that we have at risk there and at stake there +than I am disappointed about our own failings in our own +institution here, where we have much, much, much more +financially and philosophically and image-wise at risk. + So, with that, Mr. Chairman, I will yield back. + Mr. Chabot. Thank you. The gentleman yields back, and I +think the gentleman makes some very good points, and I would +agree that we should spend time looking at the overall picture. + I do believe that looking at how resources are being +allocated, including office space, and the money that's being +spent there when it could be perhaps better spent toward +working toward improving civil rights in this country is +important as well. + [Whereupon, at 10:31 a.m, the Subcommittee proceeded to +other business, and reconvened at 10:48 a.m.] + Mr. Chabot. Again, we apologize for any inconvenience on +having markups, but we have to do it while we have sufficient +Members here to actually record the vote. + The gentleman from Iowa, Mr. King, is recognized for 5 +minutes. + Mr. King. I thank the Chairman and the panel for their +testimony this morning. + Just to make a few remarks to Mr. Redenbaugh with regard to +your testimony, I would tell you, Commissioner, that I was +impressed with your testimony. It was concise, it was emphatic, +it was clear, it showed conviction, and it was without notes. +And all of those things add up to tell me that this is +something, a decision and an opinion that you've come to after +long deliberation and long service to your country. And I +appreciate the brief recommendations that you have made with +regard to how the Commission might be reformed into an +effective body. And I wanted to make sure that that observation +is on the record, but I'd like to direct my questions to Mr. +Marcus, at least in the interim here. + That is, Mr. Marcus, I know you haven't been on task here +very long, just a few months, and yet you walked into an +environment that was a fiscal and policy mess, I think it's +clear from this testimony and much documentation. And we +apparently are not going to have access to the financial +records up to that point that you stepped into this, so I would +ask you: Have you prepared--I'm not going to ask you what steps +you've taken because you said you've taken some of the 20 +recommendations, the GAO's recommendations. But have you +prepared a written document that would be a road map or a plan +to get the fiscal and the policy house in order? + Mr. Marcus. Thank you, Congressman. We have developed a +plan with respect to 20-odd recommendations which we are now +implementing. With respect to the other reforms, we are taking +as our road map for at least the beginning phases the +recommendations of the Government Accountability Office +beginning with the most recent reports, including the report +which has not yet been formally issued. Our intent is to start +with those findings that have already been made where we know +what the problem is and where it's been documented and where we +have recommendations which appear to be sound. + That will take some year to accomplish. Those +recommendations incorporate by reference additional +recommendations by the OPM. So our starting point is with the +recommendations that have already been made by the GAO in +roughly reverse chronological order, including the OPM +recommendations. I suspect that we will need substantial +additional changes during what I would call the second year of +reform, but the beginning phase is with the documents that are +already publicly available from the GAO. + Mr. King. Mr. Marcus, if this Congress were to have +sufficient patience and lend itself to the plan that you would +bring forward, what would be a specific date that you would ask +for to present the changes before this Committee and +demonstrate that the entire task of fiscal and policy and +functional organization had been--would you be willing to put +this back before the scrutiny of this Committee? What would be +an appropriate time? + Mr. Marcus. For problems that have built up over a period +of many years, things can't be turned around in a day. I would +think for a complete turnaround of the institution, it's hard +in less than 2 years to do that. But I would say---- + Mr. King. That's sufficient. It gives me a sense. And I +didn't want to nail you down to a specific date, but I get a +general idea. The task is large. How many staff now work for +the Commission? + Mr. Marcus. The number fluctuates slightly, but it's +approximately 67, including the 8 Commissioners and their 8 +assistants. + Mr. King. Have any been hired since you came on board? + Mr. Marcus. Yes. I have hired one and, in addition, there +is, I believe, one who was hired subsequent to my--excuse me, +was hired prior to my arrival but who arrived subsequent. + Mr. King. So what would be full staffing, then, to fill +those offices, if that's the intent? + Mr. Marcus. Oh. + Mr. King. I mean, I had understood that about 70 maybe was +about full staff, but apparently in this testimony today, it +might be more? + Mr. Marcus. Well, we have some 37 vacant offices. As for +the number of positions that we have that are vacant, I'm not +sure of the number, but it's a substantial number. We certainly +would need to have a larger number of people than we have now. +Whether that number is equal to the number of formal vacancies, +I'm not sure. + Mr. King. More money, more people. And who hired the staff +that's there today? + Mr. Marcus. Some of them have been around for over 30 years +and were hired by the staff directors from the seventies or the +sixties. Most, and in particular, most in headquarters, were +hired during the nineties and in the first few years of--since +2000, so most was my immediate predecessor and his predecessor. + Mr. King. Thank you. I'd ask unanimous consent for one more +minute. + Mr. Chabot. Without objection, so ordered. + Mr. King. I thank the Chairman. I'd just direct the +question to Mr. Harbison. Mr. Harbison, you've been involved in +financial management for 30 years, and you spoke to your +professionalism in your testimony and 14 years there with the +Commission. And I'd ask you, do you believe it was your +fiduciary responsibility to have a general ledger and keep +track of that? And if--you know, yes or no on that one, and +maybe some opinion, but also where is the general ledger? + Mr. Harbison. The first question is yes, I do believe it. +And the second question is that I'm advised that a general +ledger does exist and has existed and has been provided to the +auditors. + Mr. King. But you as the financial officer do not have +access to the general ledger and you've been there 14 years? + Mr. Harbison. I am limiting those--the comments previously +to the last year. Prior to that, yes, I did have access to the +general ledger. + Mr. King. Thank you, Mr. Harbison. + Thank you, Mr. Chairman. + Mr. Chabot. Thank you very much. + Just to be clear, did you say you haven't had it for the +last year? + Mr. Harbison. That is correct, sir. + Mr. Chabot. Where has it been? + Mr. Harbison. It has been with the previous staff director +and the contractor who's doing our accounting systems. + Mr. Chabot. And to your knowledge, it's still with him or +them? + Mr. Harbison. It's with the accounting service provider +that's doing--that's contracted to do our accounting. + Mr. Chabot. Okay. But you haven't seen---- + Mr. Harbison. They maintained---- + Mr. Chabot. You haven't seen it or had access to it within +the last year; is that correct? + Mr. Harbison. That is correct. + Mr. Chabot. Okay. Thank you very much. + The gentleman from Michigan, the distinguished Ranking +Member of the full Judiciary Committee, Mr. Conyers, is +recognized for 5 minutes. + Mr. Conyers. Thanks, Mr. Chairman. + Let me ask our four witnesses if they have any free advice +they would want to give us. I think I'm probably the last +person that will be asking you questions. Is there--well, maybe +there's only--I am the last. + Let me start with Mr. Yaki. You're the most free of any +past activities with this Committee, so you're considered the +innocent witness. + Mr. Yaki. Thank you. [Laughter.] + Mr. Conyers. What are you--now that you've got the flavor +of here in Congress, nobody got their hides skinned off, and +there was no emotional outbursts, and everybody was pretty +rational, what free advice would you leave the Members of the +Committee and the Chairman and Ranking Member Nadler and the +rest of us to think about as we move forward? + Mr. Yaki. Thank you very much, Congressman Conyers, for +asking that question, and in deference to Congressman King, I +threw away my notes so he'd be more impressed with what I'd +say. + I think it's very important that we recognize that if there +were sins of the past, that they not go toward shackling of the +future of this Commission. I think it's important that the kind +of oversight that this Commission or any agency needs or +requires from the Congress is done in a way that ensures that +our mission must go forward. + I would say this: One of the things that struck me as the +idea that was advanced by Mr. Redenbaugh about the clear +purpose, I would disagree. I believe we have a clear purpose. I +think that purpose is the general investigatory and fact- +finding function in enforcing and examining civil rights in +America. I think that is sufficiently clear. I think what +perhaps is not so clear is that as we move forward, we are +looking at individual agendas. And I would submit--and I am +going to suggest this to the entire Commission tomorrow--that +we should look at a way to try and re-energize the agenda and +the scope of the Civil Rights Commission and have national open +hearings where people can come and talk and discuss and tell us +what is going on out there, what are the new things that are +happening, what things may not have been picked up on, are +being underreported, overreported, not reported at all, so that +we may begin to look at that and from the ground up fashion a +truly national civil rights agenda. I think that is an +important component of what we want to do going forward. + But as for what this Committee does, I would hope that +being someone who comes from Government and from a local +legislature, I would hope that our staff director would work +closely with the Chairman and the Ranking Member to apprise +them of the reforms that are going on so they are comfortable +moving forward to allow us to continue the important mission of +protecting civil rights in this country. + Mr. Conyers. Commissioner Redenbaugh, have you reconsidered +your resignation based on the wonderfully warm reception you've +received here in the Judiciary Committee? + Mr. Redenbaugh. What I have considered is I'd rather come +here than there. [Laughter.] + It's much more collegial here. I was touched, Congressman +Conyers, by what you said and particular thank you, but no, I +have not. + Mr. Conyers. Well, I have the suspicion you're going to try +to help out and when people come to you, even Commissioners, +for counsel that you'll probably give it anyway, even though +you're not on it. And I want to encourage you to continue to +look at it and also feel free to consult with a number of us +here on the Committee, because, you know, let's face it, +there's a certain amount of politicalization of the process +that is unavoidable. + Mr. Redenbaugh. Right. + Mr. Conyers. I wish it weren't. Our votes frequently come +in the floor, they're quite partisan. I mean, the D's vote one +way, the R's vote another way, and yet we say but this issue is +not a matter of Republicans or Democrats, but that's the way +the vote goes. + So I don't feel--I mean, I would like that to be minimized, +the partisanship, but the fact that it exists in a subject as +prickly as civil rights is not shocking to me. The question is +can we all get it together, and this Committee plays a huge +role in helping you facilitate that. And that's what we want to +do. + We're hoping that you'll avoid a lot of--as much partisan +rancor as possible because it does, as everyone here has said +so well, take away from the projects, the goals of the +Commission itself. And we want to make sure that that +continues. + For example, we've got the Cato Institute, the Heritage +Foundation, which now seem to be weighing in, Mr. Marcus, in +big time on the opinions. Now, maybe they were all the time, +anyway. I know there are very few subjects that they decline to +get into. But we've got to make sure that this thing comes off +right. For us to be investigating whether privatizing Social +Security is going to shortchange African Americans, for +example, Chairman Chabot, is a subject that is being gone into +by the Ways and Means Committee and numerous experts. + Mr. Chabot. The gentleman's time has expired, but if I +could just comment. I don't know that anybody's talking about +privatizing Social Security. There are some that are talking +about personal savings accounts. + Mr. Conyers. Personal savings accounts, okay. Same thing. +[Laughter.] + Right? + Mr. Chabot. I thought you might think that, but I think +there's a difference. + Mr. Conyers. Okay. But even so, the President is on a 60- +day tour. Members of Congress have been urged to hold town hall +meetings. But one of the--I haven't heard anybody suggest we +ought to check with the U.S. Civil Rights Commission to see +what they think about this. + So, anyway, let's try to keep it down, ladies and +gentlemen. Let's try to keep this thing on a realistic basis so +that the cries of partisanship won't continue to arise again. +And I want to thank all of you for coming here. I'm hoping that +the Chairman of the Committee will see it in his interest to +get the rest of the Commissioners up here and continue this +kind of dialogue. + Mr. Chabot. We're certainly willing to do everything that +we can to make sure that all the information that this +Committee needs to get adequate oversight of the Civil Rights +Commission is done, and we would consider future hearings, and +we would work with the minority staff to accomplish that, if +it's deemed necessary and appropriate. + We thank the gentleman for his comments, and I would now +recognize the gentleman--is the gentleman from Indiana--did he +leave? Okay. + At this time if there are--we were going to go into a +second panel. This has gone off--let me ask--I recognize myself +for a couple of follow-up questions. If any other Members want +to do that in the short time that we have. + Let me ask, Mr. Marcus, just following up on some of the +comments that Mr. Harbison had made in his testimony, relative +to the ledger and the books and Booth and that sort of thing. +Would you explain the duties of the Commission, the contracts +to Booth Management, and could you explain--you know, you have +the Director of Budget and Finance, and then you have Booth +that apparently has a lot of the books. Would you explain +whether the new director, who would be a GS-15 level Federal +employee, would be responsible for the duties currently being +performed by Booth Management? + Mr. Marcus. Yes, Mr. Chairman. The accounting and financial +functions as well as related administrative and management +functions are within the Office of Management and under the +responsibility of the Director of Management, Tina Louise +Martin. The position of Director of Budget and Finance was +previously held by Mr. Harbison, who is now Director of Human +Resources and Personnel, which creates a vacancy which we will +fill at the GS-15 level. + That person will be responsible for oversight of all budget +and financial matters, including additionally certain strategic +planning responsibilities. That person will be responsible with +dealing with oversight of all accounting practices. Currently +we have a full service accounting provider named Booth. The new +person would either interact with Booth or its successor, which +might be a contractor or a combination of personnel. + I suspect that whatever we do with the new Budget and +Finance Director, we would need a substantial amount of the +work to be outsourced either to Booth or to another entity. + Mr. Chabot. Okay. Let me shift gears. Have you conducted a +human resources evaluation of the Committee staff to get an +accurate understanding of the Commission's staffing strength +and needs? And what do you intend to do relative to making sure +that the staff is as efficient as possible and that civil +rights are being pursued? + Mr. Marcus. I have, of course, done an informal evaluation +of the needs of the staff so as to determine what needs to be +done on a right-away basis in light of the various emergencies +that we have currently. As for a more formal or larger-scale +plan, I know there is discussion among some of the +Commissioners of various sorts of audit or analyses that might +be done, and I think that that is possibly within the rubric of +reforms that they are being considered. Whether it would be +simply an analysis or a form of personnel audit is, I think, +something that they are in the process of considering. + Mr. Chabot. Okay. Thank you. + I have a number of other questions. We've got three votes +on the floor, and I don't want to have the witnesses have to +come back here. So let me just ask one final question, and then +if any other Members have any questions they'd like to ask in +the time we have left, we'd be willing to do that. + Mr. Redenbaugh, let me go back to you. You had mentioned in +your opening statement a number of things, but one thing you +said struck me. You said that we don't have a clear purpose, we +have agendas. And could you explain, expound upon that a bit, +what you meant by that? + Mr. Redenbaugh. Yes. What I mean by that is we don't have-- +there's not an overarching theme or mission. To say that we're +for civil rights doesn't--that merely announces we're not in +the Department of Transportation. It doesn't--it isn't any +organizing principle around which we can gather. So in the +absence of that--and we have certain methods, like our fact- +finding that Commissioner Yaki spoke about is one of our +methods, but there isn't a mission that the Commissioners have +even considered or adopted or embraced. Then in the absence of +that, there are agendas put forward by Commissioners for +particular projects, myself included. + Mr. Chabot. All right. Thank you very much. My time hasn't +expired, but I'm going to call it expired. + Mr. King, did you have any final thoughts or comments that +you wanted to make? + Mr. King. Thank you, Mr. Chairman. I do, and I'll try to +keep them brief. + As I sit here and listen to this testimony, I know there's +a mountain of evidence underneath this testimony, and, Mr. +Yaki, I appreciate you throwing away your notes and giving us +your testimony. But I'm happy enough to hear it off the page, +too, and it comes from the heart when it's truthful, and I know +that you're limited in your background being on the Commission, +but you gave us your best presentation today, and I appreciate +that as well. + I will just say that a lot of us here are out of patience +or down to the very last few drops of it, and there have been +some months to take some steps. And even though reaction to a +GAO recommendation, there have been three or four other times +that the GAO has made those recommendations when there hasn't +been a response, and maybe we'll see some response this time. +But I would say that it also is incumbent upon the Commission +to be proactive, to step ahead of the GAO, and to lay out some +solid terms of reform, both in agenda and purpose and also in +financial management. And to have not had access to that +general ledger for over a year in the position that you were +in, Mr. Harbison, I can't express what that means to me. If I +had a financial officer that said, well, I'm sorry, your +finances are in a mess but I couldn't get my hands on the +records, I just don't think that can be excused. + Furthermore, I'd ask the Commission to lay out an agenda of +issues they may want to take up, and some of those that comes +to mind are Adarand, for example. I've spent my life in the +contracting business. I know what that case says. I followed it +from the beginning, and yet it has been circumvented by a thing +called goals rather than quotas. Would that be an appropriate +subject matter for a Commission to take up. + There are a number of others, and rather than go down +through that list, Mr. Chairman, I would just say that, you +know, I've had a bit of a voice here and I would add one more +thing, and that is that most of the staff has been hired by the +predecessor, and that's where their loyalty would be, that's +where their philosophy would be, and that's where the problem +to some degree has been. And I would be--I would suspect that +it would be very difficult to do an overhaul of your Commission +without making changes in staff, to bring in fresh faces, fresh +people, and fresh philosophy so that you could actually truly +get a new start. And I think many of the Commissioners have +voiced a commitment to make a new start, and those are my +recommendations on how to do it. + I thank you, Mr. Chairman. + Mr. Chabot. Thank you very much, Mr. King. We appreciate +your comments. + Mr. Harbison, would you--you had a prepared statement. +Would you be able to submit that for the record? I know most of +your comments were---- + Mr. Harbison. I have pretty much marked the one I have up, +Mr. Chairman. I'd be happy to perhaps submit it later. + Mr. Chabot. That would be very good. If you could submit +that, we'd appreciate it. + I want to thank all the witnesses for being here this +afternoon--or, excuse me, this morning, and we have some votes +on the floor that we have to head over to right now. And, Mr. +Redenbaugh, I'm particularly--again, we're sorry to see you go. +We thank you very much for the 15 years that you spent. And I +have to say just personally there have been a number of my +fellow Members of Congress and others that have talked about +doing away with the Civil Rights Commission. I do not +personally share that view. What I would much rather do is +reform the Civil Rights Commission and have it once again stand +for those things that in some years it stood through, as you +mentioned in your testimony, Mr. Yaki, very significant +historical things that it played a role in. And it's had +problems over the years, some of them mismanagement, some of it +financial issues, and there's just so many things that need to +be resolved, and we certainly want the Commission's cooperation +in obtaining these things. + And as I mentioned, I see some of the folks, the new folks, +as really being part of the solution, not part of the problem, +trying to reform this agency so that it can once again be the +great Civil Rights Commission that it was intended to be. So +that's what my hope is. I don't know whether that's going to be +able to be accomplished or not, but that's certainly my goal. + And thank you for being here this morning. If there's no +further business to come before the Committee, we're adjourned. +Thank you. + [Whereupon, at 11:13 a.m., the Subcommittee was adjourned.] + + + A P P E N D I X + + ---------- + + + Material Submitted for the Hearing Record + +Prepared Statement of George Harbison, Director of Human Resources, and + Acting Chief of Budget and Finance, U.S. Commission on Civil Rights + + + + Response to post-hearing questions submitted by Chairman Steve Chabot + to Michael Yaki, Commissioner, U.S. Commission on Civil Rights + +
+ + + Response to post-hearing questions submitted by Chairman Steve Chabot + to Kenneth L. Marcus, Staff Director, U.S. Commission on Civil Rights + +
+ + + Response to post-hearing questions submitted by Chairman Steve Chabot + to George Harbison, Director of Human Resources, and Acting Chief of + Budget and Finance, U.S. Commission on Civil Rights + +
+ + Letter of Resignation from Russell G. Redenbaugh, Commissioner, + U.S. Commission on Civil Rights, to Majority Leader Bill Frist + +
+ +Letter to Chairman Steve Chabot from Abigail Thernstrom, Vice Chairman, +and Jennifer C. Braceras, Commissioner, U.S. Commission on Civil Rights + +
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