Update on the President's Management Agenda

The table below provides an update on DOL's implementation of the President's Management Agenda as of December 31, 2004.

In the past year, DOL has earned status upgrades on each of the five initiatives and attained green status in four of the Government-wide initiatives. In Human Capital, DOL adopted: competency models to assess and improve employee skills; multi-faceted, well-targeted staff development and mentoring programs; and well-planned systems to evaluate rank-and-file performance and strengthen managerial accountability. In 2004 DOL completed six streamlined competitions and one standard competition that will yield savings of more than $3 million. DOL showed that program managers use financial information to improve operations and that it has a plan to expand the use of financial data to increase efficiency. In E-Government, DOL established a new management system to ensure the efficient and effective management of all its E-Government and IT projects. DOL also uses performance information to make operational decisions, evaluate employees, and establish long-term and annual goals. DOL is able to provide full and marginal costs for key program areas and continues to improve program efficiency measures.

DOL has made significant progress in providing outreach and technical assistance to enhance opportunities for faith-based and community organizations (FBCOs) to compete for Federal funding. In 2004, DOL awarded 170 grants totaling $71 million to FBCOs. To support the Real Property initiative, DOL is developing an asset management plan. The Department has assessed its programs to determine which are susceptible to significant improper payments and has plans to measure and reduce improper payments. (Because this is the first quarter that agency efforts in the Eliminating Improper Payments Initiative were rated, progress scores were not given.)

1 2006 reflects the transfer of Employment Service Grants to Training and Employment Services.

2 2004 and 2005 rescissions of mandatory funding are now reflected in mandatory outlays.

3 2006 reflects the Black Lung debt refinancing, which includes a one-time payment to Treasury. There is no Government-wide budgetary effect

until 2014, when the excise tax rates would be extended.

4 Net mandatory outlays are negative when offsetting collections exceed outlays.

MEETING PRESIDENTIAL GOALS

Supporting Iraq and Afghanistan as they continue their transition to democracy and rule of law. These activities will contribute to the long-term security of America and the world.

• Assisting key partners in the War on Terror, including Turkey, Jordan, Pakistan, Indonesia, and the Philippines.

Improving peacekeeping capabilities through the Global Peacekeeping Operations Initiative and strengthening reconstruction and stabilization capabilities.

• Stemming the flow of illegal drugs around the world through counternarcotics activities in the Andean region of South America and in Afghanistan.

• Fostering democracy and freedom throughout the world through bilateral programs as well as through the activities of the National Endowment for Democracy and the Broadcasting Board of Governors.

Promoting Economic Opportunity and Ownership

• Stimulating economic growth and development in countries which honor basic human rights, invest in the education and health of their citizens, and promote free markets, through the Millennium Challenge Account.

MEETING PRESIDENTIAL GOALS-Continued

• Working with the Multilateral Development Banks to pool the contributions of many donors to assist developing countries with positive growth policies.

• Providing keys to economic growth and lasting democracy in the developing world through education initiatives.

• Bringing developing countries out of poverty while creating job opportunities for Americans by reducing barriers to free trade. The Budget anticipates implementation in 2006 of free trade agreements with five countries of Central America and the Dominican Republic, Bahrain, and Panama, as well as continued progress on free trade agreements with countries in Asia, Africa, and the Americas.

Supporting a Compassionate Society

Continuing to expand the President's Emergency Plan for AIDS Relief with an unprecedented effort to prevent the spread of AIDS, treat infected individuals, and care for those affected by HIV/AIDS, including orphans.

• Providing for vulnerable populations around the world, through food aid and other humanitarian assistance such as shelter, health care, water, sanitation, and disaster and reconstruction assistance.

• Maintaining a generous refugee resettlement program while providing needed humanitarian assistance to those awaiting return to their homeland.

Making Government More Effective

• Ensuring that the composition of U.S. Government agencies and personnel overseas is appropriately aligned with our foreign policy priorities, security concerns, and overall resource constraints, through the President's initiative to "rightsize" the U.S. Government's presence

overseas.

Promoting democracy and freedom around the world is fundamental to peace and security at home. The Budget includes a further expansion of our current bilateral programs to strengthen democratic institutions worldwide and new efforts, such as a contribution to the United Nations Democracy Fund, which was announced by President Bush at the United Nations General Assembly in September 2004. The Fund will provide technical assistance to nations adopting democratic reforms.

In particular, the United States is committed to supporting the peoples of Iraq and Afghanistan in their historic quest for freedom and democracy. Our mission in these sovereign nations is to promote stability, security, and prosperity to ensure that they never again are ruled by regimes that oppress their citizens and support terrorism.

Creating a Stable Iraq. Iraqis, with help from the Coalition and many partners, are rebuilding their country and offering freedom, new opportunities, and much needed services to their people. While security problems remain a major challenge for the Iraqi people and for development in various parts of the country, significant progress has been made in many key areas.

The Iraqi Interim Government, led by Prime Minister Allawi, demonstrated resolve and a clear commitment to Iraq's transition to democracy, including free and fair elections to establish a more representative government. The new Iraqi currency is stable and has appreciated against other currencies. Oil revenues for the Iraqi people since June 2003 are estimated at over $20 billion. Iraq's own security and police forces are being rapidly expanded, trained, and equipped so that Iraq can protect its own people and its borders.

Assistance from the United States and other countries will continue to have an impact. With key infrastructure projects underway across Iraq, millions of Iraqis will benefit from greater access to basic services. The United States will continue to help the Iraqi government deliver basic services to its people, collect revenues, and develop a free market system capable of joining the global economy. The 2006 Budget provides $360 million for economic assistance to Iraq for these activities.