Study indicates restraint in federal regulator's budget and staffing

St. Louis, Mo. and Arlington, Va., May 11, 2006 -- Spending by federal regulatory agencies is scheduled to decline when adjusted for inflation according to "Moderating Regulatory Growth: An Analysis of the U.S. Budget for Fiscal Years 2006 and 2007," this year's edition of the annual report on regulatory spending and staffing by the Mercatus Center at George Mason University and the Weidenbaum Center on the Economy, Government, and Public Policy at Washington University in St. Louis.

In 2007, the Regulators' Budget for the 68 regulatory agencies is estimated to be $44.2 billion, up slightly from $44 billion in 2006, but a 1.4 percent decline after adjusting for inflation.

"This is the 28th year that we have been tracking the spending and staffing for the regulatory agencies as proposed in the president's budget," said the Weidenbaum Center's Melinda Warren, a study co-author. "Since 2000, the budget has grown by $12.5 billion, a 44 percent real dollar increase."

Melinda Warren

"Consistent with President Bush's stated highest priorities, the 2007 Budget requests the largest dollar and staff increases for regulatory components of the Department of Homeland Security." said the Mercatus Center's Susan Dudley.

Despite the spending restraint evident in the 2007 budget request, regulatory expenditures and staffing are 44.1 percent larger in 2007 than they were in 2000—driven largely by increases in homeland security regulation. The budget of agencies now housed in the Department of Homeland Security has doubled since 2001.

The study also tracks the number of people needed to monitor and enforce regulation at the regulatory agencies. Staffing at the agencies is expected to reach an all-time high of 245,361 in 2007, a 40 percent increase since 2000. Again, the Department of Homeland Security leads the federal workforce with the largest regulatory staff of 125,132 employees. The Department of Agriculture has the second largest regulatory staff at 17,566 with over 500 new positions being requested in the Animal and Plant Health Inspection Service. The Environmental Protection Agency has the third largest regulatory staff at 17,360.

The report is available online at the Mercatus Center (www.mercatus.org) and Weidenbaum Center (http://wc.wustl.edu) web sites.

The Mercatus Center at George Mason University is a research, education, and outreach organization that works with scholars, policy experts, and government officials to connect academic learning and real world practice. The mission of Mercatus is to promote sound interdisciplinary research and application in the humane sciences that integrates theory and practice to produce sustainable solutions that advance a free, prosperous, and civil society.

The Weidenbaum Center on the Economy, Government, and Public Policy at Washington University in St. Louis supports scholarly research, public affairs programs, and other activities in the fields of economics, government, and public policy, serving as a bridge between scholars and policy makers.