budget outlays over time

Tight Budgets Constrain Some Regulatory Agencies, But Not All

October 08, 2014

By Susan E. Dudley & Melinda Warren
Each year we examine the President’s proposed Budget of the United States to identify the outlays and staffing devoted to developing and enforcing federal regulations. This "regulators' budget" report covers agencies whose regulations primarily affect private-sector activities, and expressly excludes budget and staffing associated with regulations that govern taxation, entitlement, procurement, subsidy, and credit functions. This year's report finds that while tight budgets are constraining regulatory spending at many federal agencies, those that are at least partially funded by fees on the entities they regulate are supporting substantial increases in regulatory outlays and staffing.

department of energy

Looking Back to Move Ahead

October 08, 2014

By Sofie E. Miller
Retrospective review is meant to ensure that regulations achieve their intended outcomes and to improve agencies' use of ex ante analysis by comparing projected outcomes with actual results. To that end, the Department of Energy sought public input on how to best promote periodic retrospective reviews of its rules and how to select the rules to review. This article recommends that DOE should take three steps to further its retrospective review efforts. First, it should incorporate plans for retrospective review into its economically significant or major rules. Second, it should allow enough time between releases of new energy efficiency standards to allow for an effective review of each rule’s effects before issuing updated rules. Third, it should use the Herfindahl-Hirschman Index (HHI) to measure whether its existing energy efficiency standards have had negative effects on competition in the regulated industries.

Australia

Australia's Regulatory 'Bonfire'

October 08, 2014

By Susan E. Dudley & Jeff Bennett
The World Economic Forum ranks Australia 128th in the world in terms of the burden of government regulation, noting "the business community cites labor regulations and bureaucratic red tape as being, respectively, the first and second most problematic factor for doing business in their country." Concerns over regulatory burden have resonated with the Australian coalition government elected last September, which committed to "building a stronger, more productive and diverse economy with lower taxes, more efficient government and more competitive businesses…by reducing the regulatory burden that is strangling Australia’s economic prosperity and development.” This article outlines the Australian government's plans for regulatory reform, and the effects of those reforms on competitiveness and regulatory burden.