May: The Functionary on PBO expenditure review recommendations

Good discussion of the PBO recommendations:

…WHY IT MATTERS
It’s about measurement and accountability

It introduces a methodology to track personnel spending using more frequent pay data. It separates projections for civilian and non-civilian staffing (military/RCMP included). It distinguishes head counts (actual people) from FTEs (work equivalent). This is critical because past cuts reduced head counts while FTEs actually rose.

It’s a baseline for expenditure review. It sets clear starting points for measuring cuts, which didn’t exist before. It allows tracking of whether the public service is truly shrinking under the expenditure review. It provides capacity for twice-yearly updates so parliamentarians can monitor progress.

It’s an operating split vs. a capital budget split. The government plans to balance the operating budget while splitting expenditures into operating and capital budgets.It creates an incentive to shift operating expenses into capital (childcare transfers, immigration programs, infrastructure) to make balancing easier. Without clear definitions, departments may label operating expenses as “productivity investments” and put them under capital.

There are risks for public-service managers. Operating budgets face greater restraint since balancing that budget is Carney’s fiscal anchor. There is uncertainty over what counts as operating vs. capital. There’s a need to deliver the same services with fewer resources. Previous cuts show departments often hire more permanent staff to maintain service despite headcount reductions.

POST-GIROUX
Whoever takes over, it will be temporary

Giroux’s term ends Sept. 2, five days after departments’ Aug. 28 deadline for proposed 15-per-cent spending reductions that will shape the next federal budget in October. He leaves with another 20 or so reports in the pipeline for his successor.

I wrote in July about the unknowns surrounding Giroux’s fate and the huge impacthe’s had on the office. At the time, the Privy Council Office said it was committed to appointing a “highly qualified individual” and noted the Parliament of Canada Actallows for an interim appointment in the event of a vacancy.

This week, it offered no timeline other than in to say “due course.” It didn’t say whether the position will be filled before the budget.

The only option now is a temporary appointment until the House and Senate return. A formal appointment requires approval from both chambers. Some suggest the government would prefer an interim watchdog rather than have its moves scrutinized by someone with Giroux’s experience and track record.

Source: The Functionary