Friday, November 19, 2010

What motivates HUD Secretary Shaun Donovan?

In this article from Thehill.com Rep. Dennis Cardoza (D-Calif.) and other House Democrats angry with the HUD’s response to the housing crisis escalated their fight Thursday by stripping the U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan of his travel budget in response to a trip Donovan took to Rio de Janeiro, Brazil. The House approved Cardoza’s amendment by voice vote, and it was later set on the Transportation, Housing and Urban Development spending bill. In this circumstance the "Budget Maximizing Bureaucrat"as Mueller would put it, used his budget for his own self use and as a consequence congressional action was taken against him. This also questions what really drives a senior Bureaucrat. In this circumstance, we see that Congressional oversight had control of HUD's budgetary process, which Weingast and Marshall state is one of three factors that allow congress to exercise control. So, even though in the case of most bureaucracies personal utility is not affected by job utility, in this case the repercussions not only affect Secretary Donovan but also affect the budget of the whole agency in achieving its goals of better housing for U.S. citizens. In a separate article from Federal News Radio, Secretary Donovan has also led HUD in Hiring Reform, in order to meet President Obama's goal of 80 days to bring in a new federal employee. The article states that , "The Department of Housing and Urban Development went from being the poster child for the dysfunctional federal hiring process to being a model of what others are striving for." I can attest to that after working there for the past four summers, trust me it has gotten a lot better (lol). The main point here is that there is most likely some ulterior motive that just wanting to adhere to the President's goal of 80 days to bring in a new employee. If the reputation of the agency or the output of the Bureau increases for the better, that will positively reflect on the Senior Bureaucrat, Shaun Donovan. So, there are a lot of motives for this reform that might not be clear to the average person. So it would seem, based on the information contained in these two articles, that the utility function of a Senior Bureaucrat discussed in Mueller is pretty applicable to Shaun Donovan because almost all of the criteria that make up that utility function can be seen in the actions of Shaun Donovan.

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