9/14/2011

Media Advisory

Congressional funding for the 2012 Economic Census is in jeopardy, and the U.S. Senate Committee on Appropriations is set to mark up the Census Bureau's FY2012 Appropriation tomorrow (September 15). The National Association for Business Economics (NABE) and the American Economic Association (AEA) are co-sponsoring a briefing, "Hi-Beams for the Economic Road Ahead: The Importance of the 2012 Economic Census for Business and Government Decision-Making," on Monday, September 26, 2011, at 12:00pm in the Rayburn House Office Building, Room B-340. More

 

9/13/2011

Tight budgets for our statistical agencies were expected, but the House mark for the Census Bureau came as a complete surprise.  A $294 million cut, which would put fiscal year 2012 funding 25 percent below fiscal 2011, would leave the Census Bureau only one alternative—eliminate the 2012 Economic Census to save $124 million in FY 2012.

The last time the Economic Census wasn’t funded was during the Eisenhower Administration.   The outcry from business and other data users led the Secretary of Commerce to form an Intensive Review Committee to study the issue.  The committee’s report prompted Congress to pass Title 13 of the U.S. Code in 1954 requiring an Economic Census every five years.

Reliable business statistics from the Economic Census are critical to evaluating the condition of the American economy.

• The Economic Census is the most authoritative and comprehensive source of information about American businesses from the national to the local level. 
• The Economic Census is the foundation for measurement of business activity across our economy.
• The Economic Census provides accurate benchmark statistics that are the fundamental building blocks of economic indicators such as the Gross Domestic Product (GDP), monthly retail sales and the producer price index.
• Only the Economic Census provides consistent, comparable and comprehensive statistics on industry revenues and other measures of American business performance across industries and geographic areas.
• Economic assistance programs and emergency and transportation planning rely on information about business location, size, and other characteristics available only from the Economic Census.
• The Economic Census is the only consistent, nationwide source of data on the characteristics of U.S. businesses.
• Without the Economic Census, statistics about the American economy that are essential to understanding the competitiveness of U.S. business and industry and sound public and private sector planning would no longer be available.
• The Economic Census provides statistics that allow businesses, investors, policy makers, trade associations, chambers of commerce and others to answer vital questions such as:
• How do we know the size of industries and businesses?
• How can we determine the economic activity of communities large and small?
• Where should I place a new business?
• What products in my industry are growing?
• What materials are purchased by my industry?
• What industries purchase my products?

The NABE Statistics Committee has begun talking with congressional staff members to explain why the Economic Census is so critical to our national statistical infrastructure. We know many difficult funding decisions need to be made during the forthcoming appropriations process, but maintaining the quality of our economic statistics that inform us about the state of our economy is an exceedingly important priority.  The gross domestic product (GDP) revisions in July already demonstrated how important more complete source data can be to the measurement of economic growth.   Many of the annual surveys such as the Annual Retail Trade Survey that were incorporated into these revisions are in turn influenced by the Economic Census.

 There is no question that the Economic Census is the most important building block to the economic picture and it must be preserved.  To do so, we may be calling on you to contact key members of Congress.  Watch for our call to action in a forthcoming NABE e-mail.   NABE members who represent hundreds of different businesses can have an important impact on the Hill.  It is important that we not sit back while the fundamental data used by our profession is put at risk.

Here is a sample letter to Congress that can be used as a basis for your letter.