DIMINISHED ROLE OF INTERIOR RAISES POLICY AND ORGANIZATION QUESTIONS The Department of Interior has undergone a significant shift in responsibilities as the primary federal administrator of the territories. Its current role is primarily limited to budget support, technical assistance, representing territorial views to the federal establishment, and oversight of government expenditures and operations. According to many territory officials, Interior's. overall effectiveness in these areas is limi- ted by institutional constraints and organizational influence within the executive branch. Officials from several territories believe a change in federal organization is needed. 4 Constraints and perceived lack of influence The Office for Territorial and International Affairs (OTIA) is a small component of the Department of the Interior. In fiscal year 1984, OTIA was authorized a staff of 66, including 15 under the High Commissioner for the Trust Territory, with a budget of about $4.3 million for administration and technical assistance. OTIA will oversee the approximately j i $213 million requested in fiscal year 1985 for the territories and Trust Territory, less than 3 percent of Interior's overall fiscal year budget request of $6.5 billion. Recognizing the limited influence exerted by such a small office, the President directed that the head of OTIA be elevated to Assistant Secretary level officials have in 1980. criticized OTIA as Nevertheless, institutionally territorial incapable of . 3 § ‘ meeting its stated mission of providing effective assistance and promoting territorial interests to the rest of the federal establishment, particularly in budget and policy related matters. Budget support All the territories, except Puerto Rico, have received key institu- funds for government operations and capital improvements through Interior grants. As noted in chapter 5, these funds combined with other indirect federal assistance, such as tax rebates to Guam and the Virgin Islands, comprise the substantial portion of revenues available to the local governments. According to several territory officials, a tional constraint is OTIA's inability to fully support territo- rial budget requests. Faced with administration’ budget objectives and internal budget competition within Interior, OTIA is often placed in a difficult position of trying to support higher territorial budget requests than the administration 44 9000231 |

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