Fiscal Controls in the Federal Trade Commission's Public Participation Program Should Be Strengthened

The Federal Trade Commission (FTC) has authority to provide compensation to certain persons in order for them to participate in rulemaking proceedings. Despite the $1 million statutory ceiling for any fiscal year, the Congress authorized funding for participant compensation of only $500,000 for each of fiscal years 1976, 1977, and 1978. The Congress authorized $750,000 for fiscal year 1979, and FTC has requested the same amount for fiscal year 1980. According to an FTC official, fiscal year 1979 obligations will probably not exceed $375,000, or 50 percent of the total authorization. In addition to participant compensation costs, the program incurs costs for administrative support, which includes three full-time employees and some part-time support staff. FTC estimated that the total cost of administering the Public Participation Program for fiscal year 1979 would be about $93,000.