Agencies Hit the Road Again

fter trimming travel expenses in fiscal 2001, federal agencies rewarded themselves by taking to the road in fiscal 2002.

Agencies spent more than $10 billion on airlines, hotels and car rentals in fiscal 2002, an increase of nearly 12 percent over fiscal 2001 and $1 billion more than they had planned to spend on travel. There have been other such increases in years past, though not in the double-digits. And in fiscal 2001, after years of promises, agencies actually trimmed their travel budgets-albeit by a miniscule 0.4 percent.

As usual, the Defense Department spent the most on travel, with expenditures totaling $6.6 billion in fiscal 2002. The department exceeded its estimated travel costs by $950 million, or nearly 17 percent, after projecting a decrease of 5.4 percent in travel spending for fiscal 2002.

On the civilian side of government, the new top traveler is the Homeland Security Department. The department didn't exist until earlier this year, but in its report on fiscal 2002 travel spending, the Office of Management and Budget combined the figures for the 22 agencies that were merged into Homeland Security to come up with a baseline figure for what its agencies spent last year: $620 million.

Conversely, the agencies that supplied employees and travel dollars to Homeland Security saw their spending figures decline. The Justice Department, for example, is credited with $367 million in fiscal 2002 spending, compared with $419 million the year before. Treasury's total dropped from $387 million to $258 million. The Agriculture Department went from $355 million to $337 million, and the Transportation Department figure declined from $332 million to $260 million.

Meanwhile, travel spending spiked elsewhere in government. The Tennessee Valley Authority nearly doubled its travel expenditures, spending $35 million in fiscal 2002, up from $19 million the previous year. The agency had anticipated travel spending would increase by about 20 percent to $22 million in fiscal 2002.

Some hopeful agencies project a decrease in travel spending in fiscal 2003, particularly those that either held steady (the Education and Veterans Affairs departments) or saw a slight decline (the General Services Administration) in travel spending during fiscal 2002. As in previous years, the Defense Department is also projecting a drop, with plans to bring travel costs down by 9.5 percent.

Most agencies, however, predict that travel costs will rise. Homeland Security projects an increase of 6.5 percent, to $659 million. Commerce estimates spending $127 million in fiscal 2003, $16 million more than it spent the previous year. The Agriculture Department anticipates a $6 million increase in travel spending, raising its travel budget to $343 million. The Energy, Health and Human Services, Labor, State, Treasury, Justice, and Housing and Urban Development departments, as well as the Social Security Administration, NASA and EPA also expect to boost travel spending in fiscal 2003.

A handful of agencies plan to spend fewer travel dollars in fiscal 2003. TVA projects a decrease of nearly 9 percent, and the Interior Department predicts a 6 percent reduction. Transportation, Veterans Affairs and GSA officials also expect to spend less on travel in fiscal 2003.

Among travel vendors, United Airlines (25.6 percent), Delta Air Lines (23 percent), and American Airlines (13.9 percent) grabbed more government travel business in fiscal 2002, while U.S. Airways lost some, dropping from 14.5 percent in fiscal 2001 to 10.9 percent in fiscal 2002. Hertz held its reign as top car rental vendor, drawing 15.8 percent of the government's business, with Avis following closely on its heels at 15 percent. Enterprise gained last year, climbing from sixth place to third place with 13.9 percent of the market. Holiday Inn and Marriot retained the top spots in the hotel rankings.