Franchise fund programs get another year in Senate bill

The Senate Governmental Affairs Committee voted another year's extension to federal franchise fund pilot programs. The move would extend the programs until Oct. 1, 2002. The reauthorization (S. 1198), which was approved by voice vote, would continue the programs first authorized under the Government Management Reform Act of 1994.

Franchise funds, which have been set up in six different agencies and departments, are designed to provide common administrative support services to the agencies as a way to cut down on waste and duplication. A franchise fund is a working capital fund under which administrative services can become self-supporting by accepting fees from other agencies and can retain funds for management and capital improvements.