--Reserve Component Compensation. Studying alternative approaches to compensate reservists and structure their careers consistent with the increased demand for mobilizing reserves to conduct the global war on terrorism.

■ Revenues, including calculations of new measures of effective tax rates that reflect marginal incentives and are within in a multiyear framework, an analysis of businesslike entities whose profits are exempt from taxation, evaluation of the role of taxation of corporations and capital income in the context of potential tax reform, and explorations into selected effects of estate taxation.

■ The Universal Telephone Service Fund, including projecting receipts under various proposals to change the contribution and cost-recovery mechanisms used to support the federal fund.

■The Pension Benefit Guaranty Corporation (PBGC), including the history and current financial condition of the PBGC and the use of techniques of modern financial analysis to estimate the value of pension insurance and the cost of various policy options.

■ Agricultural income support and trade policy, including the workings and costs of income support programs and the consequences of liberalization of agricultural trade for the economies of the United States, the European Union, and developing countries.

Multilateral financial institutions, including the financial risks to the U.S. budget posed by participation in the International Monetary Fund and the World Bank.

■Federal workforce, including the geographic adjustments made to the pay of federal law enforcement officers, and other matter relating to the size of the federal workforce and the comparability of federal and private sector compensation.

■ Efficient use of natural resources, including ways to address growing imbalances in the supply and demand for water in the western United States and policy options to achieve a more stable supply of natural gas.

■ Environment, including the uncertainty surrounding climate change and the effect it has on policy choices.

Internal Management Strategy - Priorities for Fiscal Years 2005 and 2006

In addition to focusing directly on its mission, CBO, like any successful organization, must devote resources to attracting talented people, developing their skills, and properly equipping them. It must also organize its key work processes to be as efficient as possible and capitalize on technology wheneve: possible. During fiscal years 2005 and 2006, CBO will continue to pursue many of the same management and operational goals that its had in recent years, although the emphasis will change to reflect past progress and emerging needs.

Continue to Focus on Recruitment, Retention, and Development of CBO Staff CBO has improved its ability to identify, hire, and retain a highly talented and more diverse workforce. In 2005 and 2006, it will continue those successful efforts and look for ways to improve upon its results. CBO will invest in recruiting Ph.D. economist candidates and master's- and bachelor's-level candidates with efforts at national conferences and college recruitment. CBO will continue college recruiting and other recruitment efforts focusing on identifying top candidates for the diverse workforce needed to carry out the agency's strategic goals.

In addition, in the coming fiscal years, CBO will continue its efforts to develop new staff quickly and retain strong performers by focusing on professional development. Toward that end, the agency will continue to capitalize on training in the most economical way possible.

Also, in 2005, CBO is moving more of its staff to a fully performance-based compensation program, eliminating an annual across-the-board increase to all employees who earn $100,000 or more.

Expand the Online Application System

In 2005, using feedback from students who applied online for CBO's internship program, the agency will expand the online application system to all job applicants. This system will dramatically streamline recruitment processes, provide important feedback to applicants, and provide improved data on recruitment results so CBO can better focus available resources in the future. In 2006, CBO will fully implement the system for all CBO applicants.

Revise the Applicant Resume Tracking System (ARTS)

As part of its efforts to improve recruitment, in fiscal years 2001 and 2002 CBO developed and implemented an applicant tracking system to efficiently manage and disseminate applicant information. This system has worked very well, but is now

aging and improved technology is available. As a result, in fiscal year 2006, CBO will begin redevelopment of the system on a Web-based platform and begin to migrate to the Web format. This undertaking will be accomplished in small segments so that the agency's on-going recruitment efforts will not be impaired.

Continue Implementation of the New Human Resources Information System In an effort to make better information available regarding CBO staff and simultaneously streamline internal processes, in 2005 CBO will capitalize on the new human resources information system implemented in 2004 and enhance analytical and reporting capabilities. Another priority is to have the new system feed other information systems within the agency.

Staffing and Organizational Changes

Bruce Vavrichek is the Assistant Director for Health and Human Resources at CBO. Before assuming that position in 2004, he was an analyst and Deputy Assistant Director in the division. His work spanned a wide variety of topics related to both federal human-resource and heath care policies. In the labor areas, topics included issues related to unemployment insurance, financial aid for students attending postsecondary institutions, private pensions, and the wage and employment dynamics of the U.S. workforce. In the health policy area, topics included analyses of people without health insurance, the regulation of private health insurance markets, and the heath care spending patterns of Medicare beneficiaries. Before joining CBO, Dr. Vavrichek was on the faculty of the Department of Economics at the University of Maryland, where he lectured and conducted research on microeconomics and econometrics. He received his Ph.D. in economics from Northwestern University.

Stephen A. Weigler joined CBO in August 2004 as the Assistant Director for Management, Business, and Information Services. Previously, he was the Acting and the Deputy Assistant Director for Administration at the Office of Management and Budget (OMB), where he was in charge of the agency's administrative and management programs, including those for human resources, budgeting and financing, information technology and e-government, and support and building services. Earlier, he served as Deputy Personnel Officer at the U.S. Marshals Service, where his work included participation on a commission that reviewed the pay system for federal law enforcement officers. Before that, he was Human Resources Manager at OMB and a personnel management specialist at the U.S. Geological Survey. Mr. Weigler began his career as a personnel specialist at the Office of Personnel Management.

Joseph E. Evans, Jr., assumed the position of Chief Financial Officer (CFO) of the CBO in November 2004. Previously, Mr. Evans served as the Comptroller/Deputy Chief Financial Executive for the Defense Intelligence Agency (DIA). His primary responsibilities included overseeing programming, budgeting, accounting, financial policy, and force structure management for all DIA programs. He also served as the Senior Financial Resource Expert for the Comptroller of DIA, where he provided agency leaders with key resource management advice on an array of fiscal issues. Mr. Evans was responsible for defining and justifying requirements that resulted in unprecedented dollar and manpower increases for DIA during key periods within the past decade. Over his 24 year federal government career, he has served in various financial management positions.