The U.S. Census Bureau, an agency within the Department of Commerce, recently published a notice in the Federal Register inviting public comment on its proposed revisions and extension for two foundational data collection efforts: the Annual Survey of Public Employment & Payroll and the Annual Survey of State and Local Government Finances. This action, taken in accordance with the Paperwork Reduction Act of 1995, marks a significant moment for stakeholders involved in federal, state, and local government operations, as the collected data underpins a vast array of economic analyses and policy decisions. The comment period, which closes October 19, 2026, offers a crucial opportunity for the public and other federal agencies to influence the scope and methodology of these essential surveys, which are slated to cover fiscal years 2027, 2028, and 2029.
The Importance of State and Local Data Collections
The Annual Survey of Public Employment & Payroll and the Annual Survey of State and Local Government Finances are cornerstone programs for understanding the fiscal health and workforce dynamics of subnational governments across the United States. The employment and payroll survey collects detailed information by function for full-time and part-time employees, utilizing ten tailored instruments (Forms E1 through E10) assigned based on governmental unit responsibilities. The finance survey captures revenue, expenditure, debt, and pension system details from all 50 state governments and a representative sample of local governments, including counties, municipalities, townships, and special districts. This collection uses five specific forms (F11, F13, F28, F29, F32).
These data are not merely statistical exercises. They serve as critical inputs for numerous federal agencies, including the Bureau of Economic Analysis, which uses them to develop public sector components of the National Income and Product Accounts and to calculate functional payrolls for Gross Domestic Product. The Federal Reserve Board relies on these figures for its Flow of Funds Accounts, and the Centers for Medicare & Medicaid Services incorporates them into the National Health Expenditure Accounts. Other users span the Council of Economic Advisers, the Agency for Healthcare Research and Quality, the Government Accountability Office, and the Department of Justice. Beyond federal applications, state and local governments themselves, along with various public policy groups, research organizations, and private sector businesses, leverage this information for planning, analysis, and informed decision-making.
It is important to note that while these surveys generally collect data from a sample of governments each year, in years ending with a '2' or '7' (such as the upcoming 2027 collection), they expand to cover the entire universe of governmental units as part of the broader Census of Governments.
Targeted Revisions for Enhanced Utility and Reduced Burden
The Census Bureau's proposal includes specific revisions designed to modernize the surveys, improve data quality, and streamline the reporting process. Two forms are specifically targeted for change: the Annual Survey of Local Government Finances (Form F-28) and the Annual Survey of Public Pensions (Form F-11).
For Form F-28, which focuses on local government finances, the bureau plans to reintroduce the collection of selected criminal justice intergovernmental expenditure details. This addition is specifically aimed at supporting the data needs of the Bureau of Justice Statistics, ensuring that critical information for criminal justice policy and analysis is available. Additionally, a new question will be added to clarify payments made to retirement systems that governments are currently unable to classify. This revision seeks to resolve existing classification issues within financial administration and miscellaneous expenditure functions.
Revisions to Form F-11, dedicated to public pensions, are more extensive and primarily focus on restructuring the instrument to reduce respondent burden and improve alignment with standard financial reporting. The Census Bureau intends to combine several items, including government contributions (now into two items: own contributions and other government contributions), interest and dividends (into one item), state and local active membership (into one item), and state and local employee contributions (into one item). These consolidated questions are expected to better align with the Annual Comprehensive Financial Report structure, making the collection process easier, particularly for smaller pension systems, while minimally affecting overall public estimates.
Furthermore, the bureau plans to discontinue the collection of sixteen specific actuarial data items. Instead, it will retain key actuarial metrics such as fiduciary net position, actuarially determined contributions, discount rate, total pension liability, and net pension liability. These strategic adjustments, supported by cognitive testing, aim to provide essential data to key users while maintaining the survey's relevance and sustainability without negatively impacting overall response rates.
Streamlined Collection and Public Engagement
The Census Bureau employs a multi-modal approach for data collection, primarily relying on internet-based submission initiated by mailed invitations, supplemented by email, mail, and telephone follow-ups. A significant innovation in reducing respondent burden involves central collection agreements with state and large local government officials. These agreements allow for the collection of data from dependent agencies through a central respondent, eliminating the need for direct mail invitations to thousands of governmental units. This method significantly streamlines the process by acquiring data from a centralized source rather than multiple individual entities.
This notice of information collection also serves as a crucial mechanism for public accountability and improvement. By soliciting comments, the Department of Commerce and the Census Bureau aim to evaluate the necessity and practical utility of the proposed collection, assess the accuracy of time and cost burden estimates, and identify ways to enhance data quality and clarity. The process also encourages suggestions for minimizing reporting burdens, potentially through automated collection techniques or other technological advancements. All comments submitted become part of the public record, underscoring the transparency of this federal statistical undertaking.
Conclusion: Adapting to Evolving Data Needs
The Census Bureau's initiative to revise and extend its State and Local Government Finance and Public Employment & Payroll collections reflects an ongoing commitment to providing timely, accurate, and relevant data on the public sector. These surveys are indispensable tools for understanding the economic activities, fiscal pressures, and employment trends at the subnational level, informing everything from federal budget decisions to local government planning. The proposed changes, particularly the focus on integrating criminal justice expenditure data and streamlining pension reporting, demonstrate an adaptive approach to meeting evolving data user needs while simultaneously addressing respondent burden.
The public comment period represents a vital opportunity for governments, researchers, and engaged citizens to contribute to the refinement of these critical data collections. Participation ensures that the methodologies employed are robust, the information gathered is maximally useful, and the burden on reporting entities is appropriately managed. As the nation's economic landscape continues to shift, the relevance and accuracy of these comprehensive government statistics will remain paramount for sound policy formulation and informed public discourse.
