Politics & Policy

Customer Satisfaction Index Suggests
More Patience With U.S. Government

Despite Own Improvement, FAA Now Trumps the IRS
As the Agency That Americans Love to Hate the Most

By PATRICK BARTA
Staff Reporter of THE WALL STREET JOURNAL

Move over, Internal Revenue Service, there's a new popular villain in Washington: The Federal Aviation Administration.

At least that could be one interpretation of data gleaned from the latest American Customer Satisfaction Index, a survey of consumer attitudes performed by the University of Michigan Business School in conjunction with the American Society for Quality and CFI Group, an Ann Arbor consulting firm. The quarterly index usually focuses on private companies, but it also examines federal agencies once a year.

According to the latest government assessment scheduled for release Monday, Americans gave the tax-collecting IRS a score of 62 out of 100. While that is still low compared with the ratings most private companies get, it's 10.7% higher than a year ago, the biggest improvement of any agency. And it is higher than some private companies in recent ACSI surveys; earlier this year, for example, commercial airlines scored 61.

The IRS's ranking was boosted in large part by the growing popularity of electronic tax returns, which users view as simple and efficient. Electronic filers gave the IRS a score of 77, up 2.7% from last year. But even those who don't file electronically appear to be happier than they used to be. Traditional filers gave the IRS a 52, up 8.3% from last year.

On the other hand, the FAA, which regulates the aviation industry, registered a 59. That's 5.4% higher than 2000, but still the lowest among agencies that were included in the survey in 2001 and 2000. The score was relatively low in part because the FAA "customers" surveyed -- commercial pilots -- said they felt the agency's regulations were sometimes unclear.

William Shumann, a spokesman for the FAA, acknowledged the complaints had merit, but said the agency has launched an effort to clarify its pilots' regulations, which should be partly completed next year. Beyond that, he said it shouldn't be surprising that the FAA's scores are relatively low. "Commercial pilots can be a tough group that generally don't like regulations to begin with," he said.

Overall, Americans seem more pleased with government services than in years past, with federal agencies as a group scoring 71, 3.5% higher than a year ago. In the most recent private-sector survey, companies' scores slipped for the fourth consecutive time to 72, only slightly better than the government even though many believe private companies should score higher because they're subject to more competition.

One possible explanation is that Americans have become more willing to cut the government slack during the war on terrorism. This year's surveys were conducted after Sept. 11, and since then, "there [has been] more civility and more patience and more effort" among both consumers and government employees, says Claes Fornell, a University of Michigan professor who heads the project. "The end result of that is people are happier."

Mr. Fornell said he thought the government also was benefiting from an effort begun during the Clinton administration to make the government work more like the private sector. One result is a greater emphasis on using technology, including Web sites, to improve service.

Generally, agencies that provide benefits, information or other services to the public fared better than regulatory agencies, which sometimes butt heads with the "customers" they serve. The Board of Veterans' Appeals had the lowest score of any agency, a dismal 35. It wasn't measured in 2000.

Only one federal agency showed a year-over-year decline: The Social Security Administration, whose score from retirement-benefits recipients fell 2.5%. But the score, 82, is still among the highest in the survey.

Write to Patrick Barta at patrick.barta@wsj.com