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			 Fast-forward to today: the 149-year-old Secret Service is 
			struggling to emerge from a succession of scandals that have 
			tarnished that iconic reputation, forced the abrupt resignation of 
			its director and raised questions about its ability to fulfill its 
			most critical duty: protecting President Barack Obama and his 
			family. 
 Sources inside and outside the administration say many problems such 
			as low morale, a leadership crisis and a culture of covering up 
			mistakes can be traced back 11 years to when the Secret Service was 
			pulled out of the Treasury Department and absorbed into the 
			sprawling new Department of Homeland Security, where it had to 
			compete for turf and money.
 
 Even as the agency's workload has mushroomed, its manpower levels 
			stagnated and its funding increases have failed to keep pace with 
			growth in overall federal spending in the past decade, a Reuters 
			examination of Secret Service budget data shows.
 
 There is also growing pressure to consider whether the Secret 
			Service’s divided mission, which includes investigating financial 
			fraud and cybercrime, is diverting resources and attention from 
			providing security for the president, his family and other top 
			officials.
 
			
			 
 "We’ve seen what many think was a high point for the Secret 
			Service," said Carolyn Parr, who co-authored a memoir with her 
			husband, Jerry Parr, the agent who raced a wounded Reagan away from 
			the scene of the shooting after John Hinckley Jr. opened fire 
			outside a Washington hotel 33 years ago.
 
 "What’s happening now is sad. I don’t know why the ball got 
			dropped."
 
 "MORE POLITICIZED"
 
 The damage has been piling up, costing Secret Service director Julia 
			Pierson her job on Wednesday. First came a Sept. 19 incident in 
			which an Iraq war veteran with a knife scaled the White House fence 
			and got deep inside the executive mansion.
 
 That was followed by the disclosure that an armed private security 
			contractor with a criminal record rode on an elevator with Obama in 
			Atlanta on Sept. 16, along with new details of a 2011 incident in 
			which shots were fired at the White House.
 
 Pierson, appointed in 2013 to clean up the agency after an 
			embarrassing prostitution scandal in Colombia the year before, 
			defended her agency in congressional testimony, acknowledging 
			"mistakes were made" but failing to quell the firestorm.
 
 Some see the troubles rooted in the 2003 decision by President 
			George W. Bush to shift the agency into the newly formed Department 
			of Homeland Security (DHS) as part of a centralizing of the “war on 
			terrorism” after the Sept. 11, 2001, attacks.
 
 The move ended the quasi-independence the Secret Service enjoyed at 
			Treasury, where it was established in 1865 to suppress currency 
			counterfeiting. At the DHS, it faced competition from other security 
			agencies for funds and staffing.
 
 "It became more politicized and more compliant ... often bowing to 
			pressure from political staff at the White House or congressional 
			staff during campaigns," said Ron Kessler, a national security 
			consultant and author of the newly published book “The First Family 
			Detail.”
 
 "HOUSE-CLEANING IS NEEDED"
 
 Some question if the Secret Service has spread itself too thin to 
			adequately perform its dual roles of financial investigator and 
			presidential protector, especially as online crime surges and 
			threats to the presidency grow increasingly complex in an era of 
			global terrorism.
 
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			The Secret Service first began the work of presidential protection 
			in 1901 after the assassination of President William McKinley. It 
			has steadily expanded since. In recent years, its mandate has 
			mushroomed to include investigations of cyber theft, credit-card 
			fraud and computer-based attacks on financial, banking and 
			telecommunications infrastructure. "Are the two missions of the 
			Service compatible and how should they be prioritized?" the 
			Congressional Research Service asked in a report on the agency 
			released in mid-June.
 Some former agents blame the Secret Service's troubles on a culture 
			of rule-bending they say became entrenched years ago.
 
 "If only the director goes, very little changes," said Dan Emmett, a 
			former senior officer in the Secret Service’s Presidential 
			Protective Division and author of the book "Within Arm’s Length." "A 
			house-cleaning is needed at the top."
 
 Other concerns include accusations the agency has favored men in 
			promotions and condoned racism, a point reinforced in a class-action 
			lawsuit filed in 2000 by African-American agents who accuse the 
			Secret Service of a pattern of failing to address allegations of 
			racial discrimination over many years.
 
 The Secret Service's defenders point to half a century without an 
			American president assassinated and say criticism of the agency has 
			brewed for years, including in 1981 when it was forced to strengthen 
			security measures after allowing a gunman to get so close to the 
			president unscreened.
 
 Asked whether Obama still felt safe, White House spokesman Eric 
			Schultz said on Thursday: "Absolutely".
 
 A tight budget complicates its mission. Pierson testified on Tuesday 
			that the Secret Service had been stretched and was operating with 
			around 550 fewer employees than its "optimal level." Despite an 
			expansion in its work, its full-time workforce of 6,572 is just 66 
			higher than in fiscal 2005, according to DHS documents. 
			http://link.reuters.com/fuw92w
 
			 
 And while its fiscal 2014 annual budget of $1.585 billion is up 35 
			percent from a decade ago, that lags federal spending, which is up 
			48 percent since 2005. The agency's budget has also failed to keep 
			pace with the DHS' overall budget, which is up 54 percent in the 
			same period, DHS budget data show.
 
 "What many of us have taken for granted is that the president is 
			always going to be well protected," Mark Meadows, a Republican on 
			the House Oversight Committee, told Reuters.
 
 (Editing by Jason Szep and Tom Brown)
 
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