[Analytical Perspectives]
[Special Analyses and Presentations]
[10. Federal Employment and Compensation]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 257]]

 
                 10. FEDERAL EMPLOYMENT AND COMPENSATION

  This section provides information on civilian employment policy, 
civilian and military employment, and personnel compensation and 
benefits in the Executive, Legislative, and Judicial branches. A 
comparison of Federal employment levels, State and local government 
employment, and the United States population appears in the Historical 
Tables. Additional tables on civilian employment reductions appear in 
the Budget volume.

                       Civilian Employment Policy

  The Administration policy is to provide Executive Branch agencies with 
flexibility to hire the right numbers of staff to meet program 
requirements. While it is not the norm, agency or sub-agency employment 
targets may be necessary when it is determined to be the most efficient 
or effective method of achieving Administration goals.

           Federal Civilian Employment in the Executive Branch

  Civilian employment in the Executive Branch is measured on the basis 
of full-time equivalents (FTEs). One FTE is equal to one work year or 
2,080 non-overtime hours. Put simply, one full-time employee counts as 
one FTE, and two half-time employees also count as one FTE.
  The Federal Workforce Restructuring Act (FWRA) of 1994 (P.L. 103-226) 
was enacted March 30, 1994. The Act established FTE limitations 
(``ceilings'') for Executive Branch civilian employees through 1999. The 
starting point used to calculate FTE reductions required by the FWRA, 
called the 1993 base, is the estimate of FTEs for 1993 made in January 
of that year. Between the 1993 base and FY 1999, the Act required a cut 
of 272,900 FTEs. The actual cut exceeded 375,000 FTEs. The limitations 
established by the FWRA, as well as the reductions to date, are as 
follows:


----------------------------------------------------------------------------------------------------------------
                                                                                                       Reduction
                                                                     FWRA      Civilian   Cumulative  as percent
                              Year                                  Ceiling      FTEs      reduction  of 272,900
                                                                                           From 1993      cut
----------------------------------------------------------------------------------------------------------------
1993 Base.......................................................   2,155,200  ..........  ..........  ..........
1994............................................................   2,084,600   2,052,700    -102,500         38%
1995............................................................   2,043,300   1,970,200    -185,000         68%
1996............................................................   2,003,300   1,891,700    -263,500         97%
1997............................................................   1,963,300   1,834,700    -320,500        117%
1998............................................................   1,922,300   1,790,200    -365,000        134%
1999............................................................   1,882,300   1,778,400    -376,800        138%
----------------------------------------------------------------------------------------------------------------

  Table 10-1 provides agency-wide totals from the 1993 base through 
2001.
  Allocations of FTE resources by agency are made based upon 
Presidential priorities and other factors. While most of the agencies in 
Table 10-1 show FTE reductions between 1993 and 2001, several agencies, 
such as the Department of Justice, show an increase in FTEs.

 Recent Trends in Civilian Employment Estimates in the Executive Branch

  Each year the Budget reports actual FTEs in the prior year column, and 
estimates of FTEs in the current and budget years. In five of the six 
years since the FWRA was enacted, the current year FTE estimates for 
nearly all agencies in the Budget have been over-stated when compared to 
the actual published in the following year's Budget. The table below 
shows this trend:


------------------------------------------------------------------------
            Year               Estimate     Actual      Over-Statement
------------------------------------------------------------------------
1994........................     2,042.1     2,052.7     -10,700 (-0.5%)
1995........................     2,017.8     1,970.2     +47,600 (+2.4%)
1996........................     1,940.8     1,891.7     +49,100 (+2.5%)
1997........................     1,881.3     1,834.7     +46,600 (+2.5%)
1998........................     1,837.4     1,790.2     +47,200 (+2.6%)
1999........................     1,801.6     1,778.4     +23,200 (+1.3%)
------------------------------------------------------------------------

                     Total Federal Employment Levels

  The tables that follow show total Federal employment in all branches 
of Government, as well as the U.S. Postal Service, Postal Rate 
Commission, and active duty uniformed military personnel. Table 10-2 
displays total Federal employment as measured by actual positions 
filled, i.e., the total number of employees, whether full-time, part-
time or intermittent, at the end of the fiscal year. Table 10-3 shows 
total Federal employment as measured on an FTE basis.

                   Personnel Compensation and Benefits

  Table 10-4 displays personnel compensation and benefits for all 
branches of Government, as well as for military personnel.
  Direct compensation of the Federal work force includes base pay and 
premium pay, such as overtime. In addition, it includes other cash 
components, such as geographic pay differentials (i.e., locality pay, 
and special pay adjustments for law enforcement officers), recruitment 
and relocation bonuses, retention allowances, performance awards, and 
cost-of-living and overseas allowances.
  In the case of military personnel, compensation includes basic pay, 
special and incentive pays (including enlistment and reenlistment 
bonuses), and allowances for clothing, housing, and subsistence.
  Related compensation in the form of personnel benefits for current 
employees consists of the cost to Govern

[[Page 258]]

ment agencies (as an employer) primarily for health insurance, life 
insurance, Social Security (old age, survivors, disability, and health 
insurance) and contributions to the retirement funds to finance future 
retirement benefits. Compensation for former personnel includes outlays 
for retirement pay benefits, and the Government's share of the cost of 
health and life insurance.

                                                 Table 10-1.  FEDERAL EMPLOYMENT IN THE EXECUTIVE BRANCH
                                        (Civilian employment as measured by Full-Time Equivalents, in thousands)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           Actual                                      Estimate        Change: 1993 base
                                    1993   ------------------------------------------------------------------------------------------       to 2001
             Agency                 Base                                                                                             -------------------
                                              1993      1994      1995      1996      1997      1998      1999      2000      2001      FTE's    Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Cabinet agencies:
  Agriculture \1\...............     115.6     114.4     109.8     103.8     100.7      98.5      96.4      95.5      98.2     100.5     -15.1    -13.1%
  Commerce......................      36.7      36.1      36.0      35.3      33.8      32.6      35.7      47.3     133.8      42.6       5.9     16.0%
  Defense-military functions....     931.3     931.8     868.3     821.7     778.9     745.8     707.2     681.0     661.5     645.5    -285.9    -30.7%
  Education.....................       5.0       4.9       4.8       4.8       4.7       4.5       4.5       4.5       4.7       4.7      -0.3     -5.7%
  Energy........................      20.6      20.3      19.8      19.7      19.1      17.3      16.3      15.9      16.2      16.1      -4.5    -21.7%
  Health and Human Services \1\.      65.0      66.1      62.9      59.3      57.2      57.6      57.9      58.9      61.7      63.2      -1.8     -2.8%
  Social Security Administration      65.4      64.8      64.5      64.6      64.0      65.2      64.0      63.0      63.3      63.1      -2.3     -3.5%
  Housing and Urban Development.      13.6      13.3      13.1      12.1      11.4      11.0       9.8      10.0      10.4      10.6      -3.0    -22.3%
  Interior......................      79.3      78.1      76.3      72.0      66.7      65.7      66.5      67.0      68.1      69.5      -9.8    -12.4%
  Justice.......................      99.4      95.4      95.3      97.9     103.8     111.0     117.3     121.3     127.9     131.5      32.1     32.3%
  Labor.........................      18.3      18.0      17.5      16.8      16.0      15.9      16.3      16.3      17.1      17.4      -0.9     -4.8%
  State \2\.....................      35.0      34.2      33.5      31.8      30.2      29.2      28.9      29.4      30.0      30.2      -4.8    -13.8%
  Transportation................      70.3      69.1      66.4      63.2      62.4      62.5      63.4      63.7      64.1      65.1      -5.2     -7.4%
  Treasury......................     166.1     161.1     157.3     157.5     151.1     145.5     142.1     143.7     145.5     149.6     -16.5    -10.0%
  Veterans Affairs \1\..........     232.4     234.2     233.1     228.5     221.9     211.5     207.1     205.5     204.1     203.4     -29.1    -12.5%

Other agencies--excluding Postal
 Service:
  Agency for International             4.4       4.1       3.9       3.6       3.4       2.8       2.7       2.5       2.5       2.5      -1.9    -43.8%
   Development \1\..............
  Corps of Engineers............      29.2      28.4      27.9      27.7      27.1      26.0      24.8      24.7      24.7      24.7      -4.5    -15.4%
  Environmental Protection            18.6      17.9      17.6      17.5      17.2      17.0      17.7      18.1      18.1      18.0      -0.5     -2.8%
   Agency.......................
  EEOC..........................       2.9       2.8       2.8       2.8       2.7       2.6       2.5       2.6       2.8       3.1       0.2      7.0%
  FEMA..........................       2.7       4.0       4.9       4.6       4.7       5.1       4.6       5.2       4.8       4.9       2.2     79.6%
  FDIC/RTC......................      21.6      21.9      20.0      15.7      11.8       8.7       7.9       7.4       7.5       6.8     -14.8    -68.5%
  General Services                    20.6      20.2      19.5      17.0      15.7      14.5      14.1      14.1      14.2      14.2      -6.4    -31.1%
   Administration...............
  NASA..........................      25.7      24.9      23.9      22.4      21.1      20.1      19.1      18.5      18.6      19.0      -6.8    -26.4%
  National Archives and Records        2.8       2.6       2.6       2.4       2.5       2.5       2.4       2.4       2.6       2.7       -.1     -1.3%
   Admin........................
  National Labor Relations Board       2.1       2.1       2.1       2.0       1.9       1.9       1.9       1.8       1.9       2.0      -0.1     -6.7%
  National Science Foundation...       1.3       1.2       1.2       1.2       1.3       1.2       1.2       1.2       1.2       1.2      -0.1    -10.3%
  Nuclear Regulatory Commission.       3.4       3.4       3.3       3.2       3.1       3.0       3.0       2.8       2.8       2.8      -0.6    -17.2%
  Office of Personnel Management       6.2       5.9       5.3       4.2       3.4       2.8       2.8       2.8       3.0       3.0      -3.2    -51.9%
  Panama Canal Commission.......       8.7       8.5       8.5       8.8       9.0       9.5       9.6       9.2       2.4      -0.1      -8.7    -99.8%
  Peace Corps...................       1.3       1.2       1.2       1.2       1.1       1.1       1.1       1.1       1.2       1.2      -0.1     -7.1%
  Railroad Retirement Board.....       1.8       1.8       1.7       1.6       1.5       1.4       1.3       1.3       1.2       1.2      -0.7    -36.8%
  Securities and Exchange              2.7       2.7       2.7       2.7       2.8       2.8       2.8       2.8       3.0       3.0       0.3     10.7%
   Commission...................
  Small Business Administration.       4.0       5.6       6.3       5.7       4.7       4.5       4.4       4.7       4.6       4.6       0.6     14.9%
  Smithsonian Institution.......       5.9       5.5       5.4       5.3       5.1       5.0       5.0       5.1       5.2       5.3      -0.6    -10.2%
  Tennessee Valley Authority....      19.1      17.3      18.6      16.6      16.0      14.9      14.4      13.5      13.3      13.2      -5.9    -31.0%
  All other small agencies......      15.9      15.2      14.7      14.9      13.9      13.6      13.6      13.9      14.5      16.1       0.2      1.2%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total, Executive Branch civilian   2,155.2   2,138.8   2,052.7   1,970.2   1,891.7   1,834.7   1,790.2   1,778.4   1,856.9   1,762.4    -392.8    -18.2%
 employment.....................
  Reduction from 1993 Base......  ........     -16.4    -102.5    -185.0    -263.5    -320.5    -365.0    -376.8    -298.3    -392.8  ........  ........
Subtotal, Defense...............     931.3     931.8     868.3     821.7     778.9     745.8     707.2     681.0     661.5     645.5    -285.9    -30.7%
Subtotal, Non-Defense...........   1,223.9   1,207.1   1,184.4   1,148.4   1,112.8   1,088.9   1,083.0   1,097.4   1,195.4   1,116.9    -107.0     -8.7%
---------------------------------=======================================================================================================================
Status of Federal Civilian
 Employment Relative to the
 Federal Workforce Restructuring
 Act \3\
  Total, Executive Branch             NA        NA     2,052.7   1,970.2   1,891.7   1,834.7   1,790.2   1,778.4      NA        NA    ........  ........
   Employment...................
  Less: FTEs exempt from FWRA...      NA        NA         5.7       5.7       7.6       7.4       5.2       5.2      NA        NA    ........  ........
  Total, Executive Branch             NA        NA     2,047.0   1,964.4   1,884.1   1,827.3   1,785.0   1,773.2      NA        NA    ........  ........
   subject to FWRA Ceiling......
  FWRA Ceiling..................      NA        NA     2,084.6   2,043.3   2,003.3   1,963.3   1,922.3   1,882.3      NA        NA    ........  ........
  Executive Branch Employment         NA        NA       -37.6     -78.9    -119.2    -136.1    -137.3    -109.1      NA        NA    ........  ........
   Relative to FWRA Ceiling.....
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The Departments of Agriculture, Health and Human Services, Veterans Affairs, and the Agency for International Development have components that were
  exempt from FTE controls. In 1999, Agriculture had 2,025 exemptions; HHS had 187 exemptions; Veterans Affairs had 3,010 exemptions and AID had 10
  exemptions.

\2\ To facilitate historical comparison, the State Department includes the Board of Broadcasting Governors (BBG), the United States Information Agency
  (which was absorbed into State and BBG), and the Arms Control and Disarmament Agency (which was absorbed into State).


[[Page 259]]


\3\ FTE limitations are set for the Executive Branch in the Federal Workforce Restructuring Act of 1994 (P.L. 103-226) from 1994-99.

                                     

                                      Table 10-2.  TOTAL FEDERAL EMPLOYMENT
                                     (As measured by total positions filled)
----------------------------------------------------------------------------------------------------------------
                                                            Actual as of September 30       Change: 1997 to 1999
                     Description                      ----------------------------------------------------------
                                                          1997        1998        1999      Positions   Percent
----------------------------------------------------------------------------------------------------------------
Executive branch civilian employment:
  All agencies except Postal Service and Postal Rate
   Commission:
    Full-time permanent..............................   1,651,559   1,624,152   1,603,303     -48,256      -2.9%
    Other than full-time permanent \1\...............     220,232     231,644     216,333      -3,899      -1.8%
----------------------------------------------------------------------------------------------------------------
      Subtotal.......................................   1,871,791   1,855,796   1,819,636     -52,155      -2.8%
------------------------------------------------------==========================================================
Postal Service: \2\
  Full-time permanent................................     648,684     660,987     670,272      21,588       3.3%
  Other than full-time permanent.....................     204,666     210,533     196,121      -8,545      -4.2%
----------------------------------------------------------------------------------------------------------------
    Subtotal.........................................     853,350     871,520     866,393      13,043       1.5%
------------------------------------------------------==========================================================
  Subtotal, Executive branch civilian employment.....   2,725,141   2,727,316   2,686,029     -39,112      -1.4%
------------------------------------------------------==========================================================
Military personnel on active duty: \3\
  Department of Defense..............................   1,438,562   1,406,830   1,385,703     -52,859      -3.7%
  Department of Transportation (Coast Guard).........      35,137      35,459      35,740         603       1.7%
----------------------------------------------------------------------------------------------------------------
    Subtotal, military personnel.....................   1,473,699   1,442,289   1,421,443     -52,256      -3.5%
------------------------------------------------------==========================================================
      Subtotal, Executive Branch.....................   4,198,840   4,169,605   4,107,472     -91,368      -2.2%
------------------------------------------------------==========================================================
Legislative branch:
  Full-time permanent................................      12,696      12,399      12,183        -513      -4.0%
  Other than full-time permanent.....................      18,659      18,075      18,170        -489      -2.6%
----------------------------------------------------------------------------------------------------------------
    Subtotal, Legislative Branch.....................      31,355      30,474      30,353      -1,002      -3.2%
----------------------------------------------------------------------------------------------------------------
Judicial Branch:
  Full-time permanent................................      27,567      28,487      28,875       1,308       4.7%
  Other than full-time permanent.....................       3,074       3,255       3,321         247       8.0%
----------------------------------------------------------------------------------------------------------------
    Subtotal, Judicial Branch........................      30,641      31,742      32,196       1,555       5.1%
------------------------------------------------------==========================================================
Grand total..........................................   4,260,836   4,231,821   4,170,021     -90,815      -2.1%
------------------------------------------------------==========================================================

                       ADDENDUM

Executive branch civilian personnel (excluding Postal
 Service):
  DOD-Military functions \4\.........................     723,032     692,552     665,679     -57,353      -7.9%
  All other executive branch.........................   1,148,759   1,163,244   1,153,957       5,198       0.5%
----------------------------------------------------------------------------------------------------------------
    Total \5\........................................   1,871,791   1,855,796   1,819,636     -52,155      -2.8%
----------------------------------------------------------------------------------------------------------------
\1\ Includes Summer Aides, Stay-in-school, Junior Fellowship, Worker-Trainee Opportunity Program, formerly
  exempt from employment controls.

\2\ Includes Postal Rate Commission.

\3\ Excludes reserve components.

\4\ Excludes Defense Intelligence Agency.

\5\ Includes disadvantaged youth programs.


[[Page 260]]


                                                          Table 10-3.  TOTAL FEDERAL EMPLOYMENT
                                                         (As measured by Full-Time Equivalents)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                   Estimate         Change: 1999 to 2001
                                          Description                                              1999    ---------------------------------------------
                                                                                                  actual       2000        2001       FTE's     Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Executive branch civilian personnel:
  All agencies except Postal Service and Defense..............................................   1,097,363   1,195,437   1,116,888     19,525       1.8%
  Defense-Military functions (civilians)......................................................     680,996     661,489     645,494    -35,502      -5.2%
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Subtotal, excluding Postal Service........................................................   1,778,359   1,856,926   1,762,382    -15,977      -0.9%
  Postal Service \1\..........................................................................     851,461     848,187     843,425     -8,036      -0.9%
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Subtotal, Executive Branch civilian personnel.............................................   2,629,820   2,705,113   2,605,807    -24,013      -0.9%
-----------------------------------------------------------------------------------------------=========================================================
Executive branch uniformed personnel: \2\
  Department of Defense.......................................................................   1,387,270   1,379,070   1,379,500     -7,770      -0.6%
  Department of Transportation (Coast Guard)..................................................      35,286      35,948      36,247        961       2.7%
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Subtotal, uniformed military personnel....................................................   1,422,556   1,415,018   1,415,747     -6,809      -0.5%
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Subtotal, Executive Branch................................................................   4,052,376   4,120,131   4,021,554    -30,822      -0.8%
-----------------------------------------------------------------------------------------------=========================================================
Legislative Branch: \3\ Total FTE \3\.........................................................      29,932      30,460      30,610        678       2.3%
-----------------------------------------------------------------------------------------------=========================================================
Judicial branch: Total FTE....................................................................      31,173      32,334      34,063      2,890       9.3%
-----------------------------------------------------------------------------------------------=========================================================
    Grand total...............................................................................   4,113,481   4,182,925   4,086,227    -27,254      -0.7%
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Includes Postal Rate Commission.

\2\ Military personnel on active duty. Excludes reserve components. Data shown for Department of Defense are average strengths, not FTEs.

\3\ Actual 1999 FTE data not available for legislative branch.


[[Page 261]]


                                                    TABLE 10-4.   PERSONNEL COMPENSATION AND BENEFITS
                                                                (In millions of dollars)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         Estimate                Change: 1999 to 2001
                                 Description                                    1999 actual  -----------------------------------------------------------
                                                                                                   2000            2001          Dollars       Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Civilian personnel costs:
  Executive Branch (excluding Postal Service):
    Direct compensation:
      DOD--military functions...............................................      32,000          32,303          32,753           753             2.4%
      All other executive branch............................................      58,138          63,500          64,589         6,451            11.1%
--------------------------------------------------------------------------------------------------------------------------------------------------------
        Subtotal, direct compensation.......................................      90,138          95,803          97,342         7,204             8.0%

    Personnel benefits:
      DOD--military functions...............................................       7,233           7,105           7,212           -21            -0.3%
      All other executive branch \1\........................................      23,116          24,422          25,421         2,305            10.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
        Subtotal, personnel benefits........................................      30,349          31,527          32,633         2,284             7.5%
--------------------------------------------------------------------------------------------------------------------------------------------------------
          Subtotal, executive branch........................................     120,487         127,330         129,975         9,488             7.9%
-----------------------------------------------------------------------------===========================================================================
  Postal Service:
    Direct compensation.....................................................      35,886          36,671          37,772         1,886             5.3%
    Personnel benefits......................................................      10,177          10,761          12,011         1,834            18.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
      Subtotal..............................................................      46,063          47,432          49,783         3,720             8.1%
-----------------------------------------------------------------------------===========================================================================
  Legislative Branch: \2\
    Direct compensation.....................................................       1,326           1,414           1,489           163            12.3%
    Personnel benefits......................................................         301             319             346            45            15.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
      Subtotal..............................................................       1,627           1,733           1,835           208            12.8%
-----------------------------------------------------------------------------===========================================================================
  Judicial Branch:
    Direct compensation.....................................................       1,800           2,016           2,215           415            23.1%
    Personnel benefits......................................................         452             514             565           113            25.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
      Subtotal..............................................................       2,252           2,530           2,780           528            23.4%
--------------------------------------------------------------------------------------------------------------------------------------------------------
      Total, civilian personnel costs.......................................     170,429         179,025         184,373        13,944             8.2%
-----------------------------------------------------------------------------===========================================================================
Military personnel costs:
  DOD--Military Functions:
    Direct compensation.....................................................      49,247          51,256          53,063         3,816             7.7%
    Personnel benefits......................................................      18,051          18,989          19,151         1,100             6.1%
--------------------------------------------------------------------------------------------------------------------------------------------------------
      Subtotal..............................................................      67,298          70,245          72,214         4,916             7.3%
-----------------------------------------------------------------------------===========================================================================
All other executive branch, uniformed personnel:
  Direct compensation.......................................................       1,203           1,314           1,392           189            15.7%
  Personnel benefits........................................................         131             143             149            18            13.7%
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Subtotal................................................................       1,334           1,457           1,541           207            15.5%
--------------------------------------------------------------------------------------------------------------------------------------------------------
  Total, military personnel costs \3\.......................................      68,632          71,702          73,755         5,123             7.5%
-----------------------------------------------------------------------------===========================================================================
Grand total, personnel costs................................................     239,061         250,727         258,128        19,067             8.0%
-----------------------------------------------------------------------------===========================================================================
                                  ADDENDUM

Former Civilian Personnel:
  Retired pay for former personnel..........................................      44,767          46,488          48,636         3,869             8.6%
    Government payment for Annuitants:
      Employee health benefits..............................................       4,610           4,995           5,354           744            16.1%
      Employee life insurance...............................................          31              33              35             4            12.9%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Former Civilian Personnel.............................................      49,408          51,516          54,025         4,617             9.3%
-----------------------------------------------------------------------------===========================================================================
Former Military personnel:
  Retired pay for former personnel..........................................         607             653             693            86            14.2%
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Includes transfers from general revenues in addition to employing agency's contributions for the cost of employee benefits. The transfers amounted
  to $8,759 million in 1999 and are estimated to be $8,838 in 2000 million and $8,939 million in 2001.

\2\ Excludes members and officers of the Senate.

\3\ Excludes reserve components.

