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


 
                 10. FEDERAL EMPLOYMENT AND COMPENSATION

  This section provides information on 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.

                      Government Reform Initiative

  The first priority of the President's Government reform initiatives is 
to make Government citizen-centered. This means ensuring that there is 
as little distance as possible between the citizens and decision-makers. 
To shrink the distance between citizens and Cabinet members, the 
Administration will flatten the Federal hierarchy, reduce the number of 
layers in the upper echelons of Government, and use workforce planning 
to help agencies and redistribute higher-level positions to front-line, 
service-delivery positions that interact with citizens. The 
Administration will also seek legislation to provide new and expanded 
workforce restructuring tools.

           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.
  Table 10-1 provides agency-wide totals from the 1998 base through 
2002.
  Allocations of FTE resources by agency are made based upon 
Presidential priorities and other factors. While many of the agencies in 
Table 10-1 show FTE reductions between 1998 and 2002, several agencies, 
such as the Department of Justice, show an increase in FTEs. In 
addition, the sharp 2000 increase in the Department of Commerce was due 
to the additional staffing needs associated with conducting the 2000 
Census.

 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. 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
------------------------------------------------------------------------
1998........................     1,837.4     1,790.2     +47,200 (+2.6%)
1999........................     1,801.6     1,778.4     +23,200 (+1.3%)
2000........................     1,856.9     1,814.3     +42,600 (+2.3%)
------------------------------------------------------------------------

                     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 Government 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.

[[Page 214]]

                             Table 10-1.  FEDERAL EMPLOYMENT IN THE EXECUTIVE BRANCH
                    (Civilian employment as measured by Full-Time Equivalents, in thousands)
----------------------------------------------------------------------------------------------------------------
                                                       Actual                  Estimate         Change: 1998 to
                                           --------------------------------------------------        2002
                  Agency                                                                     -------------------
                                              1998      1999      2000      2001      2002      FTE's    Percent
----------------------------------------------------------------------------------------------------------------
Cabinet agencies:
  Agriculture.............................      96.4      95.5      95.1      97.9      97.8       1.4      1.4%
  Commerce................................      35.7      47.3     113.3      39.7      37.0       1.3      3.6%
  Defense-military functions..............     707.2     681.0     660.3     641.1     641.1     -66.2     -9.4%
  Education...............................       4.5       4.5       4.6       4.7       4.7       0.2      5.2%
  Energy..................................      16.3      15.9      15.6      16.4      16.3       0.1      0.3%
  Health and Human Services...............      57.9      58.9      60.5      63.5      64.9       7.0     12.1%
  Housing and Urban Development...........       9.8      10.0      10.1      10.3      10.3       0.5      4.9%
  Interior................................      66.5      67.0      67.3      69.9      69.4       2.9      4.3%
  Justice.................................     117.3     121.3     122.8     129.1     134.9      17.6     15.0%
  Labor...................................      16.3      16.3      16.3      17.7      17.5       1.2      7.6%
  State...................................      26.4      26.9      27.3      27.7      27.8       1.4      5.2%
  Transportation..........................      63.4      63.7      63.0      65.0      65.9       2.6      4.1%
  Treasury................................     142.1     143.7     143.7     148.4     150.9       8.8      6.2%
  Veterans Affairs........................     207.1     205.5     202.6     205.9     204.7      -2.4     -1.2%

Other agencies--excluding Postal Service:
  Agency for International Development....       2.7       2.5       2.4       2.4       2.5      -0.2     -7.7%
Broadcasting Board of Governors...........       2.4       2.4       2.4       2.5       2.5       0.1      4.2%
  Corps of Engineers......................      24.8      24.7      24.8      24.8      24.8  ........      0.2%
  Environmental Protection Agency.........      17.7      18.1      17.7      18.0      17.5      -0.2     -1.3%
  EEOC....................................       2.5       2.6       2.9       3.1       3.1       0.5     20.1%
  FEMA....................................       4.6       5.2       4.6       4.9       5.0       0.4      8.0%
  FDIC/RTC................................       7.9       7.4       7.1       6.7       6.5      -1.4    -17.3%
  General Services Administration.........      14.1      14.1      14.0      14.2      14.2       0.1      0.7%
  NASA....................................      19.1      18.5      18.4      19.0      19.0      -0.1     -0.5%
  National Archives and Records Admin.....       2.4       2.4       2.5       2.7       2.7       0.3     13.1%
  National Labor Relations Board..........       1.9       1.8       1.9       2.0       2.0       0.1      6.5%
  National Science Foundation.............       1.2       1.2       1.2       1.2       1.2  ........      1.9%
  Nuclear Regulatory Commission...........       3.0       2.8       2.8       2.8       2.8      -0.2     -5.5%
  Office of Personnel Management..........       2.8       2.8       2.8       3.0       3.0       0.2      7.6%
  Panama Canal Commission.................       9.6       9.2       2.4       0.0       0.0      -9.6   -100.0%
  Peace Corps.............................       1.1       1.1       1.0       1.2       1.2       0.1     10.8%
  Railroad Retirement Board...............       1.3       1.3       1.2       1.2       1.2      -0.1    -10.0%
  Securities and Exchange Commission......       2.8       2.8       2.8       3.0       3.0       0.2      8.0%
  Small Business Administration...........       4.4       4.7       4.3       4.2       4.1      -0.2     -5.5%
  Smithsonian Institution.................       5.0       5.1       5.0       5.2       5.2       0.1      2.8%
Social Security Administration............      64.0      63.0      62.4      63.2      63.5      -0.5     -0.9%
  Tennessee Valley Authority..............      14.4      13.5      13.2      13.2      13.1      -1.3     -9.1%
  All other small agencies................      13.6      13.9      14.0      15.8      15.9       2.3     16.8%
----------------------------------------------------------------------------------------------------------------
Total, Executive Branch civilian             1,790.2   1,778.4   1,814.3   1,751.4   1,757.1     -33.2     -1.9%
 employment...............................
Subtotal, Defense.........................     707.2     681.0     660.3     641.1     641.1     -66.2     -9.4%
Subtotal, Non-Defense.....................   1,083.0   1,097.4   1,154.0   1,110.3   1,116.0      33.0      3.0%
----------------------------------------------------------------------------------------------------------------


[[Page 215]]


                                      Table 10-2.  TOTAL FEDERAL EMPLOYMENT
                                     (As measured by total positions filled)
----------------------------------------------------------------------------------------------------------------
                                                            Actual as of September 30       Change: 1998 to 2000
                     Description                      ----------------------------------------------------------
                                                          1998        1999        2000      Positions   Percent
----------------------------------------------------------------------------------------------------------------
Executive branch civilian employment:
  All agencies except Postal Service and Postal Rate
   Commission:
    Full-time permanent..............................   1,624,152   1,603,944   1,584,338     -39,814      -2.5%
    Other than full-time permanent \1\...............     231,644     216,353     199,643     -32,001     -13.8%
                                                      ----------------------------------------------------------
      Subtotal.......................................   1,855,796   1,820,297   1,783,981     -71,815      -3.9%

Postal Service: \2\
  Full-time permanent................................     660,987     670,272     666,528       5,541       0.8%
  Other than full-time permanent.....................     210,533     196,121     194,249     -16,284      -7.7%
                                                      ----------------------------------------------------------
    Subtotal.........................................     871,520     866,393     860,777     -10,743      -1.2%
                                                      ==========================================================
  Subtotal, Executive branch civilian employment.....   2,727,316   2,686,690   2,644,758     -82,558      -3.0%

Military personnel on active duty: \3\
  Department of Defense..............................   1,406,830   1,385,703   1,384,338     -22,492      -1.6%
  Department of Transportation (Coast Guard).........      35,459      35,740      36,157         698       2.0%
                                                      ----------------------------------------------------------
    Subtotal, military personnel.....................   1,442,289   1,421,443   1,420,495     -21,794      -1.5%
                                                      ==========================================================
      Subtotal, Executive Branch.....................   4,169,605   4,108,133   4,065,253    -104,352      -2.5%

Legislative Branch:
  Full-time permanent................................      12,399      12,183      11,970        -429      -3.5%
  Other than full-time permanent.....................      18,075      18,170      19,187       1,112       6.2%
                                                      ----------------------------------------------------------
    Subtotal, Legislative Branch.....................      30,474      30,353      31,157         683       2.2%

Judicial Branch:
  Full-time permanent................................      28,487      28,875      28,938         451       1.6%
  Other than full-time permanent.....................       3,255       3,321       3,248          -7      -0.2%
                                                      ----------------------------------------------------------
    Subtotal, Judicial Branch........................      31,742      32,196      32,186         444       1.4%
                                                      ==========================================================
Grand Total..........................................   4,231,821   4,170,682   4,128,596    -103,225      -2.4%
----------------------------------------------------------------------------------------------------------------
                       ADDENDUM

Executive branch civilian personnel (excluding Postal
 Service):
  DOD-Military functions \4\.........................     692,552     665,679     651,247     -41,305      -6.0%
  All other executive branch.........................   1,163,244   1,154,618   1,132,734     -30,510      -2.6%
                                                      ----------------------------------------------------------
    Total \5\........................................   1,855,796   1,820,297   1,783,981     -71,815      -3.9%
----------------------------------------------------------------------------------------------------------------
\1\ Includes Summer Aides, Stay-in-school, Junior Fellowship, Worker-Trainee Opportunity Program.

\2\ Includes Postal Rate Commission.

\3\ Excludes reserve components.

\4\ Excludes Defense Intelligence Agency.

\5\ Includes disadvantaged youth programs.


[[Page 216]]


                                                          Table 10-3.  TOTAL FEDERAL EMPLOYMENT
                                                         (As measured by Full-Time Equivalents)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                       Estimate         Change: 2000 to
                                                                                                          2000   --------------------        2002
                                              Description                                                actual                      -------------------
                                                                                                                    2001      2002      FTE's    Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Executive branch civilian personnel:
  All agencies except Postal Service and Defense......................................................  1,153,96  1,110,32  1,116,00   -37,968     -3.3%
                                                                                                               8         9         0
  Defense-Military functions (civilians)..............................................................   660,285   641,055   641,055   -19,230     -2.9%
                                                                                                       -------------------------------------------------
    Subtotal, excluding Postal Service................................................................  1,814,25  1,751,38  1,757,05   -57,198      3.2%
                                                                                                               3         4         5
  Postal Service \1\..................................................................................   848,353   841,002   828,052   -20,301     -2.4%
                                                                                                       =================================================
    Subtotal, Executive Branch civilian personnel.....................................................  2,662,60  2,592,38  2,585,10   -77,499     -2.9%
                                                                                                               6         6         7

Executive branch uniformed personnel: \2\
  Department of Defense...............................................................................  1,380,94  1,378,69  1,378,69    -2,255     -0.2%
                                                                                                               7         2         2
  Department of Transportation (Coast Guard)..........................................................    35,716    35,934    35,132      -584      1.6%
                                                                                                       -------------------------------------------------
    Subtotal, uniformed military personnel............................................................  1,416,66  1,414,62  1,413,82    -2,839     -0.2%
                                                                                                               3         6         4
                                                                                                       =================================================
    Subtotal, Executive Branch........................................................................  4,079,26  4,007,01  3,998,93   -80,338     -2.0%
                                                                                                               9         2         1

Legislative Branch: \3\ Total FTE \3\.................................................................    31,192    31,513    33,333     2,141      6.9%
Judicial branch: Total FTE............................................................................    31,230    33,302    34,277     3,047      9.8%
                                                                                                       =================================================
    Grand Total.......................................................................................  4,141,69  4,071,82  4,066,54   -75,150     -1.8%
                                                                                                               1         7         1
--------------------------------------------------------------------------------------------------------------------------------------------------------
\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 2000 FTE data not available for legislative branch.


[[Page 217]]


                                                    TABLE 10-4.   PERSONNEL COMPENSATION AND BENEFITS
                                                                (In millions of dollars)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         Estimate                Change: 2000 to 2002
                                 Description                                    2000 actual  -----------------------------------------------------------
                                                                                                   2001            2002          Dollars       Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Civilian personnel costs:
  Executive Branch (excluding Postal Service):
    Direct compensation:
      DOD--military functions...............................................      32,301          32,825          33,281           980             3.0%
      All other executive branch............................................      63,024          65,138          68,406         5,382             8.5%
                                                                             ---------------------------------------------------------------------------
        Subtotal, direct compensation.......................................      95,325          97,963         101,687         6,362             6.7%

    Personnel benefits:
      DOD--military functions...............................................       7,472           7,541           7,720           248             3.3%
      All other executive branch \1\........................................      24,801          26,103          27,004         2,203             8.9%
                                                                             ---------------------------------------------------------------------------
        Subtotal, personnel benefits........................................      32,273          33,644          34,724         2,451             7.6%
                                                                             ===========================================================================
          Subtotal, executive branch........................................     127,598         131,607         136,411         8,813             6.9%

  Postal Service:
    Direct compensation.....................................................      36,981          38,274          39,032         2,051             5.5%
    Personnel benefits......................................................      11,116          11,963          12,447         1,331            12.0%
                                                                             ---------------------------------------------------------------------------
      Subtotal..............................................................      48,097          50,237          51,479         3,382             7.0%

  Legislative Branch: \2\
    Direct compensation.....................................................       1,375           1,454           1,554           179            13.0%
    Personnel benefits......................................................         315             341             376            61            19.4%
                                                                             ---------------------------------------------------------------------------
      Subtotal..............................................................       1,690           1,795           1,930           240            14.2%

  Judicial Branch:
    Direct compensation.....................................................       1,907           2,191           2,368           461            24.2%
    Personnel benefits......................................................         493             535             598           105            21.3%
                                                                             ---------------------------------------------------------------------------
      Subtotal..............................................................       2,400           2,726           2,966           566            23.6%
                                                                             ===========================================================================
      Total, civilian personnel costs.......................................     179,785         186,365         192,786        13,001             7.2%

Military personnel costs:
  DOD--Military Functions:
    Direct compensation.....................................................      51,489          53,141          56,690         5,201            10.1%
    Personnel benefits......................................................      18,886          19,093          20,127         1,241             6.6%
                                                                             ---------------------------------------------------------------------------
      Subtotal..............................................................      70,375          72,234          76,817         6,442             9.2%

All other executive branch, uniformed personnel:
  Direct compensation.......................................................       1,321           1,394           1,505           184            13.9%
  Personnel benefits........................................................         150             149             159             9             6.0%
                                                                             ---------------------------------------------------------------------------
    Subtotal................................................................       1,471           1,543           1,664           193            13.1%
                                                                             ---------------------------------------------------------------------------
  Total, military personnel costs \3\.......................................      71,846          73,777          78,481         6,635             9.2%
                                                                             ===========================================================================
Grand total, personnel costs................................................     251,631         260,142         271,267        19,636             7.8%
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                  ADDENDUM

Former Civilian Personnel:
  Retired pay for former personnel..........................................      46,144          48,464          50,705         4,561             9.9%
    Government payment for Annuitants:
      Employee health benefits..............................................       5,049           5,572           6,102         1,053            20.9%
      Employee life insurance...............................................          27              32              33             6            22.2%
                                                                             ---------------------------------------------------------------------------
Total Former Civilian Personnel.............................................      51,220          54,068          56,840         5,620            11.0%
                                                                             ---------------------------------------------------------------------------
Former Military personnel:
  Retired pay for former personnel..........................................      33,556          35,025          36,128         2,572             7.7%
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Includes transfers from general revenues in addition to employing agency's contributions for the cost of employee benefits. The transfers amounted
  to $9118 million in 2000 and are estimated to be $9,162 million in 2001 and $9,229 million in 2002.

\2\ Excludes members and officers of the Senate.

\3\ Excludes reserve components.