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


[[Page 287]]

 
                 11. 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 which is published as a separate volume 
of the President's Budget.

                      Measuring Federal Employment

  Civilian employment is measured on the basis of full-time equivalents 
(FTEs). One FTE is equal to one work year (see OMB Circular A-11, 
Section 32). Put simply, one full-time employee counts as one FTE, and 
two half-time employees also count as one FTE. However, data shown for 
military are average strengths, not FTEs. Federal employment can also be 
measured by actual positions filled.

                     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. Two of this 
year's tables also provide a breakout of Commissioned Corps officers 
employed by the Public Health Service (PHS) in the Department of Health 
and Human Services and the National Oceanic and Atmospheric 
Administration (NOAA) within the Department of Commerce. Table 11-1 
provides Executive Branch FTE totals from 2000 through 2004. Table 11-2 
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 11-3 shows 
total Federal employment as measured on an FTE basis.

                     Department of Homeland Security

  On November 25, 2002, the President signed the Homeland Security Act 
of 2002 (Public Law 107-296). The Act initiates the most substantial 
reorganization of the Federal Government since the 1940's transferring 
FTE from ten major Federal agencies to the newly-established Department 
of Homeland Security (DHS). The President's Budget displays FTE 
estimates for DHS on a three-year comparable basis. The DHS FTE totals 
reflect estimates of 142 thousand civilians and 37 thousand military (US 
Coast Guard) in fiscal year 2004 for a total estimated strength of 179 
thousand FTEs. The net increase of 23 thousand Executive Branch civilian 
FTE from 2002 actuals to the 2004 estimate is largely due to the 
creation of the Transportation Security Administration, which will be 
incorporated into the Department of Homeland Security.

                   Personnel Compensation and Benefits

  Table 11-4 displays personnel compensation and benefits (in millions 
of dollars) 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.
  The Budget proposes a new approach to federal pay. Consistent with the 
Administration's emphasis on program performance, the 2004 pay proposal 
combines a two percent across-the-board increase with a performance 
component. $500 million will be set aside governmentwide to allow 
managers to increase pay beyond annual raises to reward top-performing 
employees with a permanent increase in their base pay. The 
Administration also proposes to reform the pay structure of its senior 
managers by increasing the limit on pay and replacing the current six-
tier system with a pay band so that agencies can tie these managers' 
compensation more closely to their performance.
  The Administration proposes legislation to require agencies to pay the 
full Government share of the accruing cost of retirement for current 
CSRS, CIA and Foreign Service employees, and the Cost Guard, Public 
Health Service and NOAA Commissioned Corps. The legislation also 
requires agencies to pay the full accruing cost of post-retirement 
health benefits for current civilian employees who are enrolled in the 
Federal Employees Health Benefits Program and the post-retirement health 
costs of Medicare eligible retirees (and their dependents/survivors) of 
the Uniformed Services (DoD, Coast Guard, Public Health Service, and 
NOAA Commissioned Corps). Pending approved legislation, the 2004 Budget 
includes the realignment of these incremental costs to the agencies as 
memorandum entries.

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                             Table 11-1.  FEDERAL EMPLOYMENT IN THE EXECUTIVE BRANCH
                    (Civilian employment as measured by Full-Time Equivalents, in thousands)
----------------------------------------------------------------------------------------------------------------
                                                           Actual               Estimate        Change: 2000 to
                                                ---------------------------------------------        2004
                     Agency                                                                  -------------------
                                                   2000     2001     2002     2003     2004     FTE's    Percent
----------------------------------------------------------------------------------------------------------------
Cabinet agencies:
  Agriculture..................................     95.1     96.9     97.0     99.2     98.0       2.9      3.0%
  Commerce \1\.................................    112.7     36.4     34.9     38.9     38.5       n/a       n/a
  Defense-military functions...................    660.3    649.9    649.9    642.8    635.8     -24.5     -3.7%
  Education....................................      4.6      4.6      4.5      4.6      4.6       0.0      0.0%
  Energy.......................................     15.6     15.6     15.8     16.3     16.1       0.5      3.2%
  Health and Human Services....................     54.8     56.1     59.0     61.0     60.9       6.1     11.1%
  Homeland Security \2\........................      0.0      0.0     81.3    144.9    142.2       n/a       n/a
  Housing and Urban Development................     10.1     10.1     10.0     10.5     10.5       0.4      4.0%
  Interior.....................................     67.3     68.7     70.3     70.0     70.3       3.0      4.5%
  Justice \3\..................................    122.8    124.2     97.3    106.0    112.0       n/a       n/a
  Labor........................................     16.3     16.5     17.0     17.3     17.5       1.2      7.4%
  State........................................     27.3     27.7     28.6     29.5     30.1       2.8     10.3%
  Transportation \3\...........................     63.0     63.4     61.2     59.2     60.0       n/a       n/a
  Treasury \3\.................................    143.7    145.0    115.9    116.7    117.5       n/a       n/a
  Veterans Affairs.............................    202.6    206.9    208.9    209.0    214.0      11.4      5.6%

Other agencies--excluding Postal Service:
  Agency for International Development.........      2.4      2.3      2.3      2.4      2.5       0.1      4.2%
  Broadcasting Board of Governors..............      2.4      2.4      2.4      2.5      2.5       0.1      4.2%
  Corps of Engineers--Civil Works..............     24.8     24.7     25.0     24.8     24.8       0.0      0.0%
  Environmental Protection Agency..............     17.7     17.5     17.5     17.6     17.9       0.2      1.1%
  EEOC.........................................      2.9      2.7      2.8      2.7      2.8      -0.1     -3.4%
  FEMA \4\.....................................      4.6      4.9      0.0      0.0      0.0       n/a       n/a
  FDIC/RTC.....................................      7.1      6.4      6.0      5.7      5.6      -1.5    -21.1%
  General Services Administration..............     14.0     14.0     12.4     12.4     12.4      -1.6    -11.4%
  NASA.........................................     18.4     18.7     18.7     19.1     18.9       0.5      2.7%
  National Archives and Records Administration.      2.5      2.6      2.8      2.8      2.9       0.4     16.0%
  National Labor Relations Board...............      1.9      2.0      1.9      2.0      2.0       0.1      5.3%
  National Science Foundation..................      1.2      1.2      1.2      1.3      1.3       0.1      8.3%
  Nuclear Regulatory Commission................      2.8      2.8      2.8      2.9      3.0       0.2      7.1%
  Office of Personnel Management...............      2.8      2.8      2.8      2.9      3.0       0.2      7.1%
  Peace Corps..................................      1.0      1.0      1.0      1.2      1.3       0.3     30.0%
  Railroad Retirement Board....................      1.2      1.2      1.2      1.1      1.1      -0.1     -8.3%
  Securities and Exchange Commission...........      2.8      2.9      3.0      3.2      3.7       0.9     32.1%
  Small Business Administration................      4.3      4.1      4.0      3.9      3.9      -0.4     -9.3%
  Smithsonian Institution......................      5.0      4.9      5.0      5.6      5.8       0.8     16.0%
  Social Security Administration...............     62.4     62.7     63.1     63.6     64.6       2.2      3.5%
  Tennessee Valley Authority...................     13.2     13.2     13.5     13.6     13.4       0.2      1.5%
  All other small agencies.....................     16.4     14.7     15.1     15.8     15.9      -0.5     -3.0%
                                                ----------------------------------------------------------------
Total, Executive Branch civilian employment \5\  1,808.2  1,731.7  1,749.9  1,826.7  1,831.0      22.8      1.3%
Subtotal, Defense..............................    660.3    649.9    649.9    642.8    635.8     -24.5     -3.7%
Subtotal, Non-Defense..........................  1,147.9  1,081.8  1,100.0  1,183.9  1,195.2      47.3      4.1%
----------------------------------------------------------------------------------------------------------------
\1\ Department of Commerce FY 2000 data in as outlier due to 2000 Census workload.
\2\ Department of Homeland Security FTEs shown on a three-year comparable basis. See the introduction to this
  chapter for an explanation of the growth in DHS FTEs.
\3\ Transfers to the Department of Homeland Security prevent meaningful 2000 to 2004 comparisons.
\4\ FEMA realigned under the Department of Homeland Security.
\5\ Totals may not add due to rounding.


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                                      Table 11-2.  TOTAL FEDERAL EMPLOYMENT
                                     (As measured by total positions filled)
----------------------------------------------------------------------------------------------------------------
                                                            Actual as of September 30       Change: 2000 to 2002
                     Description                      ----------------------------------------------------------
                                                          2000        2001        2002      Positions   Percent
----------------------------------------------------------------------------------------------------------------
Executive branch civilian employment:
  All agencies except Postal Service and Postal Rate
   Commission:
    Full-time permanent..............................   1,578,495   1,595,801   1,632,663      54,168       3.4%
    Other than full-time permanent...................     199,643     196,009     185,597     -14,046      -7.0%
                                                      ----------------------------------------------------------
      Subtotal.......................................   1,778,138   1,791,810   1,818,260      40,122       2.3%
                                                      ==========================================================
Postal Service: \1\
  Full-time permanent................................     666,528     661,452     645,758     -20,770      -3.1%
  Other than full-time permanent.....................     194,249     186,418     165,933     -28,316     -14.6%
                                                      ----------------------------------------------------------
    Subtotal.........................................     860,777     847,870     811,691     -49,086      -5.7%
                                                      ----------------------------------------------------------
  Subtotal, Executive branch civilian employment.....   2,638,915   2,639,680   2,629,951      -8,964      -0.3%
                                                      ==========================================================
Uniformed Services: \2\
  Department of Defense..............................   1,384,338   1,385,116   1,411,634      27,296       2.0%
  Department of Transportation (Coast Guard).........      36,157      36,580      38,238       2,081       5.8%
  Commissioned Corps (PHS, NOAA))....................       5,843       6,027       6,221         378       6.5%
                                                      ----------------------------------------------------------
    Subtotal, military personnel.....................   1,426,338   1,427,723   1,456,093      29,755       2.1%
                                                      ----------------------------------------------------------
      Subtotal, Executive Branch.....................   4,065,253   4,067,403   4,086,044      20,791       0.5%
                                                      ==========================================================
Legislative branch:
  Full-time permanent................................      11,970      11,856      12,097         127       1.1%
  Other than full-time permanent.....................      19,187      18,583      18,789        -398      -2.1%
                                                      ----------------------------------------------------------
    Subtotal, Legislative Branch.....................      31,157      30,439      30,886        -271      -0.9%
                                                      ==========================================================
Judicial Branch:
  Full-time permanent................................      28,938      30,478      31,286       2,348       8.1%
  Other than full-time permanent.....................       3,248       3,332       3,413         165       5.1%
                                                      ----------------------------------------------------------
    Subtotal, Judicial Branch........................      32,186      33,810      34,699       2,513       7.8%
                                                      ==========================================================
Grand total \3\......................................   4,128,596   4,131,652   4,151,629      23,033       0.6%
                                                      ==========================================================

                       ADDENDUM

Executive branch civilian personnel (excluding Postal
 Service):
  DOD civilians--Military functions..................     651,247     647,048     644,817      -6,430      -1.0%
  All other executive branch.........................   1,126,891   1,144,762   1,173,443      46,552       4.1%
                                                      ----------------------------------------------------------
    Total............................................   1,778,138   1,791,810   1,818,260      40,122       2.3%
----------------------------------------------------------------------------------------------------------------
\1\ Includes Postal Rate Commission.
\2\ Excludes reserve components.
\3\ Includes Summer Aides, Stay-in-school, Junior Fellowship, Worker-Trainee Opportunity, and disadvantage youth
  programs.


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                                                          Table 11-3.  TOTAL FEDERAL EMPLOYMENT
                                                         (As measured by Full-Time Equivalents)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      Estimate          Change: 2002 to
                                                                                                      2002    ------------------------        2004
                                           Description                                               actual                           ------------------
                                                                                                                  2003        2004       FTE's   Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Executive branch civilian personnel:
  All agencies except Postal Service and Defense.................................................   1,100,022   1,183,979   1,195,189    95,167     8.7%
  Defense-Military functions (civilians).........................................................     649,875     642,759     635,781   -14,094    -2.2%
                                                                                                  ------------------------------------------------------
    Subtotal, excluding Postal Service...........................................................   1,749,897   1,826,738   1,830,970    81,073     4.6%
  Postal Service \1\.............................................................................     809,946     799,537     786,825   -23,121    -2.9%
                                                                                                  ------------------------------------------------------
    Subtotal, Executive Branch civilian personnel................................................   2,559,843   2,626,275   2,617,795    57,952     2.3%
                                                                                                  ======================================================
Executive Branch Uniformed Services: \2\
  Department of Defense..........................................................................   1,414,355   1,392,379   1,390,776   -23,579    -1.7%
  Homeland Security (Coast Guard)................................................................      37,112      37,249      37,255       143     0.4%
  Commissioned Corps (PHS, NOAA).................................................................       5,984       6,207       6,259       275     4.6%
                                                                                                  ------------------------------------------------------
    Subtotal, uniformed military personnel.......................................................   1,457,451   1,435,835   1,434,290   -23,161    -1.6%
                                                                                                  ------------------------------------------------------
    Subtotal, Executive Branch...................................................................   4,017,294   4,062,110   4,052,085    34,791     0.9%
                                                                                                  ======================================================
Legislative Branch: \3\ Total FTE................................................................      31,390      32,167      33,082     1,692     5.4%

Judicial branch: Total FTE.......................................................................      33,205      35,125      34,966     1,761     5.3%
                                                                                                  ======================================================
    Grand total..................................................................................   4,081,889   4,129,402   4,120,133    38,244     0.9%
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Includes Postal Rate Commission.
\2\ Military personnel on active duty. Excludes reserve components. Data shown are average strengths, not FTEs.


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                                                    TABLE 11-4.   PERSONNEL COMPENSATION AND BENEFITS
                                                                (In millions of dollars)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         Estimate                Change: 2002 to 2004
                                 Description                                    2002 actual  -----------------------------------------------------------
                                                                                                   2003            2004          Dollars       Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Civilian personnel costs:
  Executive Branch (excluding Postal Service):
    Direct compensation:
      DOD--military functions...............................................      35,478          35,787          37,014         1,536             4.3%
      All other executive branch............................................      69,019          74,561          79,812        10,793            15.6%
                                                                             ---------------------------------------------------------------------------
        Subtotal, direct compensation.......................................     104,497         110,348         116,826        12,329            11.8%

    Personnel benefits:
      DOD--military functions...............................................       8,096           8,414           9,302         1,206            14.9%
      All other executive branch............................................      28,038          29,979          30,742         2,704             9.6%
                                                                             ---------------------------------------------------------------------------
        Subtotal, personnel benefits........................................      36,134          38,393          40,044         3,910            10.8%
                                                                             ---------------------------------------------------------------------------
          Subtotal, executive branch........................................     140,631         148,741         156,870        16,239            11.5%
                                                                             ===========================================================================
  Postal Service:
    Direct compensation.....................................................      36,877          37,496          38,165         1,288             3.5%
    Personnel benefits......................................................      12,670          13,814          14,326         1,656            13.1%
                                                                             ---------------------------------------------------------------------------
      Subtotal..............................................................      49,547          51,310          52,491         2,944             5.9%
                                                                             ===========================================================================
  Legislative Branch: \1\
    Direct compensation.....................................................       1,521           1,712           1,812           291            19.1%
    Personnel benefits......................................................         366             443             455            89            24.3%
                                                                             ---------------------------------------------------------------------------
      Subtotal..............................................................       1,887           2,155           2,267           380            20.1%
                                                                             ===========================================================================
  Judicial Branch:
    Direct compensation.....................................................       2,214           2,557           2,613           399            18.0%
    Personnel benefits......................................................         591             658             708           117            19.8%
                                                                             ---------------------------------------------------------------------------
      Subtotal..............................................................       2,805           3,215           3,321           516            18.4%
                                                                             ---------------------------------------------------------------------------
      Total, civilian personnel costs.......................................     194,870         205,421         214,949        20,079            10.3%
                                                                             ===========================================================================
Military personnel costs:
  DOD--Military Functions:
    Direct compensation.....................................................      60,813          61,737          65,640         4,827             7.9%
    Personnel benefits \2\..................................................      23,065          29,420          30,248         7,183            31.1%
                                                                             ---------------------------------------------------------------------------
      Subtotal..............................................................      83,878          91,157          95,888        12,010            14.3%
                                                                             ===========================================================================
All other executive branch, uniformed personnel:
  Direct compensation.......................................................       1,933           2,016           2,148           215            11.1%
  Personnel benefits........................................................         298             504             584           286            96.0%
                                                                             ---------------------------------------------------------------------------
    Subtotal................................................................       2,231           2,520           2,732           501            22.5%
                                                                             ---------------------------------------------------------------------------
  Total, military personnel costs...........................................      86,109          93,677          98,620        12,511            14.5%
                                                                             ===========================================================================
Grand total, personnel costs................................................     280,979         299,098         313,569        32,590            11.6%
                                                                             ===========================================================================
                                  ADDENDUM

Former Civilian Personnel:
Retired pay for former personnel............................................      49,945          52,076          53,768         3,823             7.7%
    Government payment for Annuitants:
      Employee health benefits..............................................       6,071           6,759           7,456         1,385            22.8%
      Employee life insurance...............................................          33              34              35             2             6.1%
                                                                             ---------------------------------------------------------------------------
Total Former Civilian Personnel.............................................      56,049          58,869          61,259         5,210             9.3%
                                                                             ===========================================================================
Former Military personnel:
  Retired pay for former personnel..........................................      35,188          36,056          36,870         1,682             4.8%
  Military annuitants health benefits.......................................           0           4,445           4,765         4,765           n/a
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Excludes members and officers of the Senate.
\2\ Increases in 2003 and 2004 are largely due to legislation requiring payments to the Uniformed Services retiree health care fund.