[Analytical Perspectives]
[Dimensions of the Budget]
[24. Federal Employment and Compensation]
[From the U.S. Government Printing Office, www.gpo.gov]



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                24.  FEDERAL EMPLOYMENT AND COMPENSATION

  This section provides information on civilian and military employment 
in the Executive, Legislative, and Judicial branches. It also provides 
information on personnel compensation and benefits.

                      Measuring Federal Employment

  For budgetary purposes, 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. 
Data shown for military personnel are average strengths, not FTEs. 
Tables 24-1 and 24-3 show FTE data, while Table 24-2 shows end strength 
or ``positions filled'' data as of September 30th.

               Significant Changes in Civilian Employment

  Although immediate security requirements cause near-term increases in 
Federal employment, the Administration continues its efforts to improve 
government effectiveness and efficiency in order to better serve the 
American people with a smaller Federal workforce. While current 
projections show an increase in the number of employees in the Executive 
Branch, it is expected that efforts to improve government effectiveness 
and efficiency will result in a reduction in the number of Federal 
government employees over the next four years.
  The Department of Commerce grows 4,400 FTE between FY 2004 and FY 2006 
due to increased workload associated with the American Community Survey 
in the Bureau of the Census. The U.S. Patent and Trademark Office (PTO) 
is also increasing personnel in an effort to reduce a large backlog of 
patent and trademark submissions. The increase in PTO FTEs is fee 
funded.
  At the Department of Health and Human Services, an increase of over 
2,800 FTEs between FY 2004 and FY 2006 is due to the following: 1) 
Additional staff to provide actuarial, health administration, and 
contracting expertise to support the implementation of the Medicare 
Modernization Act (MMA) at the Centers for Medicare and Medicaid 
Services; 2) Expanded staff at the Indian Health Service health care 
facilities; 3) Increase in scientific research positions at the National 
Institutes of Health; 4) Pre-market review of new drugs, medical 
devices, animal drugs, and other products regulated at the Food and Drug 
Administration (FDA) and the FDA Office of Drug Safety; and 5) Work 
related to Medicare appeals and health information technology at the 
Office of the Secretary.
  Total FTEs for the Department of Homeland Security increase by six 
percent between FY 2004 and FY 2006 as this new department's employment 
settles into a more steady state. The new growth of 8,500 FTE is 
primarily driven by increases in U.S. Customs and Border Protection 
Officers, Border Patrol Agents, and Transportation Security 
Administration screener personnel.
  Department of Justice FTEs increased by 18 percent between FY 2004 and 
FY 2006 due to increases in security-related programs. Growth of 18,100 
FTE is largely driven by increases in the Federal Bureau of 
Investigation, federal prison system, legal activities, Bureau of 
Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Marshals.
  Department of State FTE increases are principally within their 
diplomatic and consular programs, the Department's main operating 
account. Total Department FTEs increase by over 600 between FY 2004 and 
FY 2006. These new positions are for additional security personnel, 
consular personnel to facilitate new visa security requirements, 
staffing for new requirements overseas, such as Iraq, Sudan, and Libya, 
and to strengthen reconstruction and stabilization capabilities.
  The Office of Personnel Management's increases in FY 2005 and FY 2006 
FTE, as compared to FY 2004, include the transfer of approximately 1,800 
DOD's Defense Security Service investigative personnel to OPM.
  The roughly 500 FTE increase reflected in the Smithsonian Institution 
(encompassing the Smithsonian Institution, National Gallery of Art, John 
F. Kennedy Center for the Performing Arts and the Woodrow Wilson Center 
for International Scholars) between FY 2004 and FY 2006 primarily 
reflect additional staff for security and facilities operations. Both 
the National Gallery of Art and the Smithsonian Institution are working 
to reduce the turnover associated with their respective security forces 
and hire a force sufficient to accommodate today's homeland security 
challenges. In FY 2005, the Smithsonian will continue to supplement its 
security and facility operations staff to support the recent openings of 
the National Museum of the American Indian on the National Mall and the 
National Air and Space Museum's Steven F. Udvar-Hazy Center.
  The Social Security Administration is projecting growth in hiring of 
about 1,700 FTE between FY 2004 and FY 2006. The agency requires new 
hires to meet its responsibilities in implementing the Medicare 
prescription drug benefit. SSA is in charge of determining eligibility 
for low-income subsidies for the drug benefit.

               Significant Changes in Military Employment

  As shown in Table 24-3, the Department of Defense estimate reduces 
over 55,000 FTE by FY 2006. The Services continue to increase their use 
of technology resulting in less military personnel requirements. In 
addition, contracted labor is on the rise within the Services. Lastly, 
personnel retention was previously high among those military members 
with aircraft-related

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skills due to reduced hiring by the commercial airlines. However, the 
Services anticipate this retention rate will decrease as the economy 
continues to improve.

                   Personnel Compensation and Benefits

  Table 24-4 displays personnel compensation and benefits (in millions 
of dollars) for all branches of Government, to include 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.

                                     

                             Table 24-1.  FEDERAL EMPLOYMENT IN THE EXECUTIVE BRANCH
                    (Civilian employment as measured by Full-Time Equivalents, in thousands)
----------------------------------------------------------------------------------------------------------------
                                                    Actual                  Estimate        Change: 2002 to 2006
                 Agency                 ------------------------------------------------------------------------
                                           2002      2003      2004      2005      2006       FTE's     Percent
----------------------------------------------------------------------------------------------------------------
 
Cabinet agencies:
  Agriculture..........................      97.0     101.4     100.5     103.3     100.5         3.5       3.6%
  Commerce.............................      34.9      34.5      34.6      37.9      39.0         4.1      11.7%
  Defense--Military functions..........     649.9     648.9     650.4     659.9     664.6        14.7       2.3%
  Education............................       4.5       4.5       4.4       4.5       4.4        -0.1      -2.2%
  Energy...............................      15.8      15.6      15.1      15.9      15.8  ..........  .........
  Health and Human Services............      59.0      60.0      59.3      62.3      62.1         3.1       5.3%
  Homeland Security....................      81.3     144.5     137.3     143.9     145.8        64.5      79.3%
  Housing and Urban Development........      10.0      10.4      10.2      10.0       9.9        -0.1      -1.0%
  Interior.............................      70.3      71.0      70.7      71.0      70.9         0.6       0.9%
  Justice..............................      97.3      99.4     101.4     116.5     119.5        22.2      22.8%
  Labor................................      17.0      16.9      16.5      16.8      16.9        -0.1      -0.6%
  State................................      28.6      29.5      30.0      30.3      30.6         2.0       7.0%
  Transportation.......................      61.2      59.0      57.3      57.4      57.7        -3.5      -5.7%
  Treasury.............................     115.9     115.4     113.6     113.0     113.6        -2.3      -2.0%
  Veterans Affairs.....................     208.9     211.8     218.7     221.9     218.1         9.2       4.4%
 
Other agencies--excluding Postal
 Service:
  Agency for International Development.       2.4       2.3       2.2       2.3       2.6         0.2       8.3%
  Broadcasting Board of Governors......       2.4       2.4       2.3       2.3       2.4  ..........  .........
  Corps of Engineers--Civil Works......      25.0      24.5      23.5      23.5      23.5        -1.5      -6.0%
  Environmental Protection Agency......      17.5      17.5      17.3      17.6      17.6         0.1       0.6%
  EEOC.................................       2.8       2.6       2.5       2.4       2.4        -0.4     -14.3%
  FDIC/RTC.............................       6.0       5.4       5.3       5.2       4.9        -1.1     -18.3%
  General Services Administration......      12.4      12.9      12.6      12.7      12.2        -0.2      -1.6%
  NASA.................................      18.7      18.7      18.8      19.4      19.0         0.3       1.6%
  National Archives and Records               2.8       2.8       2.8       2.9       2.9         0.1       3.6%
   Administration......................
  National Labor Relations Board.......       1.9       1.9       1.9       1.9       1.8        -0.1      -5.3%
  National Science Foundation..........       1.2       1.2       1.3       1.3       1.3         0.1       8.3%
  Nuclear Regulatory Commission........       2.8       2.9       3.0       3.1       3.2         0.4      14.3%
  Office of Personnel Management.......       2.8       2.8       2.8       4.1       5.0         2.2      78.6%
  Peace Corps..........................       1.0       1.0       1.1       1.2       1.2         0.2      20.0%
  Railroad Retirement Board............       1.2       1.1       1.1       1.0       1.0        -0.2     -16.7%
  Securities and Exchange Commission...       3.0       3.1       3.6       3.9       3.9         0.9      30.0%
  Small Business Administration........       4.0       3.8       3.4       4.2       3.3        -0.7     -17.5%
  Smithsonian Institution..............       5.0       5.2       5.1       5.6       5.6         0.6      12.0%
  Social Security Administration.......      63.1      63.1      63.9      64.2      65.6         2.5       4.0%
  Tennessee Valley Authority...........      13.5      13.1      12.0      12.0      12.1        -1.4     -10.4%
  All other small agencies.............      15.0      15.1      14.9      15.7      15.7         0.7       4.7%
                                        ------------------------------------------------------------------------
Total, Executive Branch civilian          1,755.9   1,826.2   1,821.1   1,871.2   1,876.8       120.9       6.9%
 employment *..........................
 
Subtotal, Defense......................     649.9     648.9     650.4     659.9     664.6        14.7       2.3%
Subtotal, Non-Defense..................   1,106.0   1,177.3   1,170.7   1,211.3   1,212.2       106.2       9.6%
----------------------------------------------------------------------------------------------------------------
* Totals may not add due to rounding.


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                                      Table 24-2.  TOTAL FEDERAL EMPLOYMENT
                                     (As measured by total positions filled)
----------------------------------------------------------------------------------------------------------------
                                                            Actual as of September 30       Change: 2002 to 2004
                     Description                      ----------------------------------------------------------
                                                          2002        2003        2004      Positions   Percent
----------------------------------------------------------------------------------------------------------------
 
Executive branch civilian employment:
  All agencies except Postal Service and Postal Rate
   Commission:
    Full-time permanent..............................   1,632,663   1,646,688   1,662,990      30,327       1.9%
    Other than full-time permanent...................     185,597     220,288     218,953      33,356      18.0%
                                                      ----------------------------------------------------------
      Subtotal.......................................   1,818,260   1,866,976   1,881,943      63,683       3.5%
                                                      ==========================================================
  Postal Service: \1\
    Full-time permanent..............................     645,758     634,709     609,579     -36,179      -5.6%
    Other than full-time permanent...................     165,933     164,539     158,083      -7,850      -4.7%
                                                      ----------------------------------------------------------
      Subtotal.......................................     811,691     799,248     767,662     -44,029      -5.4%
                                                      ----------------------------------------------------------
        Subtotal, Executive branch civilian             2,629,951   2,666,224   2,649,605      19,654       0.7%
         employment..................................
                                                      ==========================================================
  Military personnel on active duty: \2\
    Department of Defense............................   1,411,634   1,434,377   1,426,836      15,202       1.1%
    Department of Transportation (Coast Guard).......      38,238      37,472      40,230       1,992       5.2%
    Commissioned Corps (HHS, NOAA, EPA)..............       6,221       6,200       6,357         136       2.2%
                                                      ----------------------------------------------------------
      Subtotal, military personnel...................   1,456,093   1,478,049   1,473,423      17,330       1.2%
                                                      ----------------------------------------------------------
        Subtotal, Executive Branch...................   4,086,044   4,144,273   4,123,028      36,984       0.9%
                                                      ==========================================================
  Legislative branch:
    full-time permanent..............................      12,097      12,044      11,614        -483      -4.0%
    Other than full-time permanent...................      18,789      19,070      18,435        -354      -1.9%
                                                      ----------------------------------------------------------
      Subtotal, Legislative Branch...................      30,886      31,114      30,049        -837      -2.7%
                                                      ==========================================================
  Judicial Branch:
    Full-time permanent..............................      31,286      30,955      30,537        -749      -2.4%
    Other than full-time permanent...................       3,413       3,304       3,324         -89      -2.6%
                                                      ----------------------------------------------------------
      Subtotal, Judicial Branch......................      34,699      34,259      33,861        -838      -2.4%
                                                      ==========================================================
    Grand total \3\..................................   4,151,629   4,209,646   4,186,938      35,309       0.9%
                                                      ==========================================================
 
                       ADDENDUM
 
Executive branch civilian personnel (excluding Postal
 Service):
  DOD civilians--Military functions..................     644,817     636,454     644,251        -566      -0.1%
  All other executive branch.........................   1,173,443   1,230,522   1,237,692      64,249       5.5%
                                                      ----------------------------------------------------------
    Total............................................   1,818,260   1,866,976   1,881,943      63,683       3.5%
----------------------------------------------------------------------------------------------------------------
\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 24-3.  TOTAL FEDERAL EMPLOYMENT
                                     (As measured by Full-Time Equivalents)
----------------------------------------------------------------------------------------------------------------
                                                                           Estimate         Change: 2004 to 2006
                     Description                            2004    --------------------------------------------
                                                           Actual       2005       2006      FTE's      Percent
----------------------------------------------------------------------------------------------------------------
 
Executive branch civilian personnel:
  All agencies except Postal Service and Defense.......   1,170,678  1,211,305  1,212,216     41,538        3.5%
  Defense--Military functions (civilians)..............     650,441    659,889    664,569     14,128        2.2%
                                                        --------------------------------------------------------
    Subtotal, excluding Postal Service.................   1,821,119  1,871,194  1,876,785     55,666        3.1%
  Postal Service \1\...................................     755,260    740,974    729,395    -25,865       -3.4%
                                                        --------------------------------------------------------
    Subtotal, Executive Branch civilian personnel......   2,576,379  2,612,168  2,606,180     29,801        1.6%
                                                        ========================================================
Executive branch uniformed personnel: \2\
  Department of Defense................................   1,430,607  1,404,918  1,375,250    -55,357       -3.9%
  Department of Homeland Security (Coast Guard)........      40,230     40,706     41,332      1,102        2.7%
  Commissioned Corps...................................       6,357      6,503      6,515        158        2.5%
                                                        --------------------------------------------------------
    Subtotal, uniformed military personnel.............   1,477,194  1,452,127  1,423,097    -54,097       -3.7%
                                                        --------------------------------------------------------
    Subtotal, Executive Branch.........................   4,053,573  4,064,295  4,029,277    -24,296       -0.6%
                                                        ========================================================
Legislative Branch: 3 Total FTE \3\....................      31,764     32,240     32,737        973        3.1%
Judicial branch: Total FTE.............................      33,802     33,505     34,728        926        2.7%
                                                        ========================================================
    Grand total........................................   4,119,139  4,130,040  4,096,742    -22,397       -0.5%
----------------------------------------------------------------------------------------------------------------
\1\ Includes Postal Rate Commission.
\2\ Military personnel on active duty. Excludes reserve components. Data shown for military are average
  strengths, not FTEs.
\3\ Actual 2004 FTE data not available for the Senate (positions filled were used).


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                                TABLE 24-4.  PERSONNEL COMPENSATION AND BENEFITS
                                            (In millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                                            Change: 2004 to 2006
                      Description                           2004        2005       2006   ----------------------
                                                           Actual     Estimate   Request     Dollars    Percent
----------------------------------------------------------------------------------------------------------------
 
Civilian personnel costs:
  Executive Branch (excluding Postal Service):
    Direct compensation:
      DOD--Military functions..........................      39,139     40,139     41,758       2,619       6.7%
      All other executive branch.......................      79,711     85,770     87,696       7,985      10.0%
                                                        --------------------------------------------------------
        Subtotal, direct compensation..................     118,850    125,909    129,454      10,604       8.9%
    Personnel benefits:
      DOD--Military functions..........................      10,008     10,419     10,898         890       8.9%
      All other executive branch.......................      32,627     34,332     34,902       2,275       7.0%
                                                        --------------------------------------------------------
        Subtotal, personnel benefits...................      42,635     44,751     45,800       3,165       7.4%
                                                        --------------------------------------------------------
          Subtotal, executive branch...................     161,485    170,660    175,254      13,769       8.5%
                                                        ========================================================
  Postal Service:
    Direct compensation................................      37,921     38,447     39,134       1,213       3.2%
    Personnel benefits.................................      12,854     13,220     14,488       1,634      12.7%
                                                        --------------------------------------------------------
      Subtotal.........................................      50,775     51,667     53,622       2,847       5.6%
                                                        ========================================================
  Legislative Branch: \1\
    Direct compensation................................       1,761      1,805      1,918         157       8.9%
    Personnel benefits.................................         460        481        517          57      12.4%
                                                        --------------------------------------------------------
      Subtotal.........................................       2,221      2,286      2,435         214       9.6%
                                                        ========================================================
  Judicial Branch:
    Direct compensation................................       2,494      2,604      2,799         305      12.2%
    Personnel benefits.................................         682        728        807         125      18.3%
                                                        --------------------------------------------------------
      Subtotal.........................................       3,176      3,332      3,606         430      13.5%
                                                        --------------------------------------------------------
        Total, civilian personnel costs................     217,657    227,945    234,917      17,260       7.9%
                                                        ========================================================
Military personnel costs:
  DOD--Military Functions:
    Direct compensation................................      75,729     67,137     69,103      -6,626      -8.7%
    Personnel benefits.................................      32,517     34,930     37,377       4,860      14.9%
                                                        --------------------------------------------------------
      Subtotal.........................................     108,246    102,067    106,480      -1,766      -1.6%
                                                        ========================================================
All other executive branch, uniformed personnel:
  Direct compensation..................................       2,343      2,487      2,628         285      12.2%
  Personnel benefits...................................         571        615        653          82      14.4%
                                                        --------------------------------------------------------
    Subtotal...........................................       2,914      3,102      3,281         367      12.6%
                                                        --------------------------------------------------------
      Total, military personnel costs \2\..............     111,160    105,169    109,761       -1399      -1.3%
                                                        ========================================================
Grand total, personnel costs...........................     328,817    333,114    344,678      15,861       4.8%
                                                        ========================================================
 
                        ADDENDUM
Former Civilian Personnel:
  Retired pay for former personnel.....................      53,412     56,896     59,883       6,471      12.1%
    Government payment for Annuitants:
      Employee health benefits.........................       7,326      7,831      8,401       1,075      14.7%
      Employee life insurance..........................          35         36         36           1       2.9%
                                                        --------------------------------------------------------
        Total Former Civilian Personnel................
                                                        ========================================================
Former Military personnel:
  Retired pay for former personnel.....................      37,153     39,135     40,915       3,762      10.1%
  Military annuitants health benefits..................       5,197      5,887      6,254       1,057      20.3%
----------------------------------------------------------------------------------------------------------------
\1\ Excludes members and officers of the Senate.
\2\ Excludes reserve components not on active duty.