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

    [[Page 361]]

                    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 and on overseas
    staffing presence. New this year is a discussion on the full cost of
    military personnel.

                          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 85). Put simply, one full-time employee
    counts as one FTE, and two half-time employees also count as one FTE.

                   Significant Changes in Civilian Employment

      Table 24-1 shows Executive Branch civilian FTE (excluding the U.S.
    Postal Service) growing by three percent between 2004 and 2008. The
    primary reason for this growth continues to be mission increases for
    homeland security and the global war on terrorism. Significant changes
    by agency are discussed below.
      Within the Department of Commerce, the Bureau of the Census is
    preparing for the 2010 Census. Census will conduct a ``dress rehearsal''
    in 2008. They will begin opening regional field offices to prepare for
    nationwide activities in 2009. Also, they will increase FTE for the data
    collection phase of the Economic Census. The U.S. Patent and Trademark
    Office requests additional FTE in an effort to decrease processing times
    for patent and trademark applications, both of which are increasing.
      The Department of Energy is increasing its FTE as it continues to
    oversee the Nation's effort to improve energy supply and conservation.
    Increases are also due to a change in the technical skills mix required
    for the National Nuclear Security Administration (NNSA). The NNSA
    aggressively shed staff several years ago and is now adding back
    personnel who are better suited to the current and future program of
    work.
      The Department of Health and Human Services is requesting additional
    FTE due to increased activities in a number of program areas. The
    majority of the increase is due to the following: 1) Additional staff
    for the Food and Drug Administration's generic drug review and post-
    market drug safety activities; 2) Expanded staff at Indian Health
    Service health care facilities; 3) Increases in activities related to
    improved bioterrorism and pandemic influenza preparedness; and 4)
    Increases in the Public Health Service Commissioned Corps to form two
    new Health and Medical Response (HAMR) Teams.
      Within the Department of Homeland Security, Immigration and Customs
    Enforcement (ICE) has seen a significant growth in its workforce as a
    part of the Administration's efforts to increase border security and to
    improve interior enforcement of our Nation's immigration laws. ICE has
    hired new detention and removal personnel to manage the significant
    growth in the number of detention beds and additional criminal
    investigators to increase worksite enforcement, to investigate visa
    overstays and to combat cross-border smuggling of aliens and goods. In
    addition, the United States Citizenship and Immigration Services is
    increasing adjudication and supporting staff as part of its effort to
    more effectively meet the increasing applications for immigration
    benefits and services. Lastly, there are increases for aviation and
    transportation security.
      Department of Justice FTE increases are due to enhancements in
    critical law enforcement and counterterrorism related programs. The
    growth largely occurs within the Federal Prison System as a result of
    the growing federal prisoner population and in the Federal Bureau of
    Investigation as it continues its transformation to meet both its law
    enforcement and counterterrorism responsibilities.
      Department of Transportation's workforce growth largely comes from the
    Federal Aviation Administration (FAA). The FAA plans to increase its FTE
    for the ``Air Traffic Organization'' and ``Safety and Operations''
    accounts in 2008 in order to annualize hiring made during 2006, increase
    personnel for the air traffic control and safety workforces, and
    implement new directives regarding contract oversight and homeland
    security.
      The Office of Personnel Management has gained FTE as it completes the
    transfer of security investigative personnel from the Department of
    Defense to OPM.

                       Personnel Compensation and Benefits

      Table 24-4 displays personnel compensation and benefits (in millions
    of dollars) for Federal civilian and military personnel of all branches
    of Government.
      Direct compensation of the Federal civilian work force includes base
    pay and premium pay, such as overtime. In addition, it includes other
    cash components, such as geographic and other pay differentials (e.g.,
    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. Military personnel
    compensation also includes special and incentive pays (e.g., enlistment
    and reenlistment bonuses), and allowances for clothing, housing, and
    subsistence.
      Personnel benefits for current employees consists of the cost to
    Government agencies for health insurance, life insurance, Social
    Security (old age, survivors, disability, and health insurance)
    contributions to the retirement funds to finance future retirement
    benefits,

    [[Page 362]]

    and other items. Compensation for former personnel includes outlays for
    retirement pay benefits and the Government's share of the cost of health
    and life insurance.

                              Military Compensation

      Since 1989, military end strength has been decreasing, but the cost
    per person has steadily risen keeping the percentage of defense spending
    devoted to military personnel at a near-constant level. In 1989, when
    there were 800,000 more active duty military personnel on duty, military
    personnel costs constituted 27 percent of the base budget. The
    percentage remains about 25 percent now.

      What has driven personnel costs higher?
        Increased basic pay by more than 28 percent during this
              administration alone;
        Increased housing allowances to eliminate the average out-
              of-pocket housing costs (from approximately 18 percent in the
              mid-1990s to zero today) as well as the shift from set-
              percentage increases to the use of surveys to set housing
              rates;
        Increased health care benefits for both active and reserve
              forces (increased 95 percent between 2001 and 2005);
        Increased education benefits for both active and reserve
              forces;
        Increased moving allowances and full replacement value for
              damaged property;
        Increased post-service benefits, which are financed by
              investing current funds to ensure money is available in the
              future;
        Increased special pays and bonuses, and the expansion of
              eligible populations;
        Increased tax law exemptions to allow service members to
              claim the Earned Income Tax Credit.
      The following chart depicts the average Fiscal Year 2005 peacetime
    cost to the government of employing service members:

    [[Page 363]]

      In addition to these costs, the Department of Defense spends more than
    $12 billion on non-compensation costs for service members and families
    for facilities, training, child education, and travel and more than $42
    billion for payments to retirees and survivors. The Department of
    Veterans Affairs spends nearly $40 billion on medical care, vocational
    rehabilitation, compensation, pensions, education, home loans, burial
    and other services for as many at 70 million veterans and their
    families.

                       The U.S. Overseas Staffing Presence

      There are over 65,000 permanent American and locally hired staff
    overseas under the authority of Chiefs of Mission (e.g., Ambassadors or
    Charge d' Affairs at U.S. embassies worldwide). The average cost to
    support an American position overseas in 2008 is projected to be about
    $505,000, as reported by agencies with personnel overseas. This total
    includes direct costs, such as salary, benefits, and overseas
    allowances, and also support costs, such as housing, educational costs
    for dependents, travel, administrative support, and Capital Security
    Cost Sharing charges.
      The Administration continues to work to improve the safety,
    efficiency, and accountability in U.S. Government staffing overseas
    through the Presidential Management Agenda initiative on a Right-sized
    Overseas Presence. A component of this initiative is developing
    transparent data on overseas staffing, including the cost of maintaining
    positions overseas, and incorporating these data in the budget process
    to better inform decisions makers on overseas staffing levels.

                                   Overseas Staffing Under Chief of Mission Authority*
    ----------------------------------------------------------------------------------------------------------------
       Total Personnel  Overseas
          Under COM  Authority        Total American  Personnel    Average Cost of  a U.S.    New Overseas American
        (Including American  and          Overseas Under COM        Direct  Hire Overseas   Positions Funded  in the
        Locally  Engaged  Staff)       Authority Projected  for      Estimated for 2008     President's  2008 Budget
          Projected  for 2007                    2007
    ----------------------------------------------------------------------------------------------------------------
                         65,250                        15,400                  $505,000                       148
    ----------------------------------------------------------------------------------------------------------------
    * As reported by agencies in their 2008 Budget submissions.

    [[Page 364]]

                            Table 24-1.  FEDERAL CIVILIAN EMPLOYMENT IN THE EXECUTIVE BRANCH
                        (Civilian employment as measured by Full-Time Equivalents, in thousands)
    ----------------------------------------------------------------------------------------------------------------
                                                        Actual                  Estimate        Change: 2004 to 2008
                     Agency                 ------------------------------------------------------------------------
                                               2004      2005      2006      2007      2008       FTE's     Percent
    ----------------------------------------------------------------------------------------------------------------
    Cabinet agencies:
      Agriculture..........................     100.5      99.6      97.0      96.9      92.2        -8.3      -8.3%
      Commerce.............................      34.6      35.1      36.0      37.3      40.7         6.1      17.6%
      Defense-military functions...........     650.4     653.0     661.8     667.4     671.9        21.5       3.3%
      Education............................       4.4       4.3       4.2       4.2       4.2        -0.2      -4.5%
      Energy...............................      15.1      14.9      14.7      15.5      16.0         0.9       6.0%
      Health and Human Services............      59.3      59.3      59.1      59.5      61.5         2.2       3.7%
      Homeland Security....................     137.3     143.3     144.4     150.3     157.2        19.9      14.5%
      Housing and Urban Development........      10.2       9.9       9.6       9.2       9.5        -0.7      -6.9%
      Interior.............................      70.7      70.4      68.7      67.7      69.7        -1.0      -1.4%
      Justice..............................     101.4     103.0     104.2     117.6     112.6        11.2      11.0%
      Labor................................      16.5      16.0      15.8      16.2      16.9         0.4       2.4%
      State................................      30.0      30.1      30.0      30.6      30.9         0.9       3.0%
      Transportation.......................      57.3      55.5      53.3      54.4      55.1        -2.2      -3.8%
      Treasury.............................     113.6     110.0     107.7     108.4     109.0        -4.6      -4.0%
      Veterans Affairs.....................     218.7     222.0     222.6     225.4     226.5         7.8       3.6%

    Other agencies--excluding Postal
     Service:
      Agency for International Development.       2.2       2.4       2.4       2.5       2.5         0.3      13.6%
      Broadcasting Board of Governors......       2.3       2.2       2.1       2.2       2.2        -0.1      -4.3%
      Corps of Engineers--Civil Works......      23.5      22.5      22.1      21.7      21.3        -2.2      -9.4%
      Environmental Protection Agency......      17.3      17.5      17.3      17.5      17.3  ..........  .........
      Equal Employment Opportunity                2.5       2.4       2.2       2.4       2.4        -0.1      -4.0%
       Commmission.........................
      Federal Deposit Insurance Corporation       5.3       4.9       4.5       4.7       4.7        -0.6     -11.3%
      General Services Administration......      12.6      12.5      12.3      12.3      12.3        -0.3      -2.4%
      National Aeronautics and Space             18.8      18.8      18.3      18.3      18.2        -0.6      -3.2%
       Administration......................
      National Archives and Records               2.8       2.8       2.8       2.8       2.8  ..........  .........
       Administration......................
      National Labor Relations Board.......       1.9       1.8       1.8       1.8       1.7        -0.2     -10.5%
      National Science Foundation..........       1.3       1.3       1.3       1.3       1.4         0.1       7.7%
      Nuclear Regulatory Commission........       3.0       3.1       3.2       3.3       3.6         0.6      20.0%
      Office of Personnel Management.......       2.8       3.6       4.3       4.9       4.9         2.1      75.0%
      Peace Corps..........................       1.1       1.0       1.1       1.2       1.1  ..........  .........
      Railroad Retirement Board............       1.1       1.0       1.0       1.0       1.0        -0.1      -9.1%
      Securities and Exchange Commission...       3.6       3.9       3.7       3.6       3.6  ..........  .........
      Small Business Administration........       3.4       4.1       5.9       3.2       3.2        -0.2      -5.9%
      Smithsonian Institution..............       5.1       5.1       5.0       5.0       5.3         0.2       3.9%
      Social Security Administration.......      63.9      64.6      63.7      59.9      59.8        -4.1      -6.4%
      Tennessee Valley Authority...........      12.0      12.6      13.1      13.3      13.3         1.3      10.8%
      All other small agencies.............      14.9      14.8      15.4      16.3      16.4         1.5      10.1%
                                            ------------------------------------------------------------------------
    Total, Executive Branch civilian          1,821.1   1,829.6   1,832.8   1,859.7   1,872.8        51.7       2.8%
     employment *..........................

    Subtotal, Defense......................     650.4     653.0     661.8     667.4     671.9        21.5       3.3%

    Subtotal, Non-Defense..................   1,170.7   1,176.6   1,171.0   1,192.3   1,200.9        30.2       2.6%
    ----------------------------------------------------------------------------------------------------------------
    * Totals may not add due to rounding.

    [[Page 365]]

                                          Table 24-2.  TOTAL FEDERAL EMPLOYMENT
                                         (As measured by total positions filled)
    ----------------------------------------------------------------------------------------------------------------
                                                                Actual as of September 30       Change: 2004 to 2006
                         Description                      ----------------------------------------------------------
                                                              2004        2005        2006      Positions   Percent
    ----------------------------------------------------------------------------------------------------------------
    Executive branch civilian employment:
      All agencies except Postal Service and Postal Rate
       Commission:
        Full-time permanent..............................   1,662,990   1,663,043   1,668,529       5,539       0.3%
        Other than full-time permanent...................     218,953     209,157     211,474      -7,479      -3.4%
                                                          ----------------------------------------------------------
          Subtotal.......................................   1,881,943   1,872,200   1,880,003      -1,940      -0.1%
                                                          ==========================================================
    Postal Service: \1\
      Full-time permanent................................     609,579     605,120     602,409      -7,170      -1.2%
      Other than full-time permanent.....................     158,083     159,090     155,058      -3,025      -1.9%
                                                          ----------------------------------------------------------
        Subtotal.........................................     767,662     764,210     757,467     -10,195      -1.3%
                                                          ----------------------------------------------------------
      Subtotal, Executive branch civilian employment.....   2,649,605   2,636,410   2,637,470     -12,135      -0.5%
                                                          ==========================================================
    Military personnel on active duty: \2\
      Department of Defense..............................   1,426,836   1,389,394   1,384,968     -41,868      -2.9%
      Department of Homeland Security (USCG).............      40,230      40,710      41,145         915       2.3%
      Commissioned Corps (EPA, HHS, NOAA)................       6,357       6,363       6,240        -117      -1.8%
                                                          ----------------------------------------------------------
        Subtotal, military personnel.....................   1,473,423   1,436,467   1,432,353     -41,070      -2.8%
                                                          ----------------------------------------------------------
          Subtotal, Executive Branch.....................   4,123,028   4,072,877   4,069,823     -53,205      -1.3%
                                                          ==========================================================
    Legislative branch:
      Full-time permanent................................      11,614      11,389      11,165        -449      -3.9%
      Other than full-time permanent.....................      18,435      19,427      18,321        -114      -0.6%
                                                          ----------------------------------------------------------
        Subtotal, Legislative Branch.....................      30,049      30,816      29,486        -563      -1.9%
                                                          ==========================================================
    Judicial Branch:
      Full-time permanent................................      30,537      30,765      30,577          40       0.1%
      Other than full-time permanent.....................       3,324       3,299       3,183        -141      -4.2%
                                                          ----------------------------------------------------------
        Subtotal, Judicial Branch........................      33,861      34,064      33,760        -101      -0.3%
                                                          ==========================================================
    Grand total \3\......................................   4,186,938   4,137,757   4,133,069     -53,869      -1.3%
                                                          ==========================================================
                           ADDENDUM

    Executive branch civilian personnel (excluding Postal
     Service):
      DOD civilians--Military functions..................     644,251     648,590     652,716       8,465       1.3%
      All other executive branch.........................   1,237,692   1,223,610   1,227,287     -10,405      -0.8%
                                                          ----------------------------------------------------------
        Total............................................   1,881,943   1,872,200   1,880,003      -1,940      -0.1%
    ----------------------------------------------------------------------------------------------------------------
    \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.

    [[Page 366]]

                                          Table 24-3.  TOTAL FEDERAL EMPLOYMENT
                                         (As measured by Full-Time Equivalents)
    ----------------------------------------------------------------------------------------------------------------
                                                                               Estimate         Change: 2006 to 2008
                         Description                            2006    --------------------------------------------
                                                               Actual       2007       2008      FTE's      Percent
    ----------------------------------------------------------------------------------------------------------------

    Executive branch civilian personnel:
      All agencies except Postal Service and Defense.......   1,171,021  1,192,286  1,200,873     29,852        2.5%
      Defense-Military functions (civilians)...............     661,789    667,385    671,923     10,134        1.5%
                                                            --------------------------------------------------------
        Subtotal, excluding Postal Service.................   1,832,810  1,859,671  1,872,796     39,986        2.2%
      Postal Service \1\...................................     736,382    716,451    704,645    -31,737       -4.3%
                                                            --------------------------------------------------------
        Subtotal, Executive Branch civilian personnel......   2,569,192  2,576,122  2,577,441      8,249        0.3%
                                                            ========================================================
    Executive branch uniformed personnel: \2\
      Department of Defense................................   1,384,968  1,378,084  1,369,350    -15,618       -1.1%
      Department of Homeland Security (USCG)...............      41,145     41,715     41,997        852        2.1%
      Commissioned Corps (HHS, EPA, NOAA)..................       6,240      6,337      6,603        363        5.8%
                                                            --------------------------------------------------------
        Subtotal, uniformed military personnel.............   1,432,353  1,426,136  1,417,950    -14,403       -1.0%
                                                            --------------------------------------------------------
        Subtotal, Executive Branch.........................   4,001,545  4,002,258  3,995,391     -6,154       -0.2%
                                                            ========================================================
    Legislative Branch: Total FTE \3\......................      31,294     32,408     32,813      1,519        4.9%
    Judicial branch: Total FTE.............................      33,098     33,648     34,129      1,031        3.1%
                                                            --------------------------------------------------------
      Grand total..........................................   4,065,937  4,068,314  4,062,333     -3,604       -0.1%
    ----------------------------------------------------------------------------------------------------------------
    \1\ Includes Postal Rate Commission.
    \2\ Military personnel on active duty. Excludes reserve components.
    \3\ FTE data not available for the Senate (positions filled were used).

    [[Page 367]]

                                    TABLE 24-4.  PERSONNEL COMPENSATION AND BENEFITS
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                                Change: 2006 to 2008
                          Description                           2006        2007       2008   ----------------------
                                                               Actual     Estimate   Request     Dollars    Percent
    ----------------------------------------------------------------------------------------------------------------
    Civilian personnel costs:
      Executive Branch (excluding Postal Service):
        Direct compensation:
          DOD-military functions...........................      42,793     43,412     45,011       2,218       5.2%
          All other executive branch.......................      87,130     90,409     96,053       8,923      10.2%
                                                            --------------------------------------------------------
            Subtotal, direct compensation..................     129,923    133,821    141,064      11,141       8.6%
        Personnel benefits:
          DOD-military functions...........................      11,638     11,814     12,353         715       6.1%
          All other executive branch.......................      35,958     36,981     38,428       2,470       6.9%
                                                            --------------------------------------------------------
            Subtotal, personnel benefits...................      47,596     48,795     50,781       3,185       6.7%
                                                            --------------------------------------------------------
              Subtotal, Executive Branch...................     177,519    182,616    191,845      14,326       8.1%
                                                            ========================================================
      Postal Service:
        Direct compensation................................      40,578     41,295     41,476         898       2.2%
        Personnel benefits.................................      13,989     14,005     14,395         406       2.9%
                                                            --------------------------------------------------------
          Subtotal.........................................      54,567     55,300     55,871       1,304       2.4%
                                                            ========================================================
      Legislative Branch: \1\
        Direct compensation................................       1,842      1,867      2,009         167       9.1%
        Personnel benefits.................................         504        525        573          69      13.7%
                                                            --------------------------------------------------------
          Subtotal.........................................       2,346      2,392      2,582         236      10.1%
                                                            ========================================================
      Judicial Branch:
        Direct compensation................................       2,649      2,860      2,985         336      12.7%
        Personnel benefits.................................         782        859        926         144      18.4%
                                                            --------------------------------------------------------
          Subtotal.........................................       3,431      3,719      3,911         480      14.0%
                                                            --------------------------------------------------------
          Total, civilian personnel costs..................     237,863    244,027    254,209      16,346       6.9%
                                                            ========================================================
    Military personnel costs:
      DOD--Military Functions:
        Direct compensation................................      78,325     85,222     88,774      10,449      13.3%
        Personnel benefits.................................      42,615     40,114     41,673        -942      -2.2%
                                                            --------------------------------------------------------
          Subtotal.........................................     120,940    125,336    130,447       9,507       7.9%
                                                            ========================================================
    All other executive branch, uniformed personnel:
      Direct compensation..................................       2,579      2,709      2,957         378      14.7%
      Personnel benefits...................................         987      1,029      1,063          76       7.7%
                                                            --------------------------------------------------------
        Subtotal...........................................       3,566      3,738      4,020         454      12.7%
                                                            --------------------------------------------------------
          Total, military personnel costs \2\..............     124,506    129,074    134,467       9,961       8.0%
                                                            ========================================================
    Grand total, personnel costs...........................     362,369    373,101    388,676      26,307       7.3%
                                                            ========================================================
                            ADDENDUM

    Former Civilian Personnel:
      Retired pay for former personnel.....................      59,237     62,895     65,593       6,356      10.7%
        Government payment for Annuitants:
          Employee health benefits.........................       8,360      8,615      9,138         778       9.3%
          Employee life insurance..........................          41         41         41  ..........  .........
    Former Military personnel:
      Retired pay for former personnel.....................      41,233     43,831     45,846       4,613      11.2%
      Military annuitants health benefits..................       7,076      7,680      8,286       1,210      17.1%
    ----------------------------------------------------------------------------------------------------------------
    \1\ Excludes members and officers of the Senate.
    \2\ Excludes reserve components not on active duty.