[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 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,

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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:

                                     

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  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.


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                        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.


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                                      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.


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                                      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).


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                                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.