[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.