Federal Headcount Has Risen Over Past Five Years and Is Above Trendline Level Federal Civilian Headcount & Share of Total Employment, 1988 - 2009 2,500 ---------------------- mm Federal Civilian Full-Time Equivalent Employees -- 2.5% g ——% Share of Total Employment (right axis) gy — — Federal Civilian Headcount Linear Trendline 2 — 2 2,000 - iia Mu os l c — = 3 | a io 5 = 1,500 - : ‘ YO 15% B® Go ~300K a » 2 Potential E = © Headcount = S 1,000 - -----Reduetion 4 9%, © F 3 £ x > Oo a, = 500 - women onsen GB o xo] wa WL 0 0.0% 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 KP Data source: BEA (1988-2009). i USA Inc. | What Might a Turnaround Expert Consider? 347 Reduce Headcount: Mathematical Illustration on Reducing Federal Headcount — Could Save Up to $275 Billion Over Next 10 Years, or 4% of Total Deficit Scenario Analysis on Potential Federal Headcount Reduction & Impact on Budget Deficits Headcount Savings ($B) For USA Inc. Over Reduction F2009 F2010-19E F2010-85E (000) Scenario 1 -- Trim Headcount by 1% $2 $17 $44 20 % of Budget Deficits 0% 0% 0% Scenario 2 -- Trim Headcount by 5% $11 $91 $219 98 % of Budget Deficits 1% 1% 1% Scenario 3 -- Trim Headcount by 10% $23 $183 $439 195 % of Budget Deficits 2% 3% 3% Scenario 4 - Trendline* -- Trim Headcount by 15% $34 $274 $658 293 % of Budget Deficits 2% 4% 4% KP Note: Federal fiscal year ends in September. *Based on 20-year trend line, federal civilian headcount would have been 15% below actual levels. Ce USA Inc. | What Might a Turnaround Expert Consider? 348 HOUSE_OVERSIGHT_021015