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Federal Headcount Has Risen Over Past Five Years and ls Above Trendline Level Federal Civilian Headcount & Share of Total Employment, 1988 - 2009 2,500 ~< 2-2 o3 we eee ee ee ie ‘mm Federal Civilian Full-Time Equivalent Employees -- 2.5% ——% Share of Total Employment (right axis) 2) wo g — — Federal Civilian Headcount Linear Trendline 2 = 2,000 - -_— Pe eer sr si SH — Ho mm RO TAR hs ee ips RY ats te — 2.0% Lu ~~ S—— | c So en = = 1,500 - ToReBeei ane ; i arn oe 1.5% > ia _~ ~300K a » 2 Potential iS Eo Ww —— Headcount = E : £ S 1,000 - si if -2-- ig --e -e- ~~~ SES 1.0% Rd LL _ c 3° & BS 2 Oo = 500 - a: > i i ig: oe OE BBS cee 2 ce me mo 0.5% ra (J i) S wo WL 0 T T T T T T T T T T T T T T T T T T T T 1 0.0% 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 KP Data source: BEA (1988-2009). BSF owe poo com 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% % of Budget Deficits Note: Federal fiscal year ends in September. *Based on 20-year trend line, federal civilian headcount would have been 15% below actual levels. KP www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 348 HOUSE_OVERSIGHT_021015