Issa: Federal Workforce Reforms in Budget will save $375 billion

April 15, 2011

WASHINGTON - Today the House of Representatives approved the visionary Fiscal Year 2012 budget by a vote of 235-193.

Darrell Issa, R-Calif., chairman of the House Committee on Oversight and Government Reform commented, “The Path to Prosperity budget sets the stage for critical cost-cutting reforms from the federal workforce that reduce the deficit and help grow our economy. The Oversight Committee has estimated that federal workforce reforms put forth in this budget will save $375 billion over 10 years by bringing public sector pay and benefits more in line with the private sector. We’ll do this by enacting a true pay freeze through 2015 that prohibits non-performance based ‘periodic step’ increases, requires federal employees to contribute more to their retirement plan, reducing the taxpayer subsidy of the Federal Employee Retirement System, and by reducing – no later than 2014 – the size of the federal workforce by 10% through replacing every three departing workers with only one new employee.”

The proposals put forth in the FY2012 budget take their cue from the bi-partisan fiscal commission appointed by President Obama and chaired by Clinton White House Chief of Staff Erskine Bowles and former Wyoming Senator Alan Simpson.

Read the House Budget Plan here. Details on federal workforce reforms are located on page 33.

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Related Documents

House Budget Plan