While understandable in some cases, such earmarks hamper agencies
that seek to manage programs efficiently. Agencies should work with appropriations
subcommittees on this problem.
Action: OMB and agencies will stop using full-time equivalent ceilings,
managing and budgeting instead with ceilings on operating costs to control
spending. In’ another effort to control spending, both the executive and
legislative branches often limit the number of each agency’s employees by using
full-time equivalent (FTE) limits. When agencies prepare their budget estimates, t
hey must state how many FTEs they need in addition to how many
for each bureau, division, branch or other unit. Congress occasionally complicates
the situation by legislating FTE floors.