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Washington, D.C. — While our nation likely has avoided a costly government shutdown with reported agreement on funding for the remainder of the fiscal year, the leader of the National Treasury Employees Union (NTEU) warns that the reduced levels of funding will place an enormous strain on the ability of agencies to fulfill their critical missions.

“I am pleased that a painful government shutdown seems to be averted but remain concerned that lower levels of funding mean federal agencies will operate without the staffing and resources they need to perform their duties and effectively protect and serve the American people,” said NTEU President Colleen M. Kelley.

The NTEU leader was most critical of the funding provided for the Internal Revenue Service (IRS) in the omnibus appropriations bill that Congress is scheduled to vote on today. At a level that is $305 million less than the current agency budget, is simply insufficient and will cost billions in lost revenue to the Treasury, undermine the ability to crack down on tax cheats, and negatively impact services that American people depend on to get the return they deserve, Kelley said.

“The IRS budget simply fails to serve the best interests of the American people with lost revenue, weakened tax code enforcement and reduced taxpayer services,” she added.

The IRS budget agreed to by House-Senate negotiators is $1.5 billion less than the administration’s request.

“This is an imprudent cut that will only worsen our nation’s deficit,” Kelley said. The IRS collected approximately 93 percent of all federal receipts in fiscal 2010 or $2.345 trillion in gross revenue to fund the federal government. And with the IRS already in the midst of a hiring freeze and buyouts, Kelley warned that the cuts would severely diminish the IRS’ ability to respond to taxpayer inquiries.

“There is a desperate need for revenue to the Treasury and slashing the IRS budget undermines effective agency programs that generally bring in between $4 and $7 for every $1 invested,” Kelley said.

NTEU is the nation’s largest independent union of federal employees, representing 150,000 employees in 31 agencies and departments.