Kelley Says Ryan Budget Proposal Will Harm Federal Workforce, Country

Press Release March 12, 2013

Washington, D.C.—By proposing another $181 billion in cuts to their pay and pensions along with a 10 percent reduction in their numbers, the fiscal 2014 budget blueprint made public today by Rep. Paul Ryan (R-Wis.) will hurt the ability of the federal workforce to provide services to the American public, the leader of the nation’s largest independent union of federal employees said.

“Federal employees are not the only casualties of these constant political attacks, the public suffers as well when federal agencies lack sufficient resources to carry out their missions in the manner Americans need and expect,” said President Colleen M. Kelley of the National Treasury Employees Union (NTEU).

The NTEU leader said that federal workers already have contributed $103 billion to deficit reduction and economic recovery, far more than any other group in our society has even been asked to do.

By changing federal pay and benefit levels and by increasing the amounts federal employees contribute to their pensions, the Ryan proposal would take another $132 billion from federal workers over the next 10 years; meanwhile, a 10 percent reduction in the workforce by 2015, supposedly to be achieved through attrition, would generate another $49 billion.

In his budget proposal, Rep. Ryan said that federal employees are somehow immune from the effects of the recession. “I take exception to that statement and so do all NTEU members who are under a more than two year pay freeze,” President Kelley said. “All you need to do is to look at the results of a survey of more than 2,200 NTEU members on how the continuing 27-month pay freeze has impacted them and their families.”

Respondents to the electronic survey conducted last month said that as a result of the pay freeze, they are going deeper into debt, are having trouble making ends meet and paying for necessities, and—as four in 10 respondents said—are delaying medical treatment to save money, she said. “None of that sounds like they are immune from the challenges of the real world.”

Cutting federal employees will impact the economic growth of this country and hurt American families, President Kelley added.

Kelley cited just two examples: the Internal Revenue Service (IRS) and Customs and Border Protection (CBP). The IRS, she said, is working this tax-filing season with 5,000 fewer employees than just two years ago, sharply undercutting its ability to deliver on both its customer service and enforcement responsibilities.

“There is a direct relationship between the help that IRS employees can provide to taxpayers and voluntary compliance with our tax laws,” Kelley said. “This is a dollar and cents issue that goes right to the question of deficit reduction.”

As for CBP, the economy loses on several fronts—jobs, wages, economic activity, and more—because of short staffing in this key agency, which has both homeland security and trade-related missions. CBP collects more revenue from duties and fees than any government agency outside of the IRS. Inadequate staffing at land, air and seaports of entry results in delays impacting both passenger and commercial traffic. “These delays come with substantial cost,” Kelley said.

She added: “The Ryan budget proposal would worsen our nation in so many ways, and NTEU will fight to ensure that neither it nor its worst aspects make it into law.”

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

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