All of the personnel savings would have occurred in FSA, most of it at the county office level. 2195, USDA could have reduced FSA personnel by 1,823 staff years and saved approximately $332 million between 1997 and 2002, using USDA’s assumptions about personnel costs. FSA would also have needed to inform participants how these provisions would affect their operations and payments. Program Activities Affected by Personnel Reductions

Most of the personnel reductions resulting from H.R. Under H.R. H.R. While the freedom-to-farm provisions under the proposed Balanced Budget Act would have achieved savings similar to those under H.R. 2195, USDA would have achieved greater personnel savings under the act because it included changes in areas not addressed by H.R. 2195. The act would have resulted in a net reduction of 2,719 staff years, which represents about a 13-percent decrease in FSA’s total staff from the fiscal year 1995 level. As the table shows, the proposed Balanced Budget Act included additional provisions that would have had the net effect of reducing FSA’s workload by 896 staff years beyond the savings resulting from the act’s freedom-to-farm provisions. Similarly, USDA would have incurred additional costs of $14 million for the increased workload of 126 staff years resulting from the Balanced Budget Act’s provisions, as discussed above. 2195 and the agricultural provisions of the proposed Balanced Budget Act of 1995, we used the fiscal year 1995 levels of personnel in farm support programs and of workload as a baseline.
Why GAO Did This Study

Pursuant to a congressional request, GAO examined the personnel reductions that the Department of Agriculture (USDA) could have achieved if Congress had implemented the freedom-to-farm provisions of H.R. 2195 and the proposed Balanced Budget Act.

What GAO Found

GAO noted that: (1) under H.R. 2195, the freedom-to-farm provisions would have reduced the Farm Service Agency's (FSA) personnel by 1,823 staff years and saved approximately $332 million; (2) most of the personnel savings under H.R. 2195 would have occurred at the county level and would affect such program activities as commodity payment, record keeping, compliance, and reimbursable farm-measurement; (3) the proposed Balanced Budget Act would have achieved greater personnel savings than H.R. 2195 because it included changes not addressed by H.R. 2195; (4) personnel reductions under the proposed Balanced Budget Act would have decreased FSA staff by 13 percent, a net reduction of 2,719 staff years; (5) the Balanced Budget Act would have had the net effect of reducing FSA workload by 896 staff years; (6) as a result of the personnel reductions, USDA would have incurred separation costs of $28 million for a workload of 126 staff years; (7) these costs would have lowered USDA net savings to $304 million; and (8) the Balanced Budget Act would also afford USDA additional organizational changes, more savings, and an opportunity to focus on how it delivers its services.