Jari Ulmer is a long term investor with a focus on income and stability. He holds a B.S. in Science and M.S. in Engineering and works tirelessly in the civil service. Jari's interest in financial writing stems from a long standing fascination with numerical analysis and presentation. He is a... More
Bond Play: A Look At Federal Furloughs - The Data 0 comments
Mar 8, 2013 10:14 AM
The Data
Federal Employee demographics are published by the Office of Personnel Management with latest dataset coming from September of 2012. Government Executive is currently updating a list of all federal agencies who have publicly addressed the need for furloughs. A few agencies have issued official furlough letters with set terms, while some simply guess they may "need to furlough [insert vague large sounding number] for [insert indeterminate number of days]".
In order to break down our analysis into something finer than $85 billion we'll need to find which of the 100+ agencies are forced to make cuts.
For this analysis we'll focus only on the agencies that are considering a furlough. Where those agencies haven't specified a length of their furlough we'll assume the average, which is 17.4 days. If an agency doesn't give an exact number of potentially affected employees we'll assume the worst case: the entire agency.
Using the above assumptions I've derived an agency adjusted furlough scenario that affects 693,926 employees at the cost (savings) of $49.9 billion over the next year. Note the following is thus a conservative estimate as these numbers are higher than the $46 billion on the books for 2013.
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Bond Play: A Look At Federal Furloughs - The Data 0 comments
The Data
Federal Employee demographics are published by the Office of Personnel Management with latest dataset coming from September of 2012. Government Executive is currently updating a list of all federal agencies who have publicly addressed the need for furloughs. A few agencies have issued official furlough letters with set terms, while some simply guess they may "need to furlough [insert vague large sounding number] for [insert indeterminate number of days]".
In order to break down our analysis into something finer than $85 billion we'll need to find which of the 100+ agencies are forced to make cuts.
For this analysis we'll focus only on the agencies that are considering a furlough. Where those agencies haven't specified a length of their furlough we'll assume the average, which is 17.4 days. If an agency doesn't give an exact number of potentially affected employees we'll assume the worst case: the entire agency.
Using the above assumptions I've derived an agency adjusted furlough scenario that affects 693,926 employees at the cost (savings) of $49.9 billion over the next year. Note the following is thus a conservative estimate as these numbers are higher than the $46 billion on the books for 2013.
Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.
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