Department of Education

SALARIES AND EXPENSES OVERVIEW

Fiscal Year 2020 Budget Request

CONTENTS

Page

Introduction............................................................................................................................ W-1

FY 2020 Budget Request....................................................................................................... W-2

Participation in Governmentwide E-Government Initiatives ....................................................W-8

Budget Authority by Account................................................................................................W-10

Budget Authority by Object Classification.............................................................................W-11

Full-Time Equivalent (FTE) Employment (Staff Years) by Account.......................................W-12

Full-Time Equivalent (FTE) Employment by Office...............................................................W-13

Detail of Full-time Equivalent (FTE) Employment ................................................................W-14

Organization Chart...............................................................................................................W-15

Locations of Major Administrative Contracts and Current Contractors..................................W-16

Report on the Budget Formulation and Execution Line of Business .....................................W-17

GAO-IG Act – Table of Open Recommendations.................................................................W-26
SALARIES AND EXPENSES OVERVIEW

W-1

INTRODUCTION

The Salaries and Expenses Overview summarizes the administrative costs and staffing for all 

Department of Education accounts. The fiscal year 2020 budget request draws support for 

Departmental administrative costs and full-time equivalent (FTE) employment from funding in 

the following accounts:

 Program Administration (PA),

 Student Aid Administration (SAA), 

 Office for Civil Rights (OCR), 

 Office of Inspector General (OIG), 

 College Housing and Academic Facilities Loans Program (CHAFL), 

 Historically Black College and University Capital Financing Program (HBCUCF), and

 Institute of Education Sciences (IES).

Greater detail on the funds supporting administrative costs and staffing is provided separately in 

each account’s justification materials.

Department of Education’s Significant Programs

Administrative funds support Department programs. Key fiscal year 2020 programs include:

 Title I of the Elementary and Secondary Education Act (ESEA), for which $15.9 billion 

would help approximately 25 million students in high-poverty schools make progress 

toward State academic standards;

 Individuals with Disabilities Education Act Part B Grants to States, for which 

$12.4 billion would help States and school districts meet the special education needs of 

7 million students with disabilities;

 Federal Pell Grants, for which $30.1 billion in need-based grants would support

7.3 million students enrolled in postsecondary institutions; and 

 Postsecondary student loan programs, which would provide roughly $147 billion for new 

and consolidated Direct Loans to help students and families pay for college.

Hurricane Education Recovery Act

On February 9, 2018, the President signed into law, the Bipartisan Budget Act of 2018. The Act 

provided recovery funding in response to Hurricanes Harvey, Irma, and Maria, as well as the 

2017 wildfires. The Department received $2.7 billion to assist meet the educational needs of 

individuals affected by a covered disaster or emergency. Of that total, $7 million is for 

administrative funding, including $4 million for the Office of Inspector General for oversight of 

activities supported with the recovery activities and funds appropriated, and up to $3 million for 

Program Administration.
SALARIES AND EXPENSES OVERVIEW

W-2

FY 2020 BUDGET REQUEST

The Administration’s fiscal year 2020 request for discretionary Salaries and Expenses totals 

$2.5 billion, $152.3 million more than the fiscal year 2019 appropriation. A summary of changes

by funding account is provided on page W-10.

The requested fiscal year 2020 increase focuses on key departmental policy and management 

priorities. These include continued IT security improvements to ensure the integrity of 

Department of Education and prevent potential breaches. It also includes the Office of Federal 

Student Aid’s (FSA) transition to the Next Generation Financial Services Environment; continual 

operations for student aid application processing, origination, and disbursement operations; and 

student aid IT system hosting. Funding is also requested for building modernization and 

renovation activities which will reduce the Department’s overall footprint and save on future rent 

costs by vacating existing space.

The Department is pursuing an innovative strategy to deliver Federal student aid services and 

information to our customers. Next Gen FSA will create an improved, world-class customer 

experience for Federal Student Aid (FSA)'s millions of customers, while creating a more agile, 

flexible model that will streamline FSA's existing operations. Next Gen FSA will improve the 

integrity of the Title IV programs and transform how FSA oversees organizations that support its

mission.

The key to the Next Gen FSA transformation will be a comprehensive, FSA-branded customer 

engagement layer that will create an environment where the Department’s customers will 

receive clear, consistent information and readily accessible self-service options at every stage 

of the student aid lifecycle. FSA will emphasize a mobile-first, mobile-complete, mobile 

continuous strategy complemented by web, phone, chat, and in-person capabilities. It will 

transform FSA into a trusted source of information and greatly simplify the process of assisting 

customers choose the best options to manage their student debt. In addition, the creation of 

standardized systems, processes, and procedures—combined with the inclusion of clear 

performance expectations tied to explicit contractual incentives and disincentives—is expected 

to simplify oversight of vendor performance and better ensure compliance with consumer 

protection and customer service standards.

The fiscal year 2020 Salaries and Expenses Costs by Category chart on page W-3 provides

detail on the total Salaries and Expenses request of $2.5 billion by category.
SALARIES AND EXPENSES OVERVIEW

W-3

SUMMARY OF STAFFING AND NON-PERSONNEL COSTS

Staffing

The Department of Education’s programs and responsibilities have grown substantially over the 

past decade. Some of the growth was driven by legislation that added responsibilities or 

required administrative change, including the Student Aid and Fiscal Responsibility Act 

(SAFRA) and the move to 100 percent Direct Lending, the Workforce Innovation and 

Opportunity Act (WIOA), and the Federal Information Technology Acquisition Reform Act 

(FITARA). In addition, oversight of the Department student loan and grant programs continues 

to grow. The recently reauthorized Elementary and Secondary Education Act, as amended by 

the Every Student Succeeds Act (ESSA), requires the Department to provide assistance and 

flexibility to states and school districts to ensure a smooth implementation of the new statute. 

The Department’s workload has increased as it strives to improve oversight of programs and 

data. 

The Administration’s budget request for fiscal year 2020 supports 3,991 Full-Time Equivalents 

(FTE) employees, a net increase of one FTE above the 2019 appropriation. The request 

reflects an increase of seven FTE for the Office of Inspector General and a decrease of six FTE 

for the Office for Civil Rights. Although no increase is requested for the Department’s other 

administrative accounts, the total FTE request will allow offices to hire behind staff departures in 

critical positions.

On March 13, 2017, the President signed Executive Order 13781, “Comprehensive Plan for 

Reorganizing the Executive Branch” (EO), directing the Office of Management and Budget 

(OMB) to submit a comprehensive plan to reorganize Executive Branch departments and 

agencies. On April 12, 2017, OMB issued M-17-22 “Comprehensive Plan for Reforming the 

Federal Government and Reducing the Federal Civilian Workforce” (OMB memo) providing 

guidance on implementing the EO. The OMB memo outlined four objectives of the 

reorganization and reduction in workforce:

Personnel, 

Compensation & 

Benefits

25%, $622.7

Other Non-Personnel

4%, $97

Overhead

(Rent) 3%, $77.7

Non-SAA Contracts

6%, $129.8

Student Aid 

Administration 

Contracts

62%, $1,523.7

FY 2020 Salaries & Expenses Costs by Category

($ in millions)
SALARIES AND EXPENSES OVERVIEW

W-4

 Create a lean, accountable, more efficient government that works for the American 

people;

 Focus the Federal government on effectively and efficiently delivering those programs

that are the highest needs to citizens and where there is a unique Federal role rather 

than assuming current programs are optimally designed or even needed;

 Align the Federal workforce to meet the needs of today and the future rather than the 

requirements of the past; and

 Strengthen agencies by removing barriers that hinder front-line employees from 

delivering results.

The Department’s reorganization took effect January 6, 2019. The Administration’s vision of 

this reorganization was to reduce redundancy; maximize employee and organizational 

efficiency; maximize transparency and employee involvement; leverage ED colleagues’ 

knowledge and expertise; and maximize creative problem-solving and teamwork while adhering 

to legal requirements. The reorganization has resulted in a more dynamic and flexible 

workforce that can be deployed to address emerging issues and changing priorities.

The reorganization work resulted in these key organizational changes in several principal office 

structures:

 The consolidation of the Office of the Secretary (OS) with the Office of the Deputy 

Secretary (ODS);

 The integration of the Office of Innovation and Improvement (OII) into the Office of 

Elementary and Secondary Education (OESE);

 The merger of the Office of the Chief Financial Officer (OCFO) with the Office of 

Management (OM) to create a new Office of Finance and Operations (OFO);

 The integration of certain functions of the Office of the Chief Information Officer (OCIO), 

Office of the Deputy Secretary, and Office of Planning, Evaluation and Policy 

Development (OPEPD)- including the entire Budget Service organization- into OFO; and

 The establishment of new organizational structures for both OCIO and OPEPD due to 

the creation of OFO.

A 10-year history of the Department’s staffing is shown in the following chart:

Department Full-Time Equivalent (FTE) Employment Usage

(FY 2010 – FY 2020)

FY 

2011

FY 

2012

FY 

2013

FY 

2014

FY 

2015

FY 

2016 

FY 

2017

FY 

2018

FY 

2019 

Est.

FY 

2020

Est.

4,387 4,276 4,090 4,027 4,081 4,150 4,107 3,795 3,990 3,991

Department employees are divided between Washington, D.C., headquarters, 11 regional 

offices, and 13 field offices. Most regional and field office staff are in FSA, OIG, and OCR. The 

FSA regional staff offices’ workload is dedicated to oversight of schools participating in the 

Title IV programs and performing program reviews of Federal Family Education Loan (FFEL) 

participants including: lenders, lender servicers, guaranty agencies, and guaranty agency 
SALARIES AND EXPENSES OVERVIEW

W-5

servicers. Additionally, FSA staff conduct program reviews of loan servicers and private 

collection agencies under contract with the Department. OIG staff conducts audits and 

investigations of Department programs and operations. OCR staff investigates civil rights 

complaints and conduct civil rights compliance reviews.

A map of the Department’s staff location of Regional and Field Offices is shown below:

Boston

New York City Philadelphia

Washington, D.C.

Regional Offices

Field Offices

Location of the Department of Education 

Regional and Field Offices

Seattle

San

Francisco Denver Kansas

City

Chicago

Atlanta

Dallas

Cleveland Sacramento

Long Beach

Puerto Rico Pembroke 

Pines

Pittsburgh

St. Paul

Austin

Phoenix

Nashville

Ann Arbor

Personnel Compensation and Benefits (PC&B)

The fiscal year 2020 Request includes $622.7 million for the Department personnel 

compensation and benefits costs, $2.8 million more than the fiscal year 2019 appropriation. 

PC&B funds include salaries, overtime, awards, consultants, benefits for current and former 

personnel, student loan repayments, and transit subsidy benefits. The request covers increases 

due to health premiums and FERS contribution rates as well as one additional compensable 

paid day.

Non-Personnel Costs

Non-personnel costs cover such items as travel, rent, mail, telephones, utilities, printing, IT, 

contractual services, equipment, supplies, and other departmental services. The total budget 

for non-personnel activities in fiscal year 2020 is $1.8 billion, $149.5 million more than the fiscal 

year 2019 appropriation. A majority of this increase is attributable to the transition to the Next 

Gen Financial Services Environment and other operational costs of administering Federal 

student financial aid. The Office of the Chief Information Officer and FSA are aligning 
SALARIES AND EXPENSES OVERVIEW

W-6

technologies and services common to operating environments managed by each respective 

office.

Departmental Centralized Services

Centralized Services cover common support administrative and IT services for all program and 

staff offices. The funds are managed by the Office of Finance and Operations and the Office of 

the Chief Information Officer.

Office of Finance and Operations - Central Support Expenses

The Administration is requesting a total of $183.1 million for fiscal year 2020, an increase of 

$21.1 million compared to the fiscal year 2019 appropriation, to cover the central support 

services that include: rent to the U.S. General Services Administration (GSA), building 

alterations and repairs, lease renewal, training, supplies, mail, and physical security for 

buildings and personnel. Major increases include building modernization to reduce future rent 

costs by consolidating office space, human capital operations, and physical security.

Office of the Chief Information Officer – Central Information Technology

The Administration is requesting a total of $100.6 million for fiscal year 2020, a decrease of 

$5 million less than the fiscal year 2019 appropriation, including a transfer of $5 million to the IT 

System Modernization and Working Capital account. Central IT funds cover activities including:

computer operations, maintenance and improvements; local area network operations, initiatives 

designed to link Department business needs with the best available technology; and other 

commonly shared IT and office automation activities. Major increases include cybersecurity 

activities, IT support for building modernization of headquarters and regional offices, and 

financial and principal office IT systems.

IT System Modernization – Working Capital Funds

The Administration requests that the Program Administration, Office for Civil Rights, and Office 

of Inspector General Salaries and Expenses accounts be allowed the flexibility to use the 

authority of the IT Working Capital Funds authorized by the Modernizing Government 

Technology (MGT) Act. The authority would enable the Department to transfer one-year

administrative funds to an account with a three year period of availability for use on IT 

modernization. The estimated transfer amount for fiscal year 2020 is $5 million. 

Getting Payments Right

The Department continues to focus on the integrity of payments made, which includes 

assessing risks associated with improper payments and establishing effective internal controls 

designed to prevent, detect, reduce, and recover improper payments that could otherwise result 

in a monetary loss to the government. 

As part of this effort, the Department has determined that the failure to verify financial data and 

administrative and process errors are a major root cause of improper payments. To address 

this issue, the Department has been encouraging financial aid applicants to retrieve certain 

income information within the Free Application for Federal Student Aid (FAFSA) directly from 
SALARIES AND EXPENSES OVERVIEW

W-7

the Internal Revenue Service (IRS). This will help mitigate the risk of improper payments and 

monetary loss resulting from incorrect self-reported applicant income.

The 2020 Request includes two proposals to further reduce the risk of improper payments.

 Exempt Education from Section 6103 for Certain Student Aid Programs. One of the 

primary causes of improper payments in the Pell Grant program is failure to verify 

accurately financial data. The Administration proposes to exempt the Department of 

Education from restrictions of Section 6103 of the Internal Revenue Code to allow the 

Department to more easily receive income tax data from the IRS, thereby simplifying and 

improving the accuracy of FAFSA filing by prepopulating certain fields. This exemption 

will also allow borrowers to more easily recertify their income to stay enrolled in Income 

Driven Repayment IDR plans.

 Improve Pell Fraud Prevention. The Administration proposes barring Pell recipients who 

have been awarded three consecutive Pell Grants without earning any credits from 

receiving another award. This will prevent the fraudulent practice of people going from 

school to school, enrolling long enough to receive a reimbursement but not pursuing any 

credits.

Additionally, FSA has begun to implement improved processes using administrative data to 

improve the prevention and recovery of improper payments.

 Improve Selection for Verification. The Department of Education is in the process of 

strengthening its use of administrative data to create a smarter system for selecting 

students for verification. By selecting for verification reviews those applicants with 

greater likelihood of incorrect information, this proposal will improve schools’ ability to 

detect and prevent improper payments. In addition, it will help ensure students and 

schools bear the burden of verification only when necessary, balancing the need to 

protect taxpayers with access to student aid for those who need it most.

 Better Target Program Reviews. The Department of Education will strengthen its use of 

administrative data to target FSA’s program compliance reviews on schools with higher 

risk of improper payments. This proposal should increase both the number of improper 

payments FSA identifies and the amounts it recovers.

 Take Enforcement Actions against Noncompliant Schools. The Department of 

Education has the authority to issue fines or take other enforcement actions to penalize 

schools for noncompliance. At present, enforcement actions currently are determined 

based on the type and level of severity of infraction, as well as the Department’s ability 

to execute successfully based on available resources. The Department will consider 

how it may use its authority to incentivize schools to put the necessary controls into 

place to reduce improper payments, particularly for those schools that neglect their 

responsibilities.

As part of its ongoing activities, FSA conducts periodic recertification of all schools’ eligibility 

and loss of school eligibility activities, assesses millions of dollars through final program review 

and audit determinations, and places schools with serious violations on heightened cash 
SALARIES AND EXPENSES OVERVIEW

W-8

monitoring for disbursements. In addition, FSA’s Enforcement Unit debars individuals from 

receiving assistance or benefits from any Federal Agency as a result of financial aid fraud or 

other criminal convictions.

Lastly, the Department continues to refine the Continuous Controls Monitoring System (CCMS), 

which enables the proactive detection of anomalies in administrative and grant payment 

data. Integrity checks are created in CCMS based on policy-related business cases for 

potential improper payment detection. Case management files anomalies, which are 

established within the application for follow-up investigation by process owners to validate 

improper payments and determine root causes.

Continuous Diagnostics and Mitigation

The Department has increased its focus on cybersecurity. 

The Continuous Diagnostics and Mitigation (CDM) Program, a Governmentwide program

centrally managed by the Department of Homeland Security (DHS), is intended to create a 

common baseline of cybersecurity capability and protection across the Federal Government. 

The program provides Federal Departments and Agencies with CDM-certified capabilities and 

tools that identify and prioritize cybersecurity risks on an ongoing basis and enable 

cybersecurity personnel to mitigate the most significant problems first. The CDM tools also 

allow Departments and Agencies to better manage their IT assets, helping to reduce their 

overall attack surface.

Historically, it has taken Agencies days or weeks to detect cybersecurity incidents in their 

environment. Once fully deployed, the CDM Program will shorten this timeframe to hours and 

minutes.

The CDM tools provide near real-time awareness of the Department’s networks and 

environments. Data from the tools are automatically ingested into an individual dashboard at 

the Department. The Agency Dashboard provides current visibility into the Department’s overall 

security posture based on a 72-hour data currency. With the full implementation of CDM,

summary data from the individual Agency dashboards across the Federal Government will be 

aggregated into one Federal-level dashboard with planned synchronization every 8 hours. The 

Federal Dashboard is maintained by the DHS CDM Program and allows DHS to monitor and 

respond to Federal cybersecurity threats and incidents quickly and efficiently.

Participation in Governmentwide E-Government Initiatives

The Department is actively participating in a number of Governmentwide e-Government 

initiatives and lines of business designed to make it easy for citizens and businesses to interact 

with the Government, save taxpayer dollars, and streamline citizen-to-Government 

communications. The Department budgeted a total of $5.3 million in fiscal year 2019 and 

requests $4.1 million in fiscal year 2020 for these initiatives.
SALARIES AND EXPENSES OVERVIEW

W-9

(in whole dollars)

Governmentwide E-Government

Initiative/Line of Business FY 2019

FY 2020 

Request

Budget Line of Business $110,000 $110,000

E-Rulemaking 138,000 146,000

Financial Management Line of Business 231,000 231,000

Geospatial Line of Business 25,000 25,000

GovBenefits.gov* 279,000 265,000

Grants.gov 322,000 423,000

Human Resource Management Line of Business 69,000 69,000

Integrated Awards Environment* 4,049,000 2,732,000

Performance Management Line of Business 80,000 80,000

USAJOBS 32,000 32,000

Total 5,335,000 4,113,000

NOTE: Funding for initiatives marked with an asterisk * is from the Student Aid Administration account; 

funding for all other initiatives/lines of business is from the Program Administration account.
SALARIES AND EXPENSES OVERVIEW

W-10

Department of Education

Budget Authority by Account

(dollars in thousands)

ACTIVITY

2018

Appropriation

2019

Appropriation

2020

Request

Change from 

2019 to 2020

Program Administration:

Salaries and Expenses $430,000 $430,000 $433,500 $3,500

Building Modernization 0 0 13,500 13,500

Office for Civil Rights 117,000 125,000 125,000 0

Office of Inspector General 61,143 61,143 63,418 2,275

Subtotal, Departmental Management 608,143 616,143 635,418 19,275

Administrative costs from program accounts:

College Housing and Academic Facilities Loans 435 435 435 0

Historically Black College and University Capital 

Financing 334 334 334 0

Institute of Education Sciences:

National Assessment Governing Board 7,745 7,745 7,745 0

National Board for Education Sciences 261 93 93 0

Student Aid Administration:

Salaries and Expenses 763,176 852,974 1,281,281 428,307

Servicing Activities 915,767 825,969 530,719 -295,250

Subtotal, Student Aid Administration account 1,678,943 1,678,943 1,812,000 133,057

Total, Salaries and Expenses 2,295,861 2,303,693 2,456,025 152,332
SALARIES AND EXPENSES OVERVIEW

W-11

Department of Education

Budget Authority by Object Classification

(dollars in thousands)

Object class 

no. Object Class

2018

Appropriation

2019

Appropriation

2020 

Request

Change from 

2019 to 2020

11.10 Full-time permanent $450,939 $453,768 $455,515 $1,747

11.31 Full-time temporary 3,181 3,740 3,866 126

11.32 Part-time 805 676 789 113

11.33 Consultants 274 273 274 1

11.51 Overtime 445 623 615 -8

11.52 Awards 6,493 6,477 6,477 0

subtotal row Subtotal, Personnel Comp. 462,137 465,557 467,536 1,979

12.00 Benefits 150,374 153,600 154,467 867

12.15 Student Loan Repayment 60 52 52 0

13.01 Benefits for former personnel 3,370 674 674 0

subtotal row Subtotal, Benefits 153,804 154,326 155,193 867

21.00 Travel 8,476 8,871 9,520 649

22.00 Transportation of things 1 0 0 0

23.10 Rental Payments to GSA 73,913 75,743 76,239 496

23.31 Communications 843 1,122 1,293 171

23.32 Postage/fees 239 195 197 2

subtotal row Subtotal, 23 74,995 77,060 77,729 669

24.00 Printing & Reproduction 1,767 1,147 1,141 -6

25.10 Advisory and Assistance Svcs 8,272 11,177 13,321 2,144

25.21 Other Services 994,198 937,542 804,601 -132,941

25.22 Training/Tuition/Contracts 5,101 5,177 6,037 860

25.23 Field Readers 0 0 27 27

25.30 Goods/Services from Gov't 72,685 70,596 71,197 601

25.40 Operations/Maint of Facilities 1 1 1 0

25.71 Operations/Maint of Equipment 1,516 1,524 1,540 16

25.72 IT Services/Contracts 508,300 565,835 830,102 264,267

subtotal row Subtotal, 25 1,590,073 1,591,852 1,726,826 134,974

26.00 Supplies 975 752 998 246

31.01 IT Equipment/Software 1,703 2,305 2,507 202

31.03 Other Equipment 1,175 1,257 449 -808

subtotal row Subtotal, 31 2,878 3,562 2,956 -606

32.00 Building Alterations 755 566 14,126 13,560

43.01 Interest and Dividends 0 0 0 0 

total row Total, Budget Authority 2,295,861 2,303,693 2,456,025 152,332

total row Total, Pers. Comp. & Ben. 615,941 619,883 622,729 2,846

total row Total, Non-Personnel 1,679,920 1,683,810 1,833,296 149,486
SALARIES AND EXPENSES OVERVIEW

W-12

Department of Education

Full-Time Equivalent (FTE) Employment (Staff Years) by Account

ACCOUNT 2018 Actual

2019

Appropriation

2020

Request

Change from 

2019 to 2020

Program Administration 1,585 1,626 1,626 0

Office for Civil Rights 534 625 619 -6

Office of Inspector General 224 241 248 7

Subtotal, Departmental Management 2,343 2,492 2,493 1

FTE funded from program accounts:

College Housing and Academic Facilities Loans 2 2 2 0

Historically Black College and University Capital 

Financing 1 2 2 0

Institute of Education Sciences:

Insti tute of Education Sciences: National Assessment Governing Board 13 14 14 0

Insti tute of Education Sciences: National Board for Education Sciences 0 0 0 0

Student Aid Administration 1,436 1,480 1,480 0

Subtotal, Program Accounts 1,452 1,498 1,498 0

Total, FTE 3,795 3,990 3,991 1
SALARIES AND EXPENSES OVERVIEW

W-13

Department of Education

Full-Time Equivalent (FTE) Employment by Office

OFFICE 2018 Actual

2019

Appropriation

2020

Request

Change from 

2019 to 2020

Career, Technical and Adult Education 73 72 72 0

Chief Information Officer 115 99 99 0

Civil Rights 534 625 619 -6

Communications and Outreach 84 82 82 0

Elementary and Secondary Education 260 263 263 0

English Language Acquisition, Language 

Enhancement, and Academic Achievement for 

Limited English Proficient Students 16 16 16 0

Federal Student Aid 1,307 1,350 1,349 -1

Finance and Operations 395 445 445 0

General Counsel 105 110 111 1

Inspector General 224 241 248 7

Institute of Education Sciences 166 169 169 0

Legislation and Congressional Affairs 13 15 15 0

National Assessment Governing Board 13 14 14 0

National Board for Education Sciences 0 0 0 0

Planning, Evaluation, and Policy Development 18 34 34 0

Postsecondary Education 161 170 170 0

Secretary* 107 83 83 0

Special Education and Rehabilitative Services 188 184 184 0

Under Secretary 16 18 18 0

Total, FTE 3,795 3,990 3,991 1

NOTE: FY 2018 reflects adjustments for comparability to FY 2019 and FY 2020 to reflect the Department’s 

Reorganization. The offices impacted include OFO (OM-173/OCFO-163/BS-OPEPD-59), OS (ODS-32), and OESE 

(OII-63).
SALARIES AND EXPENSES OVERVIEW

W-14

Department of Education

Detail of Full-time Equivalent (FTE) Employment

Detail of Full-time Equivalent (FTE) 2018 Actual 2019 Appropriation 2020 Request

Executive level I................................................. 1 1 1

Executive level II................................................ 3 3 3

Executive level III............................................... 0 1 2

Executive level IV.............................................. 7 7 7

Executive level V............................................... 0 0 1 

Executive level AD............................................. 2 2 0

Subtotal...................................................... 13 14 14

Total - EX Salary................................. $2,138,300 $2,103,400 $2,431,700

Senior Executive Service............................. 76 86 86

Subtotal - ES1 ........................................... 76 86 86

Total - ES Salaries............................. $13,592,668 $15,007,000 $15,007,000

AL..................................................................... 2 1 2

AD..................................................................... 212 236 236

ED/EI................................................................ 1 4 4

GL.................................................................... 0 0 1

GS/GM-15........................................................ 430 439 439

GS/GM-14......................................................... 865 849 849

GS/GM-13......................................................... 1,067 1,028 1,028

GS-12................................................................ 656 665 665

GS-11................................................................ 167 134 134

GS-10................................................................ 0 0 0

GS-9.................................................................. 71 71 71

GS-8.................................................................. 26 26 26

GS-7.................................................................. 49 49 49

GS-6.................................................................. 8 6 6

GS-5.................................................................. 3 3 3

GS-4.................................................................. 10 10 10

GS-3.................................................................. 1 1 1

GS-2.................................................................. 5 5 5

GS-1.................................................................. 0 0 0

Subtotal...................................................... 3,573 3,527 3,529

Total full-time equivalent employment, 

end of year.......................................... 3,662 3,627 3,629

Full-time equivalent (FTE) 

usage.................................................. 3,795 3,990 3,991

Average ES salary............................................ $178,851 $174,500 $174,500

Average GS/GM grade..................................... 12.2 12.1 12.1

Average GS/GM salary..................................... $116,138 $113,457 $113,854

1

 FY 2018 includes 7 FSA SES positions. FY 2019 and FY 2020 include 10 FSA SES positions.
SALARIES AND EXPENSES OVERVIEW

W-15

Organization Chart

Operating Structure for Policy and Reporting Guidance
W-16

W-16

Locat ions of Major Administrative Contract s and Current Contractors

7 Denver

9 Colorado Springs

10 Broomfield

10 Westminster

Department of Education

Locations of Major Administrative Contracts

and Current Contractors

2 Plano

10 El Paso

11 San Antonio

5,10 Lawrence

9 Boise

5, 10 Coralville,

10 London, KY

10,11 Monticello, KY

10

Montgomery

1,4,9,10,11 Washington, DC

10 

Hattiesburg

10 Rockville, MD

2, 8 Columbia, MD

3* Madison

3* Lincoln

3* 

Chesterfield

11 Niagara Falls

5 Venice

3* Salt 

Lake 

City

3* Concord, NH

3* Knoxville

3* Harrisburg, PA

3* Warrendale

3* Oklahoma City

3* Wilmington, DE

Note: An asterisk represents a headquarters location for loan servicing contracts. Additional locations can be found in the Student Aid 

Administration Congressional Justification.

1 Financial Management System (FSA)

2 EDUCATE/PIVOT (OCIO) 

3 Loan Servicers (FSA)

4 OCR CRDC Survey (OCR)

5 National Student Loan Data System (FSA)

6 System Security Authorizations (FSA)

7 Payroll/Personnel Processing Center (OFO)

11 Piscataway, NJ

5,11 Arlington, VA

1 McLean

2,10 Fairfax

9 Clarksville

2 Sterling

3*, 6 Reston

2,9,10 Herndon

11 Columbus, GA

2 Brookhaven

8 Education Department Central Automated Processing Systems (EDCAPS)(OFO)

9 Next Generation Data Center (FSA)

10 Application and Eligibility Determination System, FSA Customer Contact Center, and 

FSA Feedback and Ombudsman System (FSA)

11 Title IV Origination and Disbursement System (FSA)

2 Armonk, NY
SALARIES AND EXPENSES OVERVIEW

W-17

Report on the Budget Formulation and Execution Line of 

Business 

Required by Division D, Section 737(d) of the Consolidated Appropriations Act, 2008, P.L. 

110-161

The U.S. Department of Education assumed the role as the first Managing Partner for the 

Budget Line of Business (Budget LoB) in the fall of 2006. The focus of the Budget LoB is to 

build a “budget of the future” by promoting information-sharing across Government Agency 

budget offices, as well as building a “community of practice.” Through this collaboration, the 

budget community has been identifying best practices for all aspects of budget formulation and 

execution. The Budget LoB strives to find solutions linking budget formulation, execution, 

planning, performance, and financial management information.

The goals of the Budget LoB are to:

 Improve the efficiency and effectiveness of Agency and central processes for formulating 

and executing the Federal Budget

 Improve capabilities for analyzing and presenting budget, execution, planning, and 

financial information in support of decision making

 Enhance the effectiveness of the Federal budgeting workforce

Budget LoB anticipates 10-year savings of over $200 million Governmentwide due to 

efficiencies gained through collaboration and increased use of technology. Many Agency 

budget offices do not have automated systems to support budget formulation and execution 

activities. Agencies rely on basic office software and manual processes. Budget LoB’s goal is 

to reduce time spent by budget personnel on manual processes and increase time spent on 

high priority analytical activities (via increased use of technology, improved processes, and a 

better equipped workforce).

Budget LoB is a mixed lifecycle investment. Activities and solutions under development by 

Budget LoB workgroups are at different stages within the development lifecycle. Products 

under development are listed in the Objectives and Benefits table below and include 

implementation or projected implementation dates.

The following tables display the objectives and benefits, risks, costs, and Agency contributions 

to Budget LoB.
SALARIES AND EXPENSES OVERVIEW

W-18

Objectives and Benefits: Technology

Capability Objectives and Benefits

Technology

Technology

Collaboration 

Improves the efficiency and effectiveness of Government activities through the 

ready accessibility of information, and the ability to collaborate remotely both 

within an Agency (i.e., collaboration with regional and field staff) and across 

Federal Agencies (i.e., collaboration of each Agency with OMB and other 

Agencies on shared programs).

Current products include the MAX Federal Community, MAX Desktop and 

meetings.max.gov (a secure online meeting capability), and MAX Calendar.

Current Status: The MAX Federal Community, a cross-agency collaboration 

platform, provides increased information sharing, collaboration, and knowledge 

management securely across the Federal Government, as well as within each 

Agency. With nearly 238,000 members (up from approximately 215,000 in 

Nov 2017), the MAX Federal Community is reportedly the largest Government 

operated collaboration site.

Technology

Data Collection & 

Tracking

Improves OMB and Agency efficiency and effectiveness in carrying out the 

numerous required budget data exercises. Benefits apply to both central 

budget exercises (i.e., those required of Agencies by OMB) and exercises at 

the departmental or Agency level (i.e., those requested by central offices of 

Agency regional and field offices). Agency benefits include increased data 

collection capabilities, reduced errors, and reduced time spent manually 

consolidating and publishing data.

Current products include web-based data collection tools, specifically MAX 

Collect and MAX JIRA Forms, used for central budget exercises and for 

Agency use in the collection of budget briefings, questions for the record, 

performance management, apportionments, allotments, and other budget data. 

MAX Survey is a basic data collection capability also available on MAX.gov.

Current Status: Budget LoB data collection tools have demonstrated significant 

value by automating the collection of data for dozens of centralized exercises 

related to the budget community for earmarks, continuing resolutions, 

questions for the record, and across-the-board reductions. The MAX Collect 

tool provides even greater benefit by enabling Agency budget offices to 

automate their own data collection exercises. Agencies are now using the tool 

to facilitate a broad range of data calls and data collection exercises 

numbering in the hundreds. In recent years, the Budget LoB developed MAX 

JIRA Forms, which provides a much simpler and far more powerful user 

interface for collecting and reporting on data. Over the past year, the Budget 

LoB has transitioned all but two Collect Forms exercises to MAX JIRA, which 

provides a more customizable interface and additional capabilities desired by 

Agency budget offices, like customized notifications, view access, and a clean 

user interface. With the anticipation of the de-commission of MAX Collect 

Forms in the next year, the remaining exercises will be transitioned to MAX 

JIRA. MAX Survey is used to quickly gather and analyze information via 

tokenized surveys.
SALARIES AND EXPENSES OVERVIEW

W-19

Capability Objectives and Benefits

Technology

Technology

Knowledge 

Management

Improves the ability of Agencies to locate and access information, increases 

the availability and comprehensiveness of data, and improves the ability of the 

budgeting community to manage the impending retirement of key personnel. 

Database-driven products such as the MAX Federal Community, MAX Collect, 

and MAX JIRA enhance knowledge management capabilities by capturing 

“knowledge” as it is generated, simply as a by-product of these tools.

Technology

Agency Budget 

Formulation and 

Execution Tools

Provides a cost-effective strategy for Agencies that do not have budget 

formulation and execution applications, or have outdated applications, to 

quickly improve their effectiveness through automation. This effort encourages 

common and integrated solutions that are reusable Governmentwide.

Products include the Budget Formulation and Execution Manager system

(BFEM), the first shared budget formulation system by the Department of 

Treasury; the Departmental E-Budgeting System (DEBS), a shared offering 

from the Department of Labor; the Decision Matrix for budget systems 

evaluation (full systems evaluations); the Budget Capability Self-Assessment 

Tool (BC SAT); the MAX A-11 Data Transfer and Rule Validation project; and a 

common Budget Office Solutions catalog. The Decision Matrix allows 

Agencies to define their specific budget system requirements and evaluates 

the capability and maturity of six Agency and three commercial budget 

systems against those requirements. The BC SAT has provided several 

Agencies with comprehensive resource listings to further help them with 

strategic planning and resourcing.

Current Status: The MAX A-11 Rule Validation team supports processes, 

methodologies, and standards to enable Agencies to exchange data with 

OMB's MAX A-11 system through the use of multiple ‘services’, greatly 

improving the process, eliminating large amounts of manual data entry, and 

enabling availability of account level information on a real-time basis. The 

Budget LoB continues to support Treasury’s BFEM, Labor’s DEBS and EPA’s 

BFS systems as they provide customer Agencies with enhanced connections 

to OMB’s MAX budget system. 

Technology

Analytical Tools

Enhances Federal capabilities for analyzing budget formulation, execution, 

planning, performance, and financial information. This enables more 

complete, thorough, and timely analysis, which will, in turn, provide policy 

decision-makers with improved understanding of policy option impacts and 

alternatives. 

Current products include the MAX Analytics tool suite, including CTools, which 

creates custom charts and graphs for analysis, and associated tools built upon 

the analytics core (such as MAX Calendar).

Current Status: MAX Analytics integrates with Budget LoB data collection and 

collaboration tools, enabling charts that update automatically as new data is 

entered. Agencies have been using MAX Analytics to dynamically display the 
SALARIES AND EXPENSES OVERVIEW

W-20

Capability Objectives and Benefits

Technology

results of their data collections and to transform how they use analytics to 

manage problems. The Budget LoB continues to work with Agencies to 

include the most relevant and useful capabilities in the tool suite. Several 

Agencies (OMB, DOJ, DOL, etc.) are now utilizing MAX Analytics to drive 

decision making based upon analysis not previously possible.

Technology

Budget Execution 

and Financial 

Management 

Integration

Improves the quality and integrity of information, data flows, and reporting in 

budget formulation and execution, especially in regard to its touch points with 

financial management. Identifying common business processes and data 

standards will form the basis for requirements for use in developing budget 

systems, as well as closer alignment with financial management systems. 

Current products include Governmentwide process maps for budget execution 

and budget formulation and the web-based budget execution training module, 

budget formulation training module, and Appropriations Law training module.

Current Status: The training modules are in use throughout the budget 

community. Over 9,700 individuals have accessed the self-paced online 

training module courses, which have an estimated return on investment to date 

of over 6,700 percent and a savings of over $8.13 million.

Technology

Document 

Production

Enables Agency budgeting personnel to move from clerical to analytical 

functions, increasing Agency analytical resource availability. Many Agency 

budget staff work countless hours to incorporate late-breaking policy data 

changes in high-visibility publications. Often, many changes must be 

simultaneously made in multiple documents for different stakeholders. 

Document production capabilities exist in Treasury and Labor’s shared service 

budget systems, as well as in the MAX Collect Tool, and in a recently released 

service allowing budget personnel to develop their own reporting templates.

Objectives and Benefits: Governance

Capability Objectives and Benefits

Governance

Governance

Program 

Management Office 

(PMO)

Serves as a central coordination point for Governmentwide collaboration and 

sharing of technologies and processes. The Program Management Office 

(PMO) allows resources across Government to be leveraged for cost savings. 

In this way, costs are reduced, economies of scale are achieved, and risks in 

developing and buying Agency budget tools are reduced through a coordinated 

combination of approaches that include: sharing common budget formulation 

components, purchasing commonly used software that has been proven in 

multiple Agencies, and purchasing services from other Agencies.

The PMO will support enhanced efficiency, effectiveness, quality, knowledge 

management, presentation, collaboration, and flexibility within the Budget LoB. 

Currently, the PMO supports monthly Task Force meetings, bi-annual 

conferences, and apportionment and credit subsidy workgroups, which are 

open to the entire federal budget community. These meetings and events are 
SALARIES AND EXPENSES OVERVIEW

W-21

Capability Objectives and Benefits

designed to share information on budget community solutions, trainings, and 

best practices.

Governance

Process 

Improvements

Allows for the development of system requirements and guidelines for tools 

that are modular in nature (can be used as part of any system) and available 

for use by multiple Agencies. Accounts for the importance of flexibility in the 

budgeting process and acts as a set of standards that are essential for the

automated exchange of budget data with Treasury and OMB, as well as 

Agency financial management systems.

Current products include numerous updates to the MAX Federal Community, 

MAX Collect, MAX Analytics, and MAX JIRA as well as implementation of MAX 

Authentication services at 14 Agencies with work underway to support

additional Agencies with “single sign-on” capabilities.

Governance

Service Module 

Standardization

Encourages reusability and interoperability of budget systems across Agencies 

to achieve significant cost savings through a "build once, use often" 

philosophy. Service module registration via the PMO will help ensure that 

Agencies are aware of existing services so that duplicative investments are not 

made.

Objectives and Benefits: Human Capital

Capability Objectives and Benefits

Human Capital

Human Capital

Budget Human 

Capital

Enhances the effectiveness of the existing budgeting workforce and 

encourages participation from other professions within Government, the private 

sector, and universities. The Budget LoB provides a central venue for the 

budget community, OPM, and the Council of Human Capital Officers to grow 

the appeal of Federal Budgeting as a career by combining Agency efforts to 

define budget career paths, core competencies, leadership development, 

certification programs, and sharing of ideas in areas such as succession

planning, retention and recruitment.

Products include recommendations on core competencies and proficiency 

levels; the bi-annual Forum devoted to bringing together budget professionals 

from across the Federal government to broaden their understanding of the 

tools and training opportunities available to their budget offices; and training 

curricula for budget analysts, as well as no-cost training courses for budget 

staff and self-paced training modules. More are planned for the coming year.

Current status: Thousands of Government employees have undergone no-cost 

training through in-class, web-based, or facilitated online training sessions 

hosted by the Budget LoB. Regular panel discussions feature OMB or senior 

Agency budget staff focusing on specific budgeting related topics and have 

been attended by over 3,700 individuals since the Department began hosting. 

Brownbag discussion groups focusing on a deeper understanding of budget 

execution and on the Budget Career Road Map have been attended by over 

1,200 people. An in-depth course focusing on Basic Budget Processes began 
SALARIES AND EXPENSES OVERVIEW

W-22

Capability Objectives and Benefits

in 2013 and has been held 22 times, with waiting lists and strong participation 

from over 550 attendees. All of these opportunities are offered to Federal 

employees free of charge.

Risks

Type of 

Risk 1

Risk Description Mitigation Approach

Other Technology Maintaining ability to develop 

and field highest-quality IT 

services in the midst of rapid 

expansion of use without 

accompanying equal increase 

in available resources.

Work with product leads to encourage 

continued focus on quality and meeting 

requirements, implement updated 

procedures. Engage Agencies for more 

participation in development, fielding, and 

maintenance of solutions.

Other Management 

Oversight

Agency budget offices do not 

make use of the range of 

Budget LoB products and 

services available to them—

risk is unrealized cost 

avoidance/cost savings.

Develop metrics and assess tools 

capabilities and whether they are 

optimized for Agency budget office use.

1

Types of risk are categorized as either significant or other. If significant risks occur, they have substantial impact on 

the ability of the Line of Business to succeed. Other risks, while potentially serious, may not significantly impact the 

Line of Business and its ability to succeed.
SALARIES AND EXPENSES OVERVIEW

W-23

W-23

Line of Business IT Costs (dollars in thousands)

Costs by 

project 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Planning $100 $125 $125 $116 $78 $95 $95 $95 $95 $95 $95

Acquisition 355 335 350 375 178 265 265 265 265 265 265

Operations & 

Maint. 720 685 700 781 919 1105 1055 955 955 955 955

Govt FTE 

Costs 162 172 238 244 100 100 100 100 100 100 100

1,337 1,317 1,413 1,516 1,275 1,565 1,515 1,415 1,415 1,415 1,415

FTE 4 4 2 2 1 1 1 1 1 1 1
SALARIES AND EXPENSES OVERVIEW

W-24

Anticipated Contributions by Agency (dollars in thousands)

AGENCY FY 2018 FY 2019 FY 2020

Department of Agriculture $110 $110 $110

Department of Commerce 110 110 110

Department of Defense--Military 110 110 110

Department of Education (direct funds) 110 110 110

Department of Energy 110 110 110

Department of Health and Human Services 110 110 110

Department of Homeland Security 110 110 110

Housing and Urban Development 110 110 110

Department of the Interior 110 110 110

Department of Justice 110 110 110

Department of Labor 110 110 110

Department of State 110 110 110

Department of Transportation 110 110 110

Department of the Treasury 110 110 110

Department of Veterans Affairs 110 110 110

US Army Corps of Engineers-Civil Works 80 80 80

Environmental Protection Agency 110 110 110

General Services Administration 110 110 110

National Aeronautics and Space Administration 110 110 110

National Science Foundation 110 110 110

USAID 110 110 110

Office of Personnel Management 110 110 110

Small Business Administration 55 55 55

Securities and Exchange Commission 0 55 55

Social Security Administration 55 55 55

Office of National Drug Control Policy 55 55 55
SALARIES AND EXPENSES OVERVIEW

W-25

This page intentionally left blank.
SALARIES AND EXPENSES OVERVIEW

W-26

GAO-IG Act – Table of Open Recommendations

The following table satisfies the requirements of the Good Accounting Obligation in Government 

(GAO–IG) Act (P.L. 115-414).