Buyouts at the Department of Education

Pursuant to a congressional request, GAO reviewed the Department of Education's implementation of voluntary separation incentives, or buyouts, focusing on whether the buyouts met the requirements and purpose of the Federal Workforce Restructuring Act of 1994. GAO noted that: (1) Education's use of buyouts during April and May 1994 complied with the act and Office of Management and Budget (OMB) guidance; (2) OMB did not require Education to reduce its authorized staffing level to account for the excess number of employees who took the buyouts, since it could offset Education's staffing reductions with other governmentwide staffing reductions; (3) Education believes its buyout efforts will streamline its organization with a younger and more diversified workforce and save about $7.4 million in fiscal year (FY) 1995; and (4) Education plans to offer 52 additional buyouts during FY 1995 targeted to particular areas to assist in restructuring Education's workforce.