BPD told the National Treasury Union (NTEU) that is planning to substantially reduce the approximately 115 employees in its Savings Bond Marketing Office (SBMO) so that it can force customers to use the Internet to purchase savings bonds. This would reduce the bargaining unit to some 40 employees, and the number of staffed offices would be reduced to four.
SBMO employees are located in small one or two persons offices around the country, working with schools and community based organizations, and acting as liaisons with corporations and other employers in setting up and operating payroll savings bond programs. "For sixty years, the savings bond program has been the first step in savings for a great many Americans," said Colleen M. Kelley, President of NTEU, " and has been their introduction and gateway to other forms of savings and investing. This is a penny-wise and very foolish idea, and it should be dropped immediately."
"Ending SBMO's participation in various community partnership and cooperative programs, Kelly added, " Would significantly hurt efforts improve the financial knowledge and exposure to savings and disadvantaged Americans."
BPD is a key part of the national financial management system, both raising money for governmental functions and keeping strict track of the debt. It raises funds by selling hundreds of millions of dollars worth of debt instruments to the major securities dealers and financial institutions that rare regular customers at Treasury auctions-and by selling savings bonds to individuals.
Treasury's own calculation show that for every $1 billion borrowed through Series EE and Series I savings bonds, $17 million is saved in comparison to costs associated with marketable securities.
Approximately:
- 55 million Americans hold more than $190 billion worth of bonds
- 11 million people buy bonds each year.
- 40,00 employers offer the payroll savings plan to their employees
- 6 million employees buy bonds through the payroll savings where they work.
- $17 million is saved by the Treasury for every $1 billion of bonds sold, when comparing costs associated with marketable securities.
The Savings Bond program was instituted prior to World War II as a means to establish a unifying financial partnership with the American people through voluntary savings and to more constructively manage the public debt.
$8.6 billion worth of bonds were sold during the first nine months of FY 2002; this figure includes $5.9 billion of I bond sales and $2.7 billion of EE bonds sales. Series EE Bond sales include purchase of the "Patriot Bond". More than $2.13 billion worth of Patriot Bonds have been purchased since they were introduced on December 11, 2001.
With this history of accomplishment and the impressive numbers, you would think that this agency would be the centerpiece of the federal government, instead of being on the "chopping block;" but the Bush Administration seems to be in a "slash and burn" mode. If it's the government, it needs to be downsized, contracted out or eliminated, whether it's a good idea or not...
This is a program that works, is efficient and makes money for the federal government and more than justifies its existence.
