The federal budget deficit has been plummeting in size over the last few years; however, judging from polls, most Americans do not know that – indeed, their concern over the deficit has grown even as the annual deficit has shrunk significantly. And it continues to do so: the Congressional Budget Office (CBO) estimated yesterday that the deficit for the first eleven months of this fiscal year fell $400 billion from the comparable period last year.

Cuts due to sequestration at the Defense Contract Audit Agency (DCAA) led to higher contract costs that are larger than the cuts, according to DCAA estimates provided to the Center for Effective Government.

Many activists and analysts searching for reduced spending at the Pentagon commonly point to the post-9/11 growth of the department’s federal civilian workforce as a place to find significant savings. No doubt some savings could be found here, especially now that the war in Iraq is over and the one in Afghanistan draws to a close. But on closer examination, the savings from slashing the civilian workforce may not be as high as one might think. In some places, the department may want to further expand the ranks of its civilians to actually save more money.