BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM 
Date: December 15, 2006 
To: Board of Governors 
From: Donald L. Kohn 
Subject: 2007 Final Reserve Bank Budgets 
The Committee on Federal Reserve Bank Affairs has reviewed staffs recommendation that the Board approve the Reserve Bank budgets for 2007. In aggregate, the 2007 Reserve Bank budgets total $2,953.3 million, an increase of $153.2 million or 5.5 percent over 2006 estimated expenses. I am forwarding the attached staff memorandum to the Board for its consideration. 

Attachment 



BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM 
DIVISION OF RESERVE BANK OPERATIONS AND PAYMENT SYSTEMS 
Date: December 1, 2006 
To: Committee on Federal Reserve Bank Affairs 
From: Lauren Oriente, Stuart Sperry, Dorothy LaChapelle, Paul Bettge 
Subject: 2007 Final Reserve Bank Budgets 

ACTION REQUESTED 
Staff requests Committee review of its recommendation that the Board approve the 2007 Reserve Banks’ budgets totaling $2,953.3 million, an increase of $153.2 million or 5.5 percent over the 2006 estimated expenses. [Begin Footnote 1. These expenses include those budgeted 
by Federal Reserve Information Technology (FRIT) and the Office of Employee Benefits (OEB) that are chargeable to the Reserve Banks. End footnote 1.] Staff also requests Committee review of its recommendation that the Board approve the 2007 Reserve Bank, Federal Reserve Information Technology (FRIT), and the Office of Employee Benefits (OEB) capital budgets totaling $591.6 million. The capital budgets are approved with the understanding that approval for actual capital outlays will be in accordance with the Board’s Policies and Guidelines Concerning Reserve Bank Operations (S-2619). We have attached additional statistical information that provides detail on expenses, staffing, and capital outlays. 



2 

Total Expense and Employment Summary 
The 2007 expense increase of $153.2 million or 5.5 percent is driven largely by increases in the Treasury, information security, protection, and check areas. These increases are offset slightly by reductions in the cash function. 

Table 1 Reserve Bank Expenses and ANP 
(dollars in millions) 

Begin Header Row. Column 1. 
 Column 2: 2006 Budget. 
 Column 3: 2006 Estimate. 
 Column 4: 2007 Budget. 
 Column 5: Change 2006 Est.-2007 Bud. Amount. 
 Column 6: Change 2006 Est.-2007 Bud. Percent. End 
Header Row. 
 
Central Bank Services 
 Central Bank Services, 2006 Budget: $1,581.0 
 Central Bank Services, 2006 Estimate: $1,589.3 
 Central Bank Services, 2007 Budget: $1,683.4 
 Central Bank Services, 
Change 2006 Est.-
2007 Bud. Amount: $94.1 
 Central Bank Services, Change 2006 Est.-2007 Bud. Percent: 5.9% 
 
Treasury Services 
 Treasury Services, 2006 Budget: $409.5 
 Treasury Services, 2006 Estimate: $409.0 
 Treasury Services, 2007 Budget: $442.7 
 Treasury Services, 
Change 2006 Est.-2007 Bud. Amount: $33.7 
 Treasury Services, Change 2006 Est.-2007 Bud. Percent: 8.2% 
 
Priced Services 
 Priced Services, 2006 Budget: $795.8 
 Priced Services, 2006 Estimate: $801.9 
 Priced Services, 2007 Budget: $827.3 
 Priced Services, Change 2006 Est.-2007 Bud. Amount: $25.4 
 Priced Services, Change 2006 Est.-2007 Bud. Percent: 3.2% 
 
Total Expense 
 Total Expense, 2006 Budget: $2,786.3 
 Total Expense, 2006 Estimate: $2,800.1 
 Total Expense, 2007 Budget: $2,953.3 
 Total Expense, Change 2006 Est.-2007 Bud. Amount: $153.2 
 Total Expense, Change 2006 Est.-2007 Bud. Percent: 5.5% 
 
ANP 
 ANP, 2006 Budget: 19,869 
 ANP, 2006 Estimate: 19,885 
 ANP, 2007 Budget: 19,828 
 ANP, Change 2006 Est.-2007 Bud. Amount: -57 
 ANP, Change 2006 Est.-2007 Bud. Percent: -0.3% 
 

Nearly half of Reserve Bank expenses in the 2007 budget are offset by priced service revenues (33 percent) and reimbursable claims for services provided to the Treasury and 

other agencies (16 percent). [Begin 
footnote 2. Reimbursable claims include costs of 
fiscal agency and depository services provided to the 
U.S. Treasury, other government agencies, and other 
fiscal principals that are billed to these agencies. 
End footnote 2.] Budgeted 2007 revenue is lower than the 2006 estimated level, primarily as a result of declining check volume. Reimbursable claims will increase 8.5 percent in 2007, reflecting additional efforts by the Reserve Banks on behalf of the Treasury. 

Table 2 Change in Net Expenses 
(dollars in millions) 

Begin Header Row. Column 1. 
 Column 2: Budget. 
 Column 3: Estimate. 
 Column 4: Budget. 
 Column 5: 
Percent Change, 
06B-07B. 
 Column 6: 
Percent Change, 
06E-07B. 
 
Total Expense 
 Total Expense, Budget: $2,786.3 
 Total Expense, Estimate: $2,800.1 
 Total Expense, Budget: $2,953.3 
 Total Expense, Percent Change, 
06B-07B: 6.0% 
 Total Expense, Percent Change, 
06E-07B: 5.5% 
 
Less: 
 
Priced Services Revenue [Begin footnote 1. 2007 budgeted revenue is $1.1 million higher than the projection in the staff memorandum to the Board on proposed 2007 fee schedules for priced services dated November 7, 2006. End footnote 1.] 
 Less, Priced Services Revenue [Begin footnote 1. 2007 budgeted revenue is 
$1.1 million higher than the projection in the staff memorandum to the Board on proposed 2007 fee schedules for priced services dated November 7, 2006. End footnote 1.], Budget: $912.6 
 Less, Priced Services Revenue [Begin footnote 1. 2007 budgeted revenue is 
$1.1 million higher than the projection in the staff memorandum to the Board on proposed 2007 fee schedules for priced services dated November 7, 2006. End footnote 1.], Estimate: $1,027.7 
 Less, Priced Services Revenue [Begin footnote 1. 
2007 budgeted revenue is $1.1 million higher than the projection 
in the staff memorandum to the Board on proposed 2007 fee schedules for priced services dated November 7, 2006. 
End footnote 1.], Budget: $981.3 
 Less, Priced Services Revenue 
[Begin footnote 1. 2007 budgeted 
revenue is $1.1 million higher than the 
projection in the staff memorandum to 
the Board on proposed 2007 fee schedules for priced services dated 
November 7, 2006. End footnote 1.], 
Percent Change, 
06B-07B: 7.5% 
 Less, Priced Services 
Revenue [Begin footnote 1. 
2007 budgeted revenue is 
$1.1 million higher than the 
projection in the 
staff memorandum to the 
Board on proposed 2007 fee schedules for priced 
services dated November 7, 
2006. End footnote 1.], 
Percent Change, 
06E-07B: -4.5% 
 
Reimbursable Claims 
 Less Reimbursable Claims, Budget: $429.9 
 Less Reimbursable Claims, Estimate: $430.1 
 Less Reimbursable Claims, Budget: $466.7 
 Less Reimbursable Claims, Percent Change, 
06B-07B: 8.6% 
 Less Reimbursable Claims, Percent Change, 
06E-07B: 8.5% 
 
Net Expenses 
 Net Expenses, Budget: $1,443.8 
 Net Expenses, Estimate: $1,342.3 
 Net Expenses, Budget: $1,505.3 
 Net Expenses, Percent Change, 
06B-07B: 4.3% 
 Net Expenses, Percent Change, 
06E-07B: 12.1% 
 

Total 2007 projected employment for the Reserve Banks, FRIT, and OEB is 

19,828 ANP, a decrease of 57 ANP or 0.3 percent from 2006 estimated staff levels. [Begin footnote 3. ANP is the average 
number of employees in terms of full-time positions for 
the period. For instance, a full-time employee who works 
one-half of the year counts as 0.5 ANP for that calendar 
year; two half-time employees who work the full year 
count as 1 ANP. End footnote 3.] The 2007 
staffing decrease continues the trend of workforce reductions that began in the late 1990s. The 2007 budgeted staff reduction reflects the effect of infrastructure changes and volume declines in check 

Chart: Trends in Staffing 
Federal Reserve staffing levels have declined steadily each year, from 
22,993 ANP in 2002 actual to a projected 19,828 ANP in the 2007 budget. 



3 
and efficiency gains in currency processing, offset slightly by increases in other areas such as information technology, Treasury, and protection. 
2006 Budget Performance 
Total 2006 expenses are estimated to be $2,800.1 million, which represents an increase of $13.8 million or 0.5 percent from the approved 2006 budget of $2,786.3 million. Total 2006 estimated staffing of 19,885 ANP represents an increase of 17 ANP from 2006 budgeted levels. 
The expense increase from budget is driven primarily by higher costs to support the New Treasury Auction Automated Processing System (NTAAPS) ($8.5 million). Also contributing to the overrun are higher expenses in check operations for staffing, supplies, and equipment related to higher-than-budgeted Check 21 volumes, higher fuel costs for check transportation, and additional staff for check adjustments and check operation consolidations ($8.3 million and 203 ANP). Additional costs in several support areas, including increased utilities and property depreciation expense, and higher overtime in the protection area, increase expenses by $5.6 million. Other increases to the current year budget include additional costs for overtime and travel in supervision and regulation ($5.4 million) and higher equipment costs in cash ($2.5 million). 
Partially offsetting these increases are lower costs in several Treasury initiatives. Expenses for the Treasury Web Application Infrastructure (TWAI) are $6.7 million below budget due to delayed or suspended application development efforts. Expenses and staffing in several other Treasury applications are $2.5 million and 35 ANP lower due to changes in project scope and development efforts at the request of the Treasury. In addition, unfilled positions in public programs reduce the estimate by $1.3 million and 25 ANP. Staffing reductions are also occurring in support areas (58 ANP) due to turnover and hiring delays, primarily in facilities and protection. Staffing levels in cash are decreasing 40 ANP, reflecting increased efficiencies, volume declines, and hiring delays. 



4 

Factors Affecting the 2007 Budget 
In the central bank area, which includes monetary policy, public programs, supervision and regulation, and cash operations, expenses are increasing $94.1 million or 5.9 

percent in 2007. Total costs for monetary policy and economic research are increasing $21.0 million or 6.5 percent. Staffing levels are increasing 10 ANP due in part to the full-year effect of several Banks’ efforts initiated in 2006. 

Chart: Trend in Central Bank Total Costs 
Central Bank expenses have increased from $1.3 billion in 2002 actual to a 
projected $1.68 billion in the 2007 budget. 

Expenses in public programs are increasing $15.8 million or 10.7 percent and staffing levels are increasing 32 ANP. During 2007, Reserve Banks will focus resources on regional outreach expansion, economic education, and financial literacy efforts. In recent years, Reserve Banks have devoted more resources to these efforts, particularly in regions where there is a limited Reserve Bank presence. 
Expenses in the supervision and regulation area are increasing $45.4 million or 8.2 percent in the 2007 budget as a result of the full-year effect of 2006 hires and higher compensation for current staff. Staffing levels are increasing 18 ANP. 
Expenses in cash operations are increasing $0.9 million or 0.2 percent. The relatively flat cost in this area reflects several initiatives, including reduced cash processing equipment maintenance costs, projected recoveries from the recirculation policy, and productivity improvements ($5.0 million). [Begin footnote 4. 4 Under the new recirculation 
policy, the Reserve Banks will charge depository institutions a fee to deposit large amounts of fit $10 and $20 notes 
and order the same denomination within the same week. End footnote 4.] 
One-time costs that were recognized in 2006 to restructure currency operations across Reserve Banks also reduce the 2007 budget ($2.2 million). These reductions to the cash budget largely offset the area’s compensation program growth ($7.7 million) and other initiatives, including expenses and staffing resources to prepare for a new cash automation platform ($1.0 million and 8 ANP) and several long-term initiatives underway in the cash area ($1.2 million and 5 ANP). 



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Total costs to provide services to the Treasury are increasing $33.7 million and 8.2 percent. Staffing levels are increasing 19 ANP. The increase is driven by growth in two 

software applications maintained for the Treasury. Costs for developing and implementing NTAAPS are increasing $10.1 million and 4 ANP. The TWAI project, which provides a dedicated web environment that supports several Treasury applications and millions of registered users, continues to grow as new applications are added to the environment. 

The 2007 budget includes an increase of $10.1 million for additional applications to be added to the TWAI environment. Growth in other Treasury applications, totaling $3.0 million and 14 ANP, include the Government financial management system (GWA) and Treasury international payments process (ITS), ongoing development of the Treasury’s General Account Deposit Reporting Network (TGANet) application, and software to process government electronic payments (eGovernment). These increases are partially offset by the transfer of the Transaction Reporting System to a private company ($4.9 million). 

Chart: Trend in Treasury Total Costs 
Treasury Services expenses have increased steadily each year from 
$287 million in 2002 actual to a projected $443 million in the 2007 
budget. 

Total check expenses are increasing $11.0 million or 1.7 percent reflecting higher costs for Check 21-related supplies and equipment, as well as additional resources necessary to facilitate further consolidation to five regional check adjustments sites. The 2007 budget also includes additional funding for several check initiatives, including further check restructuring. 

Chart: Trend in Check Total Costs 
Check expenses have declined in recent years from $783 million in 2002 
actual to a projected $652 million in the 2007 budget. 

These reductions are offset slightly by the full-year effect of check processing infrastructure changes in 2006 and additional changes planned for 2007, declining paper check 



6 

volume, and attrition of check adjustments staff in non-regional sites. These reductions result in a decrease of 347 ANP. 
Support costs are increasing $46.7 million or 5.8 percent. The increase is driven primarily by additional costs for information security and protection. Expenses for information technology are increasing $15.8 million, primarily for security and infrastructure-related initiatives to upgrade and enhance security throughout the System. Protection costs are increasing $8.7 million and 18 ANP, reflecting personnel costs related to filling open positions and higher depreciation expense for physical security projects. 

Chart: Trend in Support Direct Costs 
Support costs have declined slightly from 2002 actual levels, from $883 
million to a projected $857 million in the 2007 budget. 

2007 Personnel Expenses 
Budgeted officer and employee salaries and other personnel expenses total $1.5 billion, which is 4.7 percent higher than the 2006 estimate. This includes an increase of $78.3 million or 5.3 percent to fund salary administration programs for officers and employees. 
[Begin footnote 5. Salary administration represents the budgeted funds that are available to increase compensation 
to officers and employees in the upcoming year. It does not include adjustments for changes in staffing levels and 
composition, turnover and lag in hiring, overtime, severance, and outside agency expense. End footnote 5.] These expenses are offset primarily by reductions in severance payments and outside agency expense of $17.5 million. Reserve Bank average merit pools are budgeted at 4.0 percent for officers and employees, slightly higher than 2006. 
Variable pay programs are increasing $10.0 million in 2007. In total, incentive payments make up slightly more than 60 percent of the total variable pay program. Banks plan to use these additional funds to address market pressures and retain highly skilled staff in specific areas of the Bank. 



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Of the projected 2,165 ANP leaving the Reserve Banks, FRIT, and OEB in 2007, an estimated 17 percent of staff leaving will not be replaced (Table 3), primarily due to planned staff reductions associated with check infrastructure changes and anticipated lower check volumes. Turnover in 2007 is expected to be lower than the 2,356 ANP in 
2006 due in large part to efforts to retain staff in critical areas and lower staffing reductions associated with reengineering efforts. 
Retirement and other benefit expenses are anticipated to increase by approximately $61.8 million or 14.7 percent in 2007. The primary driver of the increase is a $40.3 million one-time adjustment in post-retirement medical benefits (FAS 106). 

Table 3 2007 Turnover 

Begin Header Row. Column 1. 
 Column 2: Officers ANP. 
 Column 3: Officers Percent of To t al Staffi ng. 
 Column 4: Employees ANP. 
 Column 5: Employees Percent of To t al Staffi ng. 
 Column 6: Total ANP. 
 Column 7: Tot al 
Percent of 
To t al 
Staffi ng. 
 
Total Number of ANP Leaving the Bank 
 Total Number of ANP Leaving the Bank, Officers ANP: 44 
 Total Number of ANP Leaving the Bank, Officers Percent of To t al Staffi ng: 4.1% 
 Total Number of ANP Leaving the Bank, Employees ANP: 2,121 
 Total Number of ANP Leaving the Bank, Employees Percent of To t al Staffi ng: 11.5% 
 Total Number of ANP Leaving the Bank, Total ANP: 2,165 
 Total Number of ANP Leaving the Bank, Tot al 
Percent of 
To t al 
Staffi ng: 11.1% 
 
Total ANP not Replaced 
 Total ANP not Replaced, Officers ANP: 3 
 Total ANP not Replaced, Officers Percent of To t al Staffi ng: 0.3% 
 Total ANP not Replaced, Employees ANP: 374 
 Total ANP not Replaced, Employees Percent of To t al Staffi ng: 2.0% 
 Total ANP not Replaced, Total ANP: 377 
 Total ANP not Replaced, Tot al 
Percent of 
To t al 
Staffi ng: 1.9% 
 
Total Replaced 
 Total Replaced, Officers ANP: v41 
 Total Replaced, Officers Percent of To t al Staffi ng: 3.8% 
 Total Replaced, Employees ANP: 1,747 
 Total Replaced, Employees Percent of To t al Staffi ng: 9.5% 
 Total Replaced, Total ANP: 1,788 
 Total Replaced, Tot al 
Percent of 
To t al 
Staffi ng: 9.2% 
 
ANP replaced due to retirement 
 Total Replaced, ANP replaced due to retirement, Officers ANP: 30 
 Total Replaced, ANP replaced due to retirement, Officers Percent of To t al Staffi ng: 2.8% 
 Total Replaced, ANP replaced due to retirement, Employees ANP: 167 
 Total Replaced, ANP replaced due to retirement, Employees Percent of To t al Staffi ng: 0.9% 
 Total Replaced, ANP replaced due to retirement, Total ANP: 197 
 Total Replaced, ANP replaced due to retirement, Tot al 
Percent of 
To t al 
Staffi ng: 1.0% 
 
ANP replaced due to other reasons 
 Total Replaced, ANP replaced due to other reasons, Officers ANP: 11 
 Total Replaced, ANP replaced due to other reasons, Officers Percent of To t al Staffi ng: 1.0% 
 Total Replaced, ANP replaced due to other reasons, Employees ANP: 1,580 
 Total Replaced, ANP replaced due to other reasons, Employees Percent of To t al Staffi ng: 8.6% 
 Total Replaced, ANP replaced due to other reasons, Total ANP: 1,591 
 Total Replaced, ANP replaced due to other reasons, Tot al 
Percent of 
To t al 
Staffi ng: 8.2% 
 

Risks in the 2007 Budget 
The projected declines in check paper items processed, the rapid increase in Check 21 volumes, the continuation of planned check restructuring, and assumptions for check transportation pose risks to the budget in 2007. In addition, several Banks cited the implementation of the cash recirculation policy, and its effects on volumes and recoveries, as a budget risk. Changes in the scope or direction of the various Treasury projects and continued unbudgeted Treasury requests also pose a risk for the Banks in 2007. Finally, Banks cite the budgeted recoveries associated with tenant rental income as a risk. 
The check service continues to be an area where Banks have identified a considerable amount of risk. Volumes are projected to decline 9.6 percent in 2007, reflecting the continued decline of legacy paper items and the rapid growth of Check 21 items. If the budgeted decrease in legacy paper volumes fails to materialize, the Banks would incur costs for higher-than-planned staffing levels. The continued rapid growth of Check 21 items could present operational challenges and, if the adoption of Fed Receipt is slower than anticipated, the Banks 



8 
would require additional staffing, equipment, and supplies beyond those budgeted. [Begin footnote 
6. Fed Receipt is a service in which the paying bank agrees to the electronic receipt of Check 21 items. End footnote 6.] Phase IV of the check consolidations has been announced, but final dates for the four consolidations have not yet been finalized. Although the Retail Payments Office budgeted for restructuring and other check initiatives in the 2007 budget, additional funding may be required if consolidation and transportation assumptions vary significantly from plan. 
The implementation of the new currency recirculation policy and the Future Cash Automation software development effort pose significant risks for the 2007 budget. The fee component of the new currency recirculation policy is scheduled for implementation mid-2007. Budgeted assumptions may vary depending on how aggressively cash customers adjust their currency usage and practices to avoid these fees. Costs associated with implementation of the Presidential Dollar Coin Act have also been identified as a risk. 
As in the past, unforeseen requests from the Treasury or changes in scope and direction would add costs and could require additional resources in 2007. In addition, the Treasury’s plans for reengineering its collection and cash management processes and systems are not yet fully defined. The effect of this initiative has not been factored into Bank budgets. 
In addition, many Banks are facing a significant number of officer retirements within the next several years, many of which are in senior management positions. Several Banks have identified succession planning and retention as a high priority objective and have programs underway to address this issue. 
2007 Capital Plan 
The 2007 capital budget submitted by the Reserve Banks, FRIT, and OEB totals $591.6 million, a $139.9 million or 31 percent increase from the 2006 estimated levels. The increase from the 2006 estimate is driven primarily by outlays projected in 2007 for the Kansas City new building project. 
As in previous years, the 2007 capital budget includes funding for projects that support the strategic direction outlined by the individual Reserve Banks and System plans. These strategies focus on investments that improve operational efficiencies and services to Bank customers and on providing a safe and quality work environment. In support of these strategies, the 2007 budget identifies six major categories of capital outlays: building projects and facility 



9 
improvements, security enhancements, automation and communication initiatives, payment system improvements, cash services initiatives, and Treasury initiatives. 
The proposed capital budget includes $314.5 million for building-related projects and facility improvements. The total includes $140.3 million in outlays for the new building project in Kansas City and $23.1 million for the Seattle new building project. In addition, the St. Louis capital budget includes $38.8 million for its head office expansion and enhancement project, and New York’s budget includes $35.3 million for projects in the main building and EROC. 
Another $126.4 million is included for initiatives related to payment systems, cash, and Treasury initiatives. Payment system initiatives account for $61.6 million and consist mainly of capital needed to support the rapid growth in Check 21 volume. The budget includes $39.7 million for Treasury initiatives, primarily for TWAI, NTAAPS, and e-Government initiatives. In addition, the budget includes outlays of $25.2 million for various cash initiatives. 
The Reserve Banks, FRIT, and OEB included $76.1 million in funding for major automation and communication initiatives. These initiatives do not include the automation components of building or payment systems initiatives discussed previously. Of the total automation-related outlays, FRIT projects and acquisitions account for $28.2 million. The New York budget includes $18.9 million for routine replacement of server equipment, PBX telephone equipment, and other network equipment. The budget also includes $69.4 million for security enhancements in support of Reserve Banks’ objectives to comply with System security standards. 



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APPENDIX Statistical Supplement 

Notes: In the following tables, Reserve Bank expenses include those budgeted by FRIT and OEB that are chargeable to the Reserve Banks. 
Components may not add to totals because of rounding. Table-to-table comparisons may also differ due to rounding. 



11 
Table 1 
2007 Final Budget 
TOTAL EXPENSES OF THE FEDERAL RESERVE BANKS 
by District, 2006 and 2007 (Dollars in Thousands) 

Begin Header Row. Column 1: District. 
 Column 2: 2006 Budget. 
 Column 3: 2006 Estimate. 
 Column 4: 2007 Budget. 
 Column 5: Percent Change 
06B to 06E. 
 Column 6: Percent Change 
06E to 07B. 
 
Begin Header Row. Column 1: District. 
 Column 2: 2006 Budget. 
 Column 3: 2006 Estimate. 
 Column 4: 2007 Budget. 
 Column 5: Percent Change 
06B to 06E. 
 Column 6: Percent Change 
06E to 07B. 
 
District: Boston. 
 District: Boston, 2006 Budget: $156,366 
 District: Boston, 2006 Estimate: $152,172 
 District: Boston, 2007 Budget: $151,625 
 District: Boston, Percent Change 
06B to 06E: -2.7% 
 District: Boston, Percent Change 
06E to 07B: -0.4% 
 
District: New York. 
 District: New York, 2006 Budget: $531,652 
 District: New York, 2006 Estimate: $542,003 
 District: New York, 2007 Budget: $573,662 
 District: New York, Percent Change 
06B to 06E: 1.9% 
 District: New York, Percent Change 
06E to 07B: 5.8% 
 
District: Philadelphia. 
 District: Philadelphia, 2006 Budget: $136,874 
 District: Philadelphia, 2006 Estimate: $138,019 
 District: Philadelphia, 2007 Budget: $147,732 
 District: Philadelphia, Percent Change 
06B to 06E: 0.8% 
 District: Philadelphia, Percent Change 
06E to 07B: 7.0% 
 
District: Cleveland. 
 District: Cleveland, 2006 Budget: $193,911 
 District: Cleveland, 2006 Estimate: $196,821 
 District: Cleveland, 2007 Budget: $208,644 
 District: Cleveland, Percent Change 
06B to 06E: 1.5% 
 District: Cleveland, Percent Change 
06E to 07B: 6.0% 
 
District: Richmond. 
 District: Richmond, 2006 Budget: $208,758 
 District: Richmond, 2006 Estimate: $214,274 
 District: Richmond, 2007 Budget: $231,262 
 District: Richmond, Percent Change 
06B to 06E: 2.6% 
 District: Richmond, Percent Change 
06E to 07B: 7.9% 
 
District: Atlanta. 
 District: Atlanta, 2006 Budget: $336,118 
 District: Atlanta, 2006 Estimate: $315,114 
 District: Atlanta, 2007 Budget: $337,336 
 District: Atlanta, Percent Change 
06B to 06E: -6.2% 
 District: Atlanta, Percent Change 
06E to 07B: 7.1% 
 
District: Chicago. 
 District: Chicago, 2006 Budget: $246,141 
 District: Chicago, 2006 Estimate: $243,524 
 District: Chicago, 2007 Budget: $274,162 
 District: Chicago, Percent Change 
06B to 06E: -1.1% 
 District: Chicago, Percent Change 
06E to 07B: 12.6% 
 
District: St. Louis. 
 District: St. Louis, 2006 Budget: $220,140 
 District: St. Louis, 2006 Estimate: $214,749 
 District: St. Louis, 2007 Budget: $229,623 
 District: St. Louis, Percent Change 
06B to 06E: -2.4% 
 District: St. Louis, Percent Change 
06E to 07B: 6.9% 
 
District: Minneapolis. 
 District: Minneapolis, 2006 Budget: $148,999 
 District: Minneapolis, 2006 Estimate: $153,816 
 District: Minneapolis, 2007 Budget: $159,786 
 District: Minneapolis, Percent Change 
06B to 06E: 3.2% 
 District: Minneapolis, Percent Change 
06E to 07B: 3.9% 
 
District: Kansas City. 
 District: Kansas City, 2006 Budget: $164,182 
 District: Kansas City, 2006 Estimate: $172,464 
 District: Kansas City, 2007 Budget: $173,175 
 District: Kansas City, Percent Change 
06B to 06E: 5.0% 
 District: Kansas City, Percent Change 
06E to 07B: 0.4% 
 
District: Dallas. 
 District: Dallas, 2006 Budget: $183,129 
 District: Dallas, 2006 Estimate: $195,407 
 District: Dallas, 2007 Budget: $186,662 
 District: Dallas, Percent Change 
06B to 06E: 6.7% 
 District: Dallas, Percent Change 
06E to 07B: -4.5% 
 
District: San Francisco. 
 District: San Francisco, 2006 Budget: $260,030 
 District: San Francisco, 2006 Estimate: $261,787 
 District: San Francisco, 2007 Budget: $279,662 
 District: San Francisco, Percent Change 
06B to 06E: 0.7% 
 District: San Francisco, Percent Change 
06E to 07B: 6.8% 
 
District: Total. 
 District: Total, 2006 Budget: $2,786,299 
 District: Total, 2006 Estimate: $2,800,148 
 District: Total, 2007 Budget: $2,953,331 
 District: Total, Percent Change 
06B to 06E: 0.5% 
 District: Total, Percent Change 
06E to 07B: 5.5% 
 



12 
Table 2 
2007 Final Budget 
TOTAL EMPLOYMENT OF THE FEDERAL RESERVE BANKS 
by District, 2006 and 2007 (Average Number of Personnel) 

Begin Header Row. Column 1: District. 
 Column 2: 2006 Budget. 
 Column 3: 2006 Estimate. 
 Column 4: 2007 Budget. 
 Column 5: Change 
06B to 06E. 
 Column 6: Change 
06E to 07B. End Header Row. 
 
Begin Header Row. Column 1: District. 
 Column 2: 2006 Budget. 
 Column 3: 2006 Estimate. 
 Column 4: 2007 Budget. 
 Column 5: Change 
06B to 06E. 
 Column 6: Change 
06E to 07B. End Header Row. 
 
District: Boston 
 District: Boston, District: Boston, 2006 Budget: 1,041 
 District: Boston, 2006 Estimate: 1,015 
 District: Boston, 2007 Budget: 993 
 District: Boston, Change 
06B to 06E: -25 
 District: Boston, Change 
06E to 07B: -22 
 
District: New York 
 District: New York, 2006 Budget: 2,978 
 District: New York, 2006 Estimate: 2,940 
 District: New York, 2007 Budget: 2,868 
 District: New York, Change 
06B to 06E: -38 
 District: New York, Change 
06E to 07B: -72 
 
District: Philadelphia 
 District: Philadelphia, 2006 Budget: 1,078 
 District: Philadelphia, 2006 Estimate: 1,062 
 District: Philadelphia, 2007 Budget: 1,092 
 District: Philadelphia, Change 
06B to 06E: -16 
 District: Philadelphia, Change 
06E to 07B: 30 
 
District: Cleveland 
 District: Cleveland, 2006 Budget: 1,597 
 District: Cleveland, 2006 Estimate: 1,570 
 District: Cleveland, 2007 Budget: 1,604 
 District: Cleveland, Change 
06B to 06E: -27 
 District: Cleveland, Change 
06E to 07B: 34 
 
District: Richmond 
 District: Richmond, 2006 Budget: 1,847 
 District: Richmond, 2006 Estimate: 1,838 
 District: Richmond, 2007 Budget: 1,854 
 District: Richmond, Change 
06B to 06E: -8 
 District: Richmond, Change 
06E to 07B: 16 
 
District: Atlanta 
 District: Atlanta, 2006 Budget: 2,033 
 District: Atlanta, 2006 Estimate: 2,075 
 District: Atlanta, 2007 Budget: 2,042 
 District: Atlanta, Change 
06B to 06E: 42 
 District: Atlanta, Change 
06E to 07B: -32 
 
District: Chicago 
 District: Chicago, 2006 Budget: 1,534 
 District: Chicago, 2006 Estimate: 1,531 
 District: Chicago, 2007 Budget: 1,544 
 District: Chicago, Change 
06B to 06E: -3 
 District: Chicago, Change 
06E to 07B: 13 
 
District: St. Louis 
 District: St. Louis, 2006 Budget: 1,150 
 District: St. Louis, 2006 Estimate: 1,132 
 District: St. Louis, 2007 Budget: 1,124 
 District: St. Louis, Change 
06B to 06E: -18 
 District: St. Louis, Change 
06E to 07B: -8 
 
District: Minneapolis 
 District: Minneapolis, 2006 Budget: 1,287 
 District: Minneapolis, 2006 Estimate: 1,287 
 District: Minneapolis, 2007 Budget: 1,273 
 District: Minneapolis, Change 
06B to 06E: 0 
 District: Minneapolis, Change 
06E to 07B: -14 
 
District: Kansas City 
 District: Kansas City, 2006 Budget: 1,344 
 District: Kansas City, 2006 Estimate: 1,373 
 District: Kansas City, 2007 Budget: 1,386 
 District: Kansas City, Change 
06B to 06E: 29 
 District: Kansas City, Change 
06E to 07B: 13 
 
District: Dallas 
 District: Dallas, 2006 Budget: 1,315 
 District: Dallas, 2006 Estimate: 1,379 
 District: Dallas, 2007 Budget: 1,331 
 District: Dallas, Change 
06B to 06E: 64 
 District: Dallas, Change 
06E to 07B: -47 
 
District: San Francisco 
 District: San Francisco, 2006 Budget: 1,866 
 District: San Francisco, 2006 Estimate: 1,862 
 District: San Francisco, 2007 Budget: 1,879 
 District: San Francisco, Change 
06B to 06E: -4 
 District: San Francisco, Change 
06E to 07B: 17 
 
District: Subtotal 
 District: Subtotal, 2006 Budget: 19,069 
 District: Subtotal, 2006 Estimate: 19,063 
 District: Subtotal, 2007 Budget: 18,990 
 District: Subtotal, Change 
06B to 06E: -5 
 District: Subtotal, Change 
06E to 07B: -73 
 
District: FRIT 
 District: FRIT, 2006 Budget: 759 
 District: FRIT, 2006 Estimate: 780 
 District: FRIT, 2007 Budget: 793 
 District: FRIT, Change 
06B to 06E: 21 
 District: FRIT, Change 
06E to 07B: 13 
 
District: OEB 
 District: OEB, 2006 Budget: 40 
 District: OEB, 2006 Estimate: 42 
 District: OEB, 2007 Budget: 45 
 District: OEB, Change 
06B to 06E: 2 
 District: OEB, Change 
06E to 07B: 3 
 
District: Total 
 District: Total, 2006 Budget: 19,868 
 District: Total, 2006 Estimate: 19,885 
 District: Total, 2007 Budget: 19,828 
 District: Total, Change 
06B to 06E: 17 
 District: Total, Change 
06E to 07B: -57 
 



13 

Table 3 
2007 Final Budget 
TOTAL EXPENSES OF THE FEDERAL RESERVE BANKS 
by Service Line (Dollars in Thousands) 

Begin Header Row. Column 1: Year. 
 Column 2: Total. 
 Column 3: Monetary 
and Economic 
Policy. 
 Column 4: Services to 
U.S. Treasury 
and Gov't 
Agencies. 
 Column 5: Services to 
Financial 
Institutions and 
the Public. 
 Column 6: Supervision 
and Regulation. 
 Column 7: Fee Based 
Services to 
Financial 
Institutions. End Header Row. 
 
Year: 2002 
 Year: 2002, Total: $2,532,512 
 Year: 2002, Monetary 
and Economic 
Policy: $241,732 
 Year: 2002, Services to 
U.S. Treasury 
and Gov't 
Agencies: $286,729 
 Year: 2002, Services to 
Financial 
Institutions and 
the Public: $603,385 
 Year: 2002, Supervision 
and Regulation: $463,349 
 Year: 2002, Fee Based 
Services to 
Financial 
Institutions: $937,317 
 
Year: 2003 
 Year: 2003, Total: $2,620,538 
 Year: 2003, Monetary 
and Economic 
Policy: $263,221 
 Year: 2003, Services to 
U.S. Treasury 
and Gov't 
Agencies: $307,868 
 Year: 2003, Services to 
Financial 
Institutions and 
the Public: $627,119 
 Year: 2003, Supervision 
and Regulation: $493,569 
 Year: 2003, Fee Based 
Services to 
Financial 
Institutions: $928,762 
 
Year: 2004 
 Year: 2004, Total: $2,517,679 
 Year: 2004, Monetary 
and Economic 
Policy: $259,263 
 Year: 2004, Services to 
U.S. Treasury 
and Gov't 
Agencies: $350,158 
 Year: 2004, Services to 
Financial 
Institutions and 
the Public: $608,075 
 Year: 2004, Supervision 
and Regulation: $483,315 
 Year: 2004, Fee Based 
Services to 
Financial 
Institutions: $816,868 
 
Year: 2005 
 Year: 2005, Total: $2,597,013 
 Year: 2005, Monetary 
and Economic 
Policy: $290,839 
 Year: 2005, Services to 
U.S. Treasury 
and Gov't 
Agencies: $376,164 
 Year: 2005, Services to 
Financial 
Institutions and 
the Public: $660,496 
 Year: 2005, Supervision 
and Regulation: $508,920 
 Year: 2005, Fee Based 
Services to 
Financial 
Institutions: $760,594 
 
Year: 2006 Estimate 
 Year: 2006 Estimate, Total: $2,800,148 
 Year: 2006 Estimate, Monetary 
and Economic 
Policy: $322,652 
 Year: 2006 Estimate, Services to 
U.S. Treasury 
and Gov't 
Agencies: $408,962 
 Year: 2006 Estimate, Services to 
Financial 
Institutions and 
the Public: $710,824 
 Year: 2006 Estimate, Supervision 
and Regulation: $555,820 
 Year: 2006 Estimate, Fee Based 
Services to 
Financial 
Institutions: v$801,890 
 
Year: 2007 Budget 
 Year: 2007 Budget, Total: $2,953,331 
 Year: 2007 Budget, Monetary 
and Economic 
Policy: $343,606 
 Year: 2007 Budget, Services to 
U.S. Treasury 
and Gov't 
Agencies: $442,689 
 Year: 2007 Budget, Services to 
Financial 
Institutions and 
the Public: $738,599 
 Year: 2007 Budget, Supervision 
and Regulation: $601,173 
 Year: 2007 Budget, Fee Based 
Services to 
Financial 
Institutions: $827,264 
 
Year: AAGR 2002-2007 
 Year: AAGR 2002-2007, Total: 3.1% 
 Year: AAGR 2002-2007, Monetary 
and Economic 
Policy: 7.3% 
 Year: AAGR 2002-2007, Services to 
U.S. Treasury 
and Gov't 
Agencies: 9.1% 
 Year: AAGR 2002-2007, Services to 
Financial 
Institutions and 
the Public: 4.1% 
 Year: AAGR 2002-2007, Supervision 
and Regulation: 5.3% 
 Year: AAGR 2002-2007, Fee Based 
Services to 
Financial 
Institutions: -2.5% 
 



14 

Table 4 
2007 Final Budget 
TOTAL EMPLOYMENT OF THE FEDERAL RESERVE BANKS 
[Begin footnote 1. Includes average number of personnel at FRIT and OEB. End footnote 1.] 
by Service Line (Average Number of Personnel) 

[Begin Header Row. Column 1: Year. 
 Column 2: Total. 
 Column 3: Monetary 
and Economic 
Policy. 
 Column 4: Services to 
U.S. Treasury 
and Gov't 
Agencies. 
 Column 5: Services to 
Financial 
Institutions 
and the Public. 
 Column 6: Supervision 
and Regulation. 
 Column 7: Fee Based Services to Financial 
Institutions [Begin footnote 2. The decrease in 
2004 to 2005 in Fee Based Services to Financial Institutions 
ANP reflects an accounting change that resulted in a shift 
of 554 ANP to national support included in the Support, 
Overhead, and Centralized Providers category. End footnote 2.]. 
 Column 8: Support, 
Overhead, and 
Centralized 
Providers. End Header Row. 
 
Year: 2002 
 Year: 2002, Total: 22,993 
 Year: 2002, Monetary 
and Economic 
Policy: 856 
 Year: 2002, Services to 
U.S. Treasury 
and Gov't 
Agencies: 1,291 
 Year: 2002, Services to 
Financial 
Institutions 
and the Public: 2,848 
 Year: 2002, Supervision 
and Regulation: 2,604 
 Year: 2002, Fee Based Services to Financial 
Institutions [Begin footnote 2. The decrease in 
2004 to 2005 in Fee Based Services to Financial Institutions 
ANP reflects an accounting change that resulted in a shift 
of 554 ANP to national support included in the Support, 
Overhead, and Centralized Providers category. End footnote 2.]: 5,139 
 Year: 2002, Support, 
Overhead, and 
Centralized 
Providers: 10,255 
 
Year: 2003 
 Year: 2003, Total: 21,927 
 Year: 2003, Monetary 
and Economic 
Policy: 862 
 Year: 2003, Services to 
U.S. Treasury 
and Gov't 
Agencies: 1,221 
 Year: 2003, Services to 
Financial 
Institutions 
and the Public: 2,769 
 Year: 2003, Supervision 
and Regulation: 2,577 
 Year: 2003, Fee Based Services to Financial 
Institutions [Begin footnote 2. The decrease in 
2004 to 2005 in Fee Based Services to Financial Institutions 
ANP reflects an accounting change that resulted in a shift 
of 554 ANP to national support included in the Support, 
Overhead, and Centralized Providers category. End footnote 2.]: 4,701 
 Year: 2003, Support, 
Overhead, and 
Centralized 
Providers: 9,797 
 
Year: 2004 
 Year: 2004, Total: 20,857 
 Year: 2004, Monetary 
and Economic 
Policy: 845 
 Year: 2004, Services to 
U.S. Treasury 
and Gov't 
Agencies: 1,301 
 Year: 2004, Services to 
Financial 
Institutions 
and the Public: 2,698 
 Year: 2004, Supervision 
and Regulation: 2,562 
 Year: 2004, Fee Based Services to Financial 
Institutions [Begin footnote 2. The decrease in 
2004 to 2005 in Fee Based Services to Financial Institutions 
ANP reflects an accounting change that resulted in a shift 
of 554 ANP to national support included in the Support, 
Overhead, and Centralized Providers category. End footnote 2.]: 4,347 
 Year: 2004, Support, 
Overhead, and 
Centralized 
Providers: 9,104 
 
Year: 2005 
 Year: 2005, Total: 19,930 
 Year: 2005, Monetary 
and Economic 
Policy: 877 
 Year: 2005, Services to 
U.S. Treasury 
and Gov't 
Agencies: 1,288 
 Year: 2005, Services to 
Financial 
Institutions 
and the Public: 2,683 
 Year: 2005, Supervision 
and Regulation: 2,538 
 Year: 2005, Fee Based Services to Financial 
Institutions [Begin footnote 2. The decrease in 
2004 to 2005 in Fee Based Services to Financial Institutions 
ANP reflects an accounting change that resulted in a shift 
of 554 ANP to national support included in the Support, 
Overhead, and Centralized Providers category. End footnote 2.]: 3,322 
 Year: 2005, Support, 
Overhead, and 
Centralized 
Providers: 9,223 
 
Year: 2006 Estimate 
 Year: 2006 Estimate, Total: 19,885 
 Year: 2006 Estimate, Monetary 
and Economic 
Policy: 918 
 Year: 2006 Estimate, Services to 
U.S. Treasury 
and Gov't 
Agencies: 1,270 
 Year: 2006 Estimate, Services to 
Financial 
Institutions 
and the Public: 2,648 
 Year: 2006 Estimate, Supervision 
and Regulation: v2,658 
 Year: 2006 Estimate, Fee Based Services to Financial 
Institutions [Begin footnote 2. The decrease in 
2004 to 2005 in Fee Based Services to Financial Institutions 
ANP reflects an accounting change that resulted in a shift 
of 554 ANP to national support included in the Support, 
Overhead, and Centralized Providers category. End footnote 2.]: 3,098 
 Year: 2006 Estimate, Support, 
Overhead, and 
Centralized 
Providers: 9,293 
 
Year: 2007 Budget 
 Year: 2007 Budget, Total: 19,828 
 Year: 2007 Budget, Monetary 
and Economic 
Policy: 928 
 Year: 2007 Budget, Services to 
U.S. Treasury 
and Gov't 
Agencies: 1,289 
 Year: 2007 Budget, Services to 
Financial 
Institutions 
and the Public: 2,707 
 Year: 2007 Budget, Supervision 
and Regulation: 2,676 
 Year: 2007 Budget, Fee Based Services to Financial 
Institutions [Begin footnote 2. The decrease in 
2004 to 2005 in Fee Based Services to Financial Institutions 
ANP reflects an accounting change that resulted in a shift 
of 554 ANP to national support included in the Support, 
Overhead, and Centralized Providers category. End footnote 2.]: 2,747 
 Year: 2007 Budget, Support, 
Overhead, and 
Centralized 
Providers: 9,481 
 
Year: AAGR 2002-2007 
 Year: AAGR 2002-2007, Total: -2.9% 
 Year: AAGR 2002-2007, Monetary 
and Economic 
Policy: 1.6% 
 Year: AAGR 2002-2007, Services to 
U.S. Treasury 
and Gov't 
Agencies: 0.0% 
 Year: AAGR 2002-2007, Services to 
Financial 
Institutions 
and the Public: -1.0% 
 Year: AAGR 2002-2007, Supervision 
and Regulation: 0.5% 
 Year: AAGR 2002-2007, Fee Based Services to Financial 
Institutions [Begin footnote 2. The decrease in 
2004 to 2005 in Fee Based Services to Financial Institutions 
ANP reflects an accounting change that resulted in a shift 
of 554 ANP to national support included in the Support, 
Overhead, and Centralized Providers category. End footnote 2.]: -11.8% 
 Year: AAGR 2002-2007, Support, 
Overhead, and 
Centralized 
Providers: -1.6% 
 



15 

Table 5 
2007 Final Budget 
SALARY ADMINISTRATION EXPENSES OF THE FEDERAL RESERVE BANKS Officers and Employees by District, 2007 
(Dollars in Thousands) 

Merit: the amount of budgeted salary expense that reflects the cumulative effect of planned salary increases based on performance. 
Promo & Reclass: the amount of budgeted salary expense that reflects the cumulative impact of salary increases for individuals as a result of grade promotions and reclassifications resulting from a job evaluation. 
Market Adjustment: the amount of budgeted salary expense to bring individual salaries to the minimum of a grade range or to better align salaries with the market. 
Cash Awards: the change in the amount of payments for awards in recognition of exceptional achievements. 
Incentive Payments: the change in the amount of other personnel expense that represent payments for the achievement of pre-determined goals. 

Begin Header Row. Column 1: District. 
 Column 2: Additions to Salary Base Merit. 
 Column 3: Additions to Salary Base 
Promo & Reclass. 
 Column 4: Additions to Salary Base 
Market Adjustment. 
 Column 5: Additions to Salary Base Subtotal. 
 Column 6: Variable Pay (Change 06E-07B) 
Cash Awards. 
 Column 7: Variable Pay (Change 06E-07B) 
Incentive Payments. 
 Column 8: Variable Pay (Change 06E-07B) 
Subtotal. 
 Column 9: Total. 
 Column 10: Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.] End Header Row. 
 
Begin Header Row. Column 1: District. 
 Column 2: Additions to Salary Base Merit. 
 Column 3: Additions to Salary Base 
Promo & Reclass. 
 Column 4: Additions to Salary Base 
Market Adjustment. 
 Column 5: Additions to Salary Base Subtotal. 
 Column 6: Variable Pay (Change 06E-07B) 
Cash Awards. 
 Column 7: Variable Pay (Change 06E-07B) 
Incentive Payments. 
 Column 8: Variable Pay (Change 06E-07B) 
Subtotal. 
 Column 9: Total. 
 Column 10: Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.] End Header Row. 
 
District: Boston 
 District: Boston, Additions to Salary Base Merit: $2,584 
 District: Boston, Additions to Salary Base 
Promo & Reclass: $441 
 District: Boston, Additions to Salary Base 
Market Adjustment: $383 
 District: Boston, Additions to Salary Base Subtotal: 4.3% 
 District: Boston, Variable Pay (Change 06E-07B) 
Cash Awards: $68 
 District: Boston, Variable Pay (Change 06E-07B) 
Incentive Payments: $781 
 District: Boston, Variable Pay (Change 06E-07B) 
Subtotal.: 1.1% 
 District: Boston, Total: $4,256 
 District: Boston, Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.]: 5.4% 
 
District: New York 
 District: New York: Additions to Salary Base Merit: $11,043 
 District: New York: Additions to Salary Base 
Promo & Reclass: $2,996 
 District: New York: Additions to Salary Base 
Market Adjustment: $2,484 
 District: New York: Additions to Salary Base Subtotal: 5.4% 
 District: New York: Variable Pay (Change 06E-07B) 
Cash Awards: $246 
 District: New York: Variable Pay (Change 06E-07B) 
Incentive Payments: $2,171 
 District: New York: Variable Pay (Change 06E-07B) 
Subtotal.: 0.8% 
 District: New York: Total: $18,940 
 District: New York: Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.]: 6.2% 
 
District: Philadelphia 
 District: Philadelphia: Additions to Salary Base Merit: $2,073 
 District: Philadelphia: Additions to Salary Base 
Promo & Reclass: $417 
 District: Philadelphia: Additions to Salary Base 
Market Adjustment: $189 
 District: Philadelphia: Additions to Salary Base Subtotal: 3.8% 
 District: Philadelphia: Variable Pay (Change 06E-07B) 
Cash Awards: $71 
 District: Philadelphia: Variable Pay (Change 06E-07B) 
Incentive Payments: $382 
 District: Philadelphia: Variable Pay (Change 06E-07B) 
Subtotal.: 0.6% 
 District: Philadelphia: Total: $3,132 
 District: Philadelphia: Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.]: 4.5% 
 
District: Cleveland 
 District: Cleveland, Additions to Salary Base Merit: $3,072 
 District: Cleveland, Additions to Salary Base 
Promo & Reclass: $743 
 District: Cleveland, Additions to Salary Base 
Market Adjustment: $440 
 District: Cleveland, Additions to Salary Base Subtotal: 4.6% 
 District: Cleveland, Variable Pay (Change 06E-07B) 
Cash Awards: $436 
 District: Cleveland, Variable Pay (Change 06E-07B) 
Incentive Payments: $166 
 District: Cleveland, Variable Pay (Change 06E-07B) 
Subtotal.: 0.7% 
 District: Cleveland, Total: $4,857 
 District: Cleveland, Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.]: 5.3% 
 
District: Richmond 
 District: Richmond, Additions to Salary Base Merit: $4,128 
 District: Richmond, Additions to Salary Base 
Promo & Reclass: $1,084 
 District: Richmond, Additions to Salary Base 
Market Adjustment: $388 
 District: Richmond, Additions to Salary Base Subtotal: 4.4% 
 District: Richmond, Variable Pay (Change 06E-07B) 
Cash Awards: $263 
 District: Richmond, Variable Pay (Change 06E-07B) 
Incentive Payments: $214 
 District: Richmond, Variable Pay (Change 06E-07B) 
Subtotal.: 0.4% 
 District: Richmond, Total: $6,077 
 District: Richmond, Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.]: 4.8% 
 
District: Atlanta 
 District: Atlanta, Additions to Salary Base Merit: $3,798 
 District: Atlanta, Additions to Salary Base 
Promo & Reclass: $1,591 
 District: Atlanta, Additions to Salary Base 
Market Adjustment: $1,532 
 District: Atlanta, Additions to Salary Base Subtotal: 5.2% 
 District: Atlanta, Variable Pay (Change 06E-07B) 
Cash Awards: $437 
 District: Atlanta, Variable Pay (Change 06E-07B) 
Incentive Payments: $566 
 District: Atlanta, Variable Pay (Change 06E-07B) 
Subtotal.: 0.8% 
 District: Atlanta, Total: $7,924 
 District: Atlanta, Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.]: 6.0% 
 
District: Chicago 
 District: Chicago, Additions to Salary Base Merit: $3,814 
 District: Chicago, Additions to Salary Base 
Promo & Reclass: $300 
 District: Chicago, Additions to Salary Base 
Market Adjustment: $589 
 District: Chicago, Additions to Salary Base Subtotal: 4.1% 
 District: Chicago, Variable Pay (Change 06E-07B) 
Cash Awards: $110 
 District: Chicago, Variable Pay (Change 06E-07B) 
Incentive Payments: $135 
 District: Chicago, Variable Pay (Change 06E-07B) 
Subtotal.: v0.2% 
 District: Chicago, Total: $4,947 
 District: Chicago, Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.]: 4.3% 
 
District: St. Louis 
 District: St. Louis, Additions to Salary Base Merit: $2,666 
 District: St. Louis, Additions to Salary Base 
Promo & Reclass: $383 
 District: St. Louis, Additions to Salary Base 
Market Adjustment: $260 
 District: St. Louis, Additions to Salary Base Subtotal: 4.3% 
 District: St. Louis, Variable Pay (Change 06E-07B) 
Cash Awards: $44 
 District: St. Louis, Variable Pay (Change 06E-07B) 
Incentive Payments: $488 
 District: St. Louis, Variable Pay (Change 06E-07B) 
Subtotal.: 0.7% 
 District: St. Louis, Total: $3,841 
 District: St. Louis, Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.]: 5.0% 
 
District: Minneapolis 
 District: Minneapolis, Additions to Salary Base Merit: $2,453 
 District: Minneapolis, Additions to Salary Base 
Promo & Reclass: $350 
 District: Minneapolis, Additions to Salary Base 
Market Adjustment: $0 
 District: Minneapolis, Additions to Salary Base Subtotal: 3.7% 
 District: Minneapolis, Variable Pay (Change 06E-07B) 
Cash Awards: $330 
 District: Minneapolis, Variable Pay (Change 06E-07B) 
Incentive Payments: $33 
 District: Minneapolis, Variable Pay (Change 06E-07B) 
Subtotal.: 0.5% 
 District: Minneapolis, Total: $3,167 
 District: Minneapolis, Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.]: 4.1% 
 
District: Kansas City 
 District: Kansas City, Additions to Salary Base Merit: $3,134 
 District: Kansas City, Additions to Salary Base 
Promo & Reclass: $879 
 District: Kansas City, Additions to Salary Base 
Market Adjustment: $560 
 District: Kansas City, Additions to Salary Base Subtotal: 5.0% 
 District: Kansas City, Variable Pay (Change 06E-07B) 
Cash Awards: -$263 
 District: Kansas City, Variable Pay (Change 06E-07B) 
Incentive Payments: $1,046 
 District: Kansas City, Variable Pay (Change 06E-07B) 
Subtotal.: 0.9% 
 District: Kansas City, Total: $5,357 
 District: Kansas City, Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.]: 5.8% 
 
District: Dallas 
 District: Dallas, Additions to Salary Base Merit: $2,609 
 District: Dallas, Additions to Salary Base 
Promo & Reclass: $60 
 District: Dallas, Additions to Salary Base 
Market Adjustment: $123 
 District: Dallas, Additions to Salary Base Subtotal: 3.4% 
 District: Dallas, Variable Pay (Change 06E-07B) 
Cash Awards: $17 
 District: Dallas, Variable Pay (Change 06E-07B) 
Incentive Payments: $260 
 District: Dallas, Variable Pay (Change 06E-07B) 
Subtotal.: 0.3% 
 District: Dallas, Total: $3,068 
 District: Dallas, Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.]: 3.7% 
 
District: San Francisco 
 District: San Francisco, Additions to Salary Base Merit: $5,504 
 District: San Francisco, Additions to Salary Base 
Promo & Reclass: $1,682 
 District: San Francisco, Additions to Salary Base 
Market Adjustment: $292 
 District: San Francisco, Additions to Salary Base Subtotal: 5.0% 
 District: San Francisco, Variable Pay (Change 06E-07B) 
Cash Awards: $484 
 District: San Francisco, Variable Pay (Change 06E-07B) 
Incentive Payments: $1,253 
 District: San Francisco, Variable Pay (Change 06E-07B) 
Subtotal.: 1.2% 
 District: San Francisco, Total: $9,215 
 District: San Francisco, Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.]: 6.2% 
 
District: FRIT 
 District: FRIT, Additions to Salary Base Merit: $2,353 
 District: FRIT, Additions to Salary Base 
Promo & Reclass: $588 
 District: FRIT, Additions to Salary Base 
Market Adjustment: $0 
 District: FRIT, Additions to Salary Base Subtotal: 3.7% 
 District: FRIT, Variable Pay (Change 06E-07B) 
Cash Awards: $32 
 District: FRIT, Variable Pay (Change 06E-07B) 
Incentive Payments: $166 
 District: FRIT, Variable Pay (Change 06E-07B) 
Subtotal.: 0.2% 
 District: FRIT, Total: $3,230 
 District: FRIT, Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.]: 4.1% 
 
District: OEB 
 District: OEB, Additions to Salary Base Merit: $184 
 District: OEB, Additions to Salary Base 
Promo & Reclass: $74 
 District: OEB, Additions to Salary Base 
Market Adjustment: $0 
 District: OEB, Additions to Salary Base Subtotal: 4.9% 
 District: OEB, Variable Pay (Change 06E-07B) 
Cash Awards: $0 
 District: OEB, Variable Pay (Change 06E-07B) 
Incentive Payments: $80 
 District: OEB, Variable Pay (Change 06E-07B) 
Subtotal.: 1.5% 
 District: OEB, Total: $267 
 District: OEB, Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.]: 5.1% 
 
District: Total 
 District: Total, Additions to Salary Base Merit: $49,415 
 District: Total, Additions to Salary Base 
Promo & Reclass: $11,587 
 District: Total, Additions to Salary Base 
Market Adjustment: $7,239 
 District: Total, Additions to Salary Base Subtotal: 4.6% 
 District: Total, Variable Pay (Change 06E-07B) 
Cash Awards: $2,275 
 District: Total, Variable Pay (Change 06E-07B) 
Incentive Payments: $7,741 
 District: Total, Variable Pay (Change 06E-07B) 
Subtotal.: 0.7% 
 District: Total, Total: $78,256 
 District: Total, Percent [Begin footnote 1. 
Percent represents the total of 
the stated payments as a percentage 
of total salary and other personnel 
expense. End footnote 1.]: 5.3% 
 



16 
Table 6 
2007 Final Budget 
CAPITAL OUTLAYS OF THE FEDERAL RESERVE BANKS 
by District, 2006 and 2007 (Dollars in Thousands) 

Begin Header Row. Column 1: District. 
 Column 2: 2006 Budget. 
 Column 3: 2006 Estimate. 
 Column 4: 2007 Budget. 
 Column 5: Percent Change 
06B to 06E. 
 Column 6: Percent Change 
06E to 07B. End Header Row. 
 
Begin Header Row. Column 1: District. 
 Column 2: 2006 Budget. 
 Column 3: 2006 Estimate. 
 Column 4: 2007 Budget. 
 Column 5: Percent Change 
06B to 06E. 
 Column 6: Percent Change 
06E to 07B. End Header Row. 
 
District: Boston 
 District: Boston, 2006 Budget: $24,843 
 District: Boston, 2006 Estimate: $21,697 
 District: Boston, 2007 Budget: $18,334 
 District: Boston, Percent Change 
06B to 06E: -12.7% 
 District: Boston, Percent Change 
06E to 07B: -15.5% 
 
District: New York 
 District: New York, 2006 Budget: $69,737 
 District: New York, 2006 Estimate: $62,847 
 District: New York, 2007 Budget: $77,456 
 District: New York, Percent Change 
06B to 06E: -9.9% 
 District: New York, Percent Change 
06E to 07B: 23.2% 
 
District: Philadelphia 
 District: Philadelphia, 2006 Budget: $20,966 
 District: Philadelphia, 2006 Estimate: $16,553 
 District: Philadelphia, 2007 Budget: $23,361 
 District: Philadelphia, Percent Change 
06B to 06E: -21.0% 
 District: Philadelphia, Percent Change 
06E to 07B: 41.1% 
 
District: Cleveland 
 District: Cleveland, 2006 Budget: $28,157 
 District: Cleveland, 2006 Estimate: $23,404 
 District: Cleveland, 2007 Budget: $24,161 
 District: Cleveland, Percent Change 
06B to 06E: -16.9% 
 District: Cleveland, Percent Change 
06E to 07B: 3.2% 
 
District: Richmond 
 District: Richmond, 2006 Budget: $58,623 
 District: Richmond, 2006 Estimate: $36,005 
 District: Richmond, 2007 Budget: $59,717 
 District: Richmond, Percent Change 
06B to 06E: -38.6% 
 District: Richmond, Percent Change 
06E to 07B: 65.9% 
 
District: Atlanta 
 District: Atlanta, 2006 Budget: $17,335 
 District: Atlanta, 2006 Estimate: $22,863 
 District: Atlanta, 2007 Budget: $32,928 
 District: Atlanta, Percent Change 
06B to 06E: 31.9% 
 District: Atlanta, Percent Change 
06E to 07B: 44.0% 
 
District: Chicago 
 District: Chicago, 2006 Budget: $20,841 
 District: Chicago, 2006 Estimate: $25,418 
 District: Chicago, 2007 Budget: $20,633 
 District: Chicago, Percent Change 
06B to 06E: 22.0% 
 District: Chicago, Percent Change 
06E to 07B: -18.8% 
 
District: St. Louis 
 District: St. Louis, 2006 Budget: $42,743 
 District: St. Louis, 2006 Estimate: $29,503 
 District: St. Louis, 2007 Budget: $43,559 
 District: St. Louis, Percent Change 
06B to 06E: -31.0% 
 District: St. Louis, Percent Change 
06E to 07B: 47.6% 
 
District: Minneapolis 
 District: Minneapolis, 2006 Budget: $4,782 
 District: Minneapolis, 2006 Estimate: $5,258 
 District: Minneapolis, 2007 Budget: $5,131 
 District: Minneapolis, Percent Change 
06B to 06E: 9.9% 
 District: Minneapolis, Percent Change 
06E to 07B: -2.4% 
 
District: Kansas City 
 District: Kansas City, 2006 Budget: $74,738 
 District: Kansas City, 2006 Estimate: $89,726 
 District: Kansas City, 2007 Budget: $150,440 
 District: Kansas City, Percent Change 
06B to 06E: 20.1% 
 District: Kansas City, Percent Change 
06E to 07B: 67.7% 
 
District: Dallas 
 District: Dallas, 2006 Budget: $9,874 
 District: Dallas, 2006 Estimate: $13,052 
 District: Dallas, 2007 Budget: $17,318 
 District: Dallas, Percent Change 
06B to 06E: 32.2% 
 District: Dallas, Percent Change 
06E to 07B: 32.7% 
 
District: San Francisco 
 District: San Francisco, 2006 Budget: v$49,753 
 District: San Francisco, 2006 Estimate: $51,731 
 District: San Francisco, 2007 Budget: $49,669 
 District: San Francisco, Percent Change 
06B to 06E: 4.0% 
 District: San Francisco, Percent Change 
06E to 07B: -4.0% 
 
District: Subtotal 
 District: Subtotal, 2006 Budget: $422,392 
 District: Subtotal, 2006 Estimate: $398,057 
 District: Subtotal, 2007 Budget: $522,708 
 District: Subtotal, Percent Change 
06B to 06E: -5.8% 
 District: Subtotal, Percent Change 
06E to 07B: 31.3% 
 
District: FRIT 
 District: FRIT, 2006 Budget: $51,771 
 District: FRIT, 2006 Estimate: $53,546 
 District: FRIT, 2007 Budget: $68,115 
 District: FRIT, Percent Change 
06B to 06E: 3.4% 
 District: FRIT, Percent Change 
06E to 07B: 27.2% 
 
District: OEB 
 District: OEB, 2006 Budget: $0 
 District: OEB, 2006 Estimate: $150 
 District: OEB, 2007 Budget: $800 
 District: OEB, Percent Change 
06B to 06E: N/A 
 District: OEB, Percent Change 
06E to 07B: N/A 
 
District: Total 
 District: Total, 2006 Budget: $474,163 
 District: Total, 2006 Estimate: $451,753 
 District: Total, 2007 Budget: $591,623 
 District: Total, Percent Change 
06B to 06E: -4.7% 
 District: Total, Percent Change 
06E to 07B: 31.0% 
 



17 

Table 7 
2007 Final Budget 
CAPITAL OUTLAYS OF THE FEDERAL RESERVE BANKS [Begin footnote 1. Capital outlays 
for the Federal Reserve System include the twelve Districts, FRIT, and OEB. End footnote 1.] 
by Category, 2006 and 2007 
(Dollars in Thousands) 

Begin Header Row. Column 1. 
 Column 2: 2006 Budget. 
 Column 3: 2006 Estimate. 
 Column 4: 2007 Budget. 
 Column 5: Percent Change 
06B to 06E. 
 Column 6: Percent Change 
06E to 07B. 
 
Begin Header Row. Column 1. 
 Column 2: 2006 Budget. 
 Column 3: 2006 Estimate. 
 Column 4: 2007 Budget. 
 Column 5: Percent Change 
06B to 06E. 
 Column 6: Percent Change 
06E to 07B. 
 
Building Related Projects and Facility Improvements 
 Building Related Projects and 
Facility Improvements, 2006 Budget: $252,029 
 Building Related Projects and 
Facility Improvements, 2006 Estimate: $240,399 
 Building Related Projects and 
Facility Improvements, 2007 Budget: $314,478 
 Building Related Projects and 
Facility Improvements, Percent Change 
06B to 06E: -4.6% 
 Building Related Projects and 
Facility Improvements, Percent Change 
06E to 07B: 30.8% 
 
Payment System Improvement Initiatives 
 
Payment System Improvement Initiatives: Retail Payment Initiatives 
 Payment System Improvement 
Initiatives: Retail Payment Initiatives, 
2006 Budget: $18,924 
 Payment System Improvement 
Initiatives: Retail Payment Initiatives, 
2006 Estimate: $52,499 
 Payment System Improvement 
Initiatives: Retail Payment Initiatives, 
2007 Budget: $61,581 
 Payment System Improvement 
Initiatives: Retail Payment Initiatives, 
Percent Change 
06B to 06E: 177.4% 
 Payment System Improvement 
Initiatives: Retail Payment Initiatives, 
Percent Change 
06E to 07B: 17.3% 
 
Payment System Improvement Initiatives: Cash Services Initiatives 
 Payment System Improvement 
Initiatives: Cash Services Initiatives, 2006 Budget: $11,368 
 Payment System Improvement 
Initiatives: Cash Services Initiatives, 2006 Estimate: $10,921 
 Payment System Improvement 
Initiatives: Cash Services Initiatives, 2007 Budget: $25,153 
 Payment System Improvement 
Initiatives: Cash Services Initiatives, Percent Change 
06B to 06E: -3.9% 
 Payment System Improvement 
Initiatives: Cash Services Initiatives, 
Percent Change 
06E to 07B: 130.3% 
 
Payment System Improvement Initiatives: Treasury Initiatives 
 Payment System Improvement 
Initiatives: Treasury Initiatives, 2006 Budget: $50,246 
 Payment System Improvement 
Initiatives: Treasury Initiatives, 2006 Estimate: $51,141 
 Payment System Improvement 
Initiatives: Treasury Initiatives, 2007 Budget: $39,660 
 Payment System Improvement 
Initiatives: Treasury Initiatives, Percent Change 
06B to 06E: 1.8% 
 Payment System Improvement 
Initiatives: Treasury Initiatives, 
Percent Change 
06E to 07B: -22.4% 
 
Automation and Communication Initiatives 
 Automation and Communication 
Initiatives, 2006 Budget: $72,966 
 Automation and Communication 
Initiatives, 2006 Estimate: $52,892 
 Automation and Communication 
Initiatives, 2007 Budget: $76,103 
 Automation and Communication 
Initiatives, Percent Change 
06B to 06E: -27.5% 
 Automation and Communication 
Initiatives, Percent Change 
06E to 07B: 43.9% 
 
Security Enhancements 
 Security Enhancements, 2006 Budget: $64,156 
 Security Enhancements, 2006 Estimate: $37,600 
 Security Enhancements, 2007 Budget: $69,368 
 Security Enhancements, Percent Change 
06B to 06E: -41.4% 
 Security Enhancements, 
Percent Change 
06E to 07B: 84.5% 
 
Miscellaneous [Begin footnote 2. Miscellaneous 
includes other equipment and software not falling into the 
other defined categories. End footnote 2.] 
 Miscellaneous [Begin footnote 2. 
Miscellaneous includes other equipment 
and software not falling into the 
other defined categories. End footnote 2.], 2006 Budget: $4,472 
 Miscellaneous [Begin footnote 2. 
Miscellaneous includes other equipment 
and software not falling into the 
other defined categories. End footnote 2.], 2006 Estimate: $6,301 
 Miscellaneous [Begin footnote 2. 
Miscellaneous includes other equipment 
and software not falling into the 
other defined categories. End footnote 2.], 2007 Budget: $5,279 
 Miscellaneous [Begin footnote 2. 
Miscellaneous includes other equipment 
and software not falling into the 
other defined categories. End footnote 2.], Percent Change 
06B to 06E: 40.9% 
 Miscellaneous [Begin footnote 2. 
Miscellaneous includes other equipment 
and software not falling into the 
other defined categories. End footnote 2.], 
Percent Change 
06E to 07B: -16.2% 
 
TOTAL 
 TOTAL, 2006 Budget: $474,162 
 TOTAL, 2006 Estimate: $451,753 
 TOTAL, 2007 Budget: $591,623 
 TOTAL, Percent Change 
06B to 06E: -4.7% 
 TOTAL, Percent Change 
06E to 07B: 31.0%