GAO discussed the President's fiscal year (FY) 1996 budget proposal, focusing on its compliance with the Federal Workforce Restructuring Act of 1994. GAO noted that: (1) the act requires the government to cut its workforce to 272,900 full-time equivalent (FTE) positions by 1999; (2) FTE targets were met in FY 1994 and will likely be met in FY 1995; (3) the Administration proposes eliminating 173,300 FTE through FY 1996; (4) 75 percent of these positions will be eliminated from Department of Defense agencies; (5) the targets of many agencies' workforce reductions are supervisors and managers, headquarters staff, and personnel, budget, accounting, and acquisition positions; (6) as some agencies may be required to make more significant reductions than others, isolated cases of reductions-in-force may occur at some agencies, especially during FY 1996; and (7) although the savings associated with the workforce reductions are difficult to measure, these savings have been reflected in the budget.