Summary: NASA's budget data show that, since 1995, the workforce for the space shuttle program has declined from about 3,000 to about 1,800 full-time equivalent employees. NASA based its downsizing decision on optimistic assumptions. For example, NASA believed that it could cut its workforce by consolidating contracts for flight, ground, and mission operations. Several studies, one as recent as March 2000, have reported that the shuttle program's workforce has been harmed by the downsizing. The studies concluded that the existing workforce is stretched thin to the point where there is just one qualified person in many critical areas. In addition, the workforce is showing signs of overwork and fatigue, and the program's workforce age distribution and skill mix now limit opportunities to mentor newer staff. NASA has responded to these problems in several ways. It has ended its downsizing program and is increasing its budget to hire another 95 full-time employees for the shuttle program in fiscal year 2000. Also, the head of NASA has directed the agency's managers to consider ways to reduce workforce stress. GAO recently issued a checklist for agency leaders to use in developing human capital strategies. The checklist follows a five-part strategy, including strategic planning, organizational alignment, leadership, talent, and performance culture. The checklist helps to link human capital programs and the agency's mission, goals, and strategies. GAO believes that NASA's attention to human capital issues will be essential to the success of the shuttle programs.