Considering that public sector employees get better pay and bennies than their private sector counterparts, hows about we just tell the folks in the public sector that they get to keep their great wages and bennies, and give the surplus back to the people who generated it?
Federal workers get better pay and benefits, but that is not necessarily true at the state and local levels. Many state and local jobs don’t pay worth a darn. The real problem is cutting down the government at all levels, so that government only does what government is supposed to do - public safety and the courts.