Several nice folding bikes are readily available in the U.S. these days.

Designed by Brooklyn-based Peter Reich, the Swift folder is now sold under the Xootr brand:

http://www.xootr.com/xootr/swift/bikes.shtml

You can see examples of panniers and racks on folders on their site. New bikes still give me sticker shock although I understand the industry. I guess my wallet is stuck in 1977 and I know how good an old, discarded steel bike can be.

An inexpensive beater would be ideal if you have room to store them at work.