Eye Opener: Obama Caps Pay Raises at 2 Percent
Happy Tuesday! ... or maybe not, for civilian federal employees.
President Obama has decided to reduce pay increases for civilian federal workers from 2.4 percent to 2 percent, citing the economic downturn and the ballooning federal budget as reasons for the cut.
"Invoking the 'national emergency' declared after the Sept. 11, 2001, terrorist attacks, the president said in a letter to House Speaker Nancy Pelosi that under pay formulas set in 1990, federal employees with pay levels set according to comparable local wages are set for average pay increases of 18.9%," reports Jonathan Weisman of the Wall Street Journal.
The AP notes that "Obama also said that he would decide by Nov. 30 on the need to take action on 'locality pay,' wages over and above the base federal rates that are determined according to geographic living costs and comparable private-sector pay."
But wait -- there's still hope! Gov Exec's Alyssa Rosenberg notes that Congress can override the president's decision and the White House promises to adhere to pay parity in subsequent years.
In his letter to Pelosi, Obama said that "with unemployment at 9.5 percent in June to cite just one economic indicator, few would disagree that our country is facing serious economic conditions affecting the general welfare. The growth in Federal requirements is straining the Federal budget. Full statutory civilian pay increases costing $22.6 billion in 2010 alone would put even more stress on our budget."
Obama said he did not believe his decision would impact the government's ability to keep or attract employees.
"To the contrary, since any pay raise above the amount proposed in this alternative plan would likely be unfunded, agencies would have to absorb the additional cost and could have to reduce hiring to pay the higher rates."
"The proposal angered employee groups and lawmakers who have pushed for pay parity between civilians and members of the military," Rosenberg reports. Members of the military will either earn a 3.4 percent raise if appropriators follow guidelines in the 2010 Defense authorization act, or a 2.9 percent boost if Congress sticks to President Obama's February recommendations.
Colleen M. Kelley, president of the National Treasury Employees Union said her union "continues to support the principle of military and civilian pay parity and will continue to work to include an amount equal to the military raise, whether it is 2.9 percent or 3.4 percent."
"NTEU recognizes that it has been a very difficult year for the economy, however pay parity is an important and accepted principle and reflects the reality that civilian and military workers both contribute strongly to our country and deserve the same percentage pay increase."
Leave your thoughts in the comments section below.
• Cabinet and Staff News: The U.S. commander in Afghanistan says the situation there is "serious." Pay Czar Kenneth Feinberg will rule in 60 days on the pay packages at seven firms receiving federal funds. Health and Human Services Secretary Kathleen Sebelius, Homeland Security Secretary Janet Napolitano and other officials to brief President Obama on H1N1 on Tuesday.
• A Small Price to Pay To Fix the Hiring Process: The Congressional Budget Office says a bill designed to fix the broken federal hiring process would cost $40 million over five years. That's a pittance -- loose change rolling around in Uncle Sam's deep pockets -- compared with the aggravation, frustration and irritation many government job seekers encounter.
• White House to Shift Efforts on Civil Rights: Seven months after taking office, Attorney General Eric H. Holder Jr. is reshaping the Justice Department’s Civil Rights Division by pushing it back into some of the most important areas of American political life, including voting rights, housing, employment, bank lending practices and redistricting after the 2010 census.
• Growing Government Role Fuels Anger: Recent town-hall uproars weren't just about health care. They were also eruptions of concern that the government is taking on too much at once. That suggests trouble for the president's Democratic Party.
• Military Ends Contract for Profiling Media: The work being done by The Rendon Group had become a "distraction" to the mission in Afghanistan, the military said Monday.
• FEMA Red Tape Keeps Families in Trailers: About 2,100 families in Pass Christian, Miss. still live in a FEMA travel trailer home.
• Many Stimulus Contracts Fall Into High-Risk Category: More than half the Recovery Act contracts federal agencies have awarded are cost-reimbursement agreements, which the Obama administration has repeatedly described as risky and prone to abuse.
• Survey: More Agencies Cutting IT Power Costs: Forty-seven percent of 150 federal IT managers responding to a survey said they have cut their IT energy costs by enforcing programs or strategies for managing power demand and curbing energy consumption.
• Nation's Colleges May Soon See a Wave of Veterans: Thanks to the GI Bill, which went into effect last month.
var entrycat = 'Eye Opener'By washingtonpost.com Editors | September 1, 2009; 6:00 AM ET Categories: Eye Opener Share This: E-Mail | Technorati | Del.icio.us | Digg | Stumble Previous: Park Service Gets Land Deals for Flight 93 Memorial Next: 'Sesame Street' Frequently Tapped for Gov't. Outreach
Source: Washington Post
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