Bush endorses 2.1 percent pay raise
Congress likely to override decision by passing legislation mandating a 3.1 percent increase.
President Bush declined to submit an alternative to the proposed 2.1 percent across-the-board 2006 pay increase for white-collar federal employees, the Office of Management and Budget announced Thursday.
The president was required to submit a substitute pay option by Aug. 31, under provisions in the 1990 Federal Employees Pay Comparability Act. It sets the formula for the across-the-board increase: 0.5 percentage points less than the annual change in the Employment Cost Index at the end of the preceding September. This year, that figure amounts to 2.1 percent, according to the Office of Personnel Management.
The president's decision not to submit an alternative pay proposal to Congress means that the 2.1 percent increase would go into effect in January 2006--unless Congress votes to substitute a different raise, which it has already moved to do. Employees also are due additional increases, depending on where they work, under the locality-based system of federal pay rates. The president has until Nov. 30 to submit a plan for locality increases.
"The president's budget provides a pay raise for civilian employees that is designed to recruit, retain, reward and motivate a top federal government workforce," OMB spokesman Alex Conant said. "The administration is not taking any action on an alternative pay plan at this time."
President Bush proposed a 2.3 percent pay hike in his budget. In a policy statement on the subject in June, OMB officials noted that the House's proposed pay raise would cost nearly $1 billion more than what President Bush proposed.
On June 30, the House voted to put in a place a 3.1 percent pay increase for civilian federal workers as part of the Transportation-Treasury bill, putting civilian pay on par with military personnel. The Senate Appropriations Subcommittee for Transportation, Treasury, Housing and Urban Development also approved a 3.1 percent increase on July 19. The full Senate has not yet voted on the pay raise.
If the Senate follows the House's lead and approves a 3.1 percent total increase, then the 2.1 percent increase that Bush endorsed would not go into effect.
The president has the option of vetoing the Treasury-Transportation bill if it comes to his desk with a pay raise he thinks is too high.