Senate votes for 3.1 percent pay raise in 2006

The Senate on Thursday evening voted to grant a 3.1 percent average pay increase next year to white-collar civilian federal workers.

The pay raise was included in the fiscal 2006 Transportation-Treasury appropriations bill (H.R. 3058), which passed on a 93-1 vote. The legislation also included a union-backed measure aimed at putting federal employees on equal footing with contractors in public-private job competitions.

The Senate bill would ensure that civilian workers receive the same pay increase as military service members. The Bush administration had proposed a 2.3 percent increase for civilians in 2006.

In addition, the Bond-Mikulski measure would ensure that the Office of Management and Budget allows agencies to place work performed by contractors up for competition using the rules similar to those applied when federal employees compete to retain their jobs.

The White House issued a statement Wednesday objecting to the pay raise, just as it did when the House voted for a 3.1 percent raise in July. The increase would exceed President Bush's proposal by about $1 billion. By applying the raise across government, Congress would limit the Homeland Security and Defense departments' ability to "design and implement a modern personnel and pay system that best fits their needs," OMB stated.

"Any recruitment or retention problems facing the government are limited to a few areas and occupations, and do not warrant such an arbitrary across-the-board increase," the policy statement said.

The statement did not, however, say that the president would likely veto the bill if it included a 3.1 percent raise. The White House also stopped short of issuing a veto threat pointing specifically to the Bond-Mikulski language, though the administration did state that President Bush's senior advisers would recommend that he veto the bill if the final version "were to significantly erode" the President's Management Agenda. Competitive sourcing is one of five main items on that agenda.

John Gage, president of the American Federation of Government Employees, called the Senate vote in favor of the 3.1 percent pay raise "a victory for all federal employees."

National Treasury Employees Union President Colleen Kelley also issued a statement supporting the Senate action and urging White House approval.

"There is clear and strong bipartisan support for a 3.1 percent pay raise for civilian federal employees next year," Kelley said. "I urge the White House to respect the action taken by Congress and support the 3.1 percent pay raise."

The provisions "would be steps in the right direction in ensuring that federal workers have the chance to demonstrate their ability to get the job done in the most effective and efficient manner," Kelley said.

Next, the Transportation-Treasury bill goes to a conference committee of House-Senate negotiators to work out differences. While both the House and Senate approved the 3.1 percent pay raise, the chambers varied on competitive sourcing language.

The House bill includes a provision that would require OMB to revise the current rules on public-private job competitions, contained in the May 2003 version of Circular A-76. In past appropriations rounds, the White House has succeeded in eliminating language considered detrimental to competitive sourcing during the conference process.

Once both chambers reach agreement and sign off on a final version of the bill, it will head to President Bush's desk for his signature. If the 3.1 percent pay raise is signed into law, Bush will determine how much it is allocated to an across-the-board pay raise and how much is allocated to locality increases.

Two weeks ago, the Federal Salary Council recommended that 2.1 percent be allocated to across-the-board pay and 1 percent to locality raises. Historically, the president has followed the council's advice.

If the president signs off on it, the pay raise would go into effect in January.