President issues plan to limit pay raise to 3 percent next year
Alternative salary increase plan issued to prevent larger increases from automatically taking effect.
President Bush moved Wednesday to limit the locality-based increase for white-collar federal civilian employees to 0.5 percent next year, bringing the total overall increase to an average of 3 percent.
Under federal law, the president has until the end of November to propose an alternative to pay levels set under procedures laid out in the 1990 Federal Employees Pay Comparability Act. Under that law, employees would be due a 2.5 percent base pay raise in 2008, plus locality pay increases averaging 12.5 percent. It was designed to close the gap between federal and private sector salaries, but raises under the law have never been fully funded.
"Full statutory civilian pay increases would cost $16.4 billion in 2008 alone," the president wrote in issuing his plan. "Such cost increases would force deep cuts in discretionary spending or federal employment to stay within budget. Either outcome would unacceptably interfere with our nation's ability to secure the homeland and pursue the war on terrorism."
With the 2.5 percent increase set, the final locality number will depend on whether lawmakers allocate a 3.5 percent or a 3 percent total pay increase for civilians next year. Many appropriations bills are still waiting for a vote, largely because Congress and the president cannot agree on spending priorities for federal agencies.
The president has said he opposes a 3.5 percent pay raise for military and federal civilian employees, though he recently signed a Defense appropriations bill setting a 3.5 percent raise for military members. Approval of the military increase could indicate that he would not oppose an equal raise for civilian employees should Congress pass the 3.5 percent figure.
National Treasury Employees Union President Colleen Kelley on Wednesday called the president's proposal a "disservice" to federal employees and expressed optimism that Congress would approve the 3.5 percent hike.
"When you consider all of the important contributions that civilian employees make each day to the federal workplace, a 3 percent salary increase is simply inadequate," Kelley said. "Pay is a critical factor in the government's ability to recruit and retain skilled and talented employees."