So what’s happening with the federal pay raise?

All things considered, it is moving along at a pretty good clip. Consider the hurdles it must clear:

This is one of the most unusual election years ever. For a while there it seemed as if half of the Senate and a goodly chunk of the House of Representatives was in the race. Even as people dropped out, many hung around or came to states still in play to offer help, encouragement and endorsements. There were times when it seemed there were more members of the Senate on the road than in their Senate offices.

Although incumbents usually return to office, if they want to, in theory all members of the House are up for reelection as are one in every three members of the Senate. Because of retirements and challenges at home (former presidential candidate Dennis Kucinich is fighting to keep his Ohio seat in the House) there could be big changes.

In addition to a rearranged board of directors (Congress), federal workers will get a new CEO (the President) who is likely to overhaul /reinvent/rechannel many government programs and agencies.

Congress has announced an unusually short schedule (even for an election year) that includes some 3-day workweeks and lots of breaks.

President Bush proposed a 2.9 percent raise raise, effective January, 2009, for white collar federal workers. That same budget called for a 3.4 percent raise for uniformed military personnel. Raises for rank-and-file postal employees (clerks and letter carriers) are set by their union contract. The cost of living adjustment for retirees will be based on the rise in inflation between now and Sept. 30. So far, the January 2009 retiree COLA stands at 1.5 percent. And likely to rise.

Federal unions are demanding pay raise parity with the military. That would give both civilian and military people the same 3.4 percent raise. But to put it into effect, Congress must override the president’s lower figure. And it is moving that way.

The January federal pay raise is the subject of a “chairman’s mark” in both the House and Senate Budget Committee roadmap. The House budget doesn’t set any pay raise figure. But the “mark,” which means it has the backing of Chairman John Spratt (D-S.C.), backs the idea of pay raise parity. That is the same percentage raise for feds and the military. And it is unlikely to scale-back the president’s proposed 3.4 percent raise for the military. That seems to leave only one direction to go: Up – as in the same 3.4 percent for both.

The House and Senate will try to get the budgets rolling this week. As the process develops feds will get a better feel for how much their raise will be in January. Once that is determined, the President will decide how much of the raise to allocate for locality pay raises. That that can change the final amount a lot depending on where you work. This year (2008) for example, the pay raise was set at 2.5 percent. But after locality pay was factored in, the largest number of feds, those in the Washington-Baltimore area, got a total increase of 4.49 percent. Workers in other areas did almost as well.

If the national raise turns out to be 3.4 percent, white collars workers in some areas could get their biggest pay increase in years. To see the impact of locality pay on the overall federal pay raise, click here.

Stay tuned.

Nearly Useless Factoid

The first names of advertising icons (Mr. Clean’s is “Veritably”) prompted Tom from the IRS to ask “But what is Dr. Pepper’s first name?” According to the Wikipedia link that Tom enclosed, the answer is “Charles.” However, in fine NUF tradition, the Dr Pepper Museum says the “the origin for the (soda) name is unclear,” so we may never know which Dr. Pepper, if any, for which it was named. So misunderstood.

To reach me: mcausey@federalnewsradio.com

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