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House lawmakers rejected the Bush administration's request for millions of dollars in additional funding in 2007 for the Homeland Security Department's new personnel system.

The Appropriations Committee's Homeland Security subcommittee voted last week to provide $29.7 million for the system in fiscal 2007, which is equal to 2006 levels, a spokeswoman said. That figure falls short of the $41.8 million requested in the president's budget.

DHS' personnel system, authorized by Congress in 2002 when it formed the department, will feature a market and performance-based pay approach to replace the decades-old General Schedule under which most civil servants work.

Federal employee unions, including the National Treasury Employees Union and the American Federation of Government Employees, are asking Congress to strip the personnel system of funding in order to halt the overhaul, which they argued would promote cronyism and jeopardize annual pay raises.

NTEU President Colleen Kelley last week wrote a letter to Reps. Harold Rogers, R-Ky., chairman of the subcommittee, and Martin Olav Sabo, D-Minn., its ranking member, asking them to redirect the money proposed for the personnel system.

"As the committee considers funding levels for DHS for fiscal 2007 NTEU urges you to fund [Customs and Border Protection] front-line security and trade enforcement needs before spending any additional taxpayer dollars on an undeveloped, untested, legally compromised new DHS personnel and pay system," Kelley said in the letter.

Kelley said she is happy with the subcommittee's action.

"With everything else going on in DHS they should be focused on things like staffing, training, a lot of things," Kelley said. "Not spending time or money on a new personnel system that they are just not ready to do."

Beth Moten, legislative director for AFGE, said the union strongly supports the elimination of any funding for the DHS personnel system.

In budget request documents, DHS stated that the $41.8 million would go to the Office of the Chief Human Capital Officer "to continue implementation of the human resources system initiative...[that] rewards employees for their contributions to the mission of the department, not simply for longevity."

"We believe the funding levels outlined in the president's budget are essential to meet the department's mission objectives," said Larry Orluskie, a DHS spokesman. "We look forward to working with Congress to ensure that DHS has sufficient resources to continue to attract, retain, train, and reward the high-quality workforce it needs to meet its operational requirements and goals."

The two unions, along with several others, successfully challenged parts of DHS' personnel system in court. A federal judge ruled last summer that DHS went too far in curtailing collective bargaining abilities for employees. The government is appealing that ruling.

The full appropriations committee is scheduled to vote on the DHS budget Wednesday morning.

A spokesman for Sabo said the congressman is planning to offer an amendment on the House floor to redirect money to firefighting programs in DHS, but has not made a decision about where that money will come from. Last year, Sabo, along with Reps. Curt Weldon, R-Pa., and Steny Hoyer, D-Md., introduced a similar amendment.

The president asked for $53 million for the personnel system last year, but Congress enacted only $29.7 million.

COMMENTS

• I applaud Congress for not appropriating funds to implement MaxHR, and the NTEU for bringing this matter to court, which has ruled against the administration. However, non-bargaining unit employees like myself are being fast-tracked into paybanding by DHS management, probably because they have failed to extend this system to bargaining unit employees, yet have no impediment in applying it to the rest of us. This system has many flaws, which have already been discussed here and elsewhere. However, DHS recently distributed information that indicates that MaxHR may result in age discrimination against senior DHS employees. According to DHS, employees who are at the top of their pay bands will only be eligible for Performance Pay Increases (PPIs) under MaxHR that will be payable as lump sum payments. These will not be added to the employee's base pay for "high-three" retirement purposes. In other words, if you are a senior employee and a good worker who qualifies for a PPI under MaxHR, you are only eligible for a lump sum payment. Your "high-three" salary for retirement purposes will not increase in the years that remain before you retire. It sounds like DHS doesn't value experience and seniority, and is in fact encouraging senior employees who will be at the top of their respective pay bands to leave, because their retirement benefits will be locked in, and won't increase, because their salaries won't increase. At least under the current General Schedule, employees who have reached their top grade and step are still eligible for the annual increase given to all government workers, which increases their base pay for retirement. MaxHR is a disaster waiting to happen, and will not benefit workers, especially senior ones, whose experience should be sought and valued by this agency. I guess what DHS really means to say is thanks for your long and distinguished service, and don't let the door hit you on the way out! GovExec.com reader Posted May 30, 2006 11:27 AM
• From the MAXHR News Corner, DHS Today: In a discussion of how "Maxine," a fictional DHS employee, will benefit from the proposed new pay banding system, the following was said: "If Maxine reaches the top of her payband, then she will receive her PPI (Performance Pay Increase) as a lump sum payment. While this lump sum payment will not count toward her "high-three," under MAXHR she is at least eligible to receive this payment as compensation for high performance." What a crock! As a current GS-13, Step 10, I am still eligible under the current system to receive the yearly COLA paid to all federal employees, which increases my base pay for "high-three" retirement purposes. Under paybanding, if I am at the top of a payband, my salary for retirement purposes will basically be frozen until I retire, as any performance award would be paid as a lump sum. Talk about age discrimination! Is this how DHS proposes to treat its senior workers? DHS pays lip service to how much it values its employees and their experience, but this proposal basically tells senior employees to head for the door, as they will be capped out at their current "high-three" for retirement computation purposes, once we are switched to pay banding. Thanks for all your years of dedicated service, and don't let the door hit you on the way out! GovExec.com reader Posted May 24, 2006 12:03 PM
• What the legislators have neglected to consider is that many DHS employees are already under the "pay for performance" system, and have not received in-grade increases for years due to lack of funding. This, despite many cash bonuses or commendations, which have no effect on our retirement. GovExec.com reader Posted May 17, 2006 7:16 AM