Pay to Rise 3 Percent

As expected, President Clinton announced late last week that he would implement a pay raise plan that would raise locality pay rates around the country 0.7 percent in 1997, making the total average raise next year 3 percent.

The President's announcement came in a letter to House and Senate leaders. Under the Federal Employees Pay Comparability Act of 1990, the President is required to inform Congress when he intends to implement an alternative to the full locality pay increases determined by nationwide comparisons of federal and nonfederal pay.

Permitting the full increases to take effect, wrote Clinton, would cause total federal pay rates to rise an average of 7.5 percent in 1997. That, he said, would cost $5.9 billion, $3.6 billion more than he had proposed in his fiscal 1997 budget for federal pay.

"Such an increase," wrote Clinton, "is inconsistent with the budget discipline my Administration has put in place . . ."

The pay reform law also requires the President to explain the likely affect of his pay-raise decisions on the government's ability to recruit and retain its employees.

"While I regret that our fiscal situation does not permit granting federal employees a higher locality pay increase," Clinton wrote, "I do not believe this will have any material impact on the quality of our workforce.

"Under the Federal Workforce Restructuring Act of 1994, and our efforts to reinvent federal programs, the number of federal employees is falling substantially. As a result, hiring and attrition are very low. In addition, as the need arises, the government can use many pay tools -- such as recruitment bonuses, retention allowances, and special salary rates -- to maintain the high quality workforce that serves our nation so well."

For detailed tables on locality pay rates in areas around the country, click here.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download
  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care

    Download

When you download a report, your information may be shared with the underwriters of that document.