Federal employees would get bigger raises in coming years under a provision approved by the House Appropriations Committee Wednesday night.
As part of the fiscal 1999 Treasury-Postal spending bill, the committee approved a measure designed to close the pay gap between federal employees and their private-sector counterparts. The two largest federal employee unions hailed lawmakers for passing the provision.
Under the 1990 Federal Employees Pay Comparability Act (FEPCA), the president was supposed to recommend annual locality pay increases to close the pay gap over 10 years. But each year since 1994, when the act took effect, President Clinton has approved smaller raises than the law recommends, citing a clause in the act allowing for smaller increases during times of "severe economic conditions."
The Federal Salary Council, created by FEPCA, estimated that federal employees were paid an average of 30 percent less than employees in similar private-sector jobs in 1997.
The provision approved by the House Appropriations Committee this week would tighten FEPCA by defining severe economic conditions as two consecutive quarters of negative growth in the Gross Domestic Product.
"What this legislation does is change a subjective standard into an objective standard," Sen. Paul Sarbanes, D-Md., said in February when the provision was introduced. Rep. Steny Hoyer, D-Md., sponsored the provision in the House.
The Clinton administration contends that the formula for calculating the pay gap is flawed, and that if a pay gap exists, it is much smaller than the FEPCA formula supposes. Administration officials say considering total compensation, including benefits, would show federal compensation to be comparable to compensation in the private sector.
While the appropriations committee approved the higher pay measure for federal employees, the committee also approved an amendment that blocks members of Congress from receiving their annual cost of living adjustment. The bill did not address the size of federal employees' pay raise for 1999, which President Clinton set at 3.1 percent in his 1999 budget request. Clinton will make a final decision on employees' raises in August.
Another measure included in the Treasury bill prevents federal employees from paying for an abortion with funds through the Federal Employees Health Benefits Program, except in cases of rape, incest and to save the life of the mother. The restriction has been added to the Treasury bill for the past several years.
The committee rejected an attempt to tack the Freedom from Government Competition Act, which would force the federal government to privatize functions that could be performed by the private sector, onto the Treasury bill.
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