San Francisco feds get biggest locality-based pay raise

Federal employees in the San Francisco area will receive the highest pay increase for federal government workers in the continental United States -- 5.35 percent -- according to pay tables released by the Office of Personnel Management.

San Francisco also received the highest pay raise in 2003, with a 4.87 percent boost.

President Bush issued an executive order Wednesday implementing an average pay raise of 4.1 percent for federal employees in 2004.

All federal employees are set to receive a 2.7 percent base pay increase. After locality pay is factored in, the overall average raise will be 4.1 percent. The lowest pay raise in the continental United States -- 3.89 percent -- goes to workers in Kansas City, Mo., and Kansas City, Kan.

The next steps up from Kansas City are Indianapolis; St. Louis; Orlando, Fla.; and the default pay area known as "Rest of United States." Those areas are set to receive a 3.9 percent overall increase. The only other pay areas to get less than the 4.1 percent national average are Columbus, Ohio (3.95 percent); Dayton, Ohio (3.96 percent); Richmond, Va. (3.98 percent); Pittsburgh (4.0 percent); and Milwaukee (4.03 percent).

Federal employees in Washington, D.C., are slated to receive a 4.42 percent overall pay raise.

Federal workers outside the continental U.S. receive cost-of-living adjustments, not locality pay increases.

After San Francisco, the next four areas with the highest pay raises are Houston (4.92 percent); New York City (4.86 percent); Hartford, Conn. (4.75 percent); and Los Angeles (4.74 percent).

Federal employees will not see their 2004 raises, however, until individual agencies adjust their pay systems.

Homeland Security Department officials said last month that they are using personnel reforms to address the high cost of living for some of their employees. Those reforms -- which could be used as a model for other federal agencies -- allow locality pay to be adjusted annually by the department based on a cost of living index.

In his fiscal 2005 budget proposal, Bush is seeking a 3.5 percent raise for the military and a 1.5 percent pay raise for civilian workers. Many lawmakers want both groups to receive 3.5 percent pay adjustments.