Raise Prospects Keep Federal Employees Going

WASHINGTON – For the second year in a row, Congress left town for the holidays without completing action on a spending bill that includes a 4.1 percent pay raise for federal workers.

But, like last year, federal workers can still look forward to a little something extra in their paychecks after the first of the year, even though Congress is not scheduled to come back until late January.

Beginning with the "first full pay period beginning on or after Jan. 1," civilian workers will get the 2 percent raise that President Bush included in his fiscal 2004 budget request, said Mike Orenstein, a spokesman for the Office of Personnel Management (search). That pay period starts Jan. 11.

If Congress later approves the 4.1 percent raise that is included in House and Senate version of an omnibus spending bill, federal workers will get the 2.1 percent difference in back pay. Just like they did earlier this year.

"Employees received retroactive adjustments (for fiscal 2003)," Orenstein said. "If it plays out as it did last year, it would work much the same way."

Some workers' unions said they were disappointed with the prospect of a temporary, partial raise.

"This situation could've been avoided if the president had used his authority to implement the 4.1 percent pay raise now," said Colleen M. Kelley, president of the National Treasury Employees Union (search). "Then we would not have to deal with the retroactive question or even the administrative work that it will take to make that happen."

But Pete Sepp, spokesman for the National Taxpayers Union (search), said it would be irresponsible for Bush to approve the raise ahead of time.

"The fiscally responsible thing to do in an environment of half-trillion dollar deficits is to work on the side of caution," Sepp said. "To start out with 2 percent and say, 'Let's have some serious consideration before we go any higher,' seems a prudent step to many taxpayers."

Both the House and Senate approved the raise in their own versions of the Transportation and Treasury budget bill, but the bill stalled between chambers. It was wrapped into an omnibus spending bill that included six other fiscal 2004 budget bills: Agriculture, Commerce-Justice-State, District of Columbia, Foreign Operations, Labor-Health and Human Services-Education and Veterans Administration-Housing and Urban Development.

The House passed the omnibus Monday on a 242-176 vote — its last action before adjourning for the winter holidays. But Senate Democrats, angry about language omitted from the bill, blocked its passage.

House Minority Whip Steny Hoyer (search), D-Md., said he didn't think enough good elements existed in the bill to vote for the omnibus.

"Though I voted against this bill for unrelated provisions, I believe that it was imperative that we provide federal employees ... a fair pay raise to reward them for their dedication to serving and protecting our country," he said in a statement.

Capital News Service contributed to this report.