President Lowers Next Year's Pay Raise for Some Federal Employees

Civilian federal employees won't get as big a pay raise as expected next year says the President in a letter to House Speaker Nancy Pelosi Monday.

Citing a national emergency, President Obama has decided that instead of a 2.4% across-the -board adjustment for basic pay, civilian Federal employees covered by the General Schedule (GS) and some other pay systems will receive a reduced pay increase of 2.0% come January 1, 2010.

According to Title 5 of the United States Code, civilian federal employees were set to receive the 2.4% across-the board adjustment as well as locality pay adjustments averaging 16.5%. The total pay increase - which the White House estimates at $22.6 Billion in the fiscal year 2010 alone - is not appropriate under the current economic situation says the President.

"With unemployment at 9.5 percent in June to cite just one economic indicator, few would disagree that our country is facing serious economic conditions affecting the general welfare," writes the President, "the growth in Federal requirements is straining the Federal budget."

Title 5 of the United States Code grants the President the authority to submit an alternative pay plan if he "view[s] the adjustments that would otherwise take effect as inappropriate due to 'national emergency or serious economic conditions affecting the general welfare.'"

Mr. Obama says that if he deems necessary, he will also provide an alternative plan for the locality pay rates by November 30th.