New Leaders' Decisions Could Significantly Affect the Government Workforce

Making decisions on government spending will be a big and early order of business for the new Congress, which returns this week.

Most federal agencies are operating on an interim spending bill that expires Feb. 15. Key lawmakers have said they plan to put the government on a post-holiday diet that will stretch through September, and that could cause some headaches for federal employees.

Because most agencies will not get budget increases to fully offset pay raises, higher rents and other overhead costs, some agencies will have little choice but to curtail training, travel, hiring and the purchase of new equipment. It's possible that cash-strapped agencies might have to send workers home without pay for a few days, but the White House budget office hopes to be able to shift funding around to avoid furloughs and layoffs.

The funding crunch will not affect President Bush's executive order, issued in late December, providing an average 2.2 percent pay raise for federal employees. Government retirees also will see their monthly pension checks increase this month, by 2.3 percent or 3.3 percent, depending on their retirement system.

Although congressional aides were reluctant to make any predictions for the new year, it seems likely that the federal budget, the Iraq conflict, lobbying reform and completion of the 9/11 Commission recommendations will push many federal-employee issues to the sidelines in the opening months of the new Congress.

Key lawmakers have signaled that they are taking a wait-and-see attitude on the administration's efforts to install pay-for-performance systems at the Defense and Homeland Security departments.

Federal unions have challenged proposals to curb collective bargaining at the Defense Department, and a federal appeals panel will probably issue a ruling by spring. Unions prevailed in court on proposed workplace changes at the Homeland Security Department, which will report to a federal judge no later than July 17 on next steps for the personnel system.

The Bush administration, though, may propose a few changes to laws that affect federal employees.

Officials said the administration will again ask Congress to rewrite laws so federal employees can switch to part-time work late in their careers without taking a pension reduction and to allow agencies to bring back federal retirees without salary offsets so the rehired annuitants can collect a full paycheck and a full pension. Those efforts began last year but did not get any traction on Capitol Hill.

Linda M. Springer, director of the Office of Personnel Management, is also interested in exploring whether a program could be created to offer short-term disability insurance to federal employees. Such a program could help the government recruit employees and might be a way to provide maternity benefits, easing complaints from younger federal employees who would like the government to offer paid parental leave to care for newborns and adoptions.

Congress will also be reorganizing committees and realigning members who serve on those panels.

Rep. Henry A. Waxman (D-Calif.), the new chairman of the House Government Reform Committee, has announced plans for five subcommittees, two fewer than in the last Congress. Waxman plans to create a federal workforce, post office and District of Columbia subcommittee and a government management, organization and procurement subcommittee.