By Stephen Barr
Tuesday, January 2, 2007
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.
Aides have been working on areas of jurisdiction, but one said the federal workforce subcommittee would likely oversee the implementation of pay-for-performance systems at the Defense and Homeland Security departments, while the government management subcommittee would track the president's policy initiatives, such as outsourcing, e-gov and other parts of the presidential management agenda.
House Democratic leaders have made some committee assignments.
Rep. C.A. Dutch Ruppersberger (D-Md.) will take the seat on the House Appropriations Committee being vacated by Rep. Steny H. Hoyer (D-Md.), the new House majority leader. Hoyer has played the leading role in efforts to raise federal salaries, and an aide to Ruppersberger said his boss will also seek to improve federal pay and benefits.
Ruppersberger's district expects to pick up 60,000 new jobs as part of the military's Base Realignment and Closure process, primarily at Fort Meade and the Aberdeen Proving Ground. He also represents employees who work at the National Security Agency and at the Coast Guard Yard at Curtis Bay.
Rep. Chris Van Hollen (D-Md.), an advocate for federal employees, is joining the Ways and Means Committee, which has jurisdiction over tax policy, Social Security, Medicare and trade issues.
The National Active and Retired Federal Employees Association hopes that the Ways and Means Committee, which will be chaired by Rep. Charles B. Rangel (D-N.Y.), will show more interest in modifying laws that frustrate many federal retirees, such as the offset and windfall elimination provisions in Social Security law. Federal retirees also are campaigning for statutory changes that would permit them to pay their health insurance premiums with pre-tax annuities, similar to the tax break provided federal employees.
Sen. Joseph I. Lieberman (D-Conn.) will be chairman of the Senate Homeland Security and Governmental Affairs Committee, which oversees federal employee issues. An agenda has not been set, but some aides expect the committee will pay close attention to contracting problems, including instances of waste and fraud at the Defense and Homeland Security departments.
Lieberman will be joined by senators with a strong interest in federal employee issues, including Daniel K. Akaka (D-Hawaii), Thomas R. Carper (D-Del.), Carl M. Levin (D-Mich.), Susan Collins (R-Maine), George V. Voinovich (R-Ohio) and John W. Warner (R-Va.). Akaka plans to review the federal employees health insurance program and how it sets premiums, an aide said.
Stephen Barr's e-mail address isbarrs@washpost.com.
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