[House Document 109-154]
[From the U.S. Government Publishing Office]
109th Congress, 2d Session - - - - - - - - - - - - - - - - Document 109-154
AN ALTERNATIVE PLAN FOR LOCALITY PAY INCREASES
__________
COMMUNICATION
from
THEPRESIDENTOFTHEUNITEDSTATES
transmitting
AN ALTERNATIVE PLAN FOR LOCALITY PAY INCREASE PAYABLE TO CIVILIAN
FEDERAL EMPLOYEES COVERED BY THE GENERAL SCHEDULE (GS) AND CERTAIN
OTHER PAY SYSTEMS IN JANUARY 2007, PURSUANT TO 5 U.S.C. 5305(a)(3)
December 5, 2006.--Referred to the Committee on Government Reform and
ordered to be printed
The White House,
Washington, November 30, 2006.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC
Dear Mr. Speaker: I am transmitting an alternative plan for
locality pay increases payable to civilian Federal employees
covered by the General Schedule (GS) and certain other pay
systems in January 2007.
Under title 5, United States Code, civilian Federal
employees covered by the GS and certain other pay systems would
receive a two-part pay increase in January 2007: (1) A 1.7
percent across-the-board adjustment in scheduled rates of basic
pay derived from Employment Cost Index data on changes in the
wages and salaries of private industry workers, and (2) a 6.9
percent locality pay adjustment based on Bureau of Labor
Statistics' salary surveys of non-Federal employers in each
locality pay area. According to the statutory formula, for
Federal employees covered by the locality pay system, the
overall average pay increase would be about 8.6 percent. The
total Federal employee pay increase would cost about $8.8
billion in fiscal year 2007 alone.
Title 5, United States Code, authorizes me to implement an
alternative locality pay plan if I view the adjustment that
would otherwise take effect as inappropriate due to ``national
emergency or serious economic conditions affecting the general
welfare.'' For the reasons described below, I have determined
that it would be appropriate to exercise my statutory
alternative plan authority to set an alternative January 2007
locality pay increase.
A national emergency, within the meaning of chapter 53 of
title 5, has existed since September 11, 2001, that includes
Operation Enduring Freedom in Afghanistan and Operation Iraqi
Freedom. The growth in Federal requirements is straining the
Federal budget. Full statutory civilian pay increases costing
$8.8 billion in 2007 alone would interfere with our Nation's
ability to pursue the war on terrorism.
Such cost increases would threaten our efforts against
terrorism or force deep cuts in discretionary spending or
Federal employment to stay within budget. Neither outcome is
acceptable. Therefore, I have determined that a locality pay
increase of 0.5 percent would be appropriate for GS and certain
other employees in January 2007. Our national situation
precludes granting larger locality pay increases at this time.
Accordingly, I have determined that under the authority of
section 5304a of title 5, United States Code, locality-based
comparability payments for the locality pay areas in amounts
set forth in the attached table shall become effective on the
first day of the first applicable pay period beginning on or
after January 1, 2007. When compared with the payments
currently in effect, these comparability payments will increase
the General Schedule payroll by 0.5 percent.
Finally, the law requires that I include in this report an
assessment of the impact of my decision on the Government's
ability to recruit and retain well-qualified employees. I do
not believe this decision will materially affect our ability to
continue to attract and retain a quality Federal workforce. To
the contrary, since any pay raise above what I have proposed
would likely be unfunded, agencies would have to absorb the
additional cost and could have to freeze hiring in order to pay
the higher rates. Moreover, GS ``quit'' rates continue to be
very low (2.0 percent on an annual basis), well below the
overall average ``quit'' rate in private enterprise. Should the
need arise, the Government has many compensation tools, such as
recruitment bonuses, retention allowances, and special salary
rates, to maintain the high quality workforce that serves our
Nation so very well.
Sincerely,
George W. Bush.
2007 Locality-Based Comparability Payments Under Alternative Plan
Locality Pay Area Locality Payment Percentage
Atlanta-Sandy Springs-Gainesville, GA-AL...................... 15.89
Boston-Worcester-Manchester, MA-NH-ME-RI...................... 20.97
Buffalo-Niagara-Cattaraugus, NY............................... 14.15
Chicago-Naperville-Michigan City, IL-IN-WI.................... 21.79
Cincinnati-Middletown-Wilmington, OH-KY-IN.................... 17.38
Cleveland-Akron-Elyria, OH.................................... 15.96
Columbus-Marion-Chillicothe, OH............................... 15.00
Dallas-Fort Worth, TX......................................... 17.34
Dayton-Springfield-Greenville, OH............................. 14.27
Denver-Aurora-Boulder, CO..................................... 20.02
Detroit-Warren-Flint, MI...................................... 21.53
Hartford-West Hartford-Willimantic, CT-MA..................... 22.44
Houston-Baytown-Huntsville, TX................................ 26.65
Huntsville-Decatur, AL........................................ 13.60
Indianapolis-Anderson-Columbus, IN............................ 13.00
Los Angeles-Long Beach-Riverside, CA.......................... 24.03
Miami-Fort Lauderdale-Miami Beach, FL......................... 18.30
Milwaukee-Racine-Waukesha, WI................................. 15.54
Minneapolis-St. Paul-St. Cloud, MN-WI......................... 18.17
New York-Newark-Bridgeport, NY-NJ-CT-PA....................... 24.57
Philadelphia-Camden-Vineland, PA-NJ-DE-MD..................... 18.85
Phoenix-Mesa-Scottsdale, AZ................................... 13.22
Pittsburgh-New Castle, PA..................................... 14.16
Portland-Vancouver-Beaverton, OR-WA........................... 17.63
Raleigh-Durham-Cary, NC....................................... 16.18
Richmond, VA.................................................. 14.41
Sacramento-Arden-Arcade-Truckee, CA-NV........................ 18.99
San Diego-Carlsbad-San Marcos, CA............................. 20.34
San Jose-San Francisco-Oakland, CA............................ 30.33
Seattle-Tacoma-Olympia, WA.................................... 18.58
Washington-Baltimore-Northern Virginia, DC-MD-PA-VA-WV........ 18.59
Rest of U.S................................................... 12.64