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Obama Proposes Two-Year Salary Freeze for Federal Employees

1 year ago
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This year, the post-Thanksgiving belt tightening isn't just about too much pumpkin pie: President Obama is proposing a salary freeze for all civilian federal employees over the next two years (military personnel will not be affected).

Asserting that this was a difficult decision, Obama put the freeze into the context of a broader effort to trim government costs across the board, including freezing salaries for all senior White House officials last year, reducing improper government payments by $50 billion by the end of 2012, and putting forward over $1 trillion in deficit reduction into the 2011 budget.

"I am committed to doing my part," the president said Monday. But "the hard truth is that getting this deficit under control is going to require some broad sacrifices" -- including some on the part of federal employees.

According to the White House, the freeze -- which negates a planned 1.2 percent increase in 2011 for 2.1 million workers -- will save $2 billion for the remainder of fiscal year 2011, $28 billion over the next five years and more than $60 billion over the next 10.

president obamaThe announcement comes as the White House is under increasing pressure to tackle the mounting federal deficit and play ball with Republican leaders -- including Sen. Mitch McConnell and incoming Speaker John Boehner -- who have called for a renewed focus on the deficit during the next session of Congress. Specifically, the White House has been gearing up for a fight with the GOP over the Bush tax cuts -- set to expire at the end of this year. At the heart of the debate is whether to extend the cuts for both middle- and upper-income earners and what effect a full extension will have on the growing deficit.

Also this week, the president's bipartisan fiscal commission is due to make a series of recommendations for trimming the size of the deficit. Early outlines of the recommendations from the commission's chairmen, Alan Simpson and Erskine Bowles, met with sharp criticism from Democrats, including Speaker of the House Nancy Pelosi, while a majority of Americans said they thought the proposed cuts were "a bad idea."

(The Bowles-Simpson report outlined cuts to Medicare, Social Security, and defense spending. Tax increases included higher gasoline taxes, lowering the corporate tax rate but limiting business tax deductions, and placing a limit on the tax deduction for homeowners with mortgages over $500,000.)

White House officials denied that the timing of the pay-freeze announcement is tied to congressional pressure, the Bush tax-cut debate or the deficit commission's report. "There is a legal requirement for the president to submit to the Hill the locality pay increase for 2011, and to decide on the fiscal year 2012 pay by the end of this month," said OMB Deputy Director for Management Jeffrey Zients. "Where we are in the budget process is the driver" for this announcement, he explained.

Communications Director Dan Pfeiffer further rebuffed assertions that Obama's announcement was made to preempt the fiscal commission's recommendations, saying, "This is not viewed as anticipating anything [the commission] may or may not present."

Either way, Obama will be having his share of budgetary debate this week: On Tuesday he is scheduled to have a highly anticipated meeting with Republican leaders McConnell and Boehner -- one where discussion of the deficit is sure to be featured prominently. Previewing the meeting, the president noted, "Everyone's going to have to cooperate."

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joycekcoop

they are making more money then working people does.they shuld not make any more moneythan middle class people make.they do not work ner as hard.

December 02 2010 at 8:39 PM Report abuse -1 rate up rate down Reply
Rita

I'm a Federal employee.....not surprised by this announcement at all. My GS-05 pittance of a 'cost of living' increase will take YEARS to put a dent in any deficit.... It will, however, put an immediate dent in the amount of groceries I'm already strugglng to afford, (among other basic life necessities) and of course our health care went up too (substantially) this year. Anyone who thinks Fed employees are well paid...you are SADLY mistaken. Only people in Washington DC are making any money as Federal employees.

December 02 2010 at 1:03 PM Report abuse +4 rate up rate down Reply
drbha00991

patminbros---that happened to be the times when america thrived--remember--steel workers--papermill workers--no good jobs--keep buying from china

December 02 2010 at 12:08 AM Report abuse +1 rate up rate down Reply
frischlag

I am a Federal Employee. You can keep my proposed 1.2% pay hike with my blessings. So by doing that we can reduce the deficit by $52 dollars a month!! Wow! Good call!! Similar to when the airlines were going belly up, they discontinued serving food. These are MINISCULE efforts...the gov't needs a better system of letting federal employees point out waste and overkill. We have poured bajillions into the postal service and its WORSE. I would be happy to get all of my junk mail three days a week instead of six. Too much red tape, too many unneccessary mandates, too much "fear" about the bad guys...you name it. We've gone waaaaay overboard.

December 01 2010 at 7:56 PM Report abuse +5 rate up rate down Reply
varns

Way to go! This is just what the economy needs-more money that could have been spent on goods and services by fed employees taken out of play. The vast majority of federal workers (I was one for 31 years, a nurse serving our veterans) do not earn more than their privately employed counterparts-the VA, in fact, would do a regular survey of local nurse's pay to make sure we were not being paid more than them. We were NOT all members of a union-this was optional and actually a relativly small percentage of us did belong. Now the republicans are engaged in treasonous behavior-signing a letter vowing to hold up ALL legislation until we can borrow 70 billion/year from China just to pay for con't taxcuts for the rich.

December 01 2010 at 1:23 PM Report abuse +2 rate up rate down Reply
marty

i am a federal employee, willing to not get a raise for 2 years, but i expect congress not to give themselves a raise for the same 2 years

December 01 2010 at 1:09 PM Report abuse +10 rate up rate down Reply
1 reply to marty's comment
Chris

The house and senate have already voted themselves a pay freeze for both 2010 and 2011. It has already been signed by Obama.

December 01 2010 at 7:12 PM Report abuse +3 rate up rate down Reply
patminbros

Get rid of unions (labor laws have out dated unions anyway), and you can cut trillions of dollars!!! Oh, but wait, Johny got his GED and Dad, uncle Bob, and aunt Christy all work at the plant making $70 to $120 an hour, so isn't Johny entitled to $58 an hour to start? After all, he's a union boy, his dad and grand pappy were union boys... he's fricken entitled!! How many of you college graduates out their started a job at $30/hr???? ya... that's what I thought... FIRE THE UNIONS!

December 01 2010 at 1:02 AM Report abuse -1 rate up rate down Reply
patminbros

Actually, how about congress, the senate, and the whitehouse take a 25% cut of all pay in excess of $100,000 salaries? Huh? How about it Mr. President - Harry Reid is worth $6,000,000. and he's been on the government dole for 30 fricken years!!! OK, too deep? how about a progressive cut in Federal and elected salaries... the difference in wages in excess of $100K by 15%, over $125K cut by 25%, and the difference in wages in excess of $150K by 35%... that would save America hundreds of billions of dollars while still supporting these "PUBLIC SERVANTS" with six figure salaries!! Geees fricken Louise!!!!!

December 01 2010 at 12:59 AM Report abuse +3 rate up rate down Reply
1 reply to patminbros's comment
ivotedabsentee

You might have a case for cutting the salaries of many members of Congress, per your plan, but remember, the vast majority of Federal employees are not worth $6,000,000, so it might be unfair for the non-elected Federal employees to use Harry Reid as the comparison for salary holds.

December 02 2010 at 8:44 AM Report abuse +2 rate up rate down Reply
EJ

Well doesn't that fit about right? Obama wants to freeze salaries of regular federal workers but exempt congress and their staffs. Why is it they should be exempt? Does not the government WORK for the people? That whole theory of "We the people" is a sad joke. Government does not, and will not listen to the people and do right by the people until the people stand up and say enough is enough. Electing republicons won't do it, they are as big a crooks as the democrats. We need a new form of government, one that really does listen to, work for and care about the people. Throw them all out and start over. Burn DC, it only conjures up ill feelings to hear anything about Washington DC.

November 30 2010 at 7:28 PM Report abuse +6 rate up rate down Reply
dulcevita

After reading this thread through yesterday and today, I've come to two conclusions. #1 How misinformed non federal workers are about federal workers and the full scope the job fields they are in, and #2 this president has divided people against each other more than any other president in my lifetime. What a sad mess!

November 30 2010 at 6:22 PM Report abuse +7 rate up rate down Reply

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