November 30, 2006
President Bush changes locality pay formula
President Bush decided on Thursday to use a new formula to determine locality pay for federal employees in 2007, giving a greater portion to employees in cities such as New York and San Francisco.
The new formula takes into consideration the increasing pay gaps between the private and public sectors in some cities, such as New York, compared to others. But switching formulas means that many cities and the "Rest of U.S." category will get a slightly smaller locality boost.
The final locality number will depend on whether lawmakers allocate a 2.7 percent or a 2.2 percent total pay increase for civilians next year. Congress may not make its decision until well into 2007, forcing retroactive pay raises for federal employees.
The president's decision Thursday assumed a 2.2 percent raise.
Lawmakers approved a 2.7 percent raise in draft legislation for civilians, but passed a 2.2 percent raise for the military. Historically, lawmakers have brought the civilian raise in line with the military's and it is unlikely, especially during a time of war, that lawmakers would grant civilians more than soldiers.
Assuming the total pay raise is 2.2 percent, and the portion devoted to locality raises is 0.5 percent, employees in the New York region would get a 3.03 percent total pay raise under the new formula. New Yorkers would have received a 2.63 percent raise under the old formula. San Francisco area employees would be in line for a 3 percent raise, rather than 2.71 percent. Washington workers would receive a 2.64 percent raise, as opposed to 2.4 percent.
The "Rest of U.S." area is slated to get a 1.81 percent raise under the new formula, which is smaller than the 2.03 percent it would have received.
In October, the Federal Salary Council, an independent body of salary experts, employee representatives and federal officials that usually makes recommendations on the allocation of locality pay, chose to leave it up to the president.
Once Congress votes on the final pay raise amount, Bush will still have to sign an executive order with the 2007 pay
November 22, 2006
As Premiums Rise, Social Security's Staffing Level to Be Tested
Staffing problems at the Social Security Administration could make it difficult for field offices to handle increased telephone calls and visits prompted by an upcoming increase in Medicare premiums, according to the Government Accountability Office.
Social Security began mailing notices of the higher, income-based premiums on Monday and expects all 1.6 million affected enrollees to have them in hand by the end of next week. Enrollees may request a recalculation of their premium if they think incorrect tax data have been used to determine their income and set their premium, or if they have recently experienced an income loss from a spouse's death, a divorce or some other "life-changing event."
In a letter sent last week to the Senate Finance Committee, the GAO warned that Social Security is coping with staff shortages and operating under a hiring freeze just as the agency's workload is expected to jump because of the premium increases. The GAO, the congressional auditing agency, noted that the premium change, though approved by Congress in 2003, may come as a surprise to some beneficiaries.
Mark Lassiter, a Social Security spokesman, said the agency plans to shift workloads among field offices if some offices "are getting disproportionately hit" by telephone calls and visits from Medicare beneficiaries.
He expressed confidence that the agency's 1,300 field offices will be able to handle any surge in work. "We do the work we are assigned to get done," he said.
Congress changed how Medicare Part B premiums are calculated starting next year and reduced the government's contribution toward premiums for higher-income beneficiaries -- defined as individuals with incomes of more than $80,000 and married couples who file joint tax returns showing incomes of more than $160,000. In the past, premiums increased on a uniform basis, regardless of income.
Medicare Part B covers doctors' services, certain outpatient services and some home health care. Most people do not pay a Part A premium, which covers hospitalization, because they or a spouse have 40 or more quarters of Medicare-covered employment.
For 2007, a person with income of $80,000 or less and a married couple with income of $160,000 or less will pay $1,122 in annual Part B premiums.
Persons with incomes of $80,001 to $100,000 and couples with incomes of $160,001 to $200,000 will pay $1,269.60 in Part B premiums next year.
At the top of the scale, individuals with incomes of more than $200,000 and couples with incomes of more than $400,000 will pay $1,936.80 for Part B coverage.
Premiums are set by the Centers for Medicare & Medicaid Services, and the Social Security Administration is responsible for determining and assessing the Part B income-based premiums.
The GAO said implementing income-based premiums will cost Social Security an additional $200 million in administrative expenses between fiscal 2006 and 2010.
The extra work comes at a tough time for the agency. Social Security has adopted a hiring freeze because Congress has not been able to complete work on the agency's fiscal 2007 appropriations bill. Agency officials also have warned that it could be forced next year to send employees home without pay, perhaps for as long as 10 days, if Congress does not reverse proposed budget cuts.
Jim Manley, a spokesman for Sen. Harry M. Reid (D-Nev.), the incoming Senate majority leader, said Republican leaders had informed Reid's office that the Senate will postpone work on appropriations bills until next year.
A spokeswoman for Sen. Bill Frist (R-Tenn.), the current majority leader, did not return a telephone call or e-mail inquiry.
If spending bills are put off until next year, Congress will have to pass another continuing resolution, or interim spending measure, to keep the government operating into 2007. The current CR expires Dec. 8.
Some cash-strapped agencies will probably have to petition Congress for adjustments in their spending levels before a long-term CR is adopted. Typically, interim funding measures finance agencies at their current level or at a lower level, depending on budget proposals pending in Congress.
"This guarantees there will be a tussle over funding levels," Manley said.
2006 The Washington Post Company
November 16, 2006
Advocate for federal employees wins House leadership post
By Christian Bourge
Handing House Speaker-elect Nancy Pelosi, D-Calif., a significant loss even before she assumes the office, Minority Whip Rep. Steny Hoyer, D-Md., on Thursday trounced Rep. John Murtha of Pennsylvania in the race for majority leader on a 149-86 vote.
But Pelosi told reporters following the elections that the Caucus would remain unified. "As I said to my colleagues, as we say in church, let there be peace on Earth and let it begin with us. Let the healing begin," said Pelosi, who has a strained relationship with Hoyer. Hoyer said that while he and Murtha have had their differences, Murtha would continue to play an important role as chairman of the Defense Appropriations Subcommittee.
Federal employee groups were buoyed by Hoyer's win. His Maryland constituency includes many federal employees and he supports their causes, including the annual fight for pay parity between civilians and members of the military.
"Although there are dozens of federal friendly lawmakers, a small number of them go to extraordinary lengths to support the interests of the federal community," said Margaret Baptiste, president of the National Active and Retired Federal Employees Association. "Congressman Hoyer has been one of those champions and that's why we are especially happy that he has been elected."
Presidents of the two largest federal employee labor unions -- the American Federation of Government Employees and the National Treasury Employees Union - also said they were pleased with Hoyer's victory.
NTEU President Colleen Kelley called Hoyer a "key player on federal employee issues" and AFGE's President John Gage said Hoyer "has been a great friend to AFGE and we look forward to working with him in his new capacity."
The race for the majority leader post heated up after Pelosi endorsed Murtha this week, raising doubts about Hoyer's ability to hold onto his supporters. But Hoyer's backing held up in the face of a concerted effort by Pelosi's lieutenants to twist arms, with Pelosi reaching out to individual lawmakers herself.
Hoyer's victory immediately raised questions about potential problems between a politically injured Pelosi and emboldened Hoyer. "I think it was a mistake on her part to get heavily involved in this race," said Rep. Allen Boyd of Florida, a member of the moderate-to-conservative Blue Dog Coalition, two-thirds of which publicly backed Hoyer.
Both Pelosi and Hoyer took pains after the vote to stress their intent to work together. Rep. Barney Frank of Massachusetts, a Hoyer supporter, said the elections would have no significant impact.
"She's a very smart woman who made a mistake in judgment," Frank said. "I honestly think you will not see any problems whatsoever." Frank added that he believes Hoyer's strong support boiled down to a couple of factors including that Murtha represents an older tradition in the House and the general sense that Hoyer would be a better public representative for the Caucus.
Rep. Jim Moran of Virginia, who helped run Murtha's campaign for leader and predicted his victory, said it was clear his side did not get support from most of the incoming freshmen -- and asserted the Murtha team was lied to by some members who had indicated support in the secret-ballot race. He noted that Murtha's camp has "a pretty good idea" who those members are and suggested they are untrustworthy.
Moran added that incoming freshmen who supported Hoyer may find problems in getting their committee assignments. "It remains to be seen if their wished-for committee assignments are fulfilled," Moran said.
Democrats unanimously elected Democratic Congressional Campaign Committee Chairman Rahm Emanuel of Illinois as Caucus chairman, with Caucus Vice Chairman John Larson of Connecticut re-elected to his current position and Democratic Caucus Chairman James Clyburn of South Carolina elected as majority whip.
Members of the Democratic Caucus are scheduled to meet again later today to elect the 12 regional representatives for the Steering and Policy Committee, which oversees the official selection of committee chairmen and members.
NOVEMBER 15, 2006
Statement by AFL-CIO President John Sweeney and AFGE President John Gage On the ILO's Recommendation to Give TSA Workers the Right to Organize
WASHINGTON - November 15 - Today’s decision by the International Labor Organization (ILO) sends a powerful message to the Bush Administration that the international community rejects its attempts to limit the collective bargaining rights of government employees entrusted with protecting our nation’s security. In response to a complaint filed by the American Federation of Government Employees (AFGE), the ILO’s Committee on Freedom of Association ruled that the Bush-created Transportation Security Administration (TSA) violated the fundamental rights of 56,000 airport screeners by denying them the right to organize and bargain collectively.
The Bush Administration tried to justify its 2002 decision to deny representation and collective bargaining rights to airport screeners at TSA on the basis of national security. The AFL-CIO and AFGE join the international community in its recognition that national security and worker rights are not mutually exclusive. At a time when airport screeners need a voice on the job to highlight where improvements can be made in our national security, the Bush Administration continues to stifle dialogue. Today’s decision further calls into question the Administration’s policy of using national security to justify the denial of basic worker rights.
The decision by the ILO amplifies the growing voices heard around the country and the world that are calling on the Bush Administration to recognize internationally accepted workers’ rights standards. We implore the Bush Administration to follow the ILO’s recommendations and immediately grant collective bargaining and all other labor rights to TSA workers.
AFGE is the only union that has actively fought on behalf of employment rights for Transportation Security Officers. Although transportation security officers remain deprived of a collective bargaining agreement, AFGE represents these employees before the Disciplinary Review Board, EEOC, courts, in Congress and in the media.
November 16, 2006
Social Security privatization called 'off the table'
By MARY CLARE JALONICK
Associated Press Writer
WASHINGTON (AP) _ The Social Security privatization called 'off the table'
incoming chairman of the Senate Finance Committee said Thursday he wants to hold hearings on looming
insolvencies in the Medicare and Social Security programs but said President Bush's plan to partially privatize Social Security is dead.
"Don't waste our time," said Democratic Sen. Max Baucus of Montana. "It's off the table."
He said the rising cost of Medicare and other health costs is a priority for the committee, though he did not detail how the committee would approach those problems. He said he will hold "vigorous" hearings on the issue.
Baucus said he will propose legislation to simplify the Medicare prescription drug program by streamlining the number of plans available and making it easier for people to choose one.
Baucus , 64, has been on the committee for more than two decades and briefly was chairman when Democrats took Senate control in 2001, the same year he collaborated with Bush on tax-cut legislation. The senator also sided with Republicans on a Medicare overhaul in 2003, a move that frustrated many in his party who felt the bill was a giveaway to drug companies.
He said the looming insolvency in the Medicare program is a more urgent problem than a similar fiscal crisis with Social Security.
Baucus has advocated closing the so-called tax gap _ more than $300 billion a year in taxes that go uncollected _ as one way to start shoring up Social Security.
The committee will also push to renew "fast track" trade authority for President Bush next year, Baucus said, but he insisted that any new trade agreements must include tougher labor and environmental standards.
He said he will work with Republicans to renew the authority, which allows the president to negotiate a trade agreement and submit it to Congress for a simple yes-or-no vote without amendments. It was last approved by Congress in 2002 and is set to expire on July 1, 2007.
"We need to expand trade and reach solid trade agreements, but also fully address the concerns of average middle-income Americans who are worried that trade agreements may work for big business but they don't work for them," Baucus said.
The issue will be a test for Baucus and the incoming House Ways and Means Chairman, Democratic Rep. Charles Rangel of New York. The two split their votes in 2002 _ Baucus voting for the authority, Rangel voting against it.
Rangel has said he wants to renew the authority but that the president would need to consider Democratic priorities in return.
The Montana senator is close to the top Republican on the Senate committee, Iowa Sen. Charles Grassley, and says he plans to be bipartisan in his approach.
"I believe very strongly that nothing of consequence passes around here unless there is cooperation," he said. Baucus said he hopes a package that would extend some popular tax breaks _ research and development credits for businesses and deductions for college tuition and state sales taxes _ will pass before the end of the year. He also predicted that Congress could block a planned 5 percent cut in Medicare payments to physicians before Jan. 1, when it is scheduled to take effect.
Baucus said the committee plans to push legislation that would:
- Permanently scale back the alternative minimum tax, a complicated portion of the tax code aimed to catch wealthy tax dodgers that affects middle class taxpayers.
- Raise the estate tax exemption to $5 million for individuals and $10 for couples, an idea that has stalled so far even in the Republican Senate.
- Push tax breaks for married couples and the child tax credit.
- Renew and increase funding for the Children's Health Insurance Program, which is set to expire in 2007.
- Extend renewable electricity production credits and create $1 billion in tax credits for investments in clean coal facilities.
- Provide free college for math and science majors, provided they work and teach in their program of study for at least four years after graduation.
