2 Percent Raise for 2004 Proposed

As earlier indicated, the Bush administration has proposed giving general schedule employees a 2 percent across-the-board raise in January 2004, plus creating a separate fund for rewarding good performers. The White House’s budget proposal for fiscal 2004 is just the first of what will be many steps in setting the federal pay raise for the budget year that starts October 1. Employee organizations and some friendly members of Congress already are denouncing the amount as inadequate, signaling the start of what could once again be a long and contentious process. As in past years, the administration proposes to cap wage grade employee pay at the GS average amount even though those employees are under a separate locality-based pay system.