The 4.1 percent figure for 2004 was added to the House appropriations bill in the name of
maintaining pay parity between military and federal civilian raises. But in a recent
statement on a Defense spending bill (HR-1588) that says parity should be maintained to
the maximum extent practical, the administration said civilian-military pay linkage “is
not necessary” and that the proposed 2 percent figure “is very generous at this time when
many in the private sector are unemployed or facing shrinking paychecks.” The
administration further said it was concerned about the cost of boosting the raise, which it
estimated at $2.1 billion. That statement also pointed to the administration’s proposal for
a $500 million fund to reward good performers; however, the House Transportation-
Treasury spending bill provides only $2.5 million for the fund–enough to get it
operating, but with little if any available to pay out to employees.
