Agencies to Bear the Cost

Opponents of the pay parity measure-including the White House, which lobbied against it–argued that the additional cost of boosting the raise will amount to $2.2 billion in the first year alone, plus the related costs of resulting increases in retirement benefits. However, supporters said that the additional cost would simply be absorbed out of existing agency overhead expenses-the “salaries and expenses” accounts. Imposing an additional funding burden on those accounts, though, could require some agencies to cut back in some areas. Traditionally, travel, training, office equipment and even staffing levels have been among the targets when such cutting is required.