Agencies Would Have to Absorb Cost

The pending continuing resolution budget measure containing the 4.1 percent raise does not specifically appropriate money to cover the costs of the raise. That means agencies-except for the Defense Department, whose regular appropriations bill did pass last year-will have to absorb the cost, which would be about $4 billion, out of their “salaries and expenses” accounts. Those accounts pay for a myriad of expenses, including travel, training, office equipment and many others. On top of that obligation, non-defense agencies likely will be ordered by the budget resolution to absorb across-the-board cuts in appropriations of about 3 percent. Taken together, those two obligations could translate into hiring restrictions and potentially even furloughs and layoffs, depending on each agency’s budget and program situation.