The White House has another opportunity coming to stake out its position on the January
2004 federal pay raise, since under federal pay law the President may recommend by the
end of the month an “alternative” pay raise. The administration earlier this year proposed
a 2 percent raise but the House Appropriations Committee, in approving the fiscal 2004
Transportation-Treasury spending bill, has advocated 4.1 percent. Last year in a similar
situation the White House remained silent, effectively putting into play a 3.1 percent raise
that took effect in January 2003 only to be overridden by later legislation boosting that
increase by a further percentage point. However, this year the administration might use
its opportunity to recommend an “alternative” raise to once again advocate 2 percent.
That would be one more factor at play in the appropriations process, which could be
contentious as Congress works after reconvening following Labor Day on spending bills
for the budget year that starts October 1.
