Budget Draft Goes to Conference

The House and Senate are now going to conference on the first draft of the budget for the upcoming fiscal year, both versions of which support continued pay parity between federal employees and uniformed military personnel. The language is not binding-raises actually are set during the appropriations process that will follow-but similar provisions have laid the groundwork for maintaining pay parity in recent years. Also, the language does not specify what number will be considered the “parity” figure. Raises for the military in 2004 likely will average 4.1 percent and range from 2 to 6.5 percent, varying by military occupation, but virtually all uniformed personnel will receive 3.7 percent, the figure indicated by an employment cost index formula used for military pay-setting. That apparently will make 3.7 the early marker for the 2004 federal raise. One issue to be decided in the conference is whether Congress will order individual committees to find savings in programs under their jurisdiction. The Senate version does not order savings from committees overseeing federal employee and retiree programs. The House version does seek such savings, although benefit programs might be spared even if the House version prevails.