DHS Funding Cut Could Affect Personnel System

A planned cut in spending on Department of Homeland Security personnel accounts in a House-passed spending bill could affect the department’s ability to continue carrying out its new personnel system, called Max HR, according to a budget analysis done for Congress. The Bush administration requested some $42 million, but the bill would continue funding only at the fiscal 2006 level of about $30 million. The analysis says that the requested increase was designed to fund the costs of implementing the new pay system in 2007 for employees who were originally scheduled to be converted in 2006, implementation of a new market- and performance-based compensation system, and creation of a Homeland Security Labor Relations Board to hear labor-management disputes. Other costs currently being paid, and likely continuing into 2007, include those related to creating a compensation committee and training of supervisors, managers and HR professionals.