Raise Language Remains Pending

A measure that likely will serve as the indicator for the January 2005 federal pay raise has been stuck in a House-Senate conference, hung up over differences on unrelated matters. The budget “resolution” for fiscal 2005 will serve as an outline for appropriations bills to be passed later. However, even though the House and Senate passed their versions many weeks ago, conferees have been unable to find agreement on language that effectively would make it harder to pass tax cuts. Also at issue is whether a process called reconciliation-where individual committees, including those with jurisdiction over civil service spending, must find savings in areas they oversee-will be ordered for fiscal 2005. The Senate version calls for continued parity between military and civilian federal employee pay in 2005, effectively endorsing a raise of 3.5 percent for each group. The House version is silent on the raise but the House voted separately to endorse pay parity. The budget resolution is not binding but creates a presumption about certain policy and spending issues.