Raise, Performance Fund in for Scrutiny

The Bush administration’s 2 percent pay raise proposal is just one of two major pay initiatives in the fiscal 2004 budget plan; the other is creation of a $500 million fund to be used to reward high-performing employees. Efforts already are under way in Congress to continue pay parity between federal employees and uniformed military personnel, who under the budget stand to get raises averaging 4.1 percent-although under the applicable law, the “parity” target figure likely will be 3.7 percent. The pay-for-performance provision likely will be equally controversial, although the administration has not yet submitted a detailed legislative proposal.