Report Could Hurt Chances on Performance Fund

The GAO report comes at a time when the Office of Personnel Management is still working to issue regulations to carry out a 2003 change in law linking SES pay more closely to performance and while agencies are under pressure to use performance management systems, particularly those for senior execs, as a tool to better accomplish their missions. It also comes just as Congress is about to write the Transportation-Treasury appropriations bill for the upcoming fiscal year, which will be the most likely vehicle for decision on funding for the “human capital performance fund.” That fund-designed as a source of money to reward good performers across the government–was created last year at the White House’s request but Congress put just $1 million into it, effectively enough only to get it existing on paper. The White House’s budget proposal requested $300 million for the fund in fiscal 2005. But chances of approval could be dim, given the negative review by GAO and the executives themselves of what is in effect a trial system of pay for performance-along with the lack of rules so far from OPM on exactly how the performance fund would work and the lack of any congressional attention this year to performance pay.