Some Confusion Regarding Raise

Some federal employees apparently became confused about the pay situation for January 2004 following the White House’s late-August recommendation for a 2 percent raise. A perception arose in some quarters that the President’s announcement was the final action of the year and that the raise had definitely been set at that amount. Some news organizations not well versed on the procedures of federal pay-setting that reported on the announcement did convey that impression. Also, the Office of Personnel Management followed the announcement by releasing a fact sheet that, if not read carefully, could lead to the conclusion that the matter had been settled. OPM further posted on its Web site pay tables incorporating a 2 percent increase. However, the raise will be determined as usual in the budget process, and the only way it now appears that the raise won’t be 4.1 percent would be if the President would veto the Transportation-Treasury spending bill when it reaches him and Congress would neither override the veto nor include the 4.1 percent figure in some other bill that is signed.