Politicsfederal workersPoliticsBudget Cuts

Paul Ryan Budget Ignores Federal Pay Rate Freeze In Call For Employee Cutbacks

Ryan Budget Misleads On Key Fact
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By 

Labor Reporter, HuffPost

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WASHINGTON -- The GOP House budget proposal released by Rep. Paul Ryan (R-Wis.) Tuesday included a standard Republican talking point for long-term deficit reduction: Slim down the federal workforce and pare back workers' salaries.

But in making the case for a smaller, lesser-paid workforce, the proposal from the House Budget Committee chairman may mislead readers when it comes to recent federal pay. "Immune from the effects of the recession," the budget reads, "federal employees have received regular salary bumps regardless of productivity or economic realities."

Federal employee pay rates have been frozen for more than two years, part of a shared sacrifice toward budget control announced by President Obama in 2010 and backed by Congress. Individual workers have still received pay increases due to performance or promotions, as the Washington Post notes, but workers have not been receiving their regular cost-of-living increase each year.

A Ryan spokesman said the statement in the budget addressed the fact that workers are still eligible for "step and grade increases" as part of the federal workforce, even though they aren't receiving their traditional cost-of-living bumps.

But without those automatic annual raises, many federal workers haven't seen a pay hike at all, said J. David Cox, Sr., president of the American Federation of Government Employees, a federal employee union. "There's been no across-the-board raises for three years, no cost of living adjustment," Cox said. "Everyone has to have a raise occasionally."

House Republicans passed a bill last month that would extend the pay rate freeze even further. Obama issued an executive order last year that at the end of March would lift the freeze and give federal workers their first cost-of-living increase -- a modest 0.5 percent -- since 2010. The GOP bill would nullify that raise, a move the Democratic-led Senate is expected to take up soon.

Correction: The original post did not clarify the difference between annual cost-of-living increases and the step and grade increases that workers are still eligible for.

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Before You Go

What The GOP Doesn't Want You To Know About The Deficit
The Deficit Has Grown Mostly Because Of The Recession(01 of11)
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The deficit has ballooned not because of specific spending measures, but because of the recession. The deficit more than doubled between 2008 and 2009, as the economy was in free fall, since laid-off workers paid less in taxes and needed more benefits. The deficit then shrank in 2010 and 2011. (credit:AP)
The Stimulus Cost Much Less Than Bush's Wars, Tax Cuts(02 of11)
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Republicans frequently have blamed the $787 billion stimulus for the national debt, but, when all government spending is taken into account, the stimulus frankly wasn't that big. In contrast, the U.S. will have spent nearly $4 trillion on wars in the Middle East by the time those conflicts end, according to a recent report by Brown University. The Bush tax cuts have cost nearly $1.3 trillion over 10 years. (credit:Getty)
The Deficit Grew Under George W. Bush(03 of11)
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When George W. Bush took office, the federal government was running a surplus of $86 billion. When he left, that had turned into a $642 billion deficit. (credit:AP)
The Deficit Is Shrinking(04 of11)
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Last year's federal budget deficit was 12 percent lower than in 2009, according to the Office of Management and Budget.The deficit is projected to shrink even more over the next several years. (credit:AP)
Investors Are Paying Us To Borrow Money(05 of11)
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The interest rate on 10-year Treasury bonds is negative, according to the Treasury Department. Investors are even paying us for 30-year Treasury bonds, when adjusted for inflation. (credit:AP)
Investors Are Not Running Away(06 of11)
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Conservative commentators have been warning for years that investors will run away from Treasury bonds because of the national debt. So far it's not happening. Interest rates on Treasury bonds continue to hover at historic lows. (credit:AP)
Health Care Reform Reduces The Deficit(07 of11)
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Republicans have blasted the Affordable Care Act as "budget-busting." But health care reform actually reduces the deficit, according to the Congressional Budget Office. (credit:Getty)
The U.S. Is Borrowing Less From China(08 of11)
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The U.S. government is borrowing much less from foreign countries than before the recession, according to government data cited by Paul Krugman. That is because the U.S. private sector is financing our bigger deficits. (credit:Getty)
We Spend A Lot On Defense(09 of11)
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Defense spending constituted 20 percent of federal spending last year, or $718 billion, according to the Center on Budget and Policy Priorities. This adds up to 41 percent of the world's defense spending, according to Bloomberg TV anchor Adam Johnson. Mitt Romney has vowed to not cut defense spending if elected president. (credit:AP)
We Spend A Lot On Health Care(10 of11)
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Health insurance, including Medicare and Medicaid, constituted 21 percent of federal spending last year. In contrast, education constituted 2 percent of federal spending. Meanwhile, Mitt Romney and Paul Ryan have promised not to change Medicare for Americans age 55 and older. (credit:AP)
Republicans May Want Large Deficits For Now(11 of11)
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The federal budget deficit ballooned under Ronald Reagan, and that may be just the way Republicans like it. Some Republican thinkers have proposed "starving the beast": that is, cutting taxes in order to use larger deficits to justify spending cuts later. Since Republicans ultimately want lower taxes and a smaller government, what better way is there to cut spending than to make it look urgent and necessary? (credit:AP)
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