To that question, Obama apparently said, “heck, yes, let’s do it!” Probably his version of a Christmas present to all those Governing Class people who re-elected him.
According to FedSmith.com:
As most readers know, President Obama proposed a pay freeze on civilian employee pay that was applicable all federal civilian employees. This was way back in 2010. It did not impact pay raises as a result of promotions or within-grade increases but it was good political theater and the move was supposed to save the government money which it has probably done.
But, the good news is that the pay freeze will end in late March.
The reason: A new executive order has been issued providing for a new pay schedule beginning “on the first day of the first applicable pay period beginning after March 27, 2013.” The pay raise will generally be about 1/2 of 1%.
Good news for the Governing Class, perhaps. Not so good for the rest of us, who have to pay the taxes that pay their wages.
The Weekly Standard points out that this will add about $11 billion to the deficit over the next 10 years, and that this pay increase includes Vice President Biden.
According to a senior Republican congressional aide who has reviewed the executive order and consulted with the Congressional Budget Office, Obama’s pay raise will cost $11 billion. “The CBO told us that the President’s pay raise for federal workers will cost $11 billion over ten years,” says the aide.
The aide explains, “On the cost-estimate, CBO says the (discretionary) cost of the .5% pay-hike the President is calling for in the Exec Order – relative to a freeze – is about $500m in FY 2013 and $11 billion over the ten years from FY 13 – FY 22. The reason why the FY ’13 savings is only $500 million is because the pay hike as proposed by the President’s Exec Order would not go into effect until April 1st, 2013 – when the current CR expires. So it only covers half the fiscal year. The annualized cost of the pay hike is about $1 billion/year.”
We’re facing a fiscal cliff in a few days, and Obama decides to do this now? The man has absolutely no idea of fiscal responsibility. Of course, the fact that it came out on the Friday between Christmas and New Year’s shows that he knows it won’t play well if it becomes widely reported.