Federal Civilian Employees and the FY2001 Budget

Publication Date: November 2000

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

Type:

Abstract:

Currently, eight of the 13 appropriations bills have been signed and the agencies and programs covered by them are fully funded by FY2001 dollars. The other five, however, have either been vetoed or are pending final legislative action. Unless the continuing funding resolution (P.L. 106-275, as amended) specifies otherwise, agencies and programs pending final action are being supported at the same funding level as they were in FY2000.

The FY2001 budget President Clinton sent to Congress on February 7, 2000, called for a 3.7% increase in pay, effective January 2001, for both civilian and military personnel. The all of the appropriations bills assume a 3.7% pay adjustment. None of the versions of the Treasury and General Government appropriations measure directly address pay raises.

According to a statutorily prescribed formula, the base rate adjustment should be 2.7%, with the locality-based payments averaging over 16%. The President sent no alternative plan forward in August. Therefore, unless Congress legislates differently, the 2.7% rate will stand as the adjustment to basic pay for General Schedule and other related pay systems, including Members of Congress. An alternative plan, or legislative action, is required in order to avoid a locality adjustment in the 16% range. The President has until the end of November to send such a plan forward.

Federal civilian personnel statistics continue to show a downward trend in the number of both on-board personnel and full-time equivalent (FTE) positions. However, while the administration states that it is continuing the implementation of personnel downsizing pursuant to the Federal Workforce Restructuring Act of 1994, the reductions exceed the goals. The administration estimates that there will be a slight overall increase for FY2000. The decreases have been, and continue to be, primarily among civilians employed by the Department of Defense.

The decentralization of personnel management systems will continue to gain significant attention during this cycle. The budget identifies several priority management objectives (PMOs), calling for implementing the new system at the Federal Aviation Administration, for example. Other agencies, such as the Internal Revenue Service, are affected by statutory changes in their personnel systems through the establishment of performance-based organizations, demonstration projects, or statutory modifications.

The Office of Personnel Management has requested an increase in staffing for the first time in several years. These personnel would be responsible for managing the government-wide buyout authority also requested in the budget.

The employee contributions to premiums under the Federal Employees Health Benefits program for calendar 2000 increased, on average, 9.3%. The rates are increasing for calendar 2001 as well and the open season has just begun.

The 106th Congress has enacted legislation affecting personnel policies, such as establishing long-term care benefits (P.L. 106-265) and changing the limitations on contributions to the Thrift Savings Plan (P.L. 106-361).