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Week Ending Friday, September 1, 1995
Letter to Congressional Leaders on the Alternative Plan for Federal Pay
Adjustment
August 31, 1995
Dear Mr. Speaker: (Dear Mr. President:)
The law requires that the President transmit to the Congress an
alternative plan for Federal pay adjustments if he views the pay
adjustments that would take effect under the law as inappropriate.
Therefore, to ensure that substantially larger increases do not take
effect automatically, I am transmitting an alternative plan for the 1996
pay adjustments.
Under section 5303(a) of title 5, United States Code, the rates of
basic pay would rise by 2.4 percent, effective in January 1996. In
addition, pursuant to section 5304 of title 5, General Schedule
employees also would receive an increase in their locality-based
comparability payments that would cost 2.7 percent of payroll. When
combined with the 2.4 percent basic pay increase, the locality-based
payments would produce a total payroll increase of about 5.1 percent
that would cost $3.9 billion in 1996--$2 billion more than the 2.4
percent pay increase I proposed in my 1996 Budget and which is included
in my Balanced Budget Plan.
Sections 5303(b) and 5304a of title 5, however, provide me the
authority to implement an alternate pay adjustment plan if I view the
pay adjustments that would otherwise take effect as inappropriate due to
``national emergency or serious economic conditions affecting the
general welfare.'' As you know, Presidents have used such authority many
times over the past 15 years.
In evaluating ``an economic condition affecting the general
welfare,'' the statute directs me to consider such economic measures as
the Index of Leading Economic Indicators, the Gross National Product,
the unemployment rate, the budget deficit, the Consumer Price Index, the
Producer Price Index, the Employment Cost Index, and the Implicit Price
Deflator for Personal Consumption Expenditures. I have reviewed these
and other pertinent measures of our economy.
The budget discipline that my Administration has put in place has
contributed to sustained economic growth and low inflation. To continue
this discipline and its favorable impact on economic conditions, I have
determined that an alternative pay adjustment of 2.4 percent is
appropriate for the 1996 pay raises under sections 5303 and 5304. This
raise matches the 2.4 percent basic pay increase that I proposed for
military members in my fiscal 1996 Budget and that the Congress likely
will include in the 1996 Defense Authorization bill.
[[Page 1467]]
Because many Federal civilian employees do not receive locality pay,
I will put the bulk of the 2.4 percent adjustment into the general
increase under section 5303, thus giving all employees a meaningful
raise. I will apply the remainder to increasing the locality-based
comparability payments under section 5304.
Accordingly, I have determined that the following alternate pay plan
is appropriate:
(1) Under the authority of section 5303(b) of title 5, United
States Code, the pay rates for each statutory pay system
shall be increased by 2 percent, effective on the first day
of the first applicable pay period beginning on or after
January 1, 1996.
(2) Under the authority of section 5304a of title 5, United
States Code, locality-based comparability payments in the
amounts set forth on the attached table shall be effective
on the first day of the first applicable pay period
beginning on or after January 1, 1996. When compared with
the payments currently in effect, these comparability
payments will increase the General Schedule payroll by about
0.4 percent.
Finally, the law requires that I include in this report an
assessment of the impact that my decisions will have on the Government's
ability to recruit and retain well-qualified employees. While I regret
that our fiscal situation does not permit granting Federal employees a
pay increase greater than 2.4 percent, I do not believe this will have
any material impact on the quality of our work force. In accordance with
the Federal Workforce Restructuring Act of 1994, I am committed to
reducing Government employment substantially; consequently, hiring and
attrition are very low. In addition, the Government has at hand many pay
tools, such as recruitment bonuses, retention allowances, and special
salary rates, to maintain the high quality work force that serves our
Nation so very well.
Sincerely,
William J. Clinton
Note: Identical letters were sent to Newt Gingrich, Speaker of the House
of Representatives, and Albert Gore, Jr., President of the Senate. The
locality based comparability payment table was included in the
President's letter. This letter was released by the Office of the Press
Secretary on September 1.
<DOC>
[Weekly Compilation of Presidential Documents]
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[Page 1467-1468]
Monday, September 4, 1995
Volume 31--Number 35
Pages 1457-1468
Week Ending Friday, September 1, 1995
________________________________________________________________________
Digest of Other White House Announcements
________________________________________________________________________
The following list includes the President's public schedule and other
items of general interest announced by the Office of the Press Secretary
and not included elsewhere in this issue.
________________________________________________________________________
August 28
The President announced his intention to appoint Parker Westbrook to
the Advisory Council on Historic Preservation.
August 30
In the morning, the President met with ranchers at the Sweetwater
Restaurant. Later, he had a luncheon meeting with energy industry
representatives at the Acadian Restaurant.
The President announced his intention to nominate Susan King to be
Assistant Secretary for Public Affairs at the Department of Labor.
August 31
In the morning, the President and Hillary Clinton traveled from
Jackson Hole, WY, to Honolulu, HI, where they participated in an arrival
ceremony at Hickam Air Force Base.
September 1
In the morning, the President participated in a World War II 50th
anniversary commemoration ceremony at Wheeler Air Force Base. Later in
the morning, he met with troops outside Hangar 206.
In the afternoon, the President had lunch with veterans in the
Consolidated Mess.
The President declared a major disaster in Oklahoma and ordered
Federal funds to supplement State and local recovery efforts in the area
struck by tornadoes, severe storms, and flooding, beginning on July 21
through and including August 6.
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The President announced his intention to appoint Elaine B. Griffin
to the White House Commission on Presidential Scholars.
The President announced his intention to appoint the following
individuals to the Board of Trustees of the American Folklife Center:
--Ada E. Deer;
--Joseph D. Duffey;
--Madeleine M. Kunin; and
--Shirley Sachi Sagawa.
<DOC>
[Weekly Compilation of Presidential Documents]
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[Page 1468]
Monday, September 4, 1995
Volume 31--Number 35
Pages 1457-1468
Week Ending Friday, September 1, 1995
________________________________________________________________________
Nominations Submitted to the Senate
________________________________________________________________________
Note: No nominations were submitted to the Senate during the period
covered by this issue.
<DOC>
[Weekly Compilation of Presidential Documents]
[frwais.access.gpo.gov]
[Page 1468]
Monday, September 4, 1995
Volume 31--Number 35
Pages 1457-1468
Week Ending Friday, September 1, 1995
________________________________________________________________________
Checklist of White House Press Releases
________________________________________________________________________
The following list contains releases of the Office of the Press
Secretary that are neither printed as items nor covered by entries in
the Digest of Other White House Announcements.
________________________________________________________________________
September 1
Statement by Press Secretary Mike McCurry on the alternative plan for
Federal pay adjustment.
<DOC>
[Weekly Compilation of Presidential Documents]
[frwais.access.gpo.gov]
[Page 1468]
Monday, September 4, 1995
Volume 31--Number 35
Pages 1457-1468
Week Ending Friday, September 1, 1995
________________________________________________________________________
Acts Approved by the President
________________________________________________________________________
Note: No acts approved by the President were received by the Office of
the Federal Register during the period covered by this issue.
Other Popular 1995 Presidential Documents Documents:
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