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Letter to Congressional Leaders on the Revised Pay Schedule for Federal
Employees
August 31, 1994
Dear Mr. Speaker: (Dear Mr. President:)
Action on the FY 1995 Treasury, Postal Service, and General
Government Appropriations Bill, will not be completed before the August
31st deadline for an alternative pay plan. Therefore, as a protective
measure, in order to ensure that a substantially larger pay increase
does not go into effect automatically by operation of law, it is
necessary for me to transmit an alternative pay plan.
Under section 5303(a) of title 5, United States Code, the rates of
basic pay of the statutory pay systems would be increased by 2.6 percent
effective in January 1995.
Section 5303(b) of title 5, however, provides me the authority to
implement an alternative pay adjustment plan if I consider the pay
adjustment that would otherwise be required by law to be inappropriate
because of ``national emergency or serious economic conditions affecting
the general welfare.'' As you know, alternative pay plan authority has
been used many times over the past 15 years. ``Serious economic
conditions'' are defined in the statute to include consideration of
economic measures such 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.
The budget discipline put in place by my Administration has
contributed to sustained economic growth and low inflation. To continue
this budget discipline and its favorable impact on economic conditions I
have determined that an alternative pay adjustment is appropriate for
the 1995 pay raise under section 5303.
The 1995 budget I submitted to the Congress proposed a modest pay
increase of 1.6 percent for Federal employees. I believed that this was
an appropriate increase in view of the other disciplines we have worked
with the Congress to put in place that have reduced the Federal budget
deficit and improved our Nation's economy. Further, we are currently
making substantial reductions in Federal employment pursuant to the
Federal Workforce Restructuring Act enacted by the Congress this year.
To achieve these reductions, many agencies are offering Federal
employees early retirement and incentives of up to $25,000 to leave
Federal service. These considerations, as well, lead me to conclude that
the substantially larger pay increase that would otherwise automatically
go into effect is not appropriate at this time.
The House version of the 1995 Treasury, Postal Service, and General
Government Appropriations Bill includes a provision offered by
Representative Steny Hoyer that provides a section 5303 pay raise of 2.0
percent and a limited section 5304 locality pay raise. The Senate
version of the bill has no pay raise provision. The Administration has
informed the conference committee that it would not object to the pay
raise in the House version of the bill if military personnel receive a
pay raise higher than the 1.6 percent proposed in the 1995 budget. It
appears likely that the 1995 Defense Authorization Bill will provide
military members a 2.6 percent raise.
Consistent with the provisions of the House-passed Treasury, Postal
Service, and General Government Appropriations Bill, the pay raise will
be made in accordance with the following plan:
In accordance with section 5303(b) of title 5, United States Code,
the pay rates for each statutory pay system shall be increased by 2.0
percent, effective on the first day of the first applicable pay period
beginning on or after January 1, 1995.
The statute also provides me alternative plan authority for
locality-based comparability payments, or locality pay, under section
5304 of title 5. The deadline for transmitting this alternative plan to
Congress is November 30. In the absence of legislation, it would be
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my intent to provide Federal civilians with locality pay raises that
equal 0.6 percent of civilian payroll.
In my opinion, this alternative pay plan for a 2 percent pay
increase under section 5303 will not materially affect the Government's
ability to recruit or retain well-qualified employees. Federal hiring
rates and attrition rates are very low. In addition, most employees will
receive other pay increases, such as locality pay and within-grade
increases. Thus, we have every reason to believe that these pay
increases, coupled with appropriate use of pay flexibilities such as
recruitment bonuses and retention allowances, will allow the Federal
Government to continue to be competitive in attracting and retaining
quality employees.
Sincerely,
William J. Clinton
Note: Identical letters were sent to Thomas S. Foley, Speaker of the
House of Representatives, and Albert Gore, Jr., President of the Senate.
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Monday, September 5, 1994
Volume 30--Number 35
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Week Ending Friday, September 2, 1994
Remarks to the Irish Media on the Peace Process in Northern Ireland in
Martha's Vineyard, Massachusetts
September 2, 1994
Let me say first of all, I am so pleased to have Dick Spring here.
And I'm pleased that he came across the ocean to visit with me and
others in the United States who very much want this process to succeed.
I am delighted by the developments of the last several days and by
all the efforts that have been made in the last few months. The United
States is strongly supportive of this peace process. We want to reach
out and work with all the elements in Ireland, in Northern Ireland. We
want all the communities to feel a part of the peace process and to feel
that there is a peace dividend. We want to continue to work with and
support the work of the Government of Ireland and the Government of
Great Britain. And we are prepared to take some steps to do whatever we
can to help that now.
Dick is going to talk at greater length about some of the specific
things we talked about here today, but the United States has tried to be
a friend of peace in Ireland, and we will continue to do that. And we're
very, very pleased by the developments.
Note: The President spoke at approximately 11 a.m. at the Friedman Guest
House. In his remarks, he referred to Irish Foreign Minister Richard
Spring. A tape was not available for verification of the content of
these remarks.
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Monday, September 5, 1994
Volume 30--Number 35
Pages 1721-1731
Week Ending Friday, September 2, 1994
Message on the Observance of Labor Day, 1994
September 2, 1994
As Americans celebrate our nation's 100th Labor Day holiday, we take
time out of our busy schedules to recognize and to appreciate the
importance of America's working men and women. We as a people strive to
put our talents and interests to use every day. We find joy in learning
new skills and in making new discoveries. It is in no small measure the
many rewards we find in labor that make America's workers the finest in
the world.
As our country faces an increasingly competitive international
marketplace, America's tradition of innovation and progress is more
important than ever. Today's world demands that we reinvent the compact
between labor and management, guided by a firm commitment to ongoing
dialogue and cooperation. It requires that our nation make use of the
tools at hand: our abundant land, our diverse and determined people, and
our shared belief in the values of hard work and fair play.
Working together, we have the power to build a new partnership for
prosperity. We know how to improve quality and efficiency, to reduce
production costs and to increase profits--knowledge that will serve to
benefit employer and worker alike. With a renewed dedication to
providing education and re-training, we can craft a work force ready to
meet the challenges of the twenty-first century and beyond.
This year, we resolve to press forward in our efforts to promote new
growth and opportunities, creating safe and healthy working conditions
that enable our citizens to be good workers and good parents. For at the
heart of the American Dream is the American family. And our goal must be
to make the Dream a reality for all of our families. Indeed, as we
celebrate Labor Day this cen-
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tennial year, that common vision inspires us still.
Best wishes to all for a memorable holiday.
Bill Clinton
Note: The message was made available by the Office of the Press
Secretary on September 2 but was not issued as a White House press
release.
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Monday, September 5, 1994
Volume 30--Number 35
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Week Ending Friday, September 2, 1994
________________________________________________________________________
Digest of Other White House Announcements
________________________________________________________________________
Note: The President and Hillary and Chelsea Clinton were vacationing on
Martha's Vineyard, MA, during the period covered by this issue. The
Office of the Press Secretary released no public schedule for the
President during this period.
________________________________________________________________________
August 29
The President announced his intention to appoint Anita Arnold to be
a member of the Board of Trustees of the John F. Kennedy Center for the
Performing Arts.
September 2
The President announced his intention to nominate R. Keith Higginson
as a member of the Advisory Commission on Western Water Resources
Policy.
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Week Ending Friday, September 2, 1994
________________________________________________________________________
Nominations Submitted to the Senate
________________________________________________________________________
Note: No nominations were submitted to the Senate during the period
covered by this issue.
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Monday, September 5, 1994
Volume 30--Number 35
Pages 1721-1731
Week Ending Friday, September 2, 1994
________________________________________________________________________
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
________________________________________________________________________
Released August 29
Transcript of a press briefing by Press Secretary Dee Dee Myers
Statement by Press Secretary Dee Dee Myers announcing the establishment
of Presidential Emergency Board No. 225
Released August 31
Transcript of a press briefing by Press Secretary Dee Dee Myers
Statement by Press Secretary Dee Dee Myers announcing a revised pay
schedule for Federal white-collar employees
Statement by Press Secretary Dee Dee Myers on the President's letter to
the chairman and members of Presidential Emergency Board No. 225
Other Popular 1994 Presidential Documents Documents:
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