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November 29, 2010 09:27 PM UTC

Obama Announces Pay Freeze for Federal Workers

  • 56 Comments
  • by: Colorado Pols

From MSNBC:

President Barack Obama announced a proposal Monday to freeze pay for federal workers over the next two years, one of several “very tough decisions” coming from the administration as it attempts to rein in government spending and address the looming federal deficit.

“In these challenging times. we want the best and brightest to join and make a difference, but these are also times where all of us are called on to make sacrifices,” Obama said in a statement at the White House. “And I’m asking civil servants to do what they have always done. Play their part.”

The freeze, which requires congressional approval, applies to civilian federal employees — including non-military personel serving at the Department of Defense. The White House says the move will save $2 billion during the rest of the current fiscal year and $28 billion over the next five years…

…There are just under 2.7 million civilian employees of the executive branch, per the Washington Post. That’s about 8.4 federal workers per 1,000 American citizens.

This is an interesting move at an interesting time — might this have helped Democrats who lost in November had a pay freeze been proposed months ago? And how much of this will Republicans be able to claim as their own success after months of rhetoric surrounding spending cuts?

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56 thoughts on “Obama Announces Pay Freeze for Federal Workers”

  1. Looks like I have a way of pushing news around here! Just kidding.

    Wow, two years. Maybe I shouldn’t gripe so much next time I go to the post office. But then again, better minds than mine know whether or not these freezes even affect those employees.

      1. on Black Friday!! But I left it at the bottom of my pile of Black Friday buys which include my with my harry potter wand and Twilight Edward coffee mug Christmas presents…well, I bought those for myself but nobody needs to know that!

        Who knew I would need it so soon?

        Crap.

        1. I used to have an aluminum foil deflector beanie, as I mentioned in an earlier post.  And I went to the Harry Potter park in Orlando and got a wand.  Why, if I also had a Twilight mug, I would feel mocked.  But I don’t, so I don’t.

  2. There aren’t many pay raises going out these days, either in the corporate sector or the public sector.

    And the deficit reduction for the action is something like 0.05%.

    Republicans can (and will) claim whatever they want, but this move comes seemingly without their prodding – it’s not like a Federal pay freeze has been the non-stop topic of the day on the GOP Wurlitzer.

    1. Wall St and Insurance still aren’t suffering and aren’t freezing anything (except for the pay of the unwashed masses that push the pencils and input the data).

          1. …at least they’re paying  it back.  Obama is intentionally creating an untenable situation, so he can rescue us with more government, at least in terms of HCR.  We’ll never see that money again.

            1. Explain how Obama is intentionally creating an untenable situation to create a larger government. What HCR money won’t we ever see again?

              Who is paying back what?

              What money is Obama spending, without the consent of the congress?

            2. Yes, they’re paying most of it back.  Some of it is just plain gone, e.g. the large sums of money we spent bailing out AIG, which was paid out directly to the CDS holders – mostly foreign-owned banks.

              As for HCR, the Federal government has spent very little to date on HCR, and what it has spent has been towards coverage of people the insurance industry doesn’t want to cover.  Those people still consume health care dollars; now they consume them directly, more accountably, and at a lower rate.  As to the future, the best numbers still predict that the HCR bill will save us big time over the long term by lowering the rate of increase.

              If you want to fix our health care system, at least be honest and go with the Colorado HCR study showing that the single best method of saving money on health care is to institute a single payer system, or even better, Medicare for all.  And that of things left untouched in the current reform bill, the best single thing that we could do would be to allow the Federal government to negotiate drug prices.

              1. Most Americans don’t want to get HC through the government, which does very few things effectively or efficiently.

                Everyone on Medicare?  Not so fast. Emphasis mine.

                WASHINGTON – Want an appointment with kidney specialist Adam Weinstein of Easton, Md.? If you’re a senior covered by Medicare, the wait is eight weeks.

                How about a checkup from geriatric specialist Michael Trahos? Expect to see him every six months: The Alexandria, Va.-based doctor has been limiting most of his Medicare patients to twice yearly rather than the quarterly checkups he considers ideal for the elderly.

                Still, at least he’ll see you. Top-ranked primary care doctor Linda Yau is one of three physicians with a District of Columbia internists group who recently announced they will no longer be accepting Medicare patients.

                “It’s not easy. But you realize you either do this or you don’t stay in business,” she said.

                Because of the way the President and Congressional leaders lied about the true cost, gaming the CBO by not including the numbers that contained the ‘Doc Fix’, it’s now coming to light that most doctors don’t want to take a 23% pay cut to be inundated by a bunch of new patients.

                Oh, but doctors make too much anyway, right?  After all, that’s just not fair.

                Oh, and TARP?  The prime target of the class warriors?  It’s even cheaper than expected to have saved our economy.


                WASHINGTON – The U.S. Troubled Asset Relief Program, which risked up to $700 billion of government funds to bail out troubled banks and automakers, will cost taxpayers a mere $25 billion, according to an estimate released on Monday by the nonpartisan Congressional Budget Office.

                CBO’s latest assessment of the widely reviled program is lower even than the Obama administration’s own estimate of less than $50 billion, which was criticized as too rosy after it was issued at the end of September.

                “Clearly, it was not apparent when the TARP was created two years ago that the cost would turn out to be this low,” CBO said in its report.

                The problem with class warfare, is that there’s always going to be someone that has just a little bit more than you do.  Nature doesn’t really work that way.

                1. Among other things, Medicare doctors have not had their pay reduced – a doc fix was passed as a separate bill, and it doesn’t affect CBO numbers.  And a one-month extension to the doc fix was passed just recently, giving the current rates until the end of January when the new Republican House majority can take up the issue.

                  There is a discussion that needs to be had about the obnoxiously increasing rates for medical care in this country.  The retail rate for my recent 3-hour hospital visit was about $5,500.  I occupied a bed and a couple of monitors for that time, had a bit of blood drawn and a single X-ray taken.  During that time, I estimate I used about 1/2 hour of a doctor’s time and 2 hours of a nurse’s time – most of it was sitting around being attached to monitors while unattended.

                  Why did that cost so much?  No idea.  Considering the price of the monitors these days, I don’t think I was consuming a multi-million dollar resource – in fact, most of those monitors probably cost under $10,000 each, and the expendables under $100, the X-ray plus technician I’ll give them at retail just over $100.  The doctor and nurses, each at lawyer’s rates, would come to about $1000.  That means that for three hours in a bed (that they’ll use more than once in a day, albeit with clean sheets) plus administrative costs, they’re charging more than $4,000 (again, retail uninsured cost).

                  Are doctors charging too much?  Probably not, but someone is.

                2. If TARP had conditions forbidding these banks and investment houses from paying ANY bonuses until their obligations to both the Federal Reserve and the U.S. Treasury were repaid and the banks’ health restored by shoring up their reserve cash.

                  The damage to our budget via TARP is minimal, as you note (as have I in the past when you weren’t thinking it was such a good idea).  The damage offset by the Fed’s intervention (and the amount of money it has cost us, and the continued weakness of the economy that is a side-effect) we may never know, but it is supposed to be in the trillions of dollars.

  3. Except that it was proposed months ago, more than once. And both times the Republican proposals were criticized by Democrats as “demoralizing” and as routine “disheartening and baseless attacks” against civil servants. Among the critics:

    … Delaware Democratic Sen. Ted Kaufman chastised the Republicans, saying they were using incorrect information on federal pay to scapegoat hardworking employees. […] “Now is not the time to talk about laying off federal workers, or freezing their pay,” he said. “We should be talking — seriously and on this floor — about how to invest in recruiting the next generation of federal employees.”

      1. Except that’s not what’s happening. The Republicans seem to be the only ones applauding Obama’s move. They’ve welcomed him aboard their deficit-cutting bandwagon and are quite happy re-establishing the middle ground in their direction. Republicans aren’t the hypocrite opportunists here.

            1. I can’t say I’m super encouraged but 2010-12 is just as long as 2008-10, so … stuff happens, LB.  You may not be feeling so smug next time around.  

              1. just relieved that Obama/Reid?Pelosi won’t be able to screw things up any worse for a while.

                As P.J. O’Rourke said so beautifully, this past election was a “restraining order” against the Dems.

  4. Doesn’t do much to get the Dems out of the GOP frame, but they seem to like it there.

    Symbolism can be important–but for all the use of the term ‘adult’ in self-descriptions by politicians, very few seem actually willing to lead a meaningful discussion on these matters.  Too often ‘symbolism’ is poli-speak for smoke and mirrors and illusionist tactics.  

    1. I start my look (and discussion) with where savings can be achieved.  On the spending side, we need to talk about the big items.  Should they all be cut?  Perhaps not.  But the discussion needs to start there.  Wars. ‘Defense’ spending.  Homeland ‘Security.’  Military spending has to be scaled way down.  

      And entitlements–some means-testing should be on the table, the retirement (or enrollment) age should be considered.  

      In any case, these are the places we need to begin any real discussion about spending cuts.  

      But talk about pork!  The Military-Industrial complex is well-ensconced in every congressional district in the nation, one way or another.  For all their tea party bluster, the new crop won’t be any more inclined to make tough calls than the current bunch.

      Revenue, of course, is the other grown up conversation we need to have.  Unfortunately one side has embraced Voo Doo and the other has allowed the discussion to be about whether some or total VooDoo is better.  

       

      1. Not paying for those TSA scanners alone would have pretty much covered the cost of this pay rate freeze.  $4b worth of security theater is not my idea of efficient spending.

        I’ve been wondering a lot lately just how caught up our various representative office-holders have to be in DC capitol-think that they continually vote for some of the things a lot of people feel are ridiculous.

        We can all, I’m sure, come up with ways to solve our deficit problem – we just need people in office who are willing to make the tough calls.  Such people seem hard to find.

  5. Ordinarily I would chalk it up to another premature concession by the WH.  But the action is just getting started on the expiration of the Bush tax cuts, further spending cuts, extending UI, and another jobs stimulus bill.

    To his credit, the President said in his press conference that we must go slow on reducing the deficit so as not to undermine the economic recovery.  He also outlined all the spending cuts he has made since assuming ofice.

    It is now up to the pubs to say what sacrifices the GOP will make.  I think the Dems will get the UI extension, but not much else, because of a lack of votes in the Senate.

    Bush era tax cuts will probably be extended for everybody who earns less than $1 million, and that is the most the pubs can hope for in the lame duck session.

    I’m still interested to see how Michael Bennet votes and the reasons he gives.

  6. How about, while Obama’s at it, he roll back federal employment numbers to the 2008 level? Government employment is the only employment category that is growing by leaps and bounds.  I realize every federal employee is a Democrat vote, but golly, sometimes even the Democrats need to sacrifice.

    1. Ashcroft, Alberto G, Cheney and the whole bunch of GW Bush puppets embedded some serious conserv-freak GOP underlings during the 2-term embarassment.

      Anyone remember Monica Goodling & Kyle Sampson?  Well there are more underwhelming unqualified moles that are keeping their heads down but toeing the party line behind the scenes.  Ya think those people turned Marilou?  Only an idiot generalizes and you’re generally living proof.  

    2. WASHINGTON — Big government is back.

      Since President Bush took office, the federal government’s domestic civilian workforce has increased by more than 79,000 jobs, nearly a 5 percent increase. And the number of government workers paid at least $130,000 annually has tripled.

      http://209.157.64.200/focus/f-…

          1. Wait – the head of the Federal Workers Union says they make less than their private-sector counterparts?

            Well, then.  That’s good enough for me.

            Come on, PR.

            1. “the government’s official pay analysis”

              The union official is doing the quote, but her source is the government itself.

              So I went to check out at least a part of the statement.  According to the article, VA doctor’s salaries have risen 25% in the past 5 years, from $111,000 to $179,500.  The average doctor in this country now makes $187,000 according to this Reuters article, and I’m guessing the VA’s tasks make it tend more toward the expensive specialties than the average doctor population.

              So – official government analysis plus confirming comparison of at least one segment of highly compensated Federal employees, versus your off-hand dismissal.  We report, you decide.

              2. Job Federal,     Private,   Difference.

                Airline pilot, copilot, flight engineer $93,690 $120,012 -$26,322

                Broadcast technician $90,310 $49,265 $41,045

                Budget analyst $73,140 $65,532 $7,608

                Chemist $98,060 $72,120 $25,940

                Civil engineer $85,970 $76,184 $9,786

                Clergy $70,460 $39,247 $31,213

                Computer, information systems manager $122,020 $115,705 $6,315

                Computer support specialist $45,830 $54,875 -$9,045

                Cook $38,400 $23,279 $15,121

                Crane, tower operator $54,900 $44,044 $10,856

                Dental assistant $36,170 $32,069 $4,101

                Economist $101,020 $91,065 $9,955

                Editors $42,210 $54,803 -$12,593

                Electrical engineer $86,400 $84,653 $1,747

                Financial analysts $87,400 $81,232 $6,168

                Graphic designer $70,820 $46,565 $24,255

                Highway maintenance worker $42,720 $31,376 $11,344

                Janitor $30,110 $24,188 $5,922

                Landscape architects $80,830 $58,380 $22,450

                Laundry, dry-cleaning worker $33,100 $19,945 $13,155

                Lawyer $123,660 $126,763 -$3,103

                Librarian $76,110 $63,284 $12,826

                Locomotive engineer $48,440 $63,125 -$14,685

                Machinist $51,530 $44,315 $7,215

                Mechanical engineer $88,690 $77,554 $11,136

                Office clerk $34,260 $29,863 $4,397

                Optometrist $61,530 $106,665 -$45,135

                Paralegals $60,340 $48,890 $11,450

                Pest control worker $48,670 $33,675 $14,995

                Physicians, surgeons $176,050 $177,102 -$1,052

                Physician assistant $77,770 $87,783 -$10,013

                Procurement clerk $40,640 $34,082 $6,558

                Public relations manager $132,410 $88,241 $44,169

                Recreation worker $43,630 $21,671 $21,959

                Registered nurse $74,460 $63,780 $10,680

                Respiratory therapist $46,740 $50,443 -$3,703

                Secretary $44,500 $33,829 $10,671

                Sheet metal worker $49,700 $43,725 $5,975

                Statistician $88,520 $78,065 $10,455

                Surveyor $78,710 $67,336 $11,374

                1. That was the other reason I targeted doctor salaries.

                  You mentioned that the number of Federal workers with salaries over $150,000 has doubled in the past 5 years – Federal doctors are a major component of that change.

                    2. But you are on fire today. Keep up the good work.

                      The number of federal workers earning $150,000 or more a year has soared tenfold in the past five years and doubled since President Obama took office, a USA TODAY analysis finds.

                    5. A quick read of the article provides a lot of issues we could discuss, but what jumped out for me was that Obama has already called for a pay freeze for federal workers.

                      I share your concern, and condemn, government corruption, waste, fraud and abuse. Just don’t try to blame all of that on Obama.

                      I don’t begrudge anyone, from the private to the government sector, making a great wage. Doesn’t the “invisible hand” of the market have influence in both sectors equally….or not? Honest question.

                      Finally, there will be a need for everyone, public and private sectors, to share in the pain to bring down the deficit. Both sides of the aisle have to come together and give up their sacred cows to do so.

                      Lets see where the leadership and compromie comes from. It’ll tell us a lot.

                    6. That’s the most civil, reasoned reply you’ve ever given me.

                      If you’re being serious, I’ll diary it on those topics (next week when I get back from a vacation with the wife – the first without kiddos!).

                      It does feel like a little bit of a trap.  If you’re just going to respond with the standard condescending insults, tell me now and I won’t waste everyone’s time.

                      I’m hoping it’s #1, though.  A “Kinder, gentler Sir Robin”.

                    8. How many of them now make over $150k doesn’t really matter to me.  The scenario with the doctors is likely prevalent throughout the statistic: doctors who were making an average of $111,000 per year and were underpaid compared to the private sector have since gone over the $150k mark.  For doctors, this is some 66,000 federal employees that may have crossed the magical $150k mark (some of that 66k are undoubtedly not making over $150k).  Have they all of a sudden started gouging the government (question of what’s fair pay for doctors aside)?  No – they’re making something approaching the market norm.

                      What matters really is that our government employees are compensated fairly for their work, and that the government spends enough money to hire competent people to do the job.

    4. In 2008, the Federal government employed between 2,734,000 and 2,755,000 (Jan and Dec 2008 numbers).  The October 2010 report puts Federal employment at 2,843,000; of that, about half of the increase can be attributed to Census workers still on temporary employment.

      The rest is probably military staff-up.

      1. Some of the remainder is staffing up the border patrol.

        Some of it is probably dealing with dispensing TARP and stimulus funds, and some of it probably has to do with the increased unemployment (processing claims, etc.).  These are expected increases in government during a downturn.  (Government tends to be counter-cyclical to the general health of the economy, and that increased spending in turn lessens somewhat the effect of the downturn.)

        The rest is probably military.

        I know some people think it’s fun to bash the current administration, but if you’re coming to the table with ideas (especially ones critical of government), please get the facts before doing so.  This government has been a model of restraint – some might even call it too conservative.

  8. I do not think a Doctor making about $200.000. year can be considered “overpaid” in either the public or private sector. The definition of overpaid is not somebody who makes more than you.  Most Federal employees make A LOT less than that. If you think a correctional officer in a federal prison is overpaid at $35.000, a year, (I started at $16.040, in 1985) you could go to USAJOBS.com, and submit an application.  These are not the people getting million dollar bonuses or those who lose count of how many homes they own. Clearly most people understand that.

    The bottom line is that Federal employees are middle and working class people trying pay their mortgage like everybody else.  Because private sector wages have stagnated and been driven down by right wing economic policies does not make it ok to target government employees.  That is not say that I disagree with the pay freeze.  My concern is that is stops there. It seems like this is the tip of the iceberg for scapegoating government workers.  It is pretty sad the right wing has demonized public service by labeling government as nothing more than a threat to personal liberty. This evolves into pitting people against each other who should be looking at where these politicized agendas are coming from. And to the person who said, “most government employees are Democrat” I would definitely suggest you visit a military base, law enforcement agency or any other government building.  That statement was a joke, right?    

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