Quote:
Originally Posted by Riot
In many companies, not only government, COLA and base pay step schedules for positions are separate, and calculated separately in the budget process. See unions.
A starting policeman may get $30,000 a year, after 1 year $33,000, after 5 more $38,000. That is separate from COLA raises (which are variable tied to economy)
Seeing the base pay step schedules stay normal, while the COLA has been taken away, is absolutely a net loss for the employee. If they were hired thinking they would get a 4% raise every year, but now are only getting 3% (their step raise, no COLA) - yeah, they have had part of their pay frozen.
In this case, 1.3 billion is not paid out on the bottom line of the budget. The normal raises going on as part of that budget doesn't change the bottom line, the 1.3 billion was calculated on top of, inclusive, of that.
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Later on in the article was a GOP offering,
But Rep. Jason Chaffetz, R-Utah, called the retention of step increases a hole in Obama's plan. He also said the administration should freeze hiring and reduce the federal payroll from
$447 billion to $400 billion.
"Somehow, someway I think this country can survive on just a $400 billion payroll," Chaffetz said. He is the ranking Republican on the House Oversight and Government Reform subcommittee on the federal work force, and could become chairman when Republicans take control of the House next year."
That's $47 Billion saved per year or like Obama likes to use $470 Billion saved over 10 years. And forget about Cost of Living Adjustments.