Tag: federal pay

Federal Salaries Explode

That’s the subject of a USA Today analysis, which reveals an outrageous increase in salaries at the top levels of the federal workforce. I’ve been complaining about excessive federal pay for some time based on one set of data, and now Dennis Cauchon provides strong support for my thesis using a different set of data.

Cauchon finds that since the economy fell into recession, the number of federal workers earning more than $150,000 has more than doubled. The federal government has become extremely bloated and top heavy, even as families and businesses across the nation have had to tighten their belts. With 383,000 workers earning six-figure salaries, the government has become an elite island of overcompensated administrators immune from the competitive job realities of average families.

There are a remarkable 22,000 federal civilians earning salaries of over $170,000, illustrating that Big Government works for the benefit of well-off insiders, not average Americans. And Cauchon only looks at salaries and wages. Average annual federal benefits are more than $41,000, which pushes total federal compensation even further ahead of the private sector average.

The Bush administration let federal pay and benefits grow completely out of control, as it did with other areas of federal spending. President Obama has an opportunity to fix these problems. He should call for a multi-year freeze on federal pay, work to overhaul a system that moves workers up the pay scales too rapidly, and begin purging the upper ranks of federal management.

Here are some of my recent analyses of federal pay:

Obama to Seek Cap on Federal Pay Raises

USA Today reports that President Obama is seeking a cap on federal pay raises:

President Obama urged Congress Monday to limit cost-of-living pay raises to 2% for 1.3 million federal employees in 2010, extending an income squeeze that has hit private workers and threatens Social Security recipients and even 401(k) investors.

…The president’s action comes when consumer prices have fallen 2.1% in the 12 months ending in July, because of a massive drop in energy prices. The recession has taken an even tougher toll on private-sector wages, which rose only 1.5% for the year ended in June — the lowest increase since the government started keeping track in 1980. Private-sector workers also have been subject to widespread layoffs and furloughs.

Last week, economist Chris Edwards discussed data from the Bureau of Economic research that revealed the large gap between the average pay of federal employees and private workers. His call to freeze federal pay “for a year or two” received attention and criticism, (FedSmith, GovExec, Federal Times, Matt Yglesias, Conor Clarke) to which he has responded.

As explained on CNN earlier this year, the pay gap between federal and private workers has been widening for some time now: