As a Federal Employee and Taxpayer – I’m Tired of Paying for Your HIGH Salaries!

Office of Management and Budget

Office of Federal Procurement Policy Cost Accounting Standards Board Executive Compensation, Benchmark Maximum Allowable Amount

For 2011, the allowable costs were set at $763,029!

The allowability of the compensation costs for the senior executives of Government contractors is capped by statute (10 U.S.C. 2324(e)(1)(p)  and 41 U.S.C. 256(e)(1)(p)) at a benchmark executive compensation amount.  The benchmark amount does not limit the amount of compensation that an executive may otherwise receive.  However, the compensation costs in excess of the benchmark amount are unallowable costs for Government contract purposes.  While the benchmark executive compensation amount is the maximum allowable amount of compensation costs for certain executives of Government contractors, the benchmark amount as applied to a particular executive is not necessarily a safe harbor.  Without regard to the benchmark compensation amount, the allowable compensation costs for each affected executive are still subject to the Federal Acquisition Regulation and the Cost Accounting Standards as applicable and appropriate to the circumstances, e.g., reasonableness and allocability.  The Executive Compensation Cap is implemented at FAR 31.205-6(p). Continue reading “As a Federal Employee and Taxpayer – I’m Tired of Paying for Your HIGH Salaries!”

The U.S. Economy Is Shrinking: Now Is the Time to Worry


01/31/2013 William Spriggs

Photo courtesy of Wikimedia commons.

MAD magazine’s Alfred E. Neuman was always shown with a grin on his face, captioned, “What, me worry?” Well, now it is time to worry.

The release of the advanced GDP numbers—measuring all goods and services produced in the United States—for the past three-month period of 2012, shows the economy shrinking. Why? Well, personal consumption—all those Christmas gifts—grew by 2.2%, a growth rate faster than in the preceding quarter. Non-residential fixed investment, what businesses are buying to increase their economic activity going forward, jumped by 8.8%, almost six times faster than in the preceding quarter, and imports dropped significantly (a drain on the system, since that is money going abroad), so that the net effect of exports and imports was a boost of 5.7% to the economy. So, if people are buying more, business is investing more and imports aren’t sucking the wind out of the economy’s sails, where did we go wrong? Federal expenditures plummeted by 15%. The big chunk of the drop from federal expenditures came in defense expenditures. Continue reading “The U.S. Economy Is Shrinking: Now Is the Time to Worry”

Will There Be a Pay Raise This Year?

Federal Salary Council

First of all, Federal employees do not get “cost-of-living” adjustments to their pay.  Rather, the Federal Salary Council (“FSC“), an advisory body of the Executive Branch of the United States Government, established under the provisions of the Section 5304(e)(1) of Title 5 of the United States Code, provides recommendations on the locality pay program created by the Federal Employees Pay Comparability Act of 1990.

The locality pay program provides for localized pay differentials (also known as comparability payments) for Federal employees paid under the General Schedule (GS) who work in the 48 CONtinental United States (CONUS).

The President of the United States appoints the members of the FSC, which include three experts in labor relations and pay policy and six representatives of Federal labor unions and other employee organizations representing large numbers of GS employees.
Currently, AFGE National President J. David Cox and Public Policy Director Jacqueline Simon serve on the FSC, having been appointed by President Barack Obama on November 9, 2010.

The FSC submits recommendations on the locality pay program to the President’s Pay Agent. The FSC’s recommendations cover the establishment or modification of pay localities, the coverage of salary surveys (conducted by the U.S. Department of Labor, Bureau of Labor Statistics) used to set locality pay, the process for making pay comparisons, and the level of comparability payments that should be made.
The FSC’s recommendations are advisory only and are not binding on the President.
However, it is the President’s Pay Agent makes the final determination as to the establishment or disestablishment of locality pay areas and also makes the final recommendation to the President regarding the amount of the annual Federal pay increase (if any).

History of the FY 2013 Pay Raise

On January 6, 2012, President Obama proposed a 0.5 percent pay raise for Federal employees, that would be reflected in its FY 2013 budget proposal to Congress.  Here is what a O.5% pay raise looks like for various example salaries, versus the previous pay raise which Federal employees received amounting to 2.01% for FY 2010 (our last pay raise of record).    Continue reading “Will There Be a Pay Raise This Year?”

OMB Report Pursuant to the Sequestration Transparency Act of 2012 (P. L. 112–155)

OMB Report Pursuant to the Sequestration Transparency Act of 2012 (P. L. 112–155)

Click on the above link ( and in the “bookmarks” or sidebar, find the Environmental Protection Agency and click on it for a two page summary from the White House Office of Management and Budget.

Appendix A.  Preliminary Estimates of Sequestrable and Exempt Budgetary Resources and Reduction in Sequestrable Budgetary Resources by OMB Account – FY 2013 (Based on sections 251A, 255, and 256 of the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA), as amended) (amounts in millions)