Jeryl Bier points to an example of the pay increase for average government executives:
“Not much of an increase, but an increase all the same,” Bier notes.
And the timing isn’t great either: Just as President Obama and Congress try to avert going over the “fiscal cliff,” he doles out pay increases to federal workers.
UPDATE: According to a senior Republican congressional aide who has reviewed the executive order and consulted with the Congressional Budget Office, Obama’s pay raise will cost $11 billion. “The CBO told us that the President’s pay raise for federal workers will cost $11 billion over ten years,” says the aide.
The aide explains, “On the cost-estimate, CBO says the (discretionary) cost of the .5% pay-hike the President is calling for in the Exec Order – relative to a freeze – is about $500m in FY 2013 and $11 billion over the ten years from FY 13 – FY 22. The reason why the FY ’13 savings is only $500 million is because the pay hike as proposed by the President’s Exec Order would not go into effect until April 1st, 2013 – when the current CR expires. So it only covers half the fiscal year. The annualized cost of the pay hike is about $1 billion/year.”