Government shutdown: Cuts in federal pay and benefits targeted as part of budget compromise, sources say
By Ed O'Keefe and Eric Yoder
April 8, 2011
Congressional and White House budget negotiators hoping to pass a deal to fund the government by the end of Friday to avoid a government shutdown are considering $1.3 billion in savings by cutting the pay of at least some federal employees, possibly by denying some bonuses and step increases, according to a Republican aide familiar with the GOP offers and a senior administration official.
If enacted, those cuts would be the first cuts to the federal pay and benefits system made as part of the ongoing effort to seriously curtail goverment spending.
.... the denial of bonuses and step increases would be a significant political victory for congressional Republicans, many of whom last year campaigned on the idea of cutting the pay and benefits of federal employees. Many GOP candidates and their supporters strongly believe that the feds have been unfairly rewarded and protected by government-backed job security during the economic downturn.
Eager to demonstrate he understood those frustrations after November’s midterm elections, President Obama froze the pay of federal employees for two years — a move cheered by a majority of Americans who believe federal workers are overpaid, according to a Washington Post poll from last year. The move proved wildly unpopular with the rank and file, many of whom backed Obama’s presidential campaign.
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