The move would save $2 billion in the 2011 fiscal year that ends Sept. 30 and $5 billion by the end of two fiscal years. Over 10 years, it would save $60 billion, according to Jeffrey Zients, deputy director of the Office of Management and Budget and the government’s chief performance officer.
While Congress has final word on federal pay, the president’s freeze seemed certain, given the political environment; if anything, lawmakers may go further by cutting pay. Republicans noted that some of them had called for a pay freeze for months. “We are pleased that President Obama appears ready to join our efforts,” said Representative Eric Cantor of Virginia, the incoming Republican majority leader.
With Republicans vowing to make deep budget cuts, Mr. Obama must decide how far he is willing to go and where he will draw a line. He pointed out that he has already called for a three-year freeze on domestic discretionary spending, found $20 billion in savings from eliminating or scaling back unnecessary programs, identified $150 billion in improper payments.
The federal work force is an obvious first target, if one fraught with political risk for a president who relies on union support. Opponents of big government have been trying to build a political case that federal employees are being overpaid. In a report in June, Chris Edwards of the Cato Institute, a libertarian research organization in Washington, found that federal civilian workers had an average annual wage of $81,258 in 2009, compared with $50,464 for the nation’s private-sector workers. Average federal salaries rose 58 percent from 2000 to 2009, compared with 30 percent in the private sector.
Union leaders, though, cited other data showing that federal workers were paid 24 percent less than their private sector counterparts, and they accused Mr. Obama of playing politics. “Sticking it to a V.A. nurse and a Social Security worker is not the way to go,” John Gage, president of the American Federation of Government Employees, said in an interview.
David M. Herszenhorn contributed reporting.
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