Happy budget day! I’m running from one press conference to another — but a couple of quick notes from the just-ended press conference with OMB director Peter Orszag.
First, he offered a couple of thoughts on the proposed 1.4 percent pay raise for civilian employees and military personnel. The raise is lower than most federal pay raises — lower even than last year’s 2 percent raise, which was widely criticized as too small.
But it’s also equal to the White House’s prediction for inflation in 2011: Christina Romer, the chair of the White House Council of Economic Advisers, said the CEA expects 1.4 perent inflation in 2011.
So Orszag advised feds, essentially, not to complain about the raise.
Frankly, I think to a lot of Americans, [1.4 percent] sounds pretty good. It reflects a formula which is used to compute wage and salary increases, and it’s lower than what it has been in the past because inflation is lower than what it has been.
Orszag also said the 2011 budget “begins to integrate” the high-priority management priorities agencies identified in response to an October memo from OMB. “Progress towards those goals will be reflected over time in funding for each agency,” Orszag said.