Federal Daily - July 11, 2008
Senate Panel Clears 3.9 Percent Raise for Feds
The Senate Appropriations Financial Services and General Government Subcommittee approved legislation
calling for a civilian pay raise of 3.9 percent for the next fiscal year—a hike that matches
that previously passed by the House of Representatives for military servicemembers, and is 1 percent
higher than the Bush administration’s proposed raise for civilian pay. The American Federation
of Government Employees (AFGE), along with other major federal employee unions, expressed satisfaction
with the move—which takes the raise one step closer to reality. “AFGE is grateful to Senate
Appropriations Financial Services Subcommittee Chairman Dick Durbin (D-IL) for giving federal workers
the help they need,” said AFGE National President John Gage. “With astronomical gas prices,
food prices spiraling out of control and an economy that is sinking fast, this pay raise will help
keep hard working federal workers afloat.” The raise was part of the FY 2009 Financial Services
Appropriations Bill. “This increase shows Congress is being realistic about what it takes to
recruit and retain a capable and talented federal workforce,” said Richard N. Brown, the National
President of the National Federation of Federal Employees. “This increase is not going to eliminate
the pay gap between the federal and private sectors, but it is a fair one-year increase.” For
more, go to: www.afge.com/index.cfm?page=PressReleases&PressReleaseID=870
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Bill Proposes “Office of Insurance Information” At Treasury
A subcommittee of the House Financial Services Committee approved a bill that would create a new Office
of Insurance Information as a unit of the Department of the Treasury. The office, according to backers
of the bill, would compile and analyze useful information about insurance issues, issue reports and
help guide industry and government on insurance issues. “Today’s vote by the House Subcommittee
on Capital Markets is a recognition that an immediate need exists for federal expertise regarding the
important national and international insurance trends in today’s rapidly changing and globalized
marketplace,” said Marc Racicot, current president of the American Insurance Association, and
former Republican governor of Montana. “This office will help the U.S. Treasury analyze the
important societal role that insurance plays in the domestic economy and will provide urgently needed
leadership by the U.S. in international insurance regulatory policy making and agreements.” The
language to create the new unit is part of a bill known as the Insurance Information Act of 2008 (H.R.
5840), backed by Reps. Paul Kanjorski, D-Pa., Deborah Pryce, R-Ohio, and others.
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Fired Army Employee Tells Panel of Alleged Contractor Fraud
Charles M. Smith, a former Pentagon auditor, spoke July 9 before the Democratic Policy Committee—an
all-Democratic panel in the Senate. Smith was shunted aside, allegedly for insisting on challenging
over $1 billion in “questionable charges” invoiced by KBR—a Texas-based contractor
providing housing, food and other services to servicemembers abroad. Smith had worked as a civilian
Army employee for over 31 years. According to Smith, after he was removed from his position of oversight,
the Army replaced him with a private contractor—RCI Holding Corp.—which was tasked to review
the same charges. But RCI instead ignored audit findings showing many of the charges to be sketchy. “At
a time when the country is in more than $9 trillion in debt, it is absurd that KBR has repeatedly gotten
away with gouging taxpayers and cheating our troops,” said Sen. Bernie Sanders, I-Vt. For more,
go to http://www.sanders.senate.gov/news/record.cfm?id=300331
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