Thursday, May 23, 2013

Why Are Federal Execs Getting Bonuses ?

(Image was found at website Slate.com.)

As you must know by now, the "sequester" budget cuts are kicking in. These forced federal budget cuts affect every government agency -- and it will result in not only a cut in services for the Americans who depend on those agencies, but also will result in furloughs for many federal workers (which equals a pay cut). Well, nearly all federal workers.

There is a class of federal employee that is immune to these cuts, and actually will be getting huge bonuses for their job performance. They are the Senior Executive Service. These employees, comprising about 1% of federal workers, are the top executives (except those appointed agency heads) of government agencies. Last year, these government executives received 6300 cash bonuses that totaled about $78 million dollars (for an average bonus of about $12,381 each).

These are not low-paid workers either. Their salaries are far more than most government workers get -- ranging from $119,000 to $179,000 a year (more than two to three times the median wage of workers in the United States). There are those who say the bonuses are necessary, to keep these "best and brightest" from leaving to find better jobs in the private sector (the same argument used to overpay corporate CEOs). I disagree. These people are being paid far more than most Americans, and if they want to leave those jobs we should let them. There are many competent people who would be happy to do those jobs in their place.

I don't have any problem with those bonuses in good economic times, but these are not good economic times. If other government agency workers are getting furloughed (pay cuts), the least these executives could do is to forgo those bonuses. The sequester cuts should be felt across the board, and no one working for the government should be immune -- and it should be understood that no one gets a bonus. It's bad enough that those in Congress didn't get pay cuts due to the sequester (or at least voluntarily give a portion of their salaries back), but at least they aren't getting bonuses.

And Republicans can't blame these scheduled bonuses on President Obama. These bonuses are given because Congress, back in 1978, dictated they should be given. But in the face of the new Republican-imposed austerity, the bonuses should be discontinued (at least for now).

Fortunately, there are some in Congress who agree. Senator Claire McCaskill (D-Missouri), along with Senator Tom Coburn (R-Oklahoma) and Senator Ron Johnson (R-Wisconsin), is introducing a bill to stop the bonuses from being given for as long as the sequester is in effect. McCaskill said, "The idea that some of the highest paid federal government employees could be getting bonuses while others are being furloughed is outrageous."

I agree with McCaskill. It is outrageous, and it should not happen.

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