Changes to the Office of Management and Budget's list of
defined metropolitan areas is causing discomfort for federal
employees in Monterey, Calif., who may lose locality pay status if
the Federal Salary Council adopts the new areas in October.
Federal workers in 31 metropolitan areas, ranging from Atlanta
and Washington to Huntsville, Ala., receive special locality pay,
based on the cost of labor in each city. In the past, locality pay
areas have been based on metropolitan statistical areas and
consolidated metropolitan statistical areas (MSAs) that OMB
defines according to population, population density and commuting
information. Monterey County, Calif., was part of the San
Francisco metropolitan statistical area until OMB revised its
areas based on new information from the 2000 census. On Wednesday,
advocates for federal employees in Monterey County told council
members that the loss of locality pay would devastate the federal
workforce in that community.
“A change in Monterey County's locality pay status threatens
not only the employees' well-being, but threatens the viability of
the agencies and their ability to fulfill their mandate,” Rep. Sam
Farr, D-Calif., told council members Wednesday. “Frankly, nothing
about Monterey County and its federal employees has changed since
the council decision three years ago. What has changed is a line
on a map, drawn by an agency that has no jurisdiction over
locality pay or federal employees.”
Monterey received its locality pay status in 1999 and federal
employees in that area began earning the higher salaries in
January 2001. In 2003, locality pay for that area was 21.08
percent. The loss of that extra income is likely to send some
federal employees looking for other employment, advocates
testified Wednesday. The change would affect about 4,000 federal
employees.
“Our most recent employees came here making their employment
decisions on the availability of locality pay,” testified Gary
Dent, president of the Federal Managers Association chapter in
Monterey. “They have expressed a deep sense of betrayal with the
current discussion about our losing the locality pay. They feel
they were recruited with all cards on the table and now the
conditions of their employment are being changed arbitrarily and
capriciously.”
The Federal Salary Council, an OPM-run group of government
officials and federal union leaders, makes an annual
recommendation on locality pay areas to the President's Pay Agent,
a group that includes OPM Director Kay Coles James, Labor
Secretary Elaine Chao and OMB Director Joshua Bolten. The Pay
Agent then recommends a course of action to the president. This
year, the group decided to hold off on making changes to locality
pay areas until OMB released its new list of MSAs in June.
A working group within the council is researching the new areas
and is expected to make recommendations to the full council in the
next few weeks. The council may adopt the new MSAs, stick with the
old MSAs or develop its own locality pay areas.
The Federal Salary Council is expected to meet again in early
October.
