Federal Managers Association

Please visit FMA’s Web site at www.fedmanagers.org for more information on the FMA proposal.

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WHAT’S HAPPENING ON CAPITOL HILL?

CIVILIAN PAY RAISE PASSES HOUSE, AT PARITY WITH MILITARY

In a major victory for the Federal Managers Association (FMA) and federal employees across the board, the House of Representatives on Thursday approved a bill securing a 2008 pay raise of 3.5 percent as part of the 2008 Financial Services Appropriations bill, H.R. 2829. The raise is on par with the amount authorized for members of the military in the FY08 National Defense Authorization Act (H.R. 1585) . The pay increase moved forward despite criticism from the Executive branch.

The Bush administration requested only a 3 percent pay raise for non-military federal employees, and continues to argue that the cost to the government of such an increase is unnecessary. Citing concerns that such a raise will move agencies away from pay-for-performance systems, President Bush released a statement asking for reconsideration. For many federal managers and employees, however, the raise indicates a shift in perception that recognizes the significant contributions of all employed in civil service.

“We at the Federal Managers Association are very pleased with the actions of the House,” FMA National President Darryl Perkinson stated. “Pay parity ensures that the valuable work undertaken each day by our nation’s civil servants does not go overlooked and unrewarded.”

Members of the House in support of the bill argued that the pay raise will be competitive with that found in the private sector and is vital to recruiting and retaining the best workers.

Other appropriations bills have been on the move in the past two weeks as well. The Energy and Water Appropriations bill (H.R. 2641) passed the Senate Appropriations Committee vote last week, along with the State/Foreign Operations Appropriations bill (H.R. 2764), which passed through the House. The Interior and the Environment Appropriations bill (H.R. 2643) passed the Senate Committee vote two weeks ago and moved through the House this past week. The Labor, Health and Human Services, and Education Appropriations bill (S. 1710) passed the Senate Committee vote two weeks ago, along with the Legislative Branch Appropriations bill (H.R. 2771, S. 1686) which also moved through the House.

FORMER EPA HEAD TESTIFIES ON AIR QUALITY CLAIMS AFTER 9/11

On June 25, the House Judiciary Subcommittee on the Constitution, Civil Rights and Civil Liberties held a hearing to investigate the Environmental Protection Agency’s (EPA) handling of air quality issues following the attacks on September 11, 2001. This marks the first time that former EPA Administrator Christine Todd Whitman has testified before a congressional committee to answer questions about the federal government’s handling of health concerns immediately following the terrorist attacks.

In the days following the attack, Ms. Whitman informed the public on numerous occasions that the air over Lower Manhattan was generally safe. However, she made clear at the hearing that the government warned those helping with the rescue and clean up efforts that they should wear respirators while at ground zero. In the face of severe criticism, Whitman maintained that she was operating only with the knowledge provided to her by scientists and professionals and that she in no way intended to misinform the public. "These were not whims, these were not decisions by a politician. Everything I said was based on what I was hearing from professionals," said Whitman during the hearing.

Chairman Jerrold Nadler (D-N.Y.) requested the hearing because of the mounting health problems being experienced by first responders and residents of his district. In his opening statement Congressman Nadler voiced his frustration saying, “I have, unfortunately, had to spend the better part of the last five plus years attempting to cajole the federal government into telling the truth about 9/11 air quality, insisting that there must be a full and proper cleanup of the environmental toxins remaining in apartments, workplaces, and schools that, to this day, are poisoning people, and demanding that the government provide long term, comprehensive health care to those already sick -- be they first responders or area residents, workers or school children”.

On June 20, the Senate Environment and Public Works Subcommittee on Superfund and Environmental Health held a hearing entitled “ EPA's Response to 9-11 and Lessons Learned for Future Emergency Preparedness”. This hearing also examined EPA’s response to air quality concerns after 9/11 with an emphasis on examining EPA’s Test and Clean program which is currently being administered in Lower Manhattan. The program measures the level of four contaminates linked with dust from the collapse of the World Trade Center towers.

Panel member Nina Lavin , a New York City resident living in the vicinity of where the towers once stood, told the subcommittee of the fear and helplessness still being experienced by residents of Lower Manhattan. “ I do not always remember the precise dates of events anymore and the story of what happened downtown is hard to summarize in one statement. But what remains crystal clear is that Christie Todd Whitman’s words on September 18, 2001, assuring New York and the nation that ‘the good news is the air is safe to breathe,’ was reckless and false and set dangerous chaos in motion for all of us living downtown.”

HOUSE COMMITTEE PASSES COLLEGE COST REDUCTION ACT

The College Cost Reduction Act of 2007 ,H.R. 2669, which was recently introduced by Rep. George Miller (D-Cali.) passed the House Committee on Education and Labor. The College Cost Reduction Act, which is being advertised as the largest investment in higher education since the GI bill, would do so at no new cost to taxpayers by cutting the subsidies paid by the federal government to lenders in the student loan industry, according to Rep. Miller.

The College Cost Reduction Act would provide loan forgiveness to first responders, law enforcement officers, firefighters, nurses, public defenders, early childhood educators and many others. The legislation would also provide those in public service with loan forgiveness after 10 years of service to their country.

H.R. 2669 would limit loan repayments to no more than 15 percent of an individual’s discretionary income, cut interest rates, and increase loan amounts. The legislation would also increase the maximum Pell Grant, provide upfront tuition assistance for those undergraduates who commit to teaching in public schools in areas of need, and includes language to encourage and reward public service.

“This is a tremendous, historic step towards realizing the goal of making college affordable for every qualified student in the country,” said Rep Miller. “For years, college costs have been growing rapidly, far outstripping families’ ability to pay them. With this bill, we are saying that no one should be denied the opportunity to go to college simply because of the price.”

HOUSE PANEL HOLDS HEARING ON MANAGEMENT AT DOD

The House Armed Services Committee recently held a hearing on the structure, process and tools for improving management at the Department of Defense (DOD). Testifying before the committee were Deputy Secretary of Defense Gordon England, Principal Deputy Under Secretary of Defense Jack Patterson and Deputy Under Secretary of Defense Paul Brinkley.

In his opening statement, Chairman Ike Skelton (D-Mo.) highlighted many of the problems with management practices at DOD. Additionally, the Government Accountability Office (GAO) has placed some DOD programs on their “High Risk” list for questionable management practices. In light of the management troubles at DOD, Congress is considering legislation that would create the position of chief management officer to help get these programs under better control.

“DOD has acknowledged that it has significant management challenges, including managing people and business systems at over 3,000 locations worldwide; managing $1.4 trillion in assets and $2.0 trillion in liabilities; and managing annual operating costs in excess of $700 billion,” said Skelton. “In 2005, GAO designated DOD’s approach to business transformation as high risk. These programs are extremely complex undertakings involving literally thousands of moving parts. Their success depends on careful management, yet the GAO has also identified significant management weaknesses which have impeded the Department.”

Deputy Secretary England recognized the many difficulties at DOD but said that much of that was from over regulation and legislation. He made it clear that he did not feel a chief management officer was necessary and in fact would just make the management structure at DOD more rigid. Deputy Secretary England continued to say, “While it may appear counterintuitive to some, an organization of this size and scope needs to have a high degree of management flexibility and largely decentralized operations with authorities and responsibilities distributed throughout the enterprise, down to the lowest effective management level. Mandated organizational constructs tend to impede rather than enhance organizational effectiveness.”

DHS FINANCIAL MANAGEMENT SYSTEM “DEAD,” SAYS AGENCY

The Senate Homeland Security and Governmental Affairs Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security convened on June 28 th to discuss the financial management system at the Department of Homeland Security (DHS). The hearing, titled “Meeting the Challenge: Are Missed Opportunities Costing Us Money?”, focused on failed attempts by DHS to implement its Electronically Managing Enterprise Resources for Government Effectiveness and Efficiency (eMerge 2) program, which was designed in 2004 to integrate financial management systems across the department.

Chairman Thomas Carper (D-Del.) was distressed that DHS recently declared eMerge 2 dead after $52 million was spent trying to make it operational. However, he understood that if the program was destined to fail then DHS made the right move by cutting off investment now. Senator Tom Coburn (R-Okla.) echoed Carper’s dismay at the direction DHS was heading with their efforts to develop a successful financial management system.

Presenting testimony were two members of the Government Accountability Office (GAO), Director of Financial Management and Assurance McCoy Williams and Chief Technologist Keith Rhodes, and two DHS employees, Chief Financial Officer David Norquist and Chief Information Officer Scott Charbo.

“The Department of Homeland Security has a bad track record when it comes to spending taxpayer dollars efficiently and effectively,” Sen. Carper said. “Congressional oversight is imperative to ensure the Department of Homeland Security takes immediate, corrective action to ensure funds are not wasted in its financial management systems modernization efforts that support its mission to protect nearly 300 million Americans after 9-11.”

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WHAT’S HAPPENING IN THE EXECUTIVE BRANCH?

OPM ISSUES GUIDANCE ON COMBATING IDENTITY THEFT

The Office of Personnel Management (OPM) recently began the process of issuing guidance to government agencies with the intent to help safeguard federal employees’ Social Security Numbers (SSNs) from identity theft and fraud. The two-part plan proposed by OPM Director Linda Springer seeks to eliminate the unnecessary use of SSNs as identifiers and reduce the theft or loss of personal information by strengthening protection.

In the OPM memorandum outlining the plan, Springer called this guidance the “first step in protecting the personal identity of Federal employees,” going on to say that each agency must be accountable for their employees’ protection. Springer also stressed the importance of a government-wide employee identifier, noting that efforts are currently underway to develop such a tool. This identifier would replace SSNs as the lead employee identifier.

Vital to the success of the OPM proposal is active involvement by agency heads, who must continually update any member of the office that deals with personal records on new regulations and requirements developed by OPM and their respective agency. Common among federal agencies is the unnecessary request of SSNs, and Springer pointed at agencies to spearhead this security threat.

All aspects of the OPM guidance plan, according to Springer, are in line with the President’s Identity Theft Task Force. More information on the OPM memorandum can be found at www.chcoc.gov.

PAY-FOR-PERFORMANCE SYSTEMS IMPROVE IN SES

A new report by the Office of Personnel Management (OPM) indicates government agencies have improved upon connecting senior executive’s salaries and awards with job performance. The OPM report focuses on Senior Executive Service (SES) employees working under pay-for-performance systems in over 25 agencies and compares data to a similar report published in 2004.

OPM received data from 7,137 SES employees in fiscal year 2006, and while the average salary adjustment (3.1 percent) was down compared to past years, performance evaluations influenced the allocation of pay to a much greater extent. SES employees earning top ratings, 44.7 percent in total, received an average salary adjustment of 3.7 percent. Sixty-seven percent of senior executives received performance awards, with the corresponding payouts averaging $13, 292. NASA led all agencies with an average payout of $17,139 to award recipients. Career SES employees receiving minimally successful or unacceptable ratings received no salary adjustment.

Senior Executives Association (SEA) president Carol Bonosaro commented to GovExec.com that too large a gap exists between performance-based salary adjustments and awards payouts. Bonosaro said that in a system where pay adjustment is often minimal, performance awards play an increasingly critical role. For the system to improve, Bonosaro continued, OPM must continue studies which address this gap.

A full copy of the report can be found at www.opm.gov.

ANNUAL TELEWORK REPORT RELEASED BY OPM

The Office of Personnel Management (OPM) recently released its annual telework report, The Status of Telework in the Federal Government, to Congress. The report examines the attitudes towards and use of telework by federal employees and their agencies.

In 2001, there were 72,844 federal employees utilizing this workplace flexibility tool. By 2004, that number had almost doubled to 140,694 teleworkers. Given the benefits provided by alternative workplace stations to both the employer and the employee, it is no surprise that the number of teleworkers increased so rapidly from 2001 to 2004. In 2005, however, there was a decrease in the number of telecommuters to 119,248. According to OPM, the decrease in federal employees using telework was the result of more stringent reporting criteria from that of previous reports.

"I am encouraged by the number of the more-senior employees - who occupy the majority of management positions - taking advantage of telework," said OPM Director Linda M Springer. "It logically follows that they are setting an example by their personal use of telework, and the benefits derived from spending less time on the road and more time with their families and friends will entice those they supervise to become teleworkers themselves."

“With growing acceptance of telework more federal employees are seeing the benefits telework provides. It is a valuable tool that can be used by the federal government to reduce energy consumption, alleviate traffic congestion and most importantly allow more federal workers the opportunity to spend time with their families instead of spending that time commuting in traffic,” commented FMA National President Darryl Perkinson

For more information on the report please visit: www.opm.gov.

OMB DIRECTOR RESIGNS, BUSH NOMINEE UNDER FIRE

Office of Management and Budget (OMB) Director Rob Portman announced his resignation on Tuesday, citing his desire to spend more time with his family as the leading factor in his decision. President Bush hopes to replace Portman with former House Budget Chairman Jim Nussle, a Republican from Iowa, and if the turnover process runs smoothly, Nussle will be able to begin the fiscal year 2009 budget process from scratch.

Portman served as Director of OMB for a little over a year after leaving his position as U.S. Trade Representative, and an OMB spokesperson hinted at the possibility of a push for statewide office in the future. For now, Portman seems content with freeing up time for his family, offering no other insight into his immediate future. He will remain in his current position through July as the Senate deliberates on Nussle’s nomination.

Known and admired for his bipartisan approach to politics, Portman gathered many supporters in both parties in his short tenure as Director. Nussle, on the other hand, has faced significant criticism since his nomination. Several Democrats, including House Majority Leader Steny Hoyer (D-Md.) and Rep. James Moran (D-Va), have expressed concerns based upon Nussle’s past actions as a Representative of Iowa. Senate Budget Chairman Kent Conrad (D-N.D.), went so far as to say he would not bring the nomination of Nussle to vote in his committee. Still others in Congress feel that his transition will be seamless.

“I want to take this opportunity to thank Director Portman for his service at OMB,” stated FMA National President Darryl Perkinson. “I wish him and his family all the best when he returns to Ohio.”

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GET INVOLVED AT THESE EVENTS!

REGISTRATION FOR FMA’S 16TH MID-YEAR CONFERENCE NOW AVAILABLE!

Please join us for FMA’s 16th Mid-Year Conference and Management Training Seminar, August 22 – 25, 2007 in San Francisco, California! This year’s Conference, Federal Management: A Golden Gate to a Career of Service , will be held at the Mark Hopkins Hotel. Conference attendees will receive a special room rate of $130/night. You can make reservations by calling the hotel at 1-800-381-9552. Be sure to ask for the special rate for the Federal Managers Association group, code V65. Reservations must be made by July 21, 2007.

FMA members can register via FMA’s Web site at www.fedmanagers.org. Fees for the Conference are as follows: Regular: $365, (until August 3, 2007), and Late: $400 (until August 17, 2007). The training day of the conference has been finalized, so please continue to check FMA’s Web site for the most up-to-date information!

Registration Now Open for the 22nd Annual Federal Dispute Resolution Conference

REGISTER TODAY FOR FDR XXII, JULY 29 - AUGUST 2, 2007 in SAN FRANCISCO, CA!  

The FDR Conference is an annual training program for federal managers and employees that provides in-depth training on federal employment laws, policies and procedures.  The Annual FDR Conference is known as a premier conference for the federal workforce and is a complete training solution for professionals within the dispute resolution arena.  Attendees are able to design their own training schedule by choosing from over 40 workshops in the following five areas: ADR/Mediation, HR/LR/ER, EEO, Dispute Prevention and Leadership Development and Legal Issues.  Over 1,000 federal managers and employees attend the FDR Conference each year!  For more information and details about the conference, visit http://www.fdrconferences.org/Conference.html.

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Long Term Care Partners, LLC , New FMA Corporate Partner.  Long Term Care Partners is the administrator of t he Federal Long Term Care Insurance Program.  Sponsored by the U.S. Office of Personnel Management, the Program is available to Federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, and their qualified relatives.  With more than 210,000 enrollees, it is the largest employer-sponsored long term care insurance program in the country.  FLTCIP policies are simple to understand and offer enrollees some distinct advantages, including comprehensive coverage, competitive and stable rates, international coverage, and administrative service standards that are the highest in the long-term care insurance industry.  Policies are sold direct through a highly-trained, non-commissioned staff with no high pressure sales tactics – simply sound advice.  Visit www.LTCFEDS.com or http://www.opm.gov/insure/ltc/index.asp for more information.

Blue Cross Blue Shield Association Federal Employee Program , FMA Sustaining Corporate Partner:  The Blue Cross and Blue Shield Association represents the independent, locally operated Blue Cross and Blue Shield Plans. The 40 local member companies of the Blue Cross and Blue Shield Association have provided millions of families with top-quality, affordable health insurance for more than 70 years.  For the one in four Americans who carry Blue Cross and Blue Shield cards, the Blue Plans symbolize health security.  Visit www.fepblue.org and join the best, most-recognized group of health insurance providers in the world.

Wright & Co. , FMA Sustaining Corporate Partner:  Wright & Co. has provided supplemental insurance programs to the Federal government for over 40 years.  They have built strong relationships with insurance companies and service providers to offer these comprehensive benefits at low, affordable group insurance rates.  Benefits include: Dental Insurance Plans; Term Life Insurance Plans; Accidental Death and Dismemberment Plan; and Personal Umbrella Plan.  Wright & Co. is also the originator of the Federal Professional Liability Program and provider of Disability Income Replacement coverage, underwritten by The Hartford, to all Federal employees.  For more information, please visit:  www.wrightandco.com

GEICO , FMA Corporate Partner:  GEICO was created over 60 years ago to insure Federal employees.  Over the years GEICO has continuously strengthened its affiliation with the Federal workforce.  Today GEICO has a special program established to support the Federal community.  GEICO’s Federal program participates in the following organizations and programs: GEICO Public Service Awards, which  have honored Federal workers (active and retired) who have contributed to the public good since 1980; and GEICO Federal Leave Record Cards, which for over 40 years have been provided by GEICO to Federal employees, free of charge, to help them track their annual leave.  Find out how much you could save with GEICO auto insurance as an FMA member by getting a line-by-line rate quote at:  www.geico.com

Shaw, Bransford, Veilleux and Roth, P.C. , (SBVR) concentrates its law practice on the representation of Federal employees, with a special emphasis on the representation of executives and managers.  SBVR serves as General Counsel to the Federal Managers Association and is uniquely situated to recognize the interests and viewpoints of Federal managers.  For up to two free half-hour legal consultations and reduced legal fees as an FMA member, please visit:  www.shawbransford.com

The Federal Managers Association and Management Concepts have teamed up to present the Federal Managers Practicum — a targeted certificate program for Federal managers. As the official development program for FMA, the Federal Managers Practicum helps FMA members develop critical skills to meet new workplace demands and deepen their managerial capabilities.  FMA’s leadership fully recognizes the need to prepare career-minded federal employees to manage the demands of the 21st century workplace with greater competence and fully supports this unique and comprehensive certificate program.  For more information, please visit:  www.managementconcepts.com/fmp/fmpodp.asp

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The Washington Report is published biweekly by the Federal Managers Association.
Jessica Klement, Editor; FMA Staff Writers.

The Federal Managers Association, established in 1913, is the oldest, largest, most influential association representing the interests of the nearly 200,000 managers, supervisors and executives serving in today’s Federal government.

1641 Prince Street ~ Alexandria VA 22314-2818 ~ (703) 683-8700 ~ FAX (703) 683-8707 ~ E-Mail Info@fedmanagers.org

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