Monday, November 29, 2010

Obama to Freeze Fed Funds...Sorta

President Obama plans to announce a two year freeze on federal civilian salaries, which had previously received a 3% pay bump annually.  This is sad news for the 20% or so of HoCo's population that works for the federal gubment, but is unlikely to have much of an effect on government spending.  In fact, many federal workers receive their most substantial pay raises by way of "cost of living" increases.  Our local federales received a 4.78% COLA increase last January, which is slightly ironic since the reason for a steady increase locally can be attributed to the shelter that government employment had provided our local economy. 

5% on top of 3% ain't bad living if you ask me...and should that COLA stand up, Feds can expect another 5% this year.