Federal Drive

Thursday Morning Federal Newscast – July 14

Federal Protective Service under fire again, a bill to ensure uninterrupted military benefits in case of a government default, and COLAs may be in jeopardy.

Federal News Network Staff

July 14, 2011 8:04 am

4 min read

The Morning Federal Newscast is a daily compilation of the stories you hear Federal Drive hosts Tom Temin and Amy Morris discuss throughout the show each day. The Newscast is designed to give FederalNewsRadio.com users more information about the stories you hear on the air.

The White House has threatened to veto a spending bill moving through the House. President Obama says it would gut reforms of health care and the financial services industry. Federal Times reports, the Financial Services and General Government Appropriations Act funds agencies such as the Treasury Department, Office of Personnel Management and General Services Administration. The House version would provide $20 billion for its agencies in 2012. That’s $2 billion less than fiscal 2011, and $9 billion less than the administration request. The White House says IRS would have to lay off 4,200 employees, undermining its ability to collect taxes. The bill would also cut discretionary funding for the new Consumer Financial Protection Bureau.
The Federal Protective Service has made little progress in fixing longstanding management problems. Gov Exec reports, that’s the main finding from a House hearing on FPS operations. FPS has the job of protecting federal buildings. It’s has come under fire in recent years after several stinging GAO reports. Auditors found poorly trained guards. In some cases, investigators were able to smuggle bomb-making materials past checkpoints and into buildings. The director, L. Eric Patterson, tells lawmakers, a system to prioritize threats to federal buildings still doesn’t work after four years of development. But he points out FPS covers 9,000 federal facilities in 50 states. It screens a million people a day.
The government might be headed for default or shutdown, but not the ability of federal workers to fly cheaply. The General Service Administration expands its City Pairs program starting October 1st. It will cover 6,000 destinations in the United States and overseas. GovExec reports, GSA awarded $3.1 billion in contracts to airlines participating in the City Pairs program for the 2012 fiscal year. Under City Pairs, designated airlines offer highly discounted fares for federal employees on business. Plus, no penalties for changing or canceling. The program dates to 1980 when it covered only 11 cities.
A bill introduced in the House would ensure military personnel get pay and benefits in case there’s no deal on raising the federal debt limit. It calls for emergency appropriations if the government must curtail spending. GovExec reports, the bill was offered by Reps. Steve King (R-Iowa), Louie Gohmert (R-Tex.) and Michele Bachmann (R-Minn.). The bill is dubbed the Payment Reliability for our Obligations to Military and Investors to Secure Essential Stability act, or PROMISES.
Lawmakers and the White House are warming up to a lower cost-of-living adjustment formula for retirees’ annuity. The proposal is part of budget talks as the government nears the Aug. 2 deadline to increase the debt limit. The proposal calls for a switch to a Chained Consumer Price Index to measure inflation. The Chained CPI operates under the assumption that consumers will buy lower cost alternatives in a down economy. By some estimates, annual reductions in annuity could total as much as $1,000 a year. The lower COLA would affect three major retirement systems – social security, FERS and military.
Momentum is gathering on the Hill to cut Saturday mail delivery. Representative Darrel Issa sent a letter to the House rules committee asking to drop six day mail delivery from the 20-12 financial services appropriations bill. Issa says the provision could save the USPS $3 billion annually. Gov Exec reports, Senator Tom Carper of Delaware has also sponsored legislation that would allow the Postal Service to change its delivery schedule.
The Treasury Department is making the switch to the Internet Payment Platform. The IPP is an electronic invoice processing system. Deputy assistant treasury secretary Mark Rogers tells Federal News Radio the IPP would establish an invoice standard department-wide. The treasury agencies must start using the system by the end of fiscal 2012.

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