President Obama proposed on Monday a freeze in civilian pay for federal workers for 2011 and 2012 to help reduce the ballooning budget deficit. Mr. Obama said that the two-year-freeze will save $2 billion for the remainder of fiscal year 2011, $28 billion over the next five years more than $60 billion over the next 10 years.
“This was a decision that was not made lightly,” Mr. Obama said in a brief statement from the White House.
The proposed freeze will not apply to military personnel, but to all civilian federal employees.
Mr. Obama said that this move is yet another step by his Administration to help cut cost and bring down the federal budget deficit. Mr. Obama added that since taking office he had worked to eliminate wasteful spending through several measures, including proposing a three-year freeze in non-security discretionary spending; reducing excess government real estate to save $8 billion over the next two years; reducing improper payments of $50 billion by the end of 2012; and freezing salaries of all senior White House officials.
On Tuesday, November 29, Mr. Obama will meet with Republicans in what he hoped would be a “new and productive working relationship” to discuss two key issues, namely, the START Treaty and the Bush-era Tax Cuts.
Mr. Obama said said that the two most fundamental challenges faced by the U.S. today are, safety and growing the economy.
