What Obama’s Victory Will Mean for Feds
November 6, 2012
President Obama’s victory in Tuesday’s election dramatically lessens the odds of any successful push for major reductions in federal pay and benefits. But in his second four-year term, the Democratic incumbent will confront a long-term budget outlook certain to keep a tight lid on employee compensation and agency spending, experts said.
Record deficits aren’t going away because of the election, said John Palguta, vice president for policy at Partnership for Public Service. “There’s going to be continued pressure to find cost savings.”
Tens of thousands of federal employees could face furloughs early next year, for example, if Congress and the White House don’t find a way to head off across-the-board budget cuts, known as sequestration, set to take effect Jan. 2. Even if the two sides come to an agreement to avert that crisis, the deal will likely entail major reductions to planned spending over the next decade