Military receives pay increase

The pay raise for the nation's 1.4 million active-duty military is half a percentage point more generous than one proposed earlier this month by President Clinton. It was approved 91-8.

Republican leaders said they wanted the first Senate bill passed this year to telegraph support for U.S. troops, particularly in light of a possible new deployment to Kosovo - even if it wasn't known exactly how the package would be financed.

"This is the right way to begin this year," said Senate Majority Leader Trent Lott (R-Miss.) "It comes at a time when we're asking more and more of our military with less and less. It would be insanity for us not to do this bill, and do it now."

The package, which now goes to the House, would also boost retirement and educational benefits under the GI bill.

Democrats tried to get the Senate to consider a series of taxes to pay for the measure, but were turned back on an 80-20 procedural vote. They then lined up with Republicans in support of the overall measure.

The pay increase, which would take effect next Jan. 1 for the nation's 1.4 million active-duty military, is half a percentage point higher than a military pay increase President Clinton proposed in the fiscal 2000 budget he submitted earlier this month.

That could cost at least $7 billion more during a five year period than the package Clinton proposed. Sen. Bob Graham (D-Fla.) complained that the added cost could rise to $16.5 billion within 10 years.

"That is not the message we want to send to the American people," Graham said, warning it would start the United States "down the slippery slope to more deficits."

He proposed reinstating a series of taxes that had lapsed, two dealing with the environmental Superfund cleanup program, another dealing with oil spills and one having to do with the reporting of foreign tax credits.

But the 80 to 20 procedural vote kept the Senate from even taking up Graham's proposal.

After the initial 4.8 percent increase under the legislation, service members would get additional raises in subsequent years of 0.5 percentage point above the rate of inflation. Clinton's measure calls for an initial 4.4 percent increase next Jan. 1, to be followed by 3.9 percent increases in each of the next four years.

The Senate legislation, like the administration bill, would also allow for additional targeted pay raises to reward performance.

Voting no on the final bill were five Democrats and three Republicans: Sens. Christopher Dodd (D-Conn.), Richard Durbin (D-Ill.), Graham, Joseph Lieberman (D-Conn.), Judd Gregg (R-N.H.), Don Nickles (R-Okla.), and George Voinovich (R-Ohio). Sen. Daniel Patrick Moynihan (D-N.Y.) did not vote.

Sen. John Warner (R-Va.) chair of the Senate Armed Services Committee, said that even though the bill was costly, it would "send a signal to the men and women of the armed services that this is the type of priority that we attach to their pay, retirement and other benefits."

Sen. Carl Levin of Michigan, the senior Democrat on the Armed Services Committee, said the measure provided needed increases for the nation's military, even though "this is an extremely expensive bill and it has not been paid for."

The legislation would also:

-Allow military personnel to retire at 50 percent pay after 20 years service - a plan that was in effect before 1986 - or accept a $30,000 cash bonus and join the current retirement system.

-Allow service members to contribute up to 5 percent of their basic pay to a 401(k) type savings account.

-Make educational benefits under the GI Bill more generous by increasing the monthly stipend from $528 to $600 and eliminating the $1,200 that military members now must pay up front to be eligible. Under certain circumstances, unused GI educational benefits could be transferred to other family members.

-Provide a special subsistence bonus of $180 per month for needy military families who are forced to rely on food stamps. Between 8,000 and 16,000 U.S. military service members are receiving food stamps.

-Establish a three-year demonstration program to allow veterans hospitals, in some circumstances, to bill Medicare for medical treatment for veterans.

Supporters cited low morale of troops, the difficulty the military has meeting recruitment goals and a disparity of pay between the military and civilian work force as reasons for the benefits package.

Defense Secretary William Cohen wrote to the Senate that the measure could be "counterproductive" if the funds could not be found to pay for the increase and had to be found by cutting other military programs. But the administration was not expected to formally oppose the increase, said congressional Democrats.

Sponsors of the bill said ways to pay for the package could be worked out later.

"Our bill will have profound and immediate positive effects on morale and retention," said Sen. John McCain (R-Ariz.)

Sen. Max Cleland (D-Ga.) who led the Veterans Administration in the Carter administration, said that 25 years after the draft was ended and an all-volunteer military established, the services are having trouble retaining people, warships are leaving ports with positions vacant and the Air Force has 850 too few pilots. "These shortfalls must be addressed," he said. Cleland sponsored the expanded GI bill provisions.

02-25-99