House Leaders Win Bush Support for 33% Pay Hike

House leaders won President Bush’s strong endorsement Wednesday for a package of pay and ethics reforms that would raise annual congressional salaries by more than 33% to more than $120,000 in the next 13 months.

Details of the proposal were made public less than 24 hours before the House is scheduled to vote on it today. The plan would give House members an immediate 7.9% “cost of living” hike, followed in January, 1991, by a 25% raise and an additional unspecified cost-of-living increase.

Federal judges and top executive branch employees, some of whom already have received a cost-of-living raise this year, would be guaranteed the same salaries under the House proposal. The current salary for most members of Congress, judges and top Administration officials is $89,500.

The pay hike, which will cost taxpayers an estimated $70 million in fiscal 1990, is linked to the first major revision of House ethics rules since 1977. Under the plan, House members would not be permitted to pocket their appearance fees after January, 1991, and no member could convert excess campaign funds to personal use upon his retirement after January, 1993.

The ethics reform was prompted by a string of embarrassing scandals in recent years, particularly by the investigation and subsequent ouster of former House Speaker Jim Wright.

Wright’s successor, Thomas S. Foley (D-Wash.), said that he expects the package to be adopted by the House, even though it has drawn strong opposition from the same coalition of taxpayers’ groups and radio talk show hosts who defeated a 51% pay hike proposal earlier this year.

Unlike the previous pay increase, the new package has the support of both Republicans and Democrats--including Rep. Newt Gingrich (R-Ga.), who was an outspoken critic of the previous proposal. In addition, House leaders have disarmed the opposition so far by keeping the details of the proposal secret until the last minute.

The final House package was the result of seven months of behind-the-scenes negotiations between the House, the Senate, the White House and the judiciary. House leaders agreed to a number of last-minute changes in the proposal to obtain the President’s pledge that he will sign the measure into law.

On Wednesday, the President sent a letter to Foley saying that he hoped the package would be enacted before Congress adjourns for the year, perhaps as early as next week. He said that the pay increase would help the government retain personnel whose skills “are essential to the quality of service government provides to the American people.”

Although the Senate is expected to approve a much smaller pay hike for itself, Senate leaders have indicated that they will not stop House members, judges and top executive branch employees from getting an increase in excess of 33%. The House and Senate traditionally have had different ethics rules but have not had different salaries in recent years.

In exchange for the pay hike, House members no longer would be permitted to pocket honorariums from special interest groups after January, 1991. At present, they are allowed to accept honorariums equivalent to 30% of their annual salaries, or $26,850. Until 1991, the allowable honorariums limit will be frozen at $26,850.

But the proposal does not prohibit House members from accepting honorariums of up to $2,000 for every appearance if they contribute the money to nonprofit organizations. Members will still be required to disclose the names of the groups paying the honorariums but the recipients of these donations will continue to be secret.

Unlike the House, the Senate is not expected to prohibit its members from pocketing their honorariums in the future. At present, senators can earn honorariums equivalent to 40% of their annual salaries, or 10% more than members of the House are allowed.

Although the 200-page legislation had not yet been printed by Wednesday night, House leaders said that the provisions of the bill will include these changes in House rules:

--House members and top federal officials would be prohibited from accepting compensation for serving on corporate boards of directors or for performing professional services. Nevertheless, some outside earned income would be permitted--such as teaching fees--up to a limit equivalent to 15% of their annual pay.

--House members would be prohibited from accepting gifts in excess of $200 from any source, except relatives. Personal hospitality and meals are exempt from this rule as long as they are not claimed by a corporation for a tax exemption.

--Travel by House members that is funded by special interest groups would be limited to four days and three nights within the borders of the United States or seven days and six nights for overseas junkets.

--All future cost-of-living increases for House members would be computed by using the Economic Cost Index for private industry salaries, minus 0.5%.

Common Cause, the citizens’ lobby, hailed the House package as a big improvement in the standards of conduct set for members of Congress.

“It really goes after the use of special-interest money to buy influence,” said Common Cause President Fred Wertheimer.

But consumer advocate Ralph Nader and the National Taxpayers’ Union condemned the ethics package as nothing more than a subterfuge for a huge pay increase at a time when federal agencies are suffering budget cuts.

In exchange for Bush’s support, House leaders agreed at the last minute to accept somewhat stronger restrictions on the lobbying activities of congressional employes after they leave government service. The White House insisted that the rules governing congressional employes be similar to those imposed on executive branch workers.

PLAN GROUNDED--House leaders drop a plan to provide a $19-million military jet for the Speaker’s use. A16