Fred Thompson Ends Fund That Paid $178,000 to Son

May 22, 2007 11:11 AM

Avni Patel Reports:

Fred_thompson_e_mn Former Tennessee Senator and potential Republican presidential candidate Fred Thompson has shut down a political action committee that paid out more money to his son than it did in political donations.

Federal Election Commission records analyzed by the Blotter on ABCNews.com show Thompson's committee paid $178,000 to his son's political consulting firm, Daniel Thompson Associates, since 2003.

In contrast, the committee made only $66,700 in contributions to other campaigns and political committees in the four years since Thompson retired from the Senate.

The payments to Thompson's son were described as for management and consulting services.

While it is not unusual for members of Congress to hire family members to work on their campaigns, the high payments to Thompson's son's consulting business deserve close scrutiny, according to Sheila Krumholz, executive director of the Center for Responsive Politics. 

"It raises eyebrows and calls into question whether this is self-dealing," says Krumholz .

Click Here for Full Blotter Coverage.

Contacted at his Nashville, Tenn., political consulting business, Daniel Thompson told ABC News he couldn't talk because he was "about to leave for a business trip" and referred all questions to a spokesman for his father, who did not return calls from ABC News.   

When Thompson left the Senate in 2002, he converted more than $370,000 in leftover campaign funds into a "leadership PAC," which allowed him to contribute to other politicians at a $5,000 limit and pay for a variety of other expenses, including travel and consulting services.

Krumholz says retired lawmakers, like Thompson, often keep leadership PACs as a "slush fund" to help them set the stage for a run for higher office.

"Often it is simply a way to keep their foot in the door and keep them in the spotlight," says Krumholz.

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May 22, 2007 | Permalink | User Comments (55)

User Comments

The article doesn't mention that Thompson is a Republican. Surprise!

Posted by: stanley | May 22, 2007 11:58:39 AM

Republican or Democrat it doesn't matter... Politician = Crook

Posted by: Dave | May 22, 2007 12:07:08 PM

too bad. I thought he was different--but he's a bum just like the rest of them.

Posted by: Jim | May 22, 2007 12:23:14 PM

Hey Stanley, it says Republican six words into the article. What's your problem?

Posted by: Hubba Hubba | May 22, 2007 12:28:40 PM

From the FIRST SENTENCE!
"Former Tennessee Senator and potential REPUBLICAN presidential candidate Fred Thompson has shut down a...."

Great reading comprehension.

Posted by: Russ | May 22, 2007 12:29:51 PM

So just another Republican thief. Why am I not surprised?

Posted by: Other Ed | May 22, 2007 12:34:45 PM

Dam- I would just love for one of these guys to come up clean! Can you imagine how the diggers are digging on Romney!

Posted by: Phil | May 22, 2007 1:11:19 PM

Bless the Politician's hearts, it's always in the same place. We common people just try to see if it's in another place and it always appears right there where it's always has been, in the money, money, money. What would we do without them, Bless them, for they will never, ever change.

Posted by: ruben | May 22, 2007 1:12:28 PM

There is nothing wrong with a PAC as long as it is not doing anything illegal or unethical. This is a non-story by ABC doing their best to smear a good man. The ABC liberal attack machine just keeps chugging along.

Posted by: Brian | May 22, 2007 1:23:24 PM

This is chicken feed, and probably not illegal. Let's take a look at the millions Dianne Feinstein's war profiteering husband has earned before we throw dust up in Mr. Thompson's face...is all they can hit this guy with?

Posted by: tim | May 22, 2007 1:26:21 PM

The election process is broke and it is time for the control of elections has to be changed. It is not just one party that does it but both. It seems that the republicans are guilty more often. It is a slap in the face who donated money to the campaign.

Posted by: Pat | May 22, 2007 1:35:41 PM

Gosh, look how long it took the media to finally come up with something, which is nothing, that they can spin to sound like something. They are in fear of Fred Thompson. This is just the beginning of the spin and smear on Mr. Thompson. Look what they are doing to Mrs. Clinton and Obama. Business as usual. The news business should get out of politics and go back to reporting the news without putting a "slant" on it. America wants truth, not spin.

Posted by: Mitch | May 22, 2007 1:41:26 PM

Pat: Watch "no-spin zone":). There is no "truth" in politics. All politicians are crooks and the media always has selectivity towards a specific set of candidates.

Posted by: Sam | May 22, 2007 1:53:53 PM

It is sad to see someone bashed due to using money given to them that they cant spend and when they find a loophole they are dragged behind the bus for it. At least its not from our taxes being handed over so why is anyone crying about him spending other rich peoples money given to him. I say "Way to go".

Posted by: Cory | May 22, 2007 2:03:48 PM

Fred Thompson is no different then any other politician: he keeps a slush fund to pay expenses etc. The fact that Thompson ended the fund so quickly shows that he knew from the get-go that it was wrong.
What I really detest is how politicians "donate" money to other politicians. For instance, Tom Reynolds of New York took $100k of Foley's(GOP-Fla.) funds for his own campaign and steered another $100k into Pennsylvania Senator Santoro's coffers.
Does that sound right?
I believe that a candidate should return any monies he does not use to the people who contributed.

Posted by: Bullet | May 22, 2007 2:10:50 PM

"Thompson's committee paid $178,000 to his son's political consulting firm, Daniel Thompson Associates, since 2003."

That's only 44500.00 per year. Almost poverty wage.

Big deal, how about what Chaney and his croneys are pulling in from Haliburton? Now there's a crook, not to mention the Shrub!!!

Posted by: Afubar | May 22, 2007 2:13:31 PM

"The United States has no natural criminal class, except when Congress is in session".

Fairly certain that is Twain.

Posted by: ntsc | May 22, 2007 2:38:23 PM

This opinion comes from the perspective of a former, long-time political campaign consultant, manager, and fund raiser for republican candidates for state and local political offices. This revelation, if true, is scandalous and is particularly unethical and disgusting. If such pratices are "technically" within the legal bounds of the black-letter law governing political campaign contributions and campaign funds, then the spirit of the law has clearly been breached. I would hope that all of you political and social conservatives realize what I have said. After all, it is you who scream the loudest when an indicted person on trial for a criminal charge is freed because of a "technicality" in the law.

Posted by: rapsie01 | May 22, 2007 2:46:59 PM

Wow, somebody on the Left side of the aisle must be getting nervous about Fred. They've already sicked their lapdogs in the media to start the smear campaign.

Posted by: GPatton | May 22, 2007 3:12:22 PM

Over a four year period that is not a lot of money to a firm of that nature. I'm a democrat. I'll support the democratic nominee. So this is no biased opinion. It's just not a story, and it's this kind of reporting that keeps good people out of politics.
Go after Neil Bush if you must go after a relative...

Posted by: John Denson | May 22, 2007 3:25:10 PM

Mr. Thompson represents good, old-fashioned backbone. I agree with Brian and Tim...this is just the liberal media working their same tricks to slander a man that represents decency, morals and values. Most politicians are involved in scandalous rubbish that would (or should) lay their heads on the moral chopping block.

ABC, have you become do distaught over a man with integrity that you have to scrape the bottom of the barrel? Shame on you !

Fred Thompson...YOU'RE THE MAN!!!

Posted by: Lorrie | May 22, 2007 3:33:31 PM

Let see... he paid his son, through a company his son ran, money for doing some work. Hmmm, I don't think that is illegal. I don't support Mr. Thomson or the majority of Republicans, but when you do a story it should have some news in it.

Posted by: skidog | May 22, 2007 4:56:41 PM

Uh folks, his son charged $178,000 to manage the PAC that donated only $66,000. This is called a scam and an unethical end-run around campaign finance laws. He's using tax-exempt campaign funds to support his kid. You have no problem with that?

Posted by: Other Ed | May 23, 2007 10:11:30 AM

Sorry Buffet I misread the bulletin. It should have been Afubar.
J. H.

Posted by: Joe | May 23, 2007 12:45:32 PM

This is legal, all the politicians do it, republican and democrat. Shall we start quoting the financial scandals from the Clinton's!

Posted by: karen | May 23, 2007 3:36:16 PM

RUN FRED RUN!!

Posted by: officeshrew | May 23, 2007 4:15:47 PM

so he pays his kid 44,000 a year to do some PR work for him?

I call that being a good dad. Wish my dad would do it for me!

Posted by: joek7132 | May 23, 2007 4:45:48 PM

they never disappoint, to they?

Posted by: John Tidyman | May 23, 2007 5:30:40 PM

More political garbage about a fine man. We should all take note, do you want a man in the white house that is God fearing or do you want another Clinton or a Muslim? You pick

Posted by: ondrasmom | May 23, 2007 5:36:53 PM


So, lets look at the other candidates people;

"Mark Corallo, a spokesman for the former senator, said Daniel Thompson is paid to manage the fund-raising operation and file campaign-finance reports with the FEC. "If you look at other PACs, such as Hillary Clinton, John Edwards or Barack Obama, all three of them pay their PAC administrators more than double what Dan was taking to administrate the PAC," Mr. Corallo said.

Mrs. Clinton's HILLPAC has paid about $2 million in salaries since 2002, while contributing $2 million to Democratic candidates for office. Mr. Edwards's PAC paid about $1 million in salaries while contributing $200,000 to Democrats when he used it during the 2002 and 2004 elections. Mr. Edwards primarily used his PAC to fund his political career, rather than to contribute to Democratic candidates. Mr. Obama, who only had a PAC for the 2006 election, paid about $500,000 in salaries and donated $770,000 to Democrats."

So we see the evidence this is normal practice and if anything, Dan is underpaid for his services or he's giving his dad a break...Guess the Liberal spin factory has to go back to the drawing board to invent something else against a man they can't find anything valid to say!

Posted by: Winghunter | May 23, 2007 8:19:34 PM

Campaign finance rules are so bizarre and complex it is hard to know what is actually going on. In this case, without a lot more info there is no way to tell if this is a true misappropriation or a legal but sleazy scheme or a perfectly reasonable use of funds that is simply routed through tortuous channels. In my view the Supreme Court is in error by not tossing out the whole mess a 1st amendment violation.

Posted by: M whitney | May 23, 2007 9:43:52 PM

What is so bad about doing business with one of your relatives, and do we know this has been reported correctly? I would bet money it has not. I don't believe Fred Thompson would leave himself open I may or may not vote for him he has to get the nomination first, we have over a year of this to put up with they might find that he did not go to sunday school every sunday!

Posted by: sportminer | May 23, 2007 9:44:47 PM

In 08, the country will be voting for the man that will get us out of the mess in Iraq and bring our troops home. By then, sadly, the human cost will be 4000 killed and 50,000 wounded. Conscience should tell us to set a deadline and give them hope for a homecoming. This country doesn't want a retread, a rerun or a sequel to what we've had for seven years; thats what Thompson would be.

Posted by: AL | May 23, 2007 10:58:49 PM

Why can't there be just ONE candidate --somewhere -- any party -- with NO questionable activities??

Posted by: ka5p | May 24, 2007 8:51:05 AM

Is that all that a PAC does is give money to other Politicians? It doesn't take 44,000 yr to write 66,000 in checks, unless you write reaaaaalllly ssllooww.

Posted by: turtle | May 24, 2007 10:16:35 AM

Did anyone else notice how this story goes back in forth between "paid his son" and "paid his son's political consulting firm"?

There is a big difference between giving money to an individual and giving it to a firm an individual works for. ABC seems to purposely blur this distinction, or maybe just carelessly.

And for all you liberal haters out there accusing Thompson of a crime, please explain WHAT crime he committed. *crickets chirping* That's what I thought!

Posted by: ynot4tony2 | May 24, 2007 1:19:31 PM

"Republican or Democrat it doesn't matter... Politician = Crook"

Posted by: Dave | May 22, 2007 12:07:08 PM

No, it does matter. He is a Republican.

Posted by: TSop | May 24, 2007 2:17:51 PM

If you think there are no honest people left in Washington, check out Ron Paul. You might not like his policies, but he's apparently never done anything unethical in his life.

Posted by: Maggie | May 25, 2007 6:26:57 PM

I think we all know that ABC, CBS, NBC, MSNBC & others are totally liberal and democrats. So, according to Winghunter, they have drastically overpaid their PACs or they're just being overlooked by the main stream media (MSM) because the Dems are in control of the senate & house right now. I just wonder how Ms Pelosi stands with a PAC, don't you think she's leading up to becoming Vice President with President Bush, in the near future with this stuff trying to impeach VP Cheney? Why doesn't ABC or the others look into ALL the PACs and let's just see who is really doing something that should be "NEWS!" Personally, I get tired of hearing the same ole news over and over from day to day and it's all a bunch of BULL, but that's just MY opinion. I'm sure Mr. Thompson knows how politics work and how the media works. I don't think the man is a fool, and I vote Independent. I think Mr. Thompson is a breath of fresh air for the Repubs, compared to the top runners. I have no respect for ANY of the Dems in the upper tier, or the lower for that matter. The Repubs lost the election because they failed to listen to their base and the American people (majority). My family that voted for Pres Bush, were really angry that they (RINO's) lied to them by pretending to value their voter's mandate. The same will happen with the Dems this go 'round, and maybe, just maybe we can have a different choice in our government!! Wouldn't that be refreshing?? No man is perfect, only Jesus, and He's not walking the earth right now, so they will all make mistakes, but let's not throw out the baby with the bathwater. I refuse to be led blind-eyed by the media. I'm trying to find out everyone's voting record, and it's taking a lot of time and effort. I wish others would do the same, and somehow unite to bring in some decent government leaders that will uphold our Constitution, instead of taking the oath of office so lightly. After all, it IS the Constitution that gives us the right to vote, and the politicians have lost sight of that great concept of government. IF Mr. Thompson or an Independent, or other politicians or parties can or will uphold the Constitution, I will definately vote for them!!! I am against ANYONE running for office of any rank, that says one thing & does another, and NOT uphold the Constitution! If we don't unite as a nation, we will not stand, it's just a fact! Just my own thoughts!

Posted by: Angelhair | May 27, 2007 12:27:20 AM

Ondrasmom is a paid Republican thread-buster who works for the RNC. There are no Muslim candidates in the running...the person of whom he speaks is actually a CATHOLIC.

Posted by: bob crawford | May 27, 2007 8:13:57 AM


Crook.

Thief.

Swindler.

Fleecer.

Flimflam artist.

Gangster.

Brigand.

Fleecer.

Rogue.

Bilker.

Sharper.

Picaroon.

Embezzler.

Dacoit.

Bunko artist.

Ganef.

Stealer.

Puloiner.

Cutpurse.

Light-fingered Louie.

Klepto.

Pilferer.

Ripoff artist.

Racketeer.

Confidence man.

Brushranger.

Bandit.

Yeggmen.

Thimblerigger.

Con-man.

Mafioso.

Welsher.

Privateer.

Corsair.

Cateran.

Sharper.

Ladrone.

An under speculator.

Highbinder.

Fence.

Bunko men.

Heister.

Contrabandist.

Feebooter.

Purloiner.

Cheater.

A swipe.

Hustler.

Pincher.

Ransacker.

A take-in Tommy.

Looter.

Pillager.

Mis-appropriator.

!!!!!

Posted by: Wolsey Woodcutter | May 27, 2007 1:54:01 PM

Afubar, there are millions of low-income families in this country who would give almost anything to have a gross annual income of $44,500.

At that income level, they might even be able to afford a decent place to live, afford to purchase modestly priced clothing for their children, buy a reliable car, feed their families nutritious food, and provide health care for minor illnesses and accidents. Many of those families could also get off food stamps and other welfare programs.

Some of the parents might be able to afford to go to college to increase their knowledge and job skills so that they could climb higher up the income ladder. Parents of those families would be able to spend more time with their children, because they would not have to work two minimum wage jobs each to make ends meet. The children in those families would have their parents available to help them with their school work. The parents would have time to become involved in their children's school activities.

The list of benefits of an annual family income of nearly twice the poverty level for a family of four could go on and on. So please don't make light of $44,500 being "almost poverty wage."

Posted by: rapsie01 | May 28, 2007 5:29:17 AM

bob crawford = hyperbolist..google that bob

Posted by: Randall Dennis | May 29, 2007 8:00:53 AM

i can tell you from experience that Fred Thompson is one to the few "salt of the earth" kind of people.
he has often called with a word of encouragement at just the right time in my life. Fred is not flawless, but he is truthful to a fault. just the kind of person we need in america's highest office.
what a change that would be, someone in power telling the truth, even if it was his own fault. Fred has a quiet confidence about him that speaks volumes of his character and abilities.
he is the only republican that can win in 2008. and Fred knows that more than anybody. it's not bragging if you can do it.

Posted by: Jim Wright, Jr. | May 29, 2007 10:48:07 PM

How does this compare to Hillary's dealings with her brother? I recall there being some crookedness there. Not saying two wrongs make a right, but if Fred and Hillary are the finalists it ain't like she can use this against him with her super-shady and depraved history.

BTW, ABC, will we ever see any tough questions or investigative reporting about all of Hillary's unanswered ethical questions? It's pathetic to see what are supposed to be professional reporters and newsfolk just remaining mum about anything that makes Hillary uncomfortable. I hope you guys can get past your own agendas and do your jobs. And statements from her underlings don't matter, we want it from the horse's mouth!

Posted by: squeenter squillo | May 30, 2007 12:49:09 AM

This might not be illegal, but it doesn't sound very ethical.

Posted by: cc823 | May 31, 2007 3:12:33 PM

Do you know what is the major difference between Michael Moore and Fred Thompson? Michael Moore didn't divorce his wife when he made his first movie...

Reads like ethically challenged divorce guilt to me.

Posted by: Elmer Gantry | Jun 2, 2007 8:45:08 AM

Half of you! need some hand sanitizer
due to all the dirt you are throwing

Posted by: DK | Jun 3, 2007 3:22:29 PM

I have known Fred for more than 35 years. His son is a talented 40 something lawyer.

I think it is humorous that he is being characterized as an actor trying to be elected President.
Fred was an extremely talented prosecutor in Nashville’s US Attorney’s Office. He was the Minority Counsel in the Watergate Senate hearing. In fact, he was the guy who asked the famous question of a Nixon aide about the possibility of a taping system in the White House. In his very successful private practice, he handled a number of high profile cases with incredible skill and integrity. His movie career which accidently began before his term in the Senate was more an outside hobby than anything else. It began during his representation of a whistle blower against one of the many corrupt Democratic state administrations in Tennessee. Fred has been a behind the scene player in national politics for three decades culminating in a distinguished career in the Senate. I know him as a man of strong character, impeccable integrity, a keen sense of responsibility and common sense, and someone who would be an outstanding President.

If the national presidential campaign debate considers selecting a talented person of character and integrity, then the Democrats with their potential slate might as well wave the white flag. Only through intense use of negative demagoguery to they have any hope.

For my grandchildren’s sake, please support Fred.

Posted by: John Gisler | Jun 4, 2007 2:09:12 PM

For those who have nothing better to do than slander all Republicans, read the story. The story states that Daniel Thompson Associates have been paid consulting fees SINCE 2003. That is BEFORE Fred Thompson decided to run for the Republican nomination for President and BEFORE Thompson was on the TV show, Law and Order. There is NOTHING wrong in being paid professional fees to those who did their job and there isn't any negative comment that Daniel Thompson Associates did not earn their fees.

Posted by: Rich McCann | Jun 4, 2007 5:55:35 PM

Sorry, the "look what everyone else does" thing is weak and the fact is that something legal on it's surface, but possibly unethical should still be examined. Ethics have been given short shrift, esp. over that last few years. (Can you say Halliburton?)

It just seems to me that keeping transactions at arms length isn't that tough. Hire a firm your relatives don't OWN. Nepotism is tricky business - esp. for politicians.

It also seems a shame (and a wee suspicious) Fred's leadership PAC couldn't find enough candidates since 2003 to financially back so professional expenditures to his son's self-named firm were at least offset.

In the interest of full disclosure, Fred, the lawyer, the foreign interest lobbyist, the politician, the actor, the married, the divorced, the promiscuous (self admitted), the re-married (this time to YOUNG, successful Republican operative trophy wife), the again politician IS NOT my kind of President.

Posted by: D Tepe | Jun 5, 2007 4:37:36 AM

John Gisler writes:
"He was the Minority Counsel in the Watergate Senate hearing. In fact, he was the guy who asked the famous question of a Nixon aide about the possibility of a taping system in the White House."

You forgot about the part where he is also the guy who leaked that information to Nixon's attorneys:

"Thompson tipped off the White House that the committee knew about the taping system and would be making the information public. In his all-but-forgotten Watergate memoir, "At That Point in Time," Thompson said he acted with "no authority" in divulging the committee's knowledge of the tapes, which provided the evidence that led to Nixon's resignation. It was one of many Thompson leaks to the Nixon team, according to a former investigator for Democrats on the committee, Scott Armstrong , who remains upset at Thompson's actions."


Just as we are all suffering through the worst presidency and the worst presidential administration in United States history, it seems to me the height of irresponsibility to ask for one more corrupt Republican in the White House.

"Only through intense use of negative demagoguery to they have any hope."

With Fred Thompson, all that is required is to state the facts, and his "media darling" campaign is finished. Unfortunately, Corporate Media shills like ABC will be all too willing to keeps these facts off their nightly news:

"In reports on President Bush's decision to commute the sentence of former vice presidential chief of staff I. Lewis "Scooter" Libby, several network news programs have quoted from or cited potential presidential candidate Fred Thompson's statement approving of Bush's decision without noting Thompson's connections to the Libby Legal Defense Trust. Thompson is a member of the trust's "Advisory Committee" and has reportedly held at least one fundraiser to help pay for Libby's legal fees."


Posted by: David Steele | Jul 5, 2007 11:17:34 PM

Fred Thompson will probably win the
election and be your next president.
Those who are liberal and weak and
have the thought process that the government is responsible for them because they can't make it on their own
should go to Walmart and buy a boat
and float to Cuba with Michael Moore and
get some free Mental Health Counselling.
Meanwhile the rest of us will work
our asses off and take advantages of
the freedoms we have to live the American dream. You don't know how good you have it shut up and quit
complaining about the government. Remember, I work hard I pay taxes
and I don't want my taxes to pay for your health care or any other program you are too lazy to work and pay for yourself.

Posted by: Pablothegringo | Jul 23, 2007 10:42:09 PM

All REPUBLICAN WON'TS THERE TAX MONEY TO GO FOR THERE SELFS NOT FOR HEALTH CARE FOR ALL, ITs ALLWAYS MY MONEY ! WHY DON'T YOU REPUBLICANS GO FIGHT YOUR WAR IN IRAQ ?

Posted by: GALE BARBER | Sep 11, 2007 8:08:31 AM

Politicians should be paid commissions only – performance based compensation
I say that politicians should be paid - compensated on a performance based via commissions only, for example on every tax dollar that they save. Example, if a politician cuts government spending 1 Million dollars, the tax payers would pay him X% of 1 Million.
If it hits them in the pocket, they are going to be much more cautious how they spend our money.
A politician running for office should reimburse any matching funds after the election.
A politician should run the country like any profitable corporation, with checks and balances and profits.
Any politician who violates the oath of office will lose his job and forfeit his benefits and pension.
It is time we should hold our politicians accountable for their deeds and behavior, any deviation from honesty and ethics will be punished severely.
Honesty, integrity and accountability is the motto.
Yehuda Draiman
PS
We should not rush to give our money to foreign countries, if we do give, it is a loan and must be repaid; the loans should also be collateralized with real estate and assets of the receiving country.
Value-based Management of the Government
Value-based management makes an explicit link between a government's strategic and operating decisions and their impact on the country and its citizen’s benefits. It does so in part by aligning politicians incentives with citizens' interests.
Politicians should earn the public trust, which, in turn, is based on openness and accountability. Excessive compensation, self-dealing and hidden agenda’s are detrimental to earning public trust.
When a State took A GIANT STEP WHEN it INSTITUTED PERFORMANCE BASED COMPENSATION INSTEAD OF THE INFLEXIBLE CONSTRAINTS OF THE MERIT SYSTEM. OVER HALF OF the STATE EMPLOYEES ARE NOW EMPLOYED AND COMPENSATED BASED ON PERFORMANCE RATHER THAN STATUS. AND THAT NUMBER IS GROWING EVERY DAY. GOVERNMENT CAN NEVER HAVE THE FULL CONFIDENCE OF ITS PEOPLE IF IT DOES NOT KEEP IN STEP WITH THE REST OF SOCIETY. PERFORMANCE BASED EMPLOYMENT IS NOT ONLY DESIRED IT IS ESSENTIAL IF STATES ARE GOING TO CONTINUE AS ECONOMIC GENERATORS OF PROSPERITY. BASED ON States EXPERIENCE, I ENCOURAGE other States IN ITS EFFORTS TO MODERNIZE ITS STATE WORKFORCE.
Just over 2 months ago, the National Commission on Public Service, known as the Volcker Commission, issued its report on how to revitalize the Federal Government. At about the same time, the President issued his fiscal 2004 budget proposal. Both documents contain bold recommendations to reshape the Civil Service:
The Volcker Commission, for example, suggests abolishing the General Schedule and allowing managers to base employees’ salaries on ‘‘competence and performance.’’ The White House’s budget proposal includes a $500 million Human Capital Performance fund to reward top performing employees, as well as a proposed shift of the entire Senior Executive Service to a pay-banding system.
More and more often, Federal agencies are seeking permission to develop a compensation system outside the General Schedule.
More than 20 percent of non-postal civil servants now work under alternate personnel systems according to the Volcker report, including those developed at the Federal Aviation Administration, the Internal Revenue Service and the General Accounting Office. In all of those examples, change in the compensation system was designed not merely as an end to itself but as a way to improve agency performance.
The GAO is here today and I am looking forward to hearing how the various pay for performance systems are working so far, including GAO’s own.

Posted by: Yehuda Draiman | Feb 14, 2008 6:23:59 PM

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