Pay Under the General Schedule; Locality Pay Areas for 1997

SUMMARY: The Office of Personnel Management is issuing final

regulations to remove three metropolitan areas from the ``Rest of

U.S.'' locality pay area and establish three new locality pay areas in

January 1997 corresponding to these metropolitan areas. The three

metropolitan areas affected by these final regulations are: Milwaukee-

Racine, WI; Minneapolis-St. Paul, MN-WI; and Pittsburgh, PA. The

President's Pay Agent made the final determination on the boundaries of

the new locality pay areas after considering the recommendations of the

Federal Salary Council and public comments.

EFFECTIVE DATE: The regulations are effective on January 1, 1997, and

are applicable on the first day of the first pay period beginning on or

after January 1, 1997.

FOR FURTHER INFORMATION CONTACT:

Jeanne Jacobson, (202) 606-2858 or FAX: (202) 606-0824.

SUPPLEMENTARY INFORMATION: On October 16, 1995, the Office of Personnel

Management (OPM) published proposed regulations to remove three

metropolitan areas from the ``Rest of U.S.'' locality pay area and

establish three new locality pay areas in January 1997 corresponding to

these metropolitan areas based on the recommendations of the Federal

Salary Council. (See 60 FR 53545.) After considering the views of the

Federal Salary Council and comments from agencies, organizations, and

individuals, the President's Pay Agent (consisting of the Secretary of

Labor, the Director of the Office of Management and Budget (OMB), and

the Director of OPM) decided to adopt the Federal Salary Council's

recommendations on the three new locality pay areas. This determination

was reflected in the Pay Agent's November 29, 1995, report to the

President. These final regulations list the locality pay areas for

1997, including the three new locality pay areas corresponding to the

following Metropolitan Statistical Areas (MSA's) or Consolidated

Metropolitan Statistical Areas (CMSA's), as defined by OMB: (1)

Milwaukee-Racine, WI; (2) Minneapolis-St. Paul, MN-WI; and (3)

Pittsburgh, PA.

The definitions of the MSA's and CMSA's that comprise the locality

pay areas are found in OMB Bulletin No. 96-08, June 28, 1996. Based on

these definitions, the three new locality pay areas will be composed of

the following geographic areas:

(1) Milwaukee-Racine, WI--includes Milwaukee, Ozaukee, Washington,

Waukesha, and Racine Counties;

(2) Minneapolis-St. Paul, MN-WI--includes, in Minnesota, Anoka,

Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne,

Washington, and Wright Counties and, in Wisconsin, Pierce and St. Croix

Counties; and

(3) Pittsburgh, PA--includes Allegheny, Beaver, Butler, Fayette,

Washington, and Westmoreland Counties.

The boundaries of locality pay areas are subject to change if the

boundaries of the corresponding MSA's and CMSA's change, as determined

by OMB.

OPM received comments on the boundaries of the proposed locality

pay areas from nine agency field offices, four employee organizations,

and two individuals. Most commenters fully supported the boundaries of

the new locality pay areas. However, three commenters requested that

certain additional areas in the ``Rest of U.S.'' locality pay area be

included in the Minneapolis-St. Paul, MN-WI, locality pay area. These

areas are Waseca County, MN; the city of Rochester, MN; and Pine

County, MN. However, as explained below, none of these locations meets

all of the criteria set forth by the Federal Salary Council for removal

from the ``Rest of U.S.'' locality pay area and inclusion as an ``area

of application'' in the Minneapolis-St. Paul locality pay area.

Prior to the implementation of locality pay in 1994, the

President's Pay Agent adopted the Federal Salary Council's

recommendation that the boundaries of locality pay areas follow the

boundaries of MSA's and CMSA's, as defined by OMB. The Federal Salary

Council also recommended that certain areas outside the boundaries of

an MSA or CMSA (i.e., ``areas of application'') be included in the

locality pay area if they meet certain criteria.

In order for the Federal Safety Council to recommend an area as a

county-wide area of application for the January 1997 locality payments,

the affected county must--

1. Be contiguous to a pay locality;

2. Contain at least 2,000 GS-GM employees;

3. Have a significant level of urbanization, based on 1990 Census

data. A `significant level of urbanization'' is defined as a population

density of more than 200 per square mile or at least 90 percent of the

population in urbanized areas; and

4. Demonstrate some economic linkage with the pay locality, defined

as commuting at a level of 5 percent or more into or from the areas in

question. The areas in question are the contiguous county under

consideration and the central counties (or in the case of New England,

the central cores) identified by the Census Bureau for the process of

defining the CMSA's and MSA's involved.

In the case of Waseca County, criterion 1--that the county be

contiguous to the Minneapolis-St. Paul, MN-WI, locality pay area--is

not met.

With respect to the city of Rochester, MN, under established

policies, areas of application must comprise entire counties (except

where a Federal facility crosses pay area boundaries). Even if

individual cities could be considered, Rochester would not meet

criterion 1--that an area of application be contiguous to a pay

locality. Nor does Olmstead County, MN, meet this criterion.

In the case of Pine County, criterion 2--that it contain at least

2,000 GS-GM employees--and criterion 3--that it have a significant

level of urbanization--are not met.

Therefore, because the FSC's criteria for ``areas of application''

were not met

[[Page 40950]]

none of the those areas in question will be part of the Minneapolis-St.

Paul, MN-WI, locality pay area.

E.O. 12866, Regulatory Review

This rule has been reviewed by the Office of Management and Budget

in accordance with E.O. 12866.

Regulatory Flexibility Act

In certify that these regulations will not have a significant

impact on a substantial number of small entities because they will

apply only to Federal agencies and employees.

List of Subjects in 5 CFR Part 531

Government employees, Law enforcement officers, Wages.

Office of Personnel Management,

James B. King,

Director.

Accordingly, OPM is amending part 531 of title 5, Code of Federal

Regulations, as follows:

PART 531--PAY UNDER THE GENERAL SCHEDULE

1. The authority citation for part 531 continues to read as

follows:

Authority: 5 U.S.C. 5115, 5307, and 5338; sec. 4 of Pub. L. 103-

89, 107 Stat. 981; and E.O. 12748, 56 FR 4521, 3 CFR, 1991 Comp., p.

316;

Subpart B also issued under 5 U.S.C. 5303(g), 5333, 5334(a), and

7701(b)(2);

Subpart C also issued under 5 U.S.C. 5304, 5305, and 5553;

sections 302 and 404 of FEPCA, Pub. L. 101-509, 104 Stat. 1462 and

1466; and section 3(7) of Pub. L. 102-378, 106 Stat. 1356;

Subpart D also issued under 5 U.S.C. 5335(g) and 7701(b)(2);

Subpart E also issued under 5 U.S.C. 5336;

Subpart F also issued under 5 U.S.C. 5304, 5305(b)(1), and 5553;

and E.O. 12883, 58 FR 63281, 3 CFR, 1993 Comp., p. 682;

Subpart G also issued under 5 U.S.C. 5304, 5305, and 5553;

section 302 of the Federal Employees Pay Comparability Act of 1990

(FEPCA), Pub. L. 101-509, 104 Stat 1462; and E.O. 12786, 56 FR

67453, 3 CFR, 1991 Comp., p. 376.

Subpart F--Locality-Based Comparability Payments

2. In Sec. 531.603, paragraph (b) is revised to read as follows:

Sec. 531.603 Locality pay areas.

* * * * *

(b) The following are locality pay areas for the purpose of this

subpart:

(1) Atlanta, GA--consisting of the Atlanta, GA MSA;

(2) Boston-Worcester-Lawrence, MA-NH-ME-CT--consisting of the

Boston-Worcester-Lawrence, MA-NH-ME-CT CMSA;

(3) Chicago-Gary-Kenosha, IL-IN-WI--consisting of the Chicago-Gary-

Kenosha, IL-IN-WI CMSA;

(4) Cincinnati-Hamilton, OH-KY-IN--consisting of the Cincinnati-

Hamilton, OH-KY-IN CMSA;

(5) Cleveland-Akron, OH--consisting of the Cleveland-Akron, OH

CMSA;

(6) Columbus, OH--consisting of the Columbus, OH MSA;

(7) Dallas-Fort Worth, TX--consisting of the Dallas-Fort Worth, TX

CMSA;

(8) Dayton-Springfield, OH--consisting of the Dayton-Springfield,

OH MSA;

(9) Denver-Boulder-Greeley, CO--consisting of the Denver-Boulder-

Greeley, CO CMSA;

(10) Detroit-Ann Arbor-Flint, MI--consisting of the Detroit-Ann

Arbor-Flint, MI CMSA;

(11) Houston-Galveston-Brazoria, TX--consisting of the Houston-

Galveston-Brazoria, TX CMSA;

(12) Huntsville, AL--consisting of the Huntsville, AL MSA;

(13) Indianapolis, IN--consisting of the Indianapolis, IN MSA;

(14) Kansas City, MO-KS--consisting of the Kansas City, MO-KS MSA;

(15) Los Angeles-Riverside-Orange County, CA--consisting of the Los

Angeles-Riverside-Orange County, CA CMSA, plus Santa Barbara County,

CA, and that portion of Edwards Air Force Base, CA, not located within

the Los Angeles-Riverside-Orange County, CA CMSA;

(16) Miami-Fort Lauderdale, FL--consisting of the Miami-Fort

Lauderdale, FL CMSA;

(17) Milwaukee-Racine, WI--consisting of the Milwaukee-Racine, WI

CMSA;

(18) Minneapolis-St. Paul, MN-WI--consisting of the Minneapolis-St.

Paul, MN-WI MSA;

(19) New York-Northern New Jersey-Long Island, NY-NJ-CT-PA--

consisting of the New York-Northern New Jersey-Long Island, NY-NJ-CT-PA

CMSA;

(20) Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD--consisting

of the Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD CMSA;

(21) Pittsburg, PA--consisting of the Pittsburgh, PA MSA;

(22) Portland-Salem, OR-WA--consisting of the Portland-Salem, OR-WA

CMSA;

(23) Richmond-Petersburg, VA--consisting of the Richmond-

Petersburg, VA MSA;

(24) Sacramento-Yolo, CA--consisting of the Sacramento-Yolo, CA

CMSA;

(25) St. Louis, MO-IL--consisting of the St. Louis, MO-IL MSA;

(26) San Diego, CA--consisting of the San Diego, CA MSA;

(27) San Francisco-Oakland-San Jose, CA--consisting of the San

Francisco-Oakland-San Jose, CA CMSA;

(28) Seattle-Tacoma-Bremerton, WA--consisting of the Seattle-

Tacoma-Bremerton, WA CMSA;

(29) Washington-Baltimore, DC-MD-VA-WV--consisting of the

Washington-Baltimore, DC-MD-VA-WV CMSA, plus St. Mary's County, MD; and

(30) Rest of U.S.--consisting of those portions of the continental

United States not located within another locality pay area.

[FR Doc. 96-20092 Filed 8-6-96; 8:45 am]

BILLING CODE 6325-01-M