Military Pay Increase Message to the Congress.

To the Congress of the United States:

In accord with 37 U.S.C. 1009(c), I am hereby advising the Congress that I plan to exercise the discretionary authority provided by 37 U.S.C. 1009(c), as added by section 303 of the Department of Defense Appropriation Authorization Act, 1977 (Public Law 94 361), with respect to adjustments in the levels of compensation for the members of the uniformed services.

The amendments to 37 U.S.C. 1009 made by that act provide discretionary authority to apply the adjustments (based on the overall average percentage increase in General Schedule rates of basic pay, in accord with 37 U.S.C. 1009(a)) to the basic pay, quarters allowances and subsistence allowances of the uniformed services on a percentage basis other than an equal percentage basis. Those amendments also provide discretionary authority to pay a partial quarters allowance to bachelors in government quarters, on field duty and on sea duty.

The current levels of the military allowances for quarters and for subsistence are less than the costs of the services they are intended to procure. Because of this deficiency in the current level of these allowances, it is my considered judgment that a reallocation of the October 1, 1977 military basic pay increase is appropriate. However, in consideration of the negative impact of reallocation on some military members, I am not going to reallocate the full 25 percent which I am authorized by law to do. I plan to reallocate 12 percent of the basic pay increase, by grade, all to the basic allowance for quarters, and to increase the partial quarters allowance to bachelors in government quarters, and to those on sea duty or on field duty, by an amount equal to that reallocated from the basic pay increase. This action takes a positive step toward improving the current relationship of the quarters allowance to the costs of off-post housing and, at the same time, recognizes the adverse impact of reallocation on some military members by limiting it to a moderate amount.

Specifically, the amount allocated to the clement of monthly basic pay for each grade shall be 88 percent of the amount that would have been allocated to that element under 37 U.S.C. 1009 (b) (3); the elements of monthly basic allowance for subsistence and monthly basic allowance for quarters for each grade shall be increased by an amount which is of the same percentage as the overall average percentage increase in the General Schedule rates, except that the element of monthly basic allowance for quarters shall be increased by an additional amount by grade equal to 12 percent of the amount that would have been allocated to the element of monthly basic pay under 37 U.S.C. 1009(b) (3). Members without dependents, who, trader 37 U.S.C. 403 (b) or (c). are riot entitled to receive a basic allowance for quarters, shall be paid an increase in the monthly partial basic allowance for quarters in an amount equal to the additional amount allocated by grade to the element of monthly basic allowance for quarters under 37 U.S.C. 1009(c).

JIMMY CARTER

The White House,

September 29, 1977.