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Governor Reinstates Pay Increase for State Employees

Press Release

Location: Indianapolis, IN

Governor Mitch Daniels sent a letter to state employees today to advise them that following a two-year pay freeze most will be eligible for a modest pay increase in 2011.

In the letter, the governor said those who receive a positive performance review will receive, on average, a 1.3 percent increase. The raises will be a flat amount: $1,000 for employees who earn an evaluation of outstanding (approximately 5 percent of employees); $750 for those who exceed expectations (10 percent of employees), and $500 for those who meet expectations (75 percent of employees). Employees who are evaluated as needing improvement or who do not meet expectations will not receive a pay increase.

"It has been very disappointing to me that we have not been able to recognize financially your hard work over the last two years," Daniels wrote. "Of course, few of the taxpayers who pay our salaries have had pay increases, and many have lost income or their jobs. Still, I have really regretted our inability to give pay raises during this recession."

State employees did not receive pay increases in 2009 or 2010 when the governor reduced spending throughout the executive branch of state government as state revenues fell off during the national recession. However, the pay for performance evaluation plan the governor instituted in 2006 has remained in place, and outstanding performance has been rewarded through the state's spot bonus program and the governor's public service achievement awards.

Daniels has asked the leaders of the state's executive branch agencies to forego a salary increase. For the third year in a row, Daniels will not accept the salary increase for the governor approved by the General Assembly three years ago.

State employee reviews are currently being conducted, and the pay increases will be effective in February.

The letter may be found at this link:

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