Daniels wants government employees to forgo raises

BY PATRICK GUINANE, Times of Northwest Indiana
pguinane@nwitimes.com

INDIANAPOLIS | Republican Gov. Mitch Daniels wants local government employees, including teachers, to voluntarily forgo annual pay raises in 2009.

"Raises will be few and far between in the private economy for awhile. The private economy is where the taxes come from that go into the paychecks of public employees," Daniels said Tuesday. "I hope that every group of Indiana public employees - city, county, school, universities, and others - will consider volunteering to skip any pay raise in 2009. Every such decision would take pressure off local and school budgets, and help ensure the continuity of vital public services."

Earlier this month, Daniels announced that state employees will not receive annual raises, a cost-cutting move forced by state tax collections that are following the economy into the tank. The governor and the four legislative leaders have agreed to defer 13 percent salary hikes that were headed their way.

The governor's office estimates that every 1 percent pay bump collectively rejected by the thousands of government employees in Indiana would result in $130 million in taxpayer savings.