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<br />(14) <br /> <br />consumer price index during the sane six years. This would not bother me if these ~..- <br />.",It.( <br />salary increases were giverv.to select employees <br /> <br />true merit pay <br /> <br />who produce more <br />merit <br />plan; hOlJever, as you can see, wheIlftpay increases <br /> <br />as determined by a <br /> <br />are made routine <br /> <br />for everybody, and then lumped with across-the-board rost-of-living increases, the <br /> <br />effect is to distort out of all proportion, the total agency payroll costs. <br />- <br /> <br />let Ire qualify rry remarks before going further. I am not stating or implying that <br /> <br />state or public agency employees are overpaid or underpaid. I am not qualified to do <br />this. My remarks are aimed solely at the pay plans of the agencies, the implementation <br /> <br />of these plans, and the effect of these plans on total agency payroll costs. <br />- <br />Many of our local public service agencies have chosen not <br /> <br />to adopt the state pay plan and have developed their own pay <br /> <br />plans; however, in most cases, it appears to me that ~ <br /> <br />pay plans are not tied to performance and suffer from the <br /> <br />same weaknesses as the state pay plan. <br /> <br />There are exceptions. <br /> <br />For example, Jane Spilman tells me <br /> <br />that Anchor House recently switched from an across-the-board pay <br /> <br />plan to a true merit pay plan where employees are evaluated <br />tut1 po:,d <br /> <br />twice-a-yearAon the basis of pre-determined, objective, written <br /> <br />criteria. <br /> <br />She says that the plan has been well received by the <br /> <br />employees and, perhaps most important, productivity has increased. <br /> <br />.- <br /> <br />I am aware of the difficulties in setting up a fair and <br /> <br />effective merit pay plan. <br /> <br />City Council has been grappling with it <br /> <br />for over a year, and we still haven't solved the problem. <br />Now, I know this is a lot to absorb in one night. And, I <br />honestly don't think you're solely to blame. I've got to <br />share the blame along with the General Assembly and all <br />public officials. Our first objective was to provide the <br />services. We're ~oing this. Perhaps in our rush to provide <br />the services we haven't paid enough attention to making sure <br />the tax payers are getting their money's worth. <br /> <br />In order to make sure that the tax payers get their <br /> <br />money's worth, here's what I suggest: <br />