INDIANAPOLIS (December 23, 2008) - Governor Mitch Daniels today suggested that public employees at all levels in Indiana consider skipping a pay raise in 2009. He said such action is already happening in some locations and would take pressure off schools and local governments.

"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," said Daniels. "Those of us whose paychecks come from our fellow citizens and neighbors ought to look for chances to help those neighbors and show some solidarity."

A link to the audio from the governor's news conference may be found at this link: http://www.in.gov/gov/files/Audio/122308_media_availability.MP3

The governor's full statement is below:

"At this time of worry and hardship for many Hoosiers, I have a suggestion for our colleagues in public service.

"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. Such actions would extend the precedent already set by state employees, the state's judges, their staffs, the employees of Purdue, IU and others.

"I have no way to make this happen, and no intention to criticize anyone who does not act on it. But it would be in the best Hoosier tradition of neighbor helping neighbor, as here those helping out receive their paychecks from the taxes paid by their fellow citizens, in a private economy where raises will be few and far between."

Note:  Each one percent across the board pay raise for all state and local employees (teachers, city, higher education, state, etc.) equates to approximately $130 million annually.

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