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INDIANAPOLIS – State employees won’t get raises next year but could instead receive one-time bonuses of $500 to $1,000 if they do well enough on performance evaluations to be completed next month.
In an email, Gov. Mike Pence told employees Friday that the state’s “present circumstances do not permit us to increase base pay.”
Through the first five months of the current fiscal year, tax receipts missed the previous forecast by $114 million. That’s led Pence to order cuts for universities and state agencies and put a state plan up for sale.
Also on Friday, a forecast team predicted that state revenues through Fiscal Year 2015 will be less than lawmakers anticipated when they wrote the current, two-year budget. However, the state is still projected to end the current budget cycle with nearly $1.9 billion in the bank.
Lawmakers had included money in the current state budget for Pence to give raises but he opted instead for the one-time payments, which won’t tie the state to higher personnel costs in the future.
Employees whose evaluations find they meet expectations will receive a $500 bonus. Those who exceed expectations will receive $750 and those rated outstanding will receive $1,000.
“I hope this news will be an encouragement to you for a job well done in 2013,” Pence said in his email.