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Performance Bonuses For Demonstrated Savings Could Be Part of County Pay

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Yesterday’s blog discussed the work of the once-a-decade Government Review Commission for Allegheny County government.  The Commission makes recommendations on increasing Council and Executive pay. Currently, the 15 members of Council do not receive a salary, and receive a per-meeting stipend that does not exceed $9,000 per member.  The Executive’s salary is $90,000.

The Commission recommended that Council receive a salary, that the reimbursement of expenses (up to $3,000 per year) be eliminated and rolled into the salary, eliminate the 5% per five year cap on increase, and set the Council salary at 10% of the Executive.  For the latter, salary could be increased from the $90,000 amount by setting the salary as a percentage of either the Governor’s, the District Attorney’s, or by applying the to-date changes in the consumer price index to the salary.  The language regarding the increase in the Executive’s salary based on the increases in County collective bargaining agreements is also recommended to be eliminated.

Here’s a novel addition to compensation increases following any adjustment that may occur to Council and/or Executive pay.  If any of the 16 elected officials is able to propose and demonstrate real and measurable savings via efficiencies, consolidation, outsourcing, better management practices, etc. that actually gets implemented, the official should be entitled to a performance bonus of a certain percentage of the demonstrated savings. If multiple officials sign on to a proposal, they would share in the bonus proportionately.

We suggested a performance bonus for City of Pittsburgh employees in 2013 when we made recommendations for the current Mayor, and of course County employees could have the same type of program, and it could be part of the pay structure for the County’s top officials.

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Allegheny Institute
Allegheny Institute

The Allegheny Institute is a non-profit research and education organization. Our mission is to defend the interests of taxpayers, citizens and businesses against an increasingly burdensome and intrusive government.

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