Business: States' Wrongs

Guideline busting all around

Though the Carter Administration preaches austerity in pay raises as part of its anti-inflation gospel, some state and local legislators have been covering their ears and awarding themselves and other public employees hefty boosts. The irony is that these increases, which sometimes range well above the Government's voluntary guidelines limit of 7%, are made possible because of the rich flow of federal aid to states and localities. In many cases, the money for the raises is available because federal largesse pays for programs that the legislatures would otherwise have to fund. Government programs will this year enrich state...

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