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 and city coffers by $82 billion, an amount more than double the projected federal budget deficit of $33.2 billion. Thus Washington finds itself handing out cash that is being used to undermine its fight against soaring living costs, which are now climbing at an annual rate of 8.8%.

Georgia's house of representatives passed a bill to give teachers a 9% raise this year, prompting protests from both Governor George Busbee and White House Inflation Fighter Alfred Kahn. So last week the state senate mounted an effort to deflect the anger but save the increase: it voted a 10% raise bul split the payment in two -a 7% boost beginning next September and 3% in January. Illinois legislators voted themselves both a 25% raise this year (to $25,000) and a further 12% increase for next year. The commissioners on the board of Cook County, which includes Chicago, voted themselves a 30% raise, to $32,500. When the board's president vetoed the appropriation for the raise, one member took the matter to court, where it now awaits resolution.

Arkansas Governor William Clinton has proposed an increase of 14% for teachers, contending that the raise is completely justified because teacher salaries in his state (current average: $11,146) are among the very lowest in the nation. Louisiana Governor Edwin Edwards says that he will seek a 10% increase for all state employees.

For a time the White House considered trying to cut back on some federal aid to states that broke the guidelines, but dropped the idea because it was legally questionable as well as politically risky. Now Kahn says that the Administration will rely on "statesmanship and informed public opinion" to curb the spread of these "outrageous" increases. Unfortunately, that is not likely to be enough to hold down public wage raises, which are highly visible and thus set a tempting example for powerful unions in the trucking, electrical and other industries in this year of heavy labor bargaining.

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