The Selectmen voted unanimously to peg the public employee pay schedule to the consumer price index (CPI) for northern New England put out by the federal bureau of labor statistics. The schedule of raises is currently set out in 2% steps. Under the selectmen’s scheme, the schedule will be adjusted each year. This year the CPI shows a 1.5% increase in inflation. That means that any public employee receiving a raise will get a 3.5% raise. 2% under the pay schedule and 1.5% as a cost of living adjustment raise (COLA).
In public comment I asked if public employees would receive a COLA even if they did not receive a merit-based 2% raise. At first, selectman Bill Marcussen said yes, that all town employees would receive an automatic COLA raise each year, so long as the CPI showed an increase. However, after I asked a few more questions, the three selectmen clarified that only employees who receive positive performance reviews will receive raises.
Hypothetically speaking, if every public employee in town receives a 3.5% raise this year, that will increase the budget line for salaries by roughly $38,500.