With government workers’ pay raises lagging the private sector’s, state and local officials will need to navigate through different measures of inflation to fairly calibrate wage and pension increases. Government employees have drawn the short straw lately when it comes to inflation adjustments to their pay. The gap in pay increases could be closed in the coming year if cost-of-living adjustments (COLAs) are awarded by formula to public employees, but that’s a big if. And don’t be surprised if there are debates about which inflation index to use and how.
Source: Governing
