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Commission-style reward for public employee cost-savings suggestions?

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A bill currently being considered by the House Finance Committee, HB 1670, would institute a one-time reward for public employees who make successful cost-savings or revenue-producing suggestions. The award would amount to 10% of the savings achieved during the first year the employee's suggestion is implemented, with a $5,000 maximum.

Department commissioners, directors and elected officials would not be eligible for rewards. The rewards would be paid out of the administrative budget of the department receiving the fiscal benefit of the cost-savings suggestion.

New Hampshire does currently have a committee devoted to evaluating state employee suggestions, which is empowered to offer rewards. However, no standard for the amount of such awards has been set.

Supporters of the move argue that providing better incentives to public employees will encourage more cost-saving innovations, which will ultimately save tax dollars. They also note that the additional costs of the changes are tied to those same savings, negating any additional financial burden on the state.

Opponents counter that current New Hampshire law already allows for rewards for suggestions by public employees and that the existing system is sufficient to inspire creative suggestions from state workers. Others note that financial incentives can create resentment among employees, and suggest alternative incentives, such as vacation time.

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