Many agencies have already designed and piloted performance management processes, and agencies can use those. When we sought stakeholder input last summer, much of the feedback we received was positive about performance management and recommended building upon the work done in this area over the last three years. Agencies are refining their performance-based pay programs, which are due to me by the end of January. I expect public hearings on rules and procedures to support performance-based pay will be held in February. Work on redesigning systems to support performance-based pay is underway and will be completed in time to support the July effective date for performance award payments.
State law requires that the plan be cost neutral.
The proposed system meets that criterion. We have assumed that funding will be based on the amount that has historically been appropriated for the old anniversary increases. We think this will be sufficient to award different performance levels differently. The performance-based pay process does not affect increases based on the annual compensation survey of community wages. Under state law, employees continue to receive those increases.