State Rep. Steve Carra today introduced legislation to tie the salaries of Michigan’s department directors to their performance, directly aligning the incentive of bureaucratic heads with the people’s vested interest in efficiency and accountability in state government.

“We need to hold department heads accountable,” Carra said. “They are paid generously, and they must not forget where their payment comes from. Tying salary to performance will align the interest of department heads with the interest of the people of Michigan.”

Carra, R-Three Rivers, said Michigan families will be better served by a government that rewards results over unchecked bureaucratic bloat.

“People working in the private sector aren’t guaranteed a raise simply for showing up, and neither should government executives,” said Carra. “Departments should be held accountable to ensure taxpayers receive quality, cost effective service from state government.”

Under the plan, a four-member panel would evaluate department directors based on the quality of their work and their ability to operate cost-effectively on behalf of taxpayers. One member would be appointed by the leader of both the majority and minority parties in the House and Senate. Panel members would serve without compensation.

Each panelist would score department directors on a scale of 1 to 100 based on quality and cost effectiveness. The ratings would be submitted to the House Fiscal Agency, which would calculate a salary recommendation using a formula established in the bill.

The formula would establish a guaranteed base salary equal to 25% of the governor’s salary while allowing the remaining compensation to be determined by performance evaluations. Directors who demonstrate strong management and efficient use of taxpayer resources would receive commensurate compensation, while poor performance would therefore result in lower pay.

The House Fiscal Agency would transmit the proposed salaries to the governor, the Speaker of the House, the Senate majority leader and the chairs of the House and Senate appropriations committees.

“The administrative state has grown larger, more expensive and less accountable to the people who pay for it,” Carra said. “If department directors are entrusted with managing taxpayer dollars, their compensation should reflect how effectively they do that job.”

The legislation is part of Carra’s ongoing efforts to increase transparency, improve government efficiency and restore accountability in state government.

House Bill 6149 has been referred to the Committee on Government Operations for further consideration.