Capitol Hill hands out bonuses
The Wall Street Journal has reviewed the annual practice of lawmakers rewarding staff with annual bonuses - and this past year they appeared to do so in record numbers, according to the LegiStorm data that the Journal cited.
Bonuses are not unusual on Capitol Hill. But 2008 seems to have been an unusually big year for bonuses, according to the most recent House data LegiStorm analyzed. Each year, personnel compensation rises in the fourth quarter in the House of Representatives (data for the Senate is not yet available and is not as easily broken down). But in 2008, average pay per House employee spiked the most in the eight years since we have begun tracking salary data.
The Journal found that House bonuses ranged as high as $14,000. The New York Post also ran a more focused story this week about Rep. Vito Fossela's (R-N.Y.) generosity with bonuses as he served out a scandal-ridden last few months in office.
Of course, the bonuses of Capitol Hill staffers are a far cry from the hundreds of thousands or millions of dollars that some Wall Street executives made this year. Nevertheless, lawmakers might find it a bit awkward to explain handing out bonuses to their staff while their constituents face severe economic pressures of their own.
The practice of handing out bonuses can get particularly interesting during an election year. Members of Congress hire staff for two conflicting purposes: to run government offices and to run political campaigns. So there is enormous temptation after an election to reward the hardest-working campaign aides with big government bonuses. But succumbing to such a temptation is also illegal because it represents a government subsidy to a campaign. While no smoking gun, it is interesting that in the hardest-fought election in recent years that we see a big spike in staffer compensation from taxpayer funds.
We have prepared a graph of salaries showing how the 2008 fourth quarter pay increased more than any other year that we have tracked. An average staffer was paid 17% more in the final quarter of 2008 than in the previous three quarters.

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