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Massachusett's has a law linking legislators' pay to income fluctuations of the residents.

Since incomes have decreased among the residents, legislators will take a pay cut.

I like this policy since accountability has concrete results.

http://holliston-hopkinton.patch.com/art...t-a46b80c5

All government employees pay should be modeled this way, I've said that for years. As it stands now they hardly feel the heat unless a downturn is a long one. But they'll cite the private sector when times are good in order to justify their raises and benefits.