Former Gov. Mitch Daniels' Newsroom

Contact: Jane Jankowski
Phone: 317/232-1622

For Immediate Release: Aug 30, 2006
Logansport State Hospital employees earn bonus checks

LOGANSPORT, Indiana (August 30, 2006) -- Governor Mitch Daniels made a surprise visit to the Logansport State Hospital today to deliver bonus checks to 77 food service employees. Employees who received the checks - more than $1,000 each for those who worked the entire year - successfully reduced food service costs at the facility over the past 12 months.

"This group of employees seized an opportunity, and they have proven they can compete with anyone in providing this service. The taxpayer has won because they've significantly reduced costs. We believe when you serve the taxpayer with excellence like this, something good should happen to you," said Daniels.

On Thursday, the governor will present the second round of bonuses under his new public service achievement program to reward outstanding performance by state employees.

The Logansport employees successfully bid on the food service contract at the state hospital in mid-2005. It was the first time in the state's history that current state employees formed a group to submit a bid for such work. The group's bid was selected over three others. The contract was part of a larger effort to better manage food service operations at correction facilities statewide that has so far saved over $12 million. There is a juvenile correction facility on the state hospital campus.

According to a memorandum of understanding (MOU) with the employees, they would share a bonus if the actual cost per meal was less than amount they bid. The agreement required that overall food quality and nutritional standards be maintained, but permitted the employee group to make changes in all aspects of the food service operations. The employees bid an amount of $5.40 per meal for state hospital residents and ultimately achieved a per meal cost of $5.23, a 17 cents per meal savings.

Total savings were projected at $561,963; however, employees achieved actual savings of $632,212 or a difference of $70,249. That is the amount the 77 employees share as a bonus. Pro-rated amounts were awarded to the employees with less than a year of service.


Additional media contact: Family and Social Services Administration, Dennis Rosebrough, 317/232-1149,