Not only are we in financially chaotic times, we are in a zone of "zero inflation" such as we have not experienced in our lifetimeS. The Federal CPI report released January 16th shows that from December 2007 to December 2008 the three inflation measures averaged out to below zero. And we know that Gross Domestic Product contracted 3.8% in the fourth quarter of 2008 as spending continued to ratchet downward.

What does this mean for Chatham? Since there are no increases in the cost of living, what increases in compensation should be considered for Fiscal 2010? Many towns and cities are freezing salaries at fiscal 2009 levels to avoid layoffs.

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