Believe me, I understand your concern. I don't have a problem with decreasing the size of state governement by not replacing retiring employees (of which there have been MANY in the past several months and many in the near future), requiring more from those that are left and using some of the money saved through attrition to raise salaries. You can get the best of both worlds, an overall savings while restoring salary increases. I think many offices/departments have more employees than they really need and this could work.
As I stated before, many of us, especially in professional postitons started far below market value and made sacrifices early in our careers, knowing that in the long run if we stuck it out, though we would never make it up, it would get better with a pretty decent retirement at the end. You mentioned raising by inflation. What about when inflation went up less than 2%, which I believe has happened quite often the past several years? You could never retain good employees if that was the case, and the lack of a decent starting salary would never come close to being made up on the back end.
I will never make anywhere near the salary of those in my profession in private industry, nor do I expect to working with state government, and that is a choice I and many others have made. There are some benefits with working for state government over working in private industry, so it's not all negative, and I hope to not come across in than manner. However, many of us do depend on that 5% to get us somewhere close to a decent salary later in our careers, and I wanted to shed some light on that.