Public sector employers need to compete in the same job market as private sector employers. I can only speak about my department but we're hamstrung by bureaucratic and legislative inertia that is completely out of our control. I believe the mission of my department is an important one but if the private sector software market was more robust in my city and pay scales were just as disproportionate as they are now I would choose a private sector job 10 out of 10 times. The only ones here not constantly checking LinkedIn are the lifers that already have a fat pension and are reasonably close to retirement.