re: How to leverage new job offer for raise/benefits at current job?

Current job is larger, but she's recently been passed over for a position. One that is really right up her alley. She has a stellar reputation there and experience along with an MBA that has a concentration in that specific field. Not sure when they'd be willing to seriously consider her.

New job is smaller and the opportunity is unknown. But it is a place that would be very well known in all of Houston, if not all of Texas and the surrounding states. Might be good experience for advancement outside of that job.

Girl who asked her to apply used to work with her and said the work is much better at new place. So again, we are willing to lose out on 5k for that better work environment. Just would like to see what can be squeezed out of old job. It is for a local government, so it's not like they'll throw out tons. But they know she's underpaid, so I expect some uptick at her review and if that coincides with a 2 week notice, it might be a sweeter deal. He'll, the position she applied for internally is still open as the other guy turned it down....maybe they freak and offer it to her . Not serious about that, but I do think a few of her managers will melt. I've met them and they seriously rely on her.