State-Journal.com - Paid holidays saved

The budget – HB1 – approved by the House appropriations committee Monday included $3.2 million for renovations at Frankfort High School and $7.5 million for Kentucky State University, but also saves state holidays.

However, the school spending was dependent on the slots bill, which was voted down in a Senate committee.

The budget could come up for a vote today or tomorrow. Legislators hope to adjourn soon – the special session is costing taxpayers $60,000 per day.

Rich Crowe, superintendent of Frankfort Independent Schools, said there are no specific plans for renovations at Frankfort High School, which is rated as category four by the state – the only local school in fair or poor condition. Category five schools are in the poorest condition.

Crowe said the money might be used for improvements to the gym, auditorium and HVAC system.

Crowe has been out of town at a training session and said there haven’t been any discussions about making improvements.

“This is all brand new to us,” Crowe said.

A spokesperson for KSU did not immediately return a call seeking comment, but the bill would include $6.2 million for renovations at the Betty White Nursing Building and $1.3 million for new computers.

Rep. Jim Wayne, D-Louisville, said the spending on schools was “obviously tainted with politics” because funds were not allocated objectively. He noted that some category three schools were included although some category four schools were not.

Category three schools are in better condition than lower rated facilities.

Wayne suggested the school funds could have been used as rewards for support on other legislative issues – a possible reference to the slots bill.

Rep. Rick Rand, D-Bedford, is chairman of the appropriations committee said some legislators made better arguments for funding for their projects than others.

The House appropriations committee removed on Monday language that would eliminate between three and five paid holidays for employees.

Gov. Steve Beshear had proposed a plan to help balance an estimated $1 billion budget shortfall by eliminating three to five paid holidays for employees.

Employees making less than $50,000 would have lost three paid holidays. Those making $50,000 or more would have lost five holidays.

State offices would have remained closed but employees would not have earned their salary. The holidays would have been selected by executive order and would have saved about $10.6 million.

Rand said the governor does not have the authority to eliminate paid holidays.

“We have to grant him that authority,” he said. “We have taken that language out.”

Rep. Derrick Graham, D-Frankfort, said he appreciates the decision.

Rep. Carl Rollins, D-Midway, said the governor will have to find some other way to save money.

Lee Jackson, president of the Kentucky Association of State Employees, said the move will benefit workers.

“The last few sessions have been very hard on state employees,” he said.

Without the slots plan, Rand said the funding for school projects will likely not be available.

However, the budget plan is dependent on passage of HB 2, which would allow for video slot machines at racetracks. It narrowly passed the House last week and now goes to the Senate where Republicans have expressed strong opposition to the proposal.

Jackson said he’s now concerned about a plan in the Senate to borrow $7 million from the state employee health insurance trust fund. Senate President David Williams, R-Burkesville, is offering the plan as part of an alternative solution to slots at racetracks.

The money would be repaid with interest, but Jackson and Sen. Julian Carroll, D-Frankfort, say they want that provision removed.

“I’m totally opposed to it,” Carroll said.