Attorneys called witnesses of the alleged Midway bank robbery in October by a Frankfort man who was out of prison under the program the state attorney general is trying to block in Franklin Circuit Court.
Michael Farler, 27, 4364 St. Johns Road, who faces a possible federal indictment in the Midway bank case, was used as an argument against the program that Gov. Steve Beshear's administration has said is legal.
The early release matter is before Circuit Judge Phillip Shepherd, who ultimately asked Attorney General Jack Conway, who is seeking to stop the program, and the Justice Cabinet office to settle it out of court
Attorneys from Conway's office were in court Monday seeking a temporary injunction against the plan.
Farler was released in June as part of the early release program, having served seven years of a 10-year sentence for burglary and robbery.
He was released after receiving 189 days credit for "street time" from the Department of Corrections. He would have been released Christmas Day.
Attorneys called a Versailles police detective and the bank teller from whom Farler allegedly demanded money during the robbery to the stand.
Leslie Roberts, who has worked at United Bank and Trust in Midway for two years, testified Farler entered the bank wearing sunglasses and a baseball cap.
Farler slipped her a note saying if she gave him money no one would get hurt, Roberts testified.
Roberts described a two-minute exchange between herself and Farler after which she and a customer present experienced "uncontrollable shaking" from fear and shock.
"Lives are more important than money," Roberts said in court.
Versailles police detective James Fugate testified, mostly about Farler's record and how police investigated the case. According to police and attorneys, Farler has a prior armed robbery conviction in Franklin County.
Farler stole two all-terrain-vehicles from James Ruble in 2000, and was armed with a handgun when he stole cash and food stamps from the Hilltop Market in 1999, according to his indictment.
He also has a theft conviction in Shelby County from 2001.
Farler was apprehended by police in Lexington after allegedly getting away with $5,300 from the Midway bank.
He is currently lodged in the Woodford County Jail and his case has been referred to the U.S. Attorney's office in Lexington.
Shepherd said in court Monday he'd consider both sides, but urged attorneys to meet and determine whether they could agree on a settlement.
"Some common ground can hopefully be discovered," Shepherd said.
Kentucky lawmakers authorized the parole credit program for certain inmates and parolees earlier this year. It's a cost-saving measure aimed at relieving some of the mounting financial pressure Kentucky's prison system is putting on an already cash-strapped budget.
Beshear announced late last month that Kentucky's budget outlook is getting worse. He said state revenue is on pace to fall nearly $300 million short in the current fiscal year that expires June 30, on top of an already projected $900 million two-year drop through 2010.
Kentucky's two-year state budget is about $19 billion, and the Department of Corrections budget accounts for about $424.6 million this fiscal year and more than $440 million the next.
Currently, there are about 21,000 inmates in state prisons. So far 1,684 inmates and 2,153 parolees " including murderers, rapists and robbers " have benefited from the program.
Justice Cabinet Secretary J. Michael Brown said prison officials were "following the mandate of the legislature" in applying the credits, which are set to expire with the state budget at the end of the next fiscal year. Brown said a settlement was "certainly a possibility" but uncertain.
The Associated Press contributed to this report.