Employee Benefit News for School, City and County Employers

New KY budget plan will benefit state workers

Written by Valerie Ortiz | Apr 9, 2014 10:26:05 AM

Teachers, school district administrative staff and Kentucky employees could receive pay raises and see a fully funded state pension system under Gov. Steve Beshear's newly passed state budget plan.

According to the Lexington Herald-Leader, the long-awaited budget plan is a $20.3 billion, two-year spending plan that seeks to improve public worker benefits while still preventing debt by cutting funding to certain agencies and taking money from the bank accounts of some state agencies.

Jim Carroll, a former parks worker for the state and a current spokesman for a community of state retirees, said current and former state workers will benefit from the new budget, and many hope the state will focus more on employees in the state capital of Frankfort in the future.

"The legislature and Gov. Beshear have followed through on a commitment made last year to stabilize the financially fragile pension fund covering most state employees," Carroll said. "In future sessions, we hope Frankfort will secure a dedicated funding source for pensions."

CBS affiliate WKYT reported approximately 100,000 state teachers and administrative staff will also benefit from the new budget plan for the next two years. School districts would provide workers with a 1 percent pay increase during the 2015 school year, and a 2 percent raise during the 2016 school year.