Some court workers get 20% raises

By Beth Musgrave - bmusgrave@herald-leader.com

FRANKFORT — The state court system gave some of its administrators healthy raises just months before it laid off 47 people, salary records show. The increases — some 20 percent or more — were much higher than average raises in the private or public sector.

The Administrative Office of the Courts says the dozen employees who received increases from May until October got pay bumps because they took on more responsibilities as the judicial system was trimming its staff to save money.

But the salary increases don't sit well with some current and former AOC employees.

"When you know that you're going to have to lay off people, why give some people raises, especially during a budget crisis?" said Kathy Peach, who was laid off in September after nearly 13 years at the AOC. "I think it's an outrageous way to treat employees."

The court, which needs $308 million to cover annual expenses, was allocated $273 million this fiscal year. It is operating with a $35 million deficit.

One executive received a 24.4 percent increase — nearly $16,000 — because she was promoted, personnel records show. Three others had pay raises of more than 20 percent; two of those also were because of promotions or a combination of job duties. For example, the budget director now oversees the facilities program.

Four employees received 10 percent raises, three 5 percent and one 4.6 percent.

But even those modest raises of 4 percent or 5 percent are higher than the average pay raise for the private or public sector in 2009, according to salary data.

Hanna Resource Group, a Lexington-based human resources and financial consulting firm, found in a recent survey of 90 organizations that the average pay raise for Kentucky was 1.7 percent. The average for Kentucky government employees was 1.2 percent for 2009, according to Hanna's data.

In the executive branch, state employees received a 1 percent raise for the past three fiscal years. However, state Personnel Cabinet officials say executive branch employees may receive additional raises based on merit or because of promotions. But others in state government have taken pay cuts.

Gov. Steve Beshear, Lt. Gov. Daniel Mongiardo and other key members of Beshear's staff took a 10 percent pay cut in 2009 to help the state save an estimated $100,000.

Since May 2008, the courts have lost more than 100 positions through attrition, in addition to the 47 people who were laid off in September. With the combining of positions, attrition and layoffs, the courts have saved nearly $4.6 million, said Leigh Anne Hiatt, a spokeswoman for the AOC.

The Administrative Office of the Courts defended the pay raises, noting it will cost less to give the raises than to fill vacant positions.

In total, the salary increases will cost an additional $71,347 a year, according to data provided by the AOC.

"For example, the AOC has realized an annual $169,491 in savings from not filling the position of the AOC deputy director and abolishing two other positions," said Hiatt. The duties of those three were divided among the people who received raises, she said.

But former and current AOC employees say it's not fair that only some employees got pay raises when everyone is shouldering more responsibilities.

"There are staff that work under these supervisors — and staff throughout the AOC — that had to take on more responsibilities, but they did not get pay raises," Peach said.

Rep. Brent Yonts, D-Greenville, a member of the House Judiciary Committee, said the legislature has not been informed about the pay raises at the AOC. But there isn't much the legislature could do anyway. It has no control over the state judiciary.

"They are a separate branch of government," Yonts said.

And things could get worse because the state's financial outlook for the next two years is bleak.

The 3,300 non-elected employees who make up the state court system could face more budget cuts and possible layoffs.

AOC Director Laurie Dudgeon told a legislative panel in October that if the courts do not receive an additional $72 million next year, there might be more layoffs or furloughs to cut costs.