More than 2,800 state employees retire to get incentives

Associated Press

FRANKFORT, Ky. (AP) - More than 2,800 state employees have retired over the past year to take advantage of incentives aimed at trimming some $85 million from the government payroll in Kentucky.

Political leaders are counting on that number growing dramatically before the offer of higher monthly pension payments expires on Dec 31.

"With the time that's left, who knows what that number is going to be," said state Sen. Charlie Borders, R-Grayson, chairman of the Senate Appropriations and Revenue Committee.

In drafting the state budget earlier this year, legislative leaders penciled in savings from what they expected to be a flood of retirements, perhaps as many as 5,000. The savings were based on an expectation that at least 3,418 of the retirees wouldn't be replaced.

The payroll savings were part of an overall plan to offset a projected $900 million revenue shortfall over the next two years. A sour economy caused revenues to plummet, forcing widespread cuts in government services.

State Budget Director Mary Lassiter said 1,591 of the retirements this year were from executive branch agencies. The reminder were from a variety of other government entities, including local health departments, regional universities, and a network of community mental health agencies.