FRANKFORT — The Patton administration is having to do more juggling to balance a budget put out of whack by a revenue shortfall, reinstating payments to school districts, but cutting money to a workers' compensation fund.

        The administration reversed a July decision and will not cut state payments to school districts to pay health insurance benefits for federally funded workers.

        Most of the actions to deal with a $326 million anticipated revenue shortfall to the state General Fund for the fiscal year that began July 1 have already been implemented. The biggest was to take $120 million from the state's emergency “rainy day” fund.

        But one move that some school officials said would be painful was the administration's decision to cut nearly $11 million in state payments to school districts to pay health insurance for 4,700 teachers and other employees whose salaries are paid by the federal government.

        State Budget Director James Ramsey confirmed Tuesday that he told a group of school superintendents last week that their concerns had caused the administration to decide not to make this cut.

        Mr. Ramsey said the main cut being made to offset restoration of the money for schools is a reduction in state payments to the so-called Special Fund, a part of the state workers' compensation program.

        The Special Fund helps pay workers' compensation claims made before 1996 to people whose work-related illnesses or injuries could not be attributed to a single employer.

        Under a 1996 law, the fund was closed to new claims. Also under that law, quarterly payments from the General Fund are to be made to the Special Fund to help pay for a projected long-term need in that fund.

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