FRANKFORT — The state's two-year spending plan emerging from a House committee keeps largely in line with the budget proposed by Gov. Paul Patton.

        House leaders said they intend to increase funding for elementary and secondary schools beyond the levels recommended by Mr. Patton.

        House Speaker Jody Richards said the general state aid to education program — known as SEEK — will be increased by 1 percent.

        Mr. Richards said school districts will not be required to use the money to provide raises to personnel, but will be encouraged to do so. Mr. Patton has proposed requiring local schools to give 2.7 percent raises to employees, but provided no money to do so.

        “I think most districts will give whatever they can,” Mr. Richards said.

        In addition, Mr. Richards said, local districts would be provided $14 million to make up shortfalls this year after a miscount of students.

        In fiscal 2004, the House budget would provide and require a 2.7 percent pay raise to all local school personnel.

        The sources of the money, which could total nearly $100 million during the two-year budget, were not altogether clear.

        Mr. Richards said numerous cuts were made across the executive budget to capture money for education.

        Outside of education, the emerging House budget looked much like the original proposal by Mr. Patton in January with a bit of tinkering across state agencies.

        With little new money to move around, and natural growth in state government personnel and other fixed costs, legislators found themselves unable to do much to accommodate their own wishes.

        Rep. Jesse Crenshaw, chairman of a subcommittee covering the justice, judicial and corrections areas, voiced his frustration after his report Thursday.

        “What it does is, it says we have no money,” said Mr. Crenshaw, D-Lexington.

        Rep. Lonnie Napier, R-Lancaster, said he had pleaded for financing of a state park at Herrington Lake, but none of the $43 million in construction requests for the Parks Department are included in the budget.

        Times are so tight, several golf courses being built at state parks cannot be opened in the next two years.

        The human services subcommittee made a significant commitment to breast and cervical cancer treatment programs within Medicaid of $1.2 million from the state, which would be matched with $4.8 million in federal funds.

        Out of a $7 billion annual General Fund, the changes made were relatively minor.

        For example, the committee recommended building a fence around the minimum-security portion of the Green River Correctional Complex in Muhlenberg County.

        There were also some unusual approaches to issues and money.

        Rep. Jimmie Lee, D-Elizabethtown, said the budget would set aside $60 per month payments to welfare recipients who have jobs. Mr. Lee said the initiative would actually save the state $3 million because of other payments to workers on welfare.

        Like the education changes, it was unclear where the money would come from for additional programs. There was no surplus from Mr. Patton's original proposal and the House works from that as a base for their recommendations.

        The full House Appropriations and Revenue Committee worked into the night Thursday to come up with the first draft of the General Assembly's take on spending priorities for the coming two fiscal years.

        Education spending, which accounts for nearly two-thirds of state General Fund spending, was to be taken up today.

        After the committee report, the full House will vote on a budget and then the Senate gets its shot. Differences between the two approaches are historically resolved in conference committees of the legislative leadership.

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