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Louisville Mayor Greg Fischer is calling for a management audit of the Metropolitan Sewer District after Courier-Journal stories about questionable spending practices and allegations of mismanagement within the agency. Fischers announcement came as the
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Charles Wheeler picks up some veggies from Les Snyder and Brent Robbins stand near the corner of Eighth and Market streets in downtown Louisville. Wheeler visits the farmers stand, which is a Community Supported Agriculture program, once a week. By Andrea Uhde Shepherd | ashepherd@courier-journal.com | The Courier-Journal
atti Joyce likes the idea of buying locally grown foods from a farmers market, but the one near her Prospect home is only open Saturday mornings when shes usually exercising. So when a nearby farm said it would reserve a box of freshpicked produce for her every Wednesday, Joyce signed up, joining a growing number of people across the state who participate in a Community Supported Agriculture program. I just thought, what a great concept, said Joyce, who owns Pilates Power Center in Prospect. All I have to think about is showing up and picking it up. In Kentucky, the number of
Community Supported Agriculture programs registered with the state Department of Agriculture has jumped from 10 in 2009 to 54 this year. At least15 serve the Louisville area. And there are more CSA programs that arent on the states list because farmers arent required to register them, said Sharon Spencer with the agriculture department. Customers say the CSA produce is fresher and lasts longer than the food they buy at grocery stores, and farmers say the program allows them to collect money upfront before the growing season. See FARM, A4, col. 1
IN NEIGHBORHOODS
Todays editions of Neighborhoods focus on local farmers markets, which are more alike than different, but each finds a way to stand out.
FARMERS MARKETS
For a listing of all area farmers markets, go to www.courier-journal.com/farmersmarkets
WASHINGTON With few options at hand and his poll numbers sagging, President Barack Obama expressed concern Tuesday about the sudden slowdown in the economy but said he is not worried about a second recession and the nation should not panic. Obama spoke about the new economic trouble in detail for the first time since a report last week showed job growth slowed sharply in May. He tried to reassure Americans worried about high unemployment and expensive gas that the U.S. is on a slow, if not steady, path to recovery. I am concerned about the fact that the recovery that were President on is not producing jobs as quick- Barack ly as I want it to happen, Obama Obama: Our said at an appearance with visit- task is to not ing German Chancellor Angela panic. Merkel. We dont yet know whether this is a one-month epi- PAWLENTY sode or a longer trend. PLAN Either way, there appears to be GOP presilittle Washington can do about it. Federal Reserve chief Ben dential hopeful Bernanke, speaking Tuesday in Tim Pawlenty Atlanta, said the economy has advises big tax lost momentum but said nothing cuts. A3 to suggest the Fed was about to take any bold new action to further shore it up. And with lawmakers fighting over the nations budget deficit and long-term debt, there is no political appetite for a second major federal stimulus bill like the one passed by Congress in 2009. But Obama is also confronted with figures challenging both the recovery and his re-election. Disapproval of Obamas handling of the economy is at a record high, 59 percent, accordSee ECONOMY, A2, col. 1
By Andrew Wolfson
Two Iraqi citizens indicted on terrorism charges in Bowling Green are believed to be the first defendants from that country ever charged with such violations in the
United States, the Justice Department says, despite nearly 1,000 terrorism prosecutions since the Sept. 11 attacks. Dean Boyd, a spokesman for the departments national security division, said that while it doesnt track the nationality of individuals charged, We are unaware of other
Iraqi refugees living in this country who have in recent years been charged with terrorism violations by the Justice Department. The case is also novel for another reason: Experts on the law of war also say that one of the defendants, Waad Ramadan Alwan, is only the second foreign national ever prosecuted in a federal criminal court in the United States for conduct in an Ameri-
can-occupied territory during wartime. They say thats in part because under the Geneva Convention, combatants in a war generally enjoy immunity from criminal prosecution so long as they dont commit an atrocity for which soldiers of either side could be prosecuted, such as rape of a civilian. See PLOT, A4, col. 1
Waad Ramadan Alwan, left, and Mohanad Hammadi face a detention hearing today. 38 PAGES
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Concern on council
The fact that MSD continued to pay out bonuses and merit increases prompted concern among some members of the Louisville Metro Council. It would be good if MSD would share in some of the effects of the recession, just like all the other public employees are, said Metro Council President Jim King, a Democrat. The (MSD) board should take a close look at its compensation policies. King said hes confident that, over time, Fischer, who appoints the MSD board and hires its executive director and chief engineer, will address what he described as problems with board oversight of MSD. King noted Fischer recently persuaded three board members to resign the chairman, vice chairman and former chairwoman because companies they
Bonuses continued
The Courier-Journal has found that MSD paid out almost $300,000 in performance bonuses to its 18 highest-paid employees those making more than $100,000 since 2008, according to payroll data obtained through the Kentucky Open Records Act. All 18 received lump-sum bonuses ranging from $1,076 to $7,105 per year between Jan. 1, 2008, and May 1, 2011, a Courier-Journal analysis shows. Half also got merit pay raises in 2009 and 2010. While total yearly pay remained essentially flat for eight of the 18, 10 have seen their pay increase between 6 percent and 25 percent since 2008, the newspaper found. And while Schardein who makes $181,147, has blocked cost-of-living increases for the agencys nonunion employees since 2009, he and its chief engineer received merit pay raises and bonuses that essentially made up the 10 percent pay cuts they had pledged to take, the newspaper found. Schardein announced the pay cuts in December 2008 for himself and newly hired chief engineer Mark Johnson along with the curb on costof-living increases, as a way to show the agency was sensitive to the staggering economy. But records provided to the newspaper by MSD show their wages were actually cut 9.1 percent and that Schardeins pay had nearly fully rebounded by May 2009. Johnson had made up his pay by that March. Steven Koven director of the University of Louisville master in public administration program and an expert on government ethics said giving raises and bonuses so quickly after public pledges of pay cuts undermines the sincerity of the pledge. If leadership wishes to set an example by accepting less pay, they should live with the consequences of the lower pay, Koven said. Making up pay reductions through other means appears duplicitous. Such practices can further undermine the already negative perceptions that the public holds of their leaders. In an email Tuesday, MSD staff attorney Paula Purifoy, whose salary has increased 18 percent from $120,515 to $142,105 since March 2008, acknowledged the agencys human-resources department erred by cutting pay for Schardein and Johnson only 9.1 percent.
owned did business with MSD. The resignations came after a Courier-Journal story that detailed how companies those board members owned received business from MSD. Kelly Downard, a Republican Metro Council member and former mayoral candidate, said, There needs to be a whole sweep of the compensation system. What you (have) is a payroll system out of control. Downard said questions raised about MSD spending suggest that the agency could get by with a smaller rate increase. MSDs approximately 300 workers with the National Association of Government Employees have been compensated under terms of a contract that took effect in 2007, before the national recession, and provide for 3 percent wage increases through Feb. 18, 2012. Roderick Harris, president of one of two locals of the union with MSD employees, said MSD management has not asked for any wage give-backs during the recession. But the contract coming up we are not going to get as much, he said. Nonunion workers for metro government, who total about 1,500, took three furlough days two years ago, and the city is making plans to impose a new week of furloughs for employees who make more than $70,000, said Kellie Watson, director of human resources. The Fischer administration is also asking other city employees to take voluntary furloughs. Unlike their MSD counterparts, nonunion metro government employees dont ever get any lump-sum performance bonuses or merit
pay raises, Watson said. They received 2 percent pay increases in 2008 and 2010, but no increase in 2009, Spalding said. Watson said 21 percent of the metro government union employees had their wages frozen in 2009, and 2.9 percent in 2010. She said 7 percent participated in the furlough program two years ago. State workers have also felt financial pain. The approximately 32,000 people who work for the state saw their pay frozen in the current fiscal year and six furlough days, which was the equivalent of a 2.3 percent pay cut, said John Hicks, the deputy state budget director. They wont get any pay increases in the coming fiscal year, he said. Last fiscal year, the state employees got a1percent pay raise, and bonus programs have stopped, he said. Since 2009, the governor, members of his staff and cabinet secretaries have had
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