ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, December 31, 1994                   TAG: 9501030042
SECTION: VIRGINIA                    PAGE: C1   EDITION: METRO 
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND                                 LENGTH: Short


DIRECTOR HITS PAY JACKPOT

While Gov. George Allen's budget proposal would give most state employees a 2.25 percent raise next year, the state's lottery director would get 22 percent.

Allen wants the General Assembly to bump Penelope Kyle's salary from $94,676 to a maximum of $113,558 over the next year, with a ceiling of $116,112 in 1995-96. The raise would be retroactive to Dec.1.

Budget analysts said Kyle's raise would be the most generous in the budget.

Allen spokesman Ken Stroupe said Thursday that the administration had promised Kyle a substantial raise because she took a large pay cut when she quit her job as corporate vice president of transportation giant CSX Corp. in August.

Kyle, who would not give the dollar amount of her salary, bonus and stock package at CSX, said her proposed raise still would ``not even be close'' to what she made in the private sector.

Democrats said the raise would further demoralize the state work force and shows that Allen's pledge to reduce the cost and size of government doesn't apply to his friends.

Kyle said she could understand if other state workers are put off by her proposed salary.

``I don't guess there's anything I can say ... to those who have been discomforted,'' she said. ``People are losing their jobs.''



 by CNB