|
|
News
|
Editorial: State officials are being responsible
[Aug-31-2006]
FOR decades, the elected officials of West Virginia slathered benefits on public employees, always popular, without taxing the citizenry to fund those benefits.
That, although it would have been responsible adult behavior, would have been unpopular.
This craven political habit left the state with the most underfunded public pension plan in the United States, a ruined balance sheet, a 40-year debt repayment plan, and a Hail Mary strategy to borrow $5.5 billion, invest it, and fill the pension hole with the earnings.
The public nixed that, and thanks to a fortuitous energy boom, a better plan has emerged.
Here's hoping that plan actually represents something even more positive -- a permanent political commitment to fiscal responsibility. If West Virginians turn that corner, the state could recover.
Gov. Joe Manchin had the great good luck to take possession of the governor's office just as an increase in energy prices caused extra revenue to pour into the state's coffers. Very much to their credit, Manchin and Democratic legislative leaders, with the support of Republicans, applied much of the windfall to the pension problem.
In two years, state officials have made an extra $900 million in payments to the teachers pension fund. This could save the state $1 billion in interest costs.
That would be of material benefit to the citizens of West Virginia. That's money that can spent on other purposes, including tax relief.
The Manchin administration announced recently that it hopes to find another $400 million somewhere to reduce the unfunded liability -- and the scheduled annual payment -- even further over time.
Glory hallelujah.
This is the difference between having spendthrifts run up astronomical sums on the family credit card and using a windfall to buy more -- and having responsible adults use found money to cut the debts.
Ordinary people learn to do that as they mature. They should demand the same sensibility from the people they elect to public office.
|
|
|
