Funding unfunded liabilities
[Feb-14-2010]
By Phil Kabler
Staff writer
CHARLESTON, W.Va. -- Dealing with the massive, $7.8 billion unfunded liability for future retiree health benefits for state employees and school personnel (also known as the OPEB liability) is the most critical issue facing the Legislature that nobody wants to read about.
Then again, if lawmakers in the 1970s and '80s had acted on growing workers' compensation and teacher pension fund deficits at the time, the state wouldn't have to shell out nearly $500 million a year to pay down those deficits -- money that otherwise could be going for tax breaks, pay raises, road construction, economic development or other worthy causes.
Unlike their predecessors, credit today's members of the House and Senate for at least actively trying to address the OPEB liability.
Sen. Brooks McCabe, D-Kanawha, said he hopes to be able to unveil a key component of that plan by the end of the week: A source of funds to provide $100 million a year for at least the next two years.
Currently, the Senate OPEB plan simply states: "identify a funding source which will create $100 million per year." (Which reminded me of the comedian who said he was writing a book about how to live like a millionaire, with Chapter One being, "Find a million dollars.")
McCabe insists that he has a workable funding source that the Legislature will be able to support, even in an election year.
Meanwhile, the West Virginia Federation of Teachers and the state School Service Personnel Association will be turning up the heat on the Legislature to resolve the issue, launching an "Act Now" media campaign featuring TV and radio spots, and postcards members are to mail to their legislators.
Both unions are pushing the Legislature to restore retiree health-care subsidies that will be cut off for all new hires after July 1. However, WVFT's Josh Sword probably didn't help the cause when he told a House committee that, at current rate of health-care inflation, retiree health benefits will be worth $13,000 per person per month in 30 years.
nn
Gov. Joe Manchin hosted a lunch at the mansion for members of the Senate on Wednesday, with about 25 or so senators in attendance. In the previous week, he hosted two breakfasts at the mansion for House members, drawing about 25 to 30 delegates for each.
Speaking of Manchin, this question keeps coming up, so once and for all: Manchin pays the state $115 a month to keep his private plane, a Piper Saratoga, at the state's hangar at Yeager Airport. He's permitted to fuel up the plane on the state's tab, if he's using his plane for state business.
nn
In this session of feel-good bills, another is up for passage in the House this week.
CHARLESTON, W.Va. -- Dealing with the massive, $7.8 billion unfunded liability for future retiree health benefits for state employees and school personnel (also known as the OPEB liability) is the most critical issue facing the Legislature that nobody wants to read about.
Then again, if lawmakers in the 1970s and '80s had acted on growing workers' compensation and teacher pension fund deficits at the time, the state wouldn't have to shell out nearly $500 million a year to pay down those deficits -- money that otherwise could be going for tax breaks, pay raises, road construction, economic development or other worthy causes.
Unlike their predecessors, credit today's members of the House and Senate for at least actively trying to address the OPEB liability.
Sen. Brooks McCabe, D-Kanawha, said he hopes to be able to unveil a key component of that plan by the end of the week: A source of funds to provide $100 million a year for at least the next two years.
Currently, the Senate OPEB plan simply states: "identify a funding source which will create $100 million per year." (Which reminded me of the comedian who said he was writing a book about how to live like a millionaire, with Chapter One being, "Find a million dollars.")
McCabe insists that he has a workable funding source that the Legislature will be able to support, even in an election year.
Meanwhile, the West Virginia Federation of Teachers and the state School Service Personnel Association will be turning up the heat on the Legislature to resolve the issue, launching an "Act Now" media campaign featuring TV and radio spots, and postcards members are to mail to their legislators.
Both unions are pushing the Legislature to restore retiree health-care subsidies that will be cut off for all new hires after July 1. However, WVFT's Josh Sword probably didn't help the cause when he told a House committee that, at current rate of health-care inflation, retiree health benefits will be worth $13,000 per person per month in 30 years.
nn
Gov. Joe Manchin hosted a lunch at the mansion for members of the Senate on Wednesday, with about 25 or so senators in attendance. In the previous week, he hosted two breakfasts at the mansion for House members, drawing about 25 to 30 delegates for each.
Speaking of Manchin, this question keeps coming up, so once and for all: Manchin pays the state $115 a month to keep his private plane, a Piper Saratoga, at the state's hangar at Yeager Airport. He's permitted to fuel up the plane on the state's tab, if he's using his plane for state business.
nn
In this session of feel-good bills, another is up for passage in the House this week.
It would require the Public Employees Insurance Agency Finance Board to have a quorum of at least five members at all public hearings (HB4210).
The bill, sponsored by Delegates Moye, Williams, Staggers, Manchin, Shaver, Beach, Stephens, Barker and Doyle, is a nod at teachers and state employees who felt slighted during public hearings around the state last November on 2010 PEIA rate increases and benefit cuts -- when as few as two of the nine board members bothered to show up at some venues.
While the bill mandates that at least five board members attend each public hearing, it provides no penalties for members who don't show, nor does it require any drastic measures, such as postponing a hearing until a quorum is available.
nn
A few more notes from the Capitol infirmary: Assistant Senate Clerk Rick Winnell, who is the calm at the center of the storm that is the Senate, has been off work since Thursday a week ago with issues with high blood pressure. Word is he'll be undergoing a procedure shortly to get a couple of arteries cleared, which will probably keep him on injured reserve for the remainder of the regular session.
Also, Delegate Sam Argento, D-Nicholas, who has been undergoing treatment for a brain tumor, was out last week.
On a less serious note, Delegate Mitch Carmichael, R-Jackson, returned to the House after missing a week while he was hospitalized with a staph infection. Carmichael said he cut his foot jogging, and ignored the infection until things got serious.
nn
Finally, news that Charleston police had issued an arrest warrant Friday for a Matthew Dewayne Turner for allegedly "going berserk" in the Town Center's food court naturally produced some good-natured ribbing of Manchin's communications director, who has the same first and last name.
Manchin's Turner said that, among the comments, former Manchin counsel Carte Goodwin had e-mailed, asking if he needed an attorney.
I told Matt he should e-mail back, "Yes. Would you happen to know any good ones?"
Reach Phil Kabler at philk@wvgazette.com or 304-348-1220.
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