Denied relief, W.Va. schools ready to sue

CHARLESTON, W.Va. — West Virginia will likely be sued by most — if not all — of its 55 county school boards, after the Legislature shot down Gov. Joe Manchin's offer of short-term relief from retiree health costs.At least 49 of the boards had earlier voted in favor of a lawsuit, in their ongoing dispute with state accounting rules for "other post-employment benefits," said Richard Olcutt, president of their association.In the wake of Manchin's failed special session proposal, they will meet at the end of the month, he said."I think you can assume where the mind set and the recommendation is at this point," said Olcutt, who is also president of Wood County's education board. "We have no other recourse, because we're being thrust into a bankruptcy situation."Olcutt said he and other county school officials are furious after the Senate Finance Committee rejected the legislation — and after a handful of lawmakers from both chamber suggested it was illegal and unethical."For them to be hurling insults at board of education members and the intent of the task force, the words that they chose were totally inappropriate," Olcutt said. "This was a good, good-faith move."Olcutt was part of the task force that helped the governor craft the measure, meant to give the school boards some breathing room this budget year and possibly avoid the threatened lawsuit.National accounting standards issued in 2004 called on public employers to calculate what they've promised workers in non-pension retirement benefits — chiefly health coverage, and life insurance. West Virginia estimates a $7.8 billion gap between on-hand assets and the cost of these benefits.The Legislature responded in 2006 with a Manchin-proposed measure that bills state, county and local governments enrolled in the Public Employees Insurance Agency yearly. Those that don't pay this annual required contribution — amounts meant to close the unfunded liability — must count it as current debt.The failed proposal would have

Add comment

Nick
Content

Submit