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Updated: 4:52 PM Feb 9, 2012
UPDATE: W.Va. House Approves Gov's Plan For Retiree Costs
West Virginia appears ready to tackle a $5 billion funding shortfall involving public retiree health benefits.
Posted: 3:45 PM Jan 31, 2012Reporter: Associated Press |
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CHARLESTON, W.Va. (AP) - West Virginia appears ready to tackle a $5 billion funding shortfall involving public retiree health benefits.
The House of Delegates voted 83-17 Thursday to pass Gov. Earl Ray Tomblin's plan to erase that liability.
A unanimous Senate approved the bill last week. Senators must now consider the House's minor tweaks to some cost cutting measures in the bill.
Lawmakers have debated for years over the funding gap from other post-employment benefits. These are also known as OPEB. The liability mostly reflects retiree health care costs.
Tomblin's bill would gradually close the shortfall with annual revenues from personal income taxes. It also includes a dozen cost-saving steps proposed by the Public Employees Insurance Agency.
House Republicans unsuccessfully tried to remove the cost-cutting language from the bill on Wednesday.
(Copyright 2012 by The Associated Press. All Rights Reserved.)
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CHARLESTON, W.Va. (AP) - Gov. Earl Ray Tomblin is winning initial approval for his plan to resolve a $5 billion funding shortfall.
The Senate Finance Committee on Tuesday endorsed Tomblin's proposal targeting other post-employment benefits.
Also known as OPEB, these non-pension costs mostly reflect health care.
Tomblin's bill would dedicate $35 million in annual personal income tax revenues to close that funding gap.
It would also shift most of the burden from these costs that are now carried by county school boards. County schools would no longer have to account for costs from teachers and other personnel paid through the state school aid formula.
But the bill says that this would not mean that these employees work for the state.
The bill was introduced Tuesday, and now heads to the full Senate.
(Copyright 2012 by The Associated Press. All Rights Reserved.)
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