Managing Editor CHARLESTON DAILY MAIL
Editor's Note: Longtime newspaperman Bob Kelly was just promoted to Managing Editor of the Charleston Daily Mail. We are hopeful Bob will continue writing his succinct columns that get to the point. Kelley has always been among my personal best columnists in West Virginia, joining Dave Peyton and L.T. Anderson (Hey, they're all at the Daily Mail), certainly not to exclude longtime columnist Jack Cawthon, who is more than a hoot, everytime.-BW
Here's an update on shortages in the state's pension funds, gleaned from the latest report to the West Virginia Consolidated Public Retirement Board:
Teachers (TRS), $5.052 billion.
Public employees (PERS), $991 million.
Judges (JRS), $43.93 million.
State police (DPS Plan A), $348 million.
Sheriffs' deputies (DSRS), $29.5 million.
State police (DPS Plan B), $2.14 million.
Rounded off, that comes to $6.5 billion.
But the sum might actually be greater.
These are estimates based in part on life expectancy, and today's retirees are living longer.
Some say the state is relying on outdated assumptions.
If that's the case, and I wouldn't doubt it, then West Virginia is on the hook for much more than $6.5 billion.
Either way, taxpayers are in big trouble.
There's also a $4.2 billion unfunded liability in the workers' comp program to contend with.
Combining workers' comp recipients and state pensioners, West Virginia is $10.7 billion short of where it needs to be to take care of anticipated claims.
Additionally, according to the treasurer's office, there's $1.974 billion in tax-supported debt on the books and $2.649 billion in non-tax supported debt -- e.g., Parkways Authority borrowing that is repaid with tolls.
This honest, old-fashioned debt totals $4.6 billion.
In contrast, the $10.7 billion in unfunded workers' comp and pension liabilities resulted from a shocking lack of responsibility on the part of our political class over a couple of generations.
But regardless of how it came about, the total tab is $15.3 billion.
And somebody's going to pay.
To put the size of the hole in perspective, look at it this way. West Virginia has roughly 736,000 households.
Dividing 736,000 into $15.3 billion yields nearly $21,000 per household.
Then there's the matter of keeping the government puttering along.
A new report from the legislative auditor looked at revenue projections and routine costs through 2010. It concluded that if West Virginia keeps going the way it has been, it would have a cumulative operating deficit of $1.35 billion.
The state constitution doesn't allow that. Legislators must balance the budget each year, so program cuts and tax hikes of a magnitude that is hard to imagine are inevitable.
On top of that, it will be necessary to come up with a $15.3 billion debt reduction plan.
Given all this, the next governor of West Virginia may well turn out to be the most unpopular one.
Bob Kelly can be reached at 348-1701.
