WHEN TOUGH TIMES COME, DO SALARIES GO UP? - The Answer Could Be Yes, If You're Using Taxpayer Money

(02/27/2004)
By Dianne Weaver

CCCOA DIRECTOR RITCHIE COMMENTS

West Virginia, not unlike other states, is facing a multi-million dollar shortage in funding state government again this year.

That is without considering the State Debt which could reach an estimated $15.3 billion (see list at end of this article), or $21,000 per household.

Most of the State Debt is linked to retirement programs for teachers and pubic employees.

A new audit funded by the legislature paints a really gloomy picture for the state.

The money crunch may be the reason that taxpayer paid salaries of officials, bureaucrats and administrators are surfacing in the news.

A prime example in the past few days, the discovery of a routine House Bill to increase the State School Superintendent's salary to $200,000, making it the third highest in the nation.

Since then legislation has reportedly been introduced to cut Higher Education Chancellor J. Michael Mullen's salary from $252,000 to $200,000. Mullen is the highest-paid employee in state government.

At least ten education department administrators make more money than the governor.

The cost of running the State Department of Education has been called in question by a recent study done by Challenge WV, an advocacy group for better education through small community schools.

Challenge WV said the system continues to show an increase in high-level administration, while cutting teachers and service personnel.

House education chairperson Jerry Mezzatesta defended the superintendent's raise, saying the salary needed to be equitable with other states.

Superintendent's make less in 47 states.

Then senior services moved under the microscope.

The state Bureau of Senior Services may be considering a policy to control state funds for senior citizen programs.

The issue surfaced this week with the disclosure that Robert Graham, the director of Wyoming County's Council on Aging, earns more than $300,000 a year.

While most program directors earned $42,000 or less, there are astronomical exceptions, including Alice Tomblin, Lincoln County's director, who earns $136,000 plus a benefit package.

Thirteen directors made more than $50,000.

Senate Minority Leader Vic Sprouse, R-Kanawha said "In the cases where it's such an egregious problem, then I think the Legislature has an obligation to get in and make some kind of change."

"We often wait too long and let these things get out of hand. It's an outrageous salary for the state and especially for that part of the state," he said.

Sen. Ed Bowman said some of these director salaries are completely off the radar screen and may eventually need to be the subject of legislation.

Calhoun's senior services director Mike Ritchie was hired at $35,000, and has since received a pay raise to $36,750.

"I'm grateful for my salary," said Ritchie, saying "I really have enjoyed my job."

Ritchie took a pay cut from the previous director who earned $63,500.

WEST VIRGINIA'S BIG DEBT LIST (Starting with retirement programs)

Compiled this week by Bob Kelley, Managing Editor of Charleston Daily-Mail

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.

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.