STATE GOVERNMENT CONTINUES TO GROW DURING RECESSION - Auditor Gainer Says Small Towns Need Not Be Incorporated

(01/29/2011)
Private sector businesses have downsized during the recession.

At the same time, West Virginia's state government is hiring more people, according to a report issued this week by State Auditor Glen Gainer.

"We continue to have more people come onto the state payroll year after year," Gainer told the Senate Finance Committee.

For the last pay period of 2010, the state issued paychecks totaling $72,355,224 for a total of 48,995 state employees -- including full-time, part-time, and temporary employees.

That's up $2.3 million, and 919 employees, from the same time point in 2009, Gainer said.

Calhoun County government is operated with thirteen employees, kept small over the years. That does not include 911 employees, who are funded from a state money stream.

Gainer said over 2010, a total of 69,933 employees drew state paychecks for all or part of the year, totaling more than $1.7 billion.

That's an increase of 1,556 employees and $40.7 million, compared to 2009.

Gainer opposes proposed legislation that would lower the fee the auditor's office could charge smaller Class III and Class IV cities for state-mandated budget audits from $2,000 a year to $1,000.

Gainer said the reality is that many Class IV cities, which have 2,000 or fewer residents, are not financially viable.

He said 49 Class IV cities report annual revenues of less than $100,000, including 19 with revenues of less than $50,000.

"I think we need at some point to determine whether these cities need to be incorporated or not," he said.