W.Va. Needs $145 Million to Offset Pension Investment Losses

The West Virginia Legislature already faces crafting a budget with recession-weakened revenues. Manchin administration officials now say lawmakers must also find an extra $145 million to make up for investment losses to state pension funds, The Associated Press reports.

"Last year's Wall Street meltdown inflicted losses to these retirement programs totaling 23.5 percent," the article said. "The state had been counting on earnings of 7.5 percent."

Gambling Becomes a Topic for the 2010 Session

Pennsylvania plans to add casino table games to its fairly new array of slot machine halls, "upping the ante in the increasingly fierce competition among states for gamblers’ money," The Associated Press reports.

Gov. Ed Rendell signed the necessary measure Thursday, and noted that "not all of the 14 casinos authorized by the 2004 law that legalized slot machine gambling are up and running."

The article also said that "it may be more than six months before the first cards are dealt." But the inevitable competition to the Northern Panhandle's casinos has West Virginia lawmakers telling The Intelligencer of Wheeling they expect job losses and blunted revenues.

West Virginia's racetrack interests had repeatedly lobbied the Legislature for casino-style tables games. They touted this expansion of gambling as a way for their video lottery machines to compete with the slot casinos emerging in Pennsylvania.

But Maryland has since legalized slot machines, while Ohio voters approved casinos for that state's major cities in November.

The Charleston Daily Mail recently reported on the lottery as a key but faltering source of state revenues. The Wheeling article suggests the situation could prompt a fresh wave of lobbying at the upcoming legislative session.

"We must look at the taxation we impose on these operations," Sen. Ed Bowman, D-Hancock (and an employee of Mountaineer Casino Racetrack and Resort in Chester) told the newspaper

"Though West Virginia taxes table games at a 35 percent clip, Pennsylvania plans to impose only a 16 percent tax on the tables, with the rate scheduled to fall to 14 percent after two years," the article explains. "The Keystone State taxes slot machines at 55 percent, compared to West Virginia's 42 percent."

The general manager of Wheeling Island Hotel-Casino-Racetrack had earlier told the newspaper that "If Pennsylvania gets (table) tax rates in the 20s, we are going to be at a severe competitive disadvantage."

"I would say the (West Virginia) Legislature will be against lowering these tax rates," Bowman is quoted as saying. "If these tax rates lead to the closure of the tracks, they (legislators) will regret it."

Threatened Lawsuit Alleges Retaliation by Manchin, Administration

The Northern Panhandle's mental health care provider has given the required 30-day notice to the Manchin administration that it plans to sue, alleging federal civil rights violations, The Associated Press and others report.

Northwood Health Systems contends that Gov. Joe Manchin has led a regulatory crackdown meant to punish it for "speaking out on health care issues last year," the AP article said. That includes last year's push for increased state funding for behavioral health services.

Longtime Wheeling lawyer and Northwood board Chairman Patrick Casey told AP "the state found five problems with Northwood in 2007 and 2008 combined, compared to 175 'deficiencies' found in 2009.'"

AP's Tom Breen writes that "Northwood has been operating since October without a license, which it was denied by the Office of Health Facility Licensure and Certification... When the state decided not to renew Northwood’s license, it cited three patient deaths within a two-month span in 2009 and a series of incidents in which staff members mistreated, neglected or humiliated disabled patients."

Manchin spokesman Matt Turner told AP that "any allegation that DHHR’s regulation of Northwood would be based on the governor’s veto is baseless and without merit."

Turner offered a similar statement to The Intelligencer of Wheeling, which also reports that "Northwood is not seeking money in the suit but wants the court to find that Manchin and state officials violated Northwood's civil rights, including the rights to free speech, equal protection and due process."

The Wheeling newspaper also reported earlier on Northwood issuing the 30-day notice on Tuesday. Public Broadcasting has coverage as well (and audio), as does MetroNews (audio here).

Session Agendas Taking Shape

The West Virginia Legislature begins the 2010 regular session next week. Among the potential issues that may arise during the 60 days:

• A plan for addressing "the staggering liability of post-employment health care for West Virginia’s retired public workers," The Register-Herald of Beckley reports.

• A proposal from Gov. Joe Manchin "to consolidate and centralize the state's vehicle fleet," The Charleston Gazette reports.

• The Gazette also has an item on possible legislation "that would ban insurance companies from using gender as a factor in determining rates."

• Public Broadcasting reports on a proposed measure "regulating the amount of total dissolved solids in the state’s waters," in the wake of a September fish kill that "wiped out the aquatic life in Dunkard Creek, a stream that meanders between West Virginia and Pennsylvania." With audio.

• The Gazette highlights the legislative wish list of the state Chamber of Commerce.

Lawsuit Targets W.Va. Child Support Agency

What could end up as a class-action lawsuit alleges that "families across West Virginia are routinely denied child support payments because of lax state oversight," The Associated Press and others report.

The Kanawha Circuit Court case targets the state Bureau for Child Support Enforcement along with its parent, the Department of Health and Human Resources, along with agency contractor Policy Studies Inc.

Filed by Charleston lawyer and former state legislator Rusty Webb, the lawsuit alleges "the agency routinely fails to renew child support judgments, causing hundreds of thousands of dollars of support payments to be lost with no chance of collection," AP reports.

The Charleston Daily Mail and MetroNews also have articles on the lawsuit.

More on the W.Va. Budget

With West Virginia's general revenue budget already showing signs that that several years of tough sledding lie ahead, the Charleston Daily Mail focuses on another key but faltering source for state spending.

"West Virginia lottery revenue has peaked, which means the governor and legislators may have to make some difficult spending choices in coming years," the newspaper reported. "At the 2007 peak, the lottery transferred $639.2 million to the state's coffers. That decreased to $631.2 million in 2008 and $616.6 million in 2009."

House Speaker Rick Thompson weighed in on the state budget picture on MetroNews.

"We're still in pretty good shape considering the state of our neighbors and we'll continue to be responsible, I'm sure," the Wayne County Democrat told Talkline. "But we're looking for a very lean next two or three years."

Audio here. In related news, the Daily Mail reports separately that "the outlook for West Virginia public employees, including teachers, to get any new pay raises this year is gloomier than ever, considering the deterioration of the state's economy and a projected revenue shortfall."

Christmas Pardons in West Virginia

The News and Sentinel of Parkersburg enlists the state archivist to report that "while United States presidents from George Washington on have used the Christmas season as a backdrop to issue pardons, West Virginia governors do not."

"Hundreds of convicts have been issued gubernatorial pardons, but few, if any, were done in the spirit of the yuletide," the newspaper said. "Even when West Virginia had the death penalty, which was abolished by the state in 1965, a few governors commuted sentences to life, but none did so on Christmas."

Balancing the Budget in West Virginia

Gov. Joe Manchin will present a new state budget to the Legislature next week, when the House and Senate begin their 60-day regular session. He will also provide lawmakers his administration's latest forecast of projected revenues and spending for the next five years.

As The Associated Press reports, the last forecast saw widening funding gaps. The full brunt of the recession may have since only worsened those deficit threats. While Manchin and lawmakers again expect to tap federal stimulus funds to keep the current budget balanced, AP reports that they may soon need to find another strategy.

"House Finance Chairman Harry Keith White, D-Mingo, noted last week that the stimulus requires states to spend the bulk of their shares by 2011," the article said. "West Virginia's overall financial picture has White's Senate counterpart seeing serious, permanent cuts to state spending on the horizon."

The article also observes some silver linings. "State budget officials estimate that general revenue will finally resume growth during the 2012 fiscal year," it said. "Manchin also announced late last week that December's general revenues exceeded their estimates by around $32 million."

AP also reports separately on the fiscal terrain looming before state governments nationwide, citing how "forty-five states hold regular legislative sessions in 2010, most convening in January.

"As lawmakers head back to state capitols this month, budget woes range 'from bad to ridiculously bad,'" that article said, quoting David Wyss, chief economist at Standard & Poors in New York.

"There are some states, those hit particularly hard by the recession, that I don't think can cut spending enough. They're running out of things to cut," Wyss told AP, which reports that "Forty-three states and the District of Columbia have already slashed spending on popular services, including education, health care and services to the elderly and disabled."

More on W.Va.'s Midyear Budget Cuts

Manchin administration officials tell The Associated Press that they expect West Virginia's share of the federal stimulus funds to offset much of the 3.4 percent cut that the governor has ordered for executive branch agencies.

"Administration officials expect to tap stimulus funds to replace $57.6 million for public schools, $12.2 million for higher education and up to $27.7 million for Medicaid," the article said. "Stimulus dollars had also helped West Virginia avoid painful cuts when lawmakers passed the current budget in May."

The midyear cuts are meant to compensate for a projected general revenue shortfall of $120 million. The May cuts had totaled $197 million. "Those two rounds of cuts puts this year's general revenue budget on par with 2007's," House Finance Chairman Harry Keith White told AP.

Manchin had already asked state agencies to cut their 2010-2011 budgets by 5 percent (except for education, where the cut is 4 percent). That whack "would total around $189 million, and would appear in the budget bill Manchin will introduce next month when the Legislature begins its 60-day regular session," the article said.

The News and Sentinel of Parkersburg checks in with area lawmakers on the governor's order, while MetroNews hears from Manchin's revenue secretary.

Religiosity in West Virginia

West Virginia trails most of the rest of the Bible Belt but ranks ahead of nearly all other states in a Pew Research Center survey on religion.

The Mountain State placed 15th for the percentage of respondents who said religion is very important in their lives, at 60 percent. As for other measures:

• 43 percent said they attend religious services at least once a week, the 17th-best showing;
• 66 percent said they pray at least once a day, giving West Virginia its best ranking in the survey at 13th;
• 76 percent said they believe in God with "absolute certainty," ranking it 16th.

Mississippi topped each ranking, while Alaska and the New England states tended to round out each list. Among its neighbors, West Virginia tended to rank higher above all except Kentucky.

Pew mined the results from a 2007 survey of nearly 36,000 U.S. residents, including 296 West Virginians. The state's portion has a margin of error of plus or minus 6.5 percent.

W.Va. Braces for Midyear Budget Cuts

Gov. Joe Manchin has ordered the entire executive branch, including other elected officials, to cut their general revenue spending by 3.4 percent, The Associated Press reports.

"The Legislature and Supreme Court have also agreed to as-yet-unspecified cuts," the article said. "As with other states, the recession has weakened West Virginia's general tax revenues. The Manchin administration had estimated that those revenues would total $3.7 billion by the June 30 end of the budget year. Manchin now believes revenues will fall short of that mark by $120 million."

Mental Health Care in W.Va.

The Associated Press reviews 2009's efforts to provide health care to West Virginians with mental illness, and finds a decidedly mixed bag.

The past 12 months "have either seen hopeful progress or a frustrating perpetuation of the status quo," reports AP's Tom Breen. "Advocates for people with behavioral illnesses say there’s been little to no improvement. The state’s top health officials disagree."

A Slap Heard 'Round the Coalfields

The debate over mining, particularly the mountaintop removal method, has been one of West Virginia's top stories of 2009.

The Associated Press focuses on a June confrontation between two coalfields residents at the front lines of this battle -- mining supporter Cordelia Ruth Tucker and environmental activist Judy Bonds -- to report on its heightened tensions.

"Both sides are fighting for a way of life," writes AP's Vicki Smith. "The miners see the mountains as their livelihood. The environmentalists see them as divine and irreplaceable creations."

Index Finds W.Va. Faring Well Among Recession-Battered States

West Virginia entered the final months of 2009 ranked second on the Index of State Economic Momentum, a quarterly measurement of economic vitality compiled by the nonpartisan Federal Funds Information for States.

As The Associated Press reports, the ranking is West Virginia's best ever. The latest index suggests that the natural resources sector likely helps account for the state's placement.

"The state's enviable rankings -- it was eighth in March's index -- may also underscore how badly the recession has damaged the economies of most other states," AP reports. "Before this year, it had never cracked the Top 10. During 2008, it had ranked as low as 46th, and was dead last in June 2004."

They Voted for You: Health Care

U.S. Sens. Robert C. Byrd and Jay Rockefeller, both D-W.Va., each voted to pass their chamber's version of federal health care legislation, The Associated Press reports.

The 60-39 roll call reflected a party-line vote and the absence of Sen. Jim Bunning, R-Ky.

The bill "could define President Barack Obama's legacy and usher in near-universal medical coverage for the first time in the country's history," AP reports, adding that is also "must still be merged with legislation passed by the House before Obama could sign a final bill in the new year. There are significant differences between the two measures but Democrats say they've come too far now to fail."

AP also offers a comparison of the Senate- and House-passed versions that must be reconciled by a conference committee.

Byrd issued a statement following his vote. Rockefeller had earlier posted his floor speech (and audio as well as video) in support of the legislation.

Election 2010: Congress

The National Republican Congressional Committee has targeted much of West Virginia with robo-calls this week attacking Reps. Alan Mollohan, D-1st, and Nick Rahall, D-3rd, in their respective districts, Politico reports.

The item considers the choice of Mollohan, Rahall and 14 other House incumbents "obvious" for a robo-call campaign because "these are the most vulnerable Democrats in 2010."

The major campaign observers have yet to reach that conclusion, at least regarding West Virginia's delegation.

Mollohan and Rahall don't appear on the latest lists of competitive races offered by The Rothenberg Political Report, Congressional Quarterly's CQ Politics or National Journal's Hotline.

The Cook Political Report, meanwhile, recently added Mollohan's seat to its chart, but as "likely Democratic."

Within West Virginia, the NRCC has been promoting a recent article in The Intelligencer of Wheeling reporting that former state GOP Chair David McKinley met with its officials about a possible challenge of Mollohan.

A Wheeling architect and former state lawmaker, McKinley told the newspaper "that an announcement regarding his plans should occur before the end of 2009."

Manchin Official Resigns, Gets Sued

The man who stepped down last week as head of the Governor's Office of Economic Opportunity had earlier become a defendant in a lawsuit also filed against the Huntington church he pastors, The Charleston Gazette reports.

Fifth Third Bank alleges that "Apostolic Life owes more than $702,000 on a loan taken out in 2001, plus nearly $37,000 in interest," the article said. "The bank also claims that a man who runs a technology company in Tennessee helped the church file fraudulent documents related to the loan."

That co-defendant, Mark Shannon Manuel, "called the lawsuit 'frivolous' and said the church has paid off its debt," the article also said.

The Gazette reported earlier on Harper's abrupt Friday departure from the state office.

"Harper's resignation came two days after a meeting where the heads of several community action agencies told Harper they might close their doors because federal stimulus funds that pass through the GOEO were so late," that article said.

W.Va. Storm Response Criticized

Gov. Joe Manchin expects to hold a Capitol press conference this afternoon (corrected from morning) after telling The Associated Press and others that "he wants state agencies to account for their actions during the weekend snow storm that left hundreds of motorists stranded on West Virginia’s highways."

“Mistakes were made and it has to be fixed,” Manchin told AP. “I’m upset and I want answers.”

The Manchin administration has caught flak over how state agencies responded. The West Virginia Turnpike has also come under fire for not closing until after hundreds of vehicles had become stuck, stranding travelers on the road for 16 hours and more.

"It marks the second time in as many years that the decisions of West Virginia Turnpike officials are being questioned," AP reported. "In August 2008, Manchin asked for a review of turnpike operations after an accident trapped motorists for 10 hours."

Manchin also spoke to MetroNews, which has audio, and to Public Broadcasting (ditto).

W.Va. Again to Count Stimulus Spending, Jobs

As with other recipients of federal stimulus funds, West Virginia officials are gearing up for the next round of disclosures meant to detail how the money's been spent and whether it's created or saved any jobs, The Associated Press reports.

The numbers will become public at the end of January, f0llowing reviews on both the state and federal level during much of that month.

AP had reported on the spending and jobs figures from West Virginia's first stimulus disclosure. As the latest article explains, "The initial round of reporting counted a little more than 2,400 jobs retained or created between February's passage of the massive legislation and the end of September. They were linked to around $191.8 million from West Virginia's estimated $1.8 billion share of the stimulus."

"Gov. Joe Manchin's stimulus coordinator, Danny Scalise, is standing behind the administration's portion of West Virginia's figure," the article said, but it adds that a review "suggests problems with some of the other jobs claims behind West Virginia's tally."

Praying for Byrd. Or Not.

U.S. Sen. Tom Coburn, R-Okla., raised eyebrows at Political Wire and elsewhere after contributing this comment to the weekend debate over that chamber's health care legislation.

"What the American people ought to pray is that somebody can't make the vote tonight," Coburn was quoted as saying. "That's what they ought to pray."

Dana Milbank of The Washington Post interpreted his votive thusly: "They needed one Democratic senator to die -- or at least become incapacitated... It was difficult to escape the conclusion that Coburn was referring to the 92-year-old, wheelchair-bound Sen. Robert Byrd (D-W.V.) who has been in and out of hospitals and lay at home ailing..."

Milbank explained that "It would not be easy for Byrd to get out of bed in the wee hours with deep snow on the ground and ice on the roads -- but without his vote, Democrats wouldn't have the 60 they needed."

But, as The Associated Press and others reported, supporters "won a crucial test vote on President Barack Obama's health care overhaul, putting them on track for passage before Christmas of the historic legislation to remake the United States' medical system and cover 30 million uninsured."

Milbank ended his column by describing the crucial scene that provided that outcome:

Coburn was wearing blue jeans, an argyle sweater and a tweed jacket with elbow patches when he walked back into the chamber a few minutes before 1 a.m. He watched without expression when Byrd was wheeled in, dabbing his eyes and nose with tissues, his complexion pale. When his name was called, Byrd shot his right index finger into the air as he shouted "aye," then pumped his left fist in defiance.