During these challenging economic times, the state of West Virginia, like individual households, is being forced to get its finances in order.
A significant factor within this equation relates to Other Post Employment Benefits (OPEB), the burgeoning portion of the state’s budget that funds retired public employees’ health care benefits.
It’s been estimated that OPEB is an $8 billion unfunded liability. The House of Delegates and Senate are working to introduce legislation in January intended to help alleviate the impending strain from this fiscal obligation.
However, solving the OPEB problem requires not only legislative action, but administrative solutions, and the recent PEIA decision to more aggressively diversify the state’s investment portfolio appears to be prudent. The financial returns thus far are promising, and future yields could provide a solid foundation to help fund OPEB responsibilities.
The Legislature’s interim OPEB working group (Joint Finance Subcommittee C) was challenged by the Charleston Daily-Mail last week for sharing proposed solutions with affected employee groups before releasing such to the general public.
I’d like to point out that the committee publicly released various recommendations in August. Any “behind the scenes” disclosures to related parties are never made with the intention of secrecy, but done so that employee groups may prepare their responses before discussions occur during official committee meetings, thereby improving the preparedness and quality of such public dialogues.
To resolve the OPEB crisis will require input from all affected parties, the general public included. A real effort is being made to include everyone, while trying to minimize mis-statements, errors or unnecessary distractions.
The Legislature is trying to find better ways of deliberating complex issues, by providing a framework that brings diverse groups together and reduces the fear factor that often surrounds contentious issues. That being said, the Daily-Mail editorial makes a valid point, which is duly noted.
– McCabe is chair of the West Virginia Legislature’s OPEB study committee, which began its work in December 2009.
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