Government, News

Teacher pay raise bill heads to Senate Finance Committee

CHARLESTON — When the Senate declared early Thursday its intent to channel the new teacher pay raise bill — HB 4145 — to the Finance Committee, it became clear the statewide teacher walkout would continue. And through the day, the closure announcements piled up.

Senate floor speeches regarding the decision contained their expected amount of partisan finger pointing, but also reflected the philosophical divide over how to solve the teacher pay and PEIA problems, and how to handle the extra $53 million the governor suddenly discovered after his Tuesday town halls.

HB 4145, introduced and passed by the House on Wednesday, used the governor’s found $53 million to pay for 5 percent Fiscal Year 2019 raises for teachers, service personnel and State Police. The Senate adjourned without taking it up Wednesday evening.

In Thursday’s floor session, it was officially sent to Finance, over Democratic objections, where it may see consideration today or Saturday.

On Thursday, before the floor session, Senate President Mitch Carmichael outlined the plan.

“We will continue to steer the ship of state in a fiscally responsible manner. Those folks want their PEIA validated, secure, with confidence moving forward. That’s what this money, should it be found, will do.”

After gaveling in the session, he fleshed that out when he stepped down from the podium and addressed the members.

“It’s a difficult time in which we find ourselves.” The $30 million to pay for the current PEIA freeze will be built into the budget, not come from the Rainy Day Fund.”

Regarding the governor’s new revenue projections, he said, “We, as good fiscal stewards of taxpayer dollars, are skeptical” about money suddenly appearing “after a contentious meeting.”

Determining if that money is real will require thoughtful evaluation, he said. If it’s real, it will be dedicated to the PEIA Financial Stability Fund. The pay raise will come through the bill already signed into law, SB 267, which provides three annual raises of 2 percent, 1 percent and 1 percent.

“We are a state at a crossroads and we’ve created a powder keg,” he said. And we’ve heard and we’ve responded and we’re trying, and I hope the people see that the Legislature has done these enormous things that truly address the issues that have been brought to us. … That is not the prudent approach – to hastily react to the governor’s urging.”

He last comment came in anticipation of Minority Leader Roman Prezioso’s intent to move for immediate action on the bill.

Prezioso said, “We are a state in crisis. But I think we’ve taken our eye off the ball.” Neighboring states offer better pay. We can’t attract teachers here.

Prezioso, a former Finance chair, noted that the governor’s Chief of Staff Mike Hall was Senate Finance chair. “I trust him.” He trusts the deputy revenue secretary who makes the revenue projections. And if they’re wrong, the legislature will have a chance to come back and readjust. “We need those salaries.”

Prezioso made his motion to take up the bill immediately; Majority Leader Ryan Ferns moved to table Prezioso’s motion. Ferns’ motion passed 20-14, keeping the bill in Finance.

During the floor session’s final speeches, Sen. Bob Beach, D-Monongalia referred to advice Fred Rogers offered his TV show viewers when they encounter a problem: “Go find the helpers. … Folks, we’re the helpers.”

Money channeled into the PEIA Financial Stability Fund won’t really be built into the budget, he said. If it’s used for raises in HB 4145, it will by law be there going forward. “We’re playing a freaking shell game. Don’t play a shell game. I’m fed up with it, I know they are.”

Ferns defended the majority’s position. “The political pressures have never been greater than they are now,” he said. There are genuine differences of opinion on how to do the right thing.

This Senate floor, I feel, has been used far too many times to incite anger and fan the flames of concern among our public employees,” he said. “Taxpayers all over West Virginia have trusted us to spend wisely. So who in their right mind would want us to come down here and, without giving consideration, spend millions of the taxpayers’ dollars? That would be derelict of our duty.”

Finance chair Craig Blair, R-Berkeley, explained his plan to a handful of reporters who approached his desk.

They’ll do the normal analysis they do on any bill, he said. It will take a day or so. “I haven’t been told not to run the bill or anything like that.” His committee will likely meet today or Saturday. His staff is working on the budget bill at the same time.

He wouldn’t say that the bill is dead or that they have to choose between raises and PEIA. “All possibilities are on the table.”

He has a couple proposals in consideration that could save money for PEIA. Adopting a version of a U.S. Department of Defense program could save PEIA $44 million. A prescription purchasing program, being discussed by former Sen. Jeff Mullens, called Caremark PBM, could save $40 million to $50 million.

Going back to the bill, he said, “We have, whether we do this or not, a commitment to fixing PEIA.”