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CHARLESTON, W.Va. (AP) - Lawmakers on Friday proposed plugging in $45 million from the personal income tax toward Gov. Joe Manchin's workers' compensation proposal, replacing money previously earmarked from state parks and infrastructure funding.
That alternative funding route appeared to appease legislators' concerns while helping Manchin reach the $230 million in annual funding called for in his bill (SB1004) to erase the injury benefit program's $3 billion shortfall.
Completing the fifth day of the special session, the House of Delegates also passed versions of Manchin's proposals to toughen ethics laws (SB1003), reorganize certain state agencies (SB1002) and send a $5.5 billion pension bond proposal (SJR101) to voters.
The Senate must approve all three measures as amended. Both chambers have yet to vote on Manchin's workers' compensation proposal (SB1004), which would also start the clock on privatizing the program. But lawmakers and Manchin officials each expect the special session to conclude Saturday.
Among its numerous provisions, the House's version of Manchin's ethics bill would allow the state's Ethics Commission to launch its own investigations, levy stiffer fines and demand more information from lobbyists and officeholders.
The commission now cannot pursue allegations unless it receives a sworn, signed complaint. The House passed the bill unanimously.
Manchin, a Democrat, included the bill in his five-item agenda after a series of high-profile ethics scandals involving West Virginia officials last year, including former House Education Chairman Jerry Mezzatesta, D-Hampshire, and Senate Transportation Chairman Mike Ross, D-Randolph. Both lost their re-election bids in November amid separate ethics investigations.
"We feel this is a major step toward restoring the confidence of the people in our state government,'' Manchin Communications Director Lara Ramsburg said. "It holds public officials to a higher standard of conduct.''
The pension proposal would ask voters to override the constitutional ban on state debt for the sale of bonds. The state would invest the proceeds and apply the return toward shortfalls in the retirement plans for troopers and teachers.
The proposal would also erase the judiciary's pension fund shortfall with projected budget surpluses. Delegates Tim Armstead, R-Putnam, and Mitch Carmichael, R-Jackson, voted against the proposal.
"Would you want to borrow money to invest in stocks?'' Carmichael asked afterward. "That's not good public policy.''
Before the vote, the House removed an amendment opposed by advocates for state pensioners that had set a five-year deadline for fully funding any benefit increases. But the bond market can still demand such a funding window, those advocates noted.
"That would have the same impact of making a (cost of living adjustment) practically impossible,'' said Perry Bryant of the West Virginia Education Association. "But to negotiate with the bond market is far more preferable than putting it in the constitution.''
The reorganization bill would create a cabinet-level Department of Commerce from existing state agencies. It would also increase the governor's role in seven semi-independent agencies, including the School Building and Economic Development authorities.
The House tempered the provision extending the governor's influence over those bodies. It would transfer the power of appointing executive directors from the agencies' boards to the governor, but revert that power if the governor then fires the director.
Delegate Cindy Frich, R-Monongalia, cast the sole "nay'' vote against the bill. The bill would revive the Public Energy Authority, which Frich said caused "havoc'' in her district when it helped build a Morgantown power plant in the 1980s.
Frich said her other concerns included the affected agencies' eminent domain and bond-selling powers.
Manchin called lawmakers into session Monday, just one week into his term and before their regular session resumes Feb. 9.
On the Net:
West Virginia Legislature: http://www.legis.state.wv.us
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