Advisory Committee Another Safeguard In Managing Pension Debt

Advisory Committee Another Safeguard In Managing Pension Debt

by Governor Joe Manchin

As we move into the final days leading up to our critical June 25 Pension Bond Amendment special election, I felt it was important to again emphasis to every West Virginian the safeguards that have been implemented to not allow our state to commit the financial sins of the past. I announced details about one of these safeguards earlier this week, with the introduction of a Pension Bond Advisory Committee that will advise state leaders as we consider any future activity in the bond market upon voter approval of this common sense initiative.

This bi-partisan committee, composed of some of West Virginia's best and brightest leaders in the business, financial and investment fields, will review market conditions and make recommendations on the issuance of future bonds.

Members serving on the Pension Bond Advisory Committee include: Marty Becker, Chairman, West Virginia Media Holdings, and an insurance industry executive; Bill Bright, Chairman and CEO, Bright Enterprises; Dorothy Dotson, Vice President of Investments, West Virginia University Foundation; Cal Kent, Vice President of Business and Economic Research, Marshall University; Tom Heywood, Esq., Bowles, Rice, McDavid, Graff & Love; Jim Lees, Esq.; Jack Rossi, CPA, Presiding Member, Arnett & Foster and Chairman of the Charleston Area Alliance; Rick Slater, CPA, Partner, Simpson & Osbourne; Jim Sturgeon, Esq. and CPA, President, Charleston Chamber of Commerce and Chair of the WV Society of CPA's Committee on State and Local Taxation; and, Tom Whitt, PhD, Associate Dean, West Virginia University School of Business and Economics.

The committee will work proactively with the members of the legislature, the Board of Public Works, independent financial managers and myself to make responsible financial decisions in the long-term management of the state's nearly $5.5 billion in existing pension obligation debts. This new committee will focus on monitoring current financial conditions and they will have to approve any recommendations before we move to the legislature for approval to go to the investment market.

Any recommendations made by the Advisory Committee must go before the legislature for final approval, allowing the state to then take the next step to the bond market. If the market conditions aren't right and the opportunity is not a good or sound one for the taxpayers of West Virginia, we will not move forward with investments in the market. With this group's participation in the process, I am confident, by working together, we will make sound decisions with the best financial interests of the state in mind.

Along with the newly formed advisory committee, I was also pleased to announce a new addition to the Chairs of the "Vote Yes for West Virginia's Future" campaign. Frank Bellinetti, West Virginia State Director of AARP, has joined David Haney of the WVEA, Kenny Perdue of the AFL-CIO, Karen Price of the Manufacturers Assoc., Cecil Roberts of the UMWA, Steve Roberts of the West Virginia Chamber of Commerce, and former Gov. Cecil Underwood as Chairs of this important organization.

I think it is clear that the Pension Bond Amendment has wide spread support across West Virginia, because everyone who has truly taken the time to study it realizes it is the right thing to do to protect our state's future. We're here to make sure that we can save a minimum of $1.5 billion if we can level our pension debt payments out. All we are asking for is to have the opportunity. You can make the difference, and I encourage you to join bi-partisan coalition to create new jobs for West Virginia - "Vote Yes for West Virginia's Future."

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