Commentary:

Pension Bond Amendment Approval Just Common Sense

By Scott Rotruck

Dominion Post, May 24, 2005

West Virginia has made tremendous strides in 2005 in putting its financial house in order, reorganizing government and creating a business climate that will produce investment and employment opportunities for all West Virginians . Governor Manchin and the legislature should be congratulated for their hard work and leadership.  Now it’s our turn to help make a difference!

There is one additional change we need to make immediately where YOU, the voting citizens of West Virginia , have the power to make an important financial decision that will impact future generations of West Virginians .  Vote YES and encourage everyone within your sphere of influence to vote YES June 25, 2005 for passage of the West Virginia Pension Bond Amendment.

Will West Virginia ’s taxpayers continue along a course of mounting debt and pass this burden onto their children and grandchildren? Or will West Virginians take advantage of an opportunity to get the state’s financial house in order and prepare for the economic opportunities and investments that will create new jobs and improve the quality of life in the Mountain State ?

Statewide voter approval of the Pension Bond Amendment will allow West Virginia to refinance its existing pension debt, setting a fixed mortgage payment to pay off the unfunded liabilities in the state’s teachers, judges and state police retirement systems we currently owe.

Under the current payment schedule, the state’s annual payment to retire this debt will continue to balloon from the current obligation of $353 million until it reaches $724 million in 2034.  With passage of the Pension Bond Amendment, West Virginians can guarantee a fixed rate of payment of approximately $350 million annually to pay off this debt of $5.5 billion.

With approval of the Pension Bond Amendment, the taxpayers of our state will not pay one penny more to retire this debt. In fact, West Virginia ’s will save a minimum of $1.5 billion of taxpayer money with a “Yes” vote on June 25.

This cost savings represents significant funding that can be directed to support education, senior programs, infrastructure projects, community and economic development – precious dollars that can be invested in our state to meet our critical needs.  

With a “Yes” vote on June 25, West Virginians have the opportunity to correct the sins of the past without bringing any additional financial burden upon its taxpayers. Let’s set a fixed payment for our debts and not lose a over billion dollars so we can improve our communities and create more good paying jobs with health care benefits for our families. It just makes common sense.

Encourage your family and friends to vote in favor of establishing a fixed mortgage payment to pay off our unfunded pension liabilities. Support the Pension Bond Amendment on June 25 because it is really about one thing – jobs, for our children and grandchildren.

Scott Rotruck is President of the Morgantown Area Chamber of Commerce, and Chairman of the West Virginia Council on Community and Economic Development.