West Virginia House passes bills to create $150 million PEIA reserve fund

Two bills intended to fulfill Gov. Jim Justice’s pledge to set aside $150 million to offset future cost increases for PEIA health insurance benefits were headed to the Senate on Tuesday after passing the House of Delegates by wide margins — despite concern that one of the bills poses a $16 million unfunded mandate for state colleges and universities.

The governor’s bill to transfer $105 million in 2018-19 budget surplus into the new Public Employees Insurance Agency reserve fund (House Bill 2665) passed unanimously, but issues arose over a companion measure (House Bill 3139) that requires state agencies come up with $45 million to cover employees who are paid through special revenue — funds raised from fees, not taxes — or federal funds.

That includes about $16 million assessed to higher education institutions to account for the portion of employee salaries paid through tuition and fees, not from state appropriations.

“It’s an unfunded mandate to higher education of $16 million,” Delegate Larry Rowe, D-Kanawha, declared, noting that would be equal to the $16 million in funding cuts to higher education enacted in 2017.

Read more: https://www.wvgazettemail.com/news/legislative_session/wv-house-passes-bills-to-create-million-peia-reserve-fund/article_d36427b4-2113-5dbd-a6e3-f96f74594175.html