West Virginia Executive Spring 2018 | Page 38

HB 4145 PAY RAISE FOR TEACHERS AND PUBLIC EMPLOYEES By Jessica Wintz-Adams SENATE: 34-0  HOUSE: 99-0 Following years of budget deficits and mid-year spending cuts, Governor Jim Justice revealed a turn-the-corner general revenue budget for 2018-2019 that included across-the-board pay raises for teachers, school service personnel and public employees at 1 percent per year spread over a five-year period. The proposed 1 percent increases, along with concerns over increasing health care costs and premium increases under PEIA, became the catalyst for a work stoppage that defined the 2018 legislative session. The work stoppage began on Thursday, February 22, the day after Justice signed Senate Bill (SB) 267, which provided teachers, school service personnel and state police with a 2 percent salary increase that would begin in July 2018 and included a 1 percent pay hike for teachers in 2020 and 2021. Leadership for teachers’ unions said the raises wouldn’t cover cost of living increases, and the bill didn’t address other concerns related to public em- ployee insu rance programs, health care costs and payroll tax deduction legislation. The strike appeared as though it would end a week later on February 27 when Justice was able to provide teachers and Eric Lewis Accounting Services Community Leader Proud West Virginian Sharp Shooters Class of 2018 Congratulations on this well-deserved honor. 36 WEST VIRGINIA EXECUTIVE other education-related employees a 5 percent pay raise in the first year—provided state lawmakers approved House Bill (HB) 4145. This 5 percent pay raise would be covered by newly increased revenue numbers from the governor—up $58 million from initial estimates—but lawmakers, especially in the Senate, were skeptical of the increased revenue estimates. The proposed pay hike passed the House, but the Senate made additional changes that called for a 4 percent pay raise. That change was rejected by the House, and volleying over the per- centage amount continued. The debate over salary increases and how to address PEIA and health care costs brought the bill to a standstill. With teachers and supporters filling the Capitol to capacity, many activities that take place to move the legislative calendar along did not happen. The strike finally came to an end on March 6, just days before the legislative session ended. Justice signed a 5 percent pay increase and initiated a PEIA taskforce to work on a permanent fix for the health insurance plan. As a result of giving the 5 percent raise and freezing PEIA health care increases, the Legislature had to strip many of the governor’s proposed budget increases, including the elimination of the business inventory tax. The cuts were necessary since law- makers elected not to use any of the additional $58 million in revenue estimates, and should revenue projects exceed expecta- tions, lawmakers stated they would be able to do supplemental approbations for those agencies that lost budget increases. Teachers, school service personnel and supporters were able to claim victory and have inspired similar movements in two other states across the country.