Counties unhappy over transfer of benefit debt

CHARLESTON, W.Va. -- On paper, at least, county school boards across West Virginia are saddled by mushrooming debts that total an estimated $262 million this year, and a lawsuit against state officials over the predicament is possible.
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Thanks to medical inflation and other factors, the estimated OPEB liabilities of county school boards grew sixfold this year from 2008, when it was $45.3 million. They are expected to swell at a similarly quick rate over the next several years, said Joe Panetta, finance director for the state Department of Education.

"This office is projecting that every county will reflect a deficit in their current expense fund within the next two years," Panetta said.

Counties object to the state's requiring them to report these liabilities as current and not long-term. State officials believe the approach satisfies national accounting standards and shows that West Virginia takes its debts seriously.
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State officials are adamant that these teachers and school workers are county employees so the resulting liability belongs on the counties' books. But county officials fear the effect all that red ink will have on their budgets, their bond ratings and their ability to persuade voters to pass needed levies.

http://www.wvgazette.com/News/200905170223