Public Employee Insurance Agency Still Faces Revenue Shortfall Months Later

From the WV Center on Budget & Policy, Blog Post, 11/16/18

The West Virginia PEIA Task Force, formed by Governor Justice, to be “dedicated to finding a viable, long-term solution to the issues facing the West Virginia Public Employee Insurance Agency” has yet to deliver any real solutions.

That task force that first met on March 13 has fielded questions and suggestions for policies to help close the estimated $50 million annual funding gap in PEIA to maintain current benefits. This week, the task force, thru its Coverage and Plans subcommittee, considered savings generated from not covering out-of-state care as well as negotiating lower prices for prescription drugs.

This WVCBP alternatives study looks at two revenue sources to fill PEIA’s funding gap and maintain quality benefits promised to our teachers and other public employees. Raising the natural gas severance tax rate to 7.5 percent from 5 percent would increase revenues by an estimated $86 million in Fiscal Year 2020, while raising the corporate net income tax back to nine percent would provide an estimated $62 million in additional revenues for FY 2020.

Revenue Study for Funding PEIA Shortfall

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Consider Increasing the Natural Gas Severence to 7.5 or 10%

Doubling the current severence tax to 10% for example would still leave the industry with more revenue per million cubic feet (MMCF) produced than they earned drilling & fracking in 2016.

Let’s consider the public interest & climate change as we consume our natural resources