WEST virginia legislature
2017 regular session
Committee Substitute
for
House Bill 2817
By Delegates Walters, Nelson and Espinosa
[Originating in the Committee on Finance;
March 24, 2017]
A BILL to amend and reenact §11B-2-20 of the Code of West Virginia, 1931, as amended; to amend and reenact §18-9A-6a of said code; to amend and reenact §18A-4-2 of said code, all relating to compensation, including retirement benefits, of educational personnel; redirecting a certain amount of surplus funds to the unfunded liability of the Teachers Retirement System from the amount otherwise directed to the Revenue Shortfall Reserve Fund or left in the General Revenue Fund; extending the time period used by the actuary in determining the allowance for the reduction of any unfunded liability of the state Teachers Retirement System; providing for the fiscal year 2018 allowance for the reduction of any unfunded liability in the Teachers Retirement Fund; providing for certain transfers from the state debt reduction fund to the Teachers Retirement Fund and providing for an additional amount to be paid to classroom teachers.
Be it enacted by the Legislature of West Virginia:
That §11B-2-20 of the Code of West Virginia, 1931, as amended, be amended and reenacted; that §18-9A-6a of said code be amended and reenacted; that §18A-4-2 of said code be amended and reenacted, all to read as follows:
CHAPTER 11B. DEPARTMENT OF REVENUE.
ARTICLE 2. STATE BUDGET OFFICE.
§11B-2-20. Reduction of appropriations; powers of Governor; Revenue Shortfall Reserve Fund and permissible expenditures therefrom.
(a) Notwithstanding any provision of this section, the Governor may reduce appropriations according to any of the methods set forth in sections twenty-one and twenty-two of this article. The Governor may, in lieu of imposing a reduction in appropriations, request an appropriation by the Legislature from the Revenue Shortfall Reserve Fund established in this section.
(b) The Revenue Shortfall Reserve Fund is continued within the State Treasury. The Revenue Shortfall Reserve Fund shall be funded continuously and on a revolving basis in accordance with this subsection up to an aggregate amount not to exceed thirteen percent of the total appropriations from the State Fund, General Revenue, for the fiscal year just ended. The Revenue Shortfall Reserve Fund shall be funded as set forth in this subsection from surplus revenues, if any, in the State Fund, General Revenue, as the surplus revenues may accrue from time to time.
(1) Within sixty days of the end of each fiscal year, the secretary shall cause to be deposited into the Revenue Shortfall Reserve Fund such amount of the first fifty percent of all surplus revenues, if any, determined to have accrued during the fiscal year just ended, as may be necessary to bring the balance of the Revenue Shortfall Reserve Fund to thirteen percent of the total appropriations from the State Fund, General Revenue, for the fiscal year just ended. If at the end of any fiscal year the Revenue Shortfall Reserve Fund is funded at an amount equal to or exceeding thirteen percent of the state's General Revenue Fund budget for the fiscal year just ended, then there shall be no further deposit by the secretary under the provisions of this section of any surplus revenues as set forth in this subsection until that time the Revenue Shortfall Reserve Fund balance is less than thirteen percent of the total appropriations from the State Fund, General Revenue.
(2) Nothwithstanding the provisions of subdivision (1) of this subsection or any other provision of this code to the contrary, until the unfunded liability of the Teachers Retirement is eliminated according to the provisions of subsection (d), section six-a, article nine-a, chapter eighteen of this code, within sixty days of the end of each fiscal year, the Secretary shall cause to be deposited into the Teachers Retirement Fund such amount of the first one-third of all surplus revenues, in any, determined to have accrued during the fiscal year just ended; and into the Revenue Shortfall Reserve Fund such amount of the next one-third of those surplus revenues, as may be necessary to bring the balance of the Revenue Shortfall Reserve Fund to thirteen percent of the total appropriations from the State Fund, General Revenue, for the fiscal year just ended. If at the end of any fiscal year the Revenue Shortfall Reserve Fund is funded at an amount equal to or exceeding thirteen percent of the state's General Revenue Fund budget for the fiscal year just ended, then there shall be no further deposit by the secretary under the provisions of this section of any surplus revenues as set forth in this subsection until that time the Revenue Shortfall Reserve Fund balance is less than thirteen percent of the total appropriations from the State Fund, General Revenue.
(c) Not earlier than November 1 of each calendar year, if the state's fiscal circumstances are such as to otherwise trigger the authority of the Governor to reduce appropriations under this section or section twenty-one or twenty-two of this article, then in that event the Governor may notify the presiding officers of both houses of the Legislature in writing of his or her intention to convene the Legislature pursuant to section nineteen, article VI of the Constitution of West Virginia for the purpose of requesting the introduction of a supplementary appropriation bill or to request a supplementary appropriation bill at the next preceding regular session of the Legislature to draw money from the surplus Revenue Shortfall Reserve Fund to meet any anticipated revenue shortfall. If the Legislature fails to enact a supplementary appropriation from the Revenue Shortfall Reserve Fund during any special legislative session called for the purposes set forth in this section or during the next preceding regular session of the Legislature, then the Governor may proceed with a reduction of appropriations pursuant to sections twenty-one and twenty-two of this article. Should any amount drawn from the Revenue Shortfall Reserve Fund pursuant to an appropriation made by the Legislature prove insufficient to address any anticipated shortfall, then the Governor may also proceed with a reduction of appropriations pursuant to sections twenty-one and twenty-two of this article.
(d) Upon the creation of the fund, the Legislature is authorized and may make an appropriation from the Revenue Shortfall Reserve Fund for revenue shortfalls, for emergency revenue needs caused by acts of God or natural disasters or for other fiscal needs as determined solely by the Legislature.
(e) Prior to October 31 in any fiscal year in which revenues are inadequate to make timely payments of the state's obligations, the Governor may, by executive order, after first notifying the presiding officers of both houses of the Legislature in writing, borrow funds from the Revenue Shortfall Reserve Fund: Provided, That for the fiscal year 2014, pursuant to this subsection and subject to all other conditions, requirements and limitations set forth in this section, the Governor may borrow funds from the Revenue Shortfall Reserve Fund prior to the first day of April. The amount of funds borrowed under this subsection shall not exceed one and one-half percent of the general revenue estimate for the fiscal year in which the funds are to be borrowed, or the amount the Governor determines is necessary to make timely payment of the state's obligations, whichever is less. Any funds borrowed pursuant to this subsection shall be repaid, without interest, and redeposited to the credit of the Revenue Shortfall Reserve Fund within ninety days of their withdrawal.
(f) The Revenue Shortfall Reserve Fund – Part B is continued within the State Treasury. The Revenue Shortfall Reserve Fund – Part B shall consist of moneys transferred from the West Virginia Tobacco Settlement Medical Trust Fund pursuant to the provisions of section two, article eleven-a, chapter four of this code, repayments made of the loan from the West Virginia Tobacco Settlement Medical Trust Fund to the Physician's Mutual Insurance Company pursuant to the provisions of article twenty-f, chapter thirty-three of this code and all interest and other return earned on the moneys in the Revenue Shortfall Reserve Fund – Part B. Moneys in the Revenue Shortfall Reserve Fund – Part B may be expended solely for the purposes set forth in subsection (d) of this section, subject to the following conditions:
(1) No moneys in the Revenue Shortfall Reserve Fund – Part B nor any interest or other return earned thereon may be expended for any purpose unless all moneys in the Revenue Shortfall Reserve Fund described in subsection (b) of this section have first been expended, except that the interest or other return earned on moneys in the Revenue Shortfall Reserve Fund – Part B may be expended as provided in subdivision (2) of this subsection;
(2) Notwithstanding any other provision of this section to the contrary, the Legislature may appropriate any interest and other return earned thereon that may accrue on the moneys in the Revenue Shortfall Reserve Fund – Part B after June 30, 2025, for expenditure for the purposes set forth in section three, article eleven-a, chapter four of this code; and
(3) Any appropriation made from Revenue Shortfall Reserve Fund – Part B shall be made only in instances of revenue shortfalls or fiscal emergencies of an extraordinary nature.
(g) Subject to the conditions upon expenditures from the Revenue Shortfall Reserve Fund – Part B prescribed in subsection (f) of this section, in appropriating moneys pursuant to the provisions of this section, the Legislature may in any fiscal year appropriate from the Revenue Shortfall Reserve Fund and the Revenue Shortfall Reserve Fund – Part B a total amount up to, but not exceeding, ten percent of the total appropriations from the State Fund, General Revenue, for the fiscal year just ended.
(h) (1) Of the moneys in the Revenue Shortfall Reserve Fund, $100 million, or such greater amount as may be certified as necessary by the Director of the Budget Office for the purposes of subsection (e) of this section, shall be made available to the West Virginia Board of Treasury Investments for management and investment of the moneys in accordance with the provisions of article six-c, chapter twelve of this code. All other moneys in the Revenue Shortfall Reserve Fund shall be made available to the West Virginia Investment Management Board for management and investment of the moneys in accordance with the provisions of article six, chapter twelve of this code. Any balance of the Revenue Shortfall Reserve Fund, including accrued interest and other return earned thereon at the end of any fiscal year, does not revert to the General Fund but shall remain in the Revenue Shortfall Reserve Fund for the purposes set forth in this section.
(2) All of the moneys in the Revenue Shortfall Reserve Fund – Part B shall be made available to the West Virginia Investment Management Board for management and investment of the moneys in accordance with the provisions of article six, chapter twelve of this code. Any balance of the Revenue Shortfall Reserve Fund – Part B, including accrued interest and other return earned thereon at the end of any fiscal year, shall not revert to the General Fund but shall remain in the Revenue Shortfall Reserve Fund – Part B for the purposes set forth in this section.
CHAPTER 18. EDUCATION
ARTICLE 9A. PUBLIC SCHOOL SUPPORT.
§18-9A-6a. Teachers Retirement Fund allowance; unfunded liability allowance.
(a) The total Teachers Retirement Fund allowance shall be the sum of the basic foundation allowance for professional educators and the basic foundation allowance for service personnel, as provided in sections four and five of this article; all salary equity appropriations authorized in section five, article four of chapter eighteen-a; and such amounts as are to be paid by the counties pursuant to sections five-a and five-b of said article to the extent such county salary supplements are equal to the amount distributed for salary equity among the counties, multiplied by fifteen percent.
(b) The Teachers Retirement Fund allowance amounts provided for in subsection (a) of this section shall be accumulated in the employers accumulation fund of the state Teachers Retirement System pursuant to section eighteen, article seven-a of this chapter, and shall be in lieu of the contribution required of employers pursuant to subsection (b) of said section as to all personnel included in the allowance for state aid in accordance with sections four and five of this article.
(c) In addition to the Teachers Retirement Fund allowance provided for in subsection (a) of this section, there shall be an allowance for the reduction of any unfunded liability of the Teachers Retirement Fund in accordance with the following provisions of this subsection. On or before December 31, of each year, the actuary or actuarial firm employed in accordance with the provisions of section four, article ten-d, chapter five of this code shall submit a report to the President of the Senate and the Speaker of the House of Delegates which sets forth an actuarial valuation of the Teachers Retirement Fund as of the preceding thirtieth day of June. Each annual report shall recommend the actuary's best estimate, at that time, of the funding necessary to both eliminate the unfunded liability over a forty-year period beginning on July 1, 1994, and to meet the cash flow requirements of the fund in fulfilling its future anticipated obligations to its members. In determining the amount of funding required, the actuary shall take into consideration all funding otherwise available to the fund for that year from any source: Provided, That the appropriation and allocation to the Teachers Retirement Fund made pursuant to the provisions of section six-b of this article shall be included in the determination of the requisite funding amount. In any year in which the actuary determines that the Teachers Retirement Fund is not being funded in such a manner, the allowance made for the unfunded liability for the next fiscal year shall be not less than the amount of the actuary's best estimate of the amount necessary to conform to the funding requirements set forth in this subsection.
(d) Notwithstanding any provision of subsection (c) of this section to the contrary, beginning with the report required by subsection (c) of this section due on or before December 31, 2017, and for each annual report after that, the actuary or actuarial firm employed in accordance with the provisions of section four, article ten-d, chapter five of this code shall recommend the actuary's best estimate, at that time, of the funding necessary to both eliminate the unfunded liability over a thirty-year period, as calculated on a level dollar amortization method, beginning on July 1, 2016, and to meet the cash flow requirements of the fund in fulfilling its future anticipated obligations to its members: Provided, That for fiscal year 2018, the allowance for the reduction of any unfunded liability of the Teachers Retirement Fund is $295,913,000.
(e) Notwithstanding any provision of subdivision (1), subsection (d), section twenty-seven, article twenty-two-c, chapter twenty-nine of this code to the contrary, beginning in fiscal year 2021 and each year after that, the first $20 million transferred into the State Debt Reduction Fund created in section twenty-seven, article twenty-two-c, chapter twenty-nine of this code shall be transferred to the Teachers Retirement Fund. The amount transferred pursuant to this subsection is not to be considered by the actuary in determining allowance for reduction of the unfunded liability, but is to be an additional payment to accelerate the reduction of the unfunded liability.
CHAPTER 18A. SCHOOL PERSONNEL.
ARTICLE 4. SALARIES, WAGES AND OTHER BENEFITS.
§18A-4-2. State minimum salaries for teachers.
(a) It is the goal of the Legislature to increase the state minimum salary for teachers with zero years of experience and an A. B. degree, including the equity supplement, to at least $43,000 by fiscal year 2019.
(b) Beginning July 1, 2014, and continuing thereafter, each teacher shall receive the amount prescribed in the State Minimum Salary Schedule as set forth in this section, specific additional amounts prescribed in this section or article and any county supplement in effect in a county pursuant to section five-a of this article during the contract year.
STATE MINIMUM SALARY SCHEDULE |
|||||||||||
Years |
4th |
3rd |
2nd |
|
A.B. |
|
M.A. |
M.A. |
M.A. |
Doc- |
|
Exp. |
Class |
Class |
Class |
A.B. |
+15 |
M.A. |
+15 |
+30 |
+45 |
torate |
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
27,917 |
28,606 |
28,872 |
30,315 |
31,076 |
32,843 |
33,604 |
34,365 |
35,126 |
36,161 |
|
1 |
28,245 |
28,934 |
29,200 |
30,833 |
31,594 |
33,362 |
34,123 |
34,883 |
35,644 |
36,679 |
|
2 |
28,574 |
29,262 |
29,528 |
31,352 |
32,113 |
33,880 |
34,641 |
35,402 |
36,163 |
37,198 |
|
3 |
28,902 |
29,590 |
29,856 |
31,871 |
32,631 |
34,399 |
35,160 |
35,920 |
36,681 |
37,716 |
|
4 |
29,474 |
30,162 |
30,428 |
32,633 |
33,394 |
35,162 |
35,923 |
36,683 |
37,444 |
38,479 |
|
5 |
29,802 |
30,490 |
30,756 |
33,152 |
33,913 |
35,680 |
36,441 |
37,202 |
37,963 |
38,998 |
|
6 |
30,130 |
30,818 |
31,084 |
33,670 |
34,431 |
36,199 |
36,960 |
37,720 |
38,481 |
39,516 |
|
7 |
30,458 |
31,147 |
31,412 |
34,189 |
34,950 |
36,717 |
37,478 |
38,239 |
39,000 |
40,035 |
|
8 |
30,786 |
31,475 |
31,741 |
34,707 |
35,468 |
37,236 |
37,997 |
38,757 |
39,518 |
40,553 |
|
9 |
31,114 |
31,803 |
32,069 |
35,226 |
35,987 |
37,754 |
38,515 |
39,276 |
40,037 |
41,072 |
|
10 |
31,443 |
32,131 |
32,397 |
35,746 |
36,506 |
38,274 |
39,035 |
39,796 |
40,556 |
41,591 |
|
11 |
31,771 |
32,459 |
32,725 |
36,264 |
37,025 |
38,793 |
39,553 |
40,314 |
41,075 |
42,110 |
|
12 |
32,099 |
32,787 |
33,053 |
36,783 |
37,543 |
39,311 |
40,072 |
40,833 |
41,593 |
42,628 |
|
13 |
32,427 |
33,115 |
33,381 |
37,301 |
38,062 |
39,830 |
40,590 |
41,351 |
42,112 |
43,147 |
|
14 |
32,755 |
33,443 |
33,709 |
37,820 |
38,580 |
40,348 |
41,109 |
41,870 |
42,630 |
43,665 |
|
15 |
33,083 |
33,771 |
34,037 |
38,338 |
39,099 |
40,867 |
41,627 |
42,388 |
43,149 |
44,184 |
|
16 |
33,411 |
34,099 |
34,365 |
38,857 |
39,617 |
41,385 |
42,146 |
42,907 |
43,667 |
44,702 |
|
17 |
33,739 |
34,428 |
34,693 |
39,375 |
40,136 |
41,904 |
42,665 |
43,425 |
44,186 |
45,221 |
|
18 |
34,067 |
34,756 |
35,022 |
39,894 |
40,655 |
42,422 |
43,183 |
43,944 |
44,705 |
45,740 |
|
19 |
34,395 |
35,084 |
35,350 |
40,412 |
41,173 |
42,941 |
43,702 |
44,462 |
45,223 |
46,258 |
|
20 |
34,723 |
35,412 |
35,678 |
40,931 |
41,692 |
43,459 |
44,220 |
44,981 |
45,742 |
46,777 |
|
21 |
35,052 |
35,740 |
36,006 |
41,449 |
42,210 |
43,978 |
44,739 |
45,499 |
46,260 |
47,295 |
|
22 |
35,380 |
36,068 |
36,334 |
41,968 |
42,729 |
44,496 |
45,257 |
46,018 |
46,779 |
47,814 |
|
23 |
35,708 |
36,396 |
36,662 |
42,487 |
43,247 |
45,015 |
45,776 |
46,536 |
47,297 |
48,332 |
|
24 |
36,036 |
36,724 |
36,990 |
43,005 |
43,766 |
45,534 |
46,294 |
47,055 |
47,816 |
48,851 |
|
25 |
36,364 |
37,052 |
37,318 |
43,524 |
44,284 |
46,052 |
46,813 |
47,574 |
48,334 |
49,369 |
|
26 |
36,692 |
37,380 |
37,646 |
44,042 |
44,803 |
46,571 |
47,331 |
48,092 |
48,853 |
49,888 |
|
27 |
37,020 |
37,708 |
37,974 |
44,561 |
45,321 |
47,089 |
47,850 |
48,611 |
49,371 |
50,406 |
|
28 |
37,348 |
38,037 |
38,302 |
45,079 |
45,840 |
47,608 |
48,368 |
49,129 |
49,890 |
50,925 |
|
29 |
37,676 |
38,365 |
38,631 |
45,598 |
46,358 |
48,126 |
48,887 |
49,648 |
50,408 |
51,443 |
|
30 |
38,004 |
38,693 |
38,959 |
46,116 |
46,877 |
48,645 |
49,405 |
50,166 |
50,927 |
51,962 |
|
31 |
38,333 |
39,021 |
39,287 |
46,635 |
47,396 |
49,163 |
49,924 |
50,685 |
51,445 |
52,480 |
|
32 |
38,661 |
39,349 |
39,615 |
47,153 |
47,914 |
49,682 |
50,443 |
51,203 |
51,964 |
52,999 |
|
33 |
38,989 |
39,677 |
39,943 |
47,672 |
48,433 |
50,200 |
50,961 |
51,722 |
52,483 |
53,518 |
|
34 |
39,317 |
40,005 |
40,271 |
48,190 |
48,951 |
50,719 |
51,480 |
52,240 |
53,001 |
54,036 |
|
35 |
39,645 |
40,333 |
40,599 |
48,709 |
49,470 |
51,237 |
51,998 |
52,759 |
53,520 |
54,555 |
(c) (1) Beginning July 1, 2017, each classroom teacher shall be paid the appropriate amount listed in subsection (b) of this section and an additional eight hundred and eight dollars.
(2) Six hundred dollars shall be paid annually to each classroom teacher who has at least twenty years of teaching experience.
(3) The
payments required by subdivisions (1) and (2) of this subsection: (i)
(A) Shall be in addition to any amounts prescribed in the applicable
State Minimum Salary Schedule; (ii) (B) shall be paid in equal
monthly installments; and (iii) (C) shall be considered a part of
the state minimum salaries for teachers.
(d) To meet the objective of salary equity among the
counties as set forth in section five of this article, each teacher shall be
paid an equity supplement amount as applicable for his or her classification of
certification or classification of training and years of experience as follows,
subject to the provisions of that section:
(1) For "4th Class" at zero years of experience, $1,781. An additional $38 shall be paid for each year of experience up to and including thirty-five years of experience;
(2) For "3rd Class" at zero years of experience, $1,796. An additional $67 shall be paid for each year of experience up to and including thirty-five years of experience;
(3) For "2nd Class" at zero years of experience, $1,877. An additional $69 shall be paid for each year of experience up to and including thirty-five years of experience;
(4) For "A. B." at zero years of experience, $2,360. An additional $69 shall be paid for each year of experience up to and including thirty-five years of experience;
(5) For "A. B. + 15" at zero years of experience, $2,452. An additional $69 shall be paid for each year of experience up to and including thirty-five years of experience;
(6) For "M. A." at zero years of experience, $2,644. An additional $69 shall be paid for each year of experience up to and including thirty-five years of experience;
(7) For "M. A. + 15" at zero years of experience, $2,740. An additional $69 shall be paid for each year of experience up to and including thirty-five years of experience;
(8) For "M. A. + 30" at zero years of experience, $2,836. An additional $69 shall be paid for each year of experience up to and including thirty-five years of experience;
(9) For "M. A. + 45" at zero years of experience, $2,836. An additional $69 shall be paid for each year of experience up to and including thirty-five years of experience; and
(10) For "Doctorate" at zero years of experience, $2,927. An additional $69 shall be paid for each year of experience up to and including thirty-five years of experience.
These payments: (i) Shall be in addition to any amounts prescribed in the applicable State Minimum Salary Schedule, any specific additional amounts prescribed in this section and article and any county supplement in effect in a county pursuant to section five-a of this article; (ii) shall be paid in equal monthly installments; and (iii) shall be considered a part of the state minimum salaries for teachers.