West Virginia governor to approve pension rescue, new bonds
West Virginia Governor Joe Manchin talks to reporters during a news conference in Tallmansville, West Virginia in this January 4, 2006 file photo.
Credit: Reuters/Joshua Roberts/File
MIAMI (Reuters) - West Virginia Governor Joe Manchin expects to sign bills giving the state's large cities pension-funding relief and approving the sale of $225 million in stimulus bonds, a spokesman said on Friday.
The bills were promoted by Manchin, a Democrat, and were passed during a four-day special session of the state legislature in Charleston, West Virginia, according to Matt Turner, the governor's communications director.
"Unless there is something extra in the bills that the governor objects to, he will sign them," Turner said. "We haven't seen them yet."
The pension-funding bill creates a state-administered pension plan for newly hired municipal firefighters and police in West Virginia.
It also sets up optional financing plans for cities to pay down large deficits in existing pension plans, if they choose to shut down severely underfunded plans. The measure would include a 40-year pay-down program to deal with existing shortfalls.
One West Virginia city, Huntington, has warned that $125 million in unfunded pension-plan liabilities might force it into insolvency.
The bonds bill clears the way for West Virginia counties to issue as much as $225 million in economic-stimulus bonds. The state legislators, who were expected to wrap up their special session on Friday, considered but did not pass similar legislation in June, Turner said.
The state legislature begins its regular, 60-day session on January 13.
(Reporting by Michael Connor; editing by Jeffrey Benkoe)
