This image provided by Maxar Technologies shows al-Shifa hospital and surroundings in Gaza City, Saturday Nov. 11, 2023.
Family members of Sgt. Roni Eshel cry during her funeral in Kfar Saba, Israel, Sunday Nov. 12, 2023. Eshel was killed during Hamas' bloody cross-border rampage on Oct. 7, 2023. At least 1,200 people were killed and some 240 captured in an unprecedented, multi-front attack on Israel by the militant group that rules Gaza.
A Palestinian wounded in Israeli bombardment of the Gaza Strip is brought to a hospital in Khan Younis, Sunday, Nov. 12, 2023.
Adva Rozenblit mourns over the coffin of her son staff Sgt. Gilad Rozenblit , 21, in Kibbutz Ginegar, northern Israel, Sunday Nov. 12, 2023. He was killed during a ground operation in the Gaza Strip.
Members of the Palestinian health sector take part in a rally to protest the collapse of the Palestinian health services in Gaza, in the West Bank city of Ramallah, Sunday, Nov. 12, 2023. Israeli strikes pounded Gaza City overnight and into Sunday as ground forces battled Hamas militants near the territory's largest hospital, where health officials say thousands of medics, patients and displaced people are trapped with no electricity and dwindling supplies.
A Palestinian child wounded in Israeli bombardment of the Gaza Strip is brought to a hospital in Khan Younis, Sunday, Nov. 12, 2023.
Palestinians look for survivors following an Israeli airstrike in Khan Younis, southern Gaza Strip, Sunday, Nov. 12, 2023.
Palestinians look for survivors following an Israeli airstrike in Khan Younis, southern Gaza Strip, Sunday, Nov. 12, 2023.
Palestinians look for survivors following an Israeli airstrike in Khan Younis, southern Gaza Strip, Sunday, Nov. 12, 2023.
Smoke rises following an Israeli airstrike in the Gaza Strip, as seen from southern Israel, Sunday, Nov. 12, 2023.
Mourners sit next to graffiti calling for the return of the hostages kidnapped during the Oct. 7 Hamas cross-border attack in Israel, outside the cemetery in Kfar Saba, Israel, Sunday, Nov. 12, 2023. Thousands of Israelis have joined protests and other gatherings calling on the Israeli government to do more to bring home the 239 hostages being held in Gaza.
Passersby are reflected by mirrors on a poster with photographs of hostages abducted by Hamas militants in Tel Aviv, Israel, Sunday, Nov. 12, 2023.
This image provided by Maxar Technologies shows al-Shifa hospital and surroundings in Gaza City, Tuesday, Nov. 7, 2023.
Former New Jersey Governor Chris Christie, front second right, visits Kibbutz Kfar Azza, near the Israel-Gaza border, the site of an Oct. 7 massacre by Hamas, with Israel's Knesset Speaker Amir Ohana, front second left and Israeli Army Maj. Diamond, front right, Sunday, Nov. 12, 2023.
Former New Jersey Governor Chris Christie, center, visits Kibbutz Kfar Azza, near the Israel-Gaza Border, the site of an Oct. 7 massacre by Hamas, with Israel's Knesset Speaker Amir Ohana, left, Sunday, Nov. 12, 2023.
Thousands gather for a march against antisemitism in Paris, France, Sunday, Nov. 12, 2023. French authorities have registered more than 1,000 acts against Jews around the country in a month since the conflict in the Middle East began.
A demonstrator wearing in Israeli flag joins thousands other people for a march against antisemitism in Paris, France, Sunday, Nov. 12, 2023. French authorities have registered more than 1,000 acts against Jews around the country in a month since the conflict in the Middle East began.
People demonstrate in a pro-Palestinian rally in Montreal, Sunday, Nov. 12, 2023.
Pro-Palestinian supporters take part in a demonstration in downtown Ottawa, Ontario, Sunday, Nov. 12, 2023.
This photo released by Dr. Marawan Abu Saada shows prematurely born Palestinian babies in Shifa Hospital in Gaza City on Sunday, Nov. 12, 2023.
Palestinians evacuate a wounded woman following an Israeli airstrike in Khan Younis refugee camp, southern Gaza Strip, Monday, Nov. 13, 2023.
Israeli tanks manoeuvre near the Israeli-Gaza border, southern Israel, Monday, Nov. 13, 2023.
Palestinians line up for food Monday in the city of Rafah during the Israeli bombardment of the Gaza Strip.
Palestinians line up for food during the ongoing Israeli bombardment of the Gaza Strip in Rafah on Monday, November 13, 2023.
Off-duty Israeli soldiers walk with their rifles at the Mahane Yehuda market in Jerusalem, Monday, Nov. 13, 2023.
A woman shops at the Mahane Yehuda market in Jerusalem, Monday, November 13, 2023.
Smoke rises following an Israeli airstrike in the Gaza Strip, as seen from southern Israel, Monday, Nov. 13, 2023.
Palestinians mourn over the body of their father, Mohsem al Hegi, who was killed in the Israeli bombardment of the Gaza Strip, in front of the morgue of al Aqsa Hospital in Deir al Balah, Gaza Strip, Monday, Nov. 13, 2023.
Photographs of Israelis who were kidnapped during Hamas' unprecedented attack on Israel on Oct. 7 are glued atop a poster of the Israeli flag on a board in Jerusalem on Monday, Nov. 13, 2023.
Palestinians check lists with the names of people allowed to cross to Egypt from the Gaza Strip in Rafah, Monday, Nov. 13, 2023.
Palestinians arrive at the border crossing to Egypt in Rafah, Gaza Strip, on Monday, November 13, 2023.
The Stars of David are engraved on bullet-shaped pendants displayed for sale at a souvenir shop in Jerusalem on Monday, Nov. 13, 2023.
An Israeli flag hangs between destroyed houses in the kibbutz Kfar Azza, Israel, near the Gaza Strip, Monday, Nov. 13, 2023. The kibbutz was attacked during the Hamas cross-border attack on Oct. 7, killing and capturing members of its community.
KHAN YOUNIS, Gaza Strip — Battles between Israel and Hamas around hospitals forced thousands of Palestinians to flee from some of the last perceived safe places in northern Gaza, stranding critically wounded patients, newborns and their caregivers with dwindling supplies and no electricity, health officials said Monday.
With Israeli forces fighting in the center of Gaza City, the territory’s main city, both sides have seized on the plight of hospitals as a symbol of the larger war, now in its sixth week. The fighting was triggered by Hamas’ Oct. 7 surprise attack into Israel, whose response has led to thousands of deaths — and much destruction — across Gaza.
Israel accuses Hamas of using hospitals as cover for its fighters. On Monday, the military released footage of a children’s hospital that its forces moved into over the weekend, showing weapons it said it found inside, as well as rooms in the basement where it believes the militants were holding some of the around 240 hostages they abducted during the initial attack.
“Hamas uses hospitals as an instrument of war,” said Rear Adm. Daniel Hagari, the army’s chief spokesperson, standing in a room of the Rantisi Children’s Hospital decorated with a colorful children’s drawing of a tree. Explosive vests, grenades and RPGs were displayed on the floor.
Meanwhile, gunfire and explosions raged Monday around Gaza City’s main hospital, Shifa, which has been encircled by Israeli troops for days.
Tens of thousands of people have fled the hospital in the past few days and headed to the southern Gaza Strip.
Those fleeing include large numbers of displaced people who had taken shelter there, as well as patients who could move.
For Palestinians, Shifa evokes the suffering of civilians. For weeks, staff members running low on supplies have performed surgery there on war-wounded patients, including children, without anesthesia. After the weekend’s mass exodus, about 650 patients and 500 staff remain in the hospital, which can no longer function, along with around 2,500 displaced Palestinians sheltering inside with little food or water.
After power for Shifa’s incubators went out days ago, the Health Ministry in Hamas-ruled Gaza on Monday released a photo it says shows about a dozen premature babies wrapped in blankets together on a bed to keep them at a proper temperature. Otherwise, “they immediately die,” said the Health Ministry’s director general, Medhat Abbas, who added that four of the babies had been delivered by cesarean section after their mothers died.
The Israeli military says Hamas has set up its main command center in and beneath the Shifa compound, though it has provided little evidence. Both Hamas and Shifa Hospital staff deny the Israeli allegations.
U.S. President Joe Biden said Monday that Shifa “must be protected.”
“It is my hope and expectation that there will be less intrusive action,” Biden said in the Oval Office.
Early Tuesday, the Israeli military said in a statement that it had started an effort to transfer incubators from Israel to Shifa. It wasn’t clear if the incubators had been delivered or how they will be powered.
International law gives hospitals special protections during war. But hospitals can lose those protections if combatants use them to hide fighters or store weapons, according to the International Committee of the Red Cross.
Still, there must be plenty of warning to allow evacuation of staff and patients, and if harm to civilians from an attack is disproportionate to the military objective, it is illegal under international law. In an editorial published Friday in Britain’s The Guardian newspaper, International Criminal Court prosecutor Karim Khan said the attacker must meet a high burden of proof to show that a hospital has lost its protections.
The Red Cross was attempting Monday to evacuate some 6,000 patients, staff and displaced people from another hospital, Al-Quds, after it shut down for lack of fuel, but the Red Cross said its convoy had to turn back because of shelling and fighting. On Monday, Israel released a video showing what it said was a militant with a rocket-propelled grenade launcher entering Al-Quds Hospital. An Israeli tank was stationed nearby.
At Shifa Hospital, the Health Ministry said 32 patients, including three babies, have died since its emergency generator ran out of fuel Saturday. It said 36 babies, as well as other patients, are at risk of dying because life-saving equipment cannot function.
Goudat Samy al-Madhoun, a health care worker, said he was among around 50 patients, staff and displaced people who made it out of Shifa and to the south Monday, including a woman who had been receiving kidney dialysis. He said those remaining in the hospital were mainly eating dates.
Al-Madhoun said Israeli forces fired on the group several times, wounding one man who had to be left behind. The dialysis patient’s son was detained at an Israeli checkpoint on the road south, he said.
The military said it placed 300 liters (79 gallons) of fuel several blocks from Shifa, but Hamas militants prevented staff from reaching it. The Health Ministry disputed that, saying Israel refused its request that the Red Crescent bring them the fuel rather than staff venturing out for it. The fuel would have provided less than an hour of electricity, it said.
The U.S. has pushed for temporary pauses to allow wider distribution of badly needed aid. Israel has agreed only to daily windows during which civilians can flee northern Gaza along two main roads. It continues to strike what it says are militant targets across the territory, often killing women and children.
The Israeli military has urged Palestinians to flee south on foot through what it calls safe corridors. But its stated goal of separating civilians from Hamas militants has come at a heavy cost: More than two-thirds of Gaza’s 2.3 million people have fled their homes.
Those who make it south face a host of other difficulties. U.N.-run shelters are overflowing, and the lack of fuel has paralyzed water treatment systems, leaving taps dry and sending sewage into the streets. Israel has barred the import of fuel for generators.
As of last Friday, more than 11,000 Palestinians, two-thirds of them women and minors, have been killed since the war began, according to the Health Ministry in Gaza, which does not differentiate between civilian and militant deaths. About 2,700 people have been reported missing.
Health officials have not updated the toll, citing the difficulty of collecting information.
At least 1,200 people have died on the Israeli side, mostly civilians killed in the initial Hamas attack. Palestinian militants are holding nearly 240 hostages seized in the raid, including children, women, men and older adults. The military says 44 soldiers have been killed in ground operations in Gaza.
About 250,000 Israelis have evacuated from communities near Gaza, where Palestinian militants still fire barrages of rockets, and along the northern border, where Israel and Lebanon’s Hezbollah militant group repeatedly trade fire, including on Monday.
The service started with a song from members of the church.
Members of the church gathered for a celebratory lunch after the service.
Kids from the church sing a song to celebrate the 175th anniversary.
The choir sings for the church
Dancers from Mt. Zion Baptist Church were invited to join the anniversary celebration.
The church was full of old and new members for the 175th anniversary.
Philip Wayman talks about the history of the church.
Josh Weddle, associate pastor of Next Generations, enjoys being part of such a diverse church.
CLARKSBURG, W.Va. (WV News) — For over a century, there’s been one institution in Clarksburg that has had the goal to worship God while also helping those in need in the community. That institution just reached a major milestone, and its members invited the entire city to celebrate with them.
On Sunday, Clarksburg Baptist Church (CBC) celebrated its 175th anniversary with a weekly service followed by lunch. The service included guests from other churches, as well as several people who had been involved with CBC in the past.
Philip Wayman, one of the pastors at the church, and Josh Weddle, associate pastor of Next Generations, said the anniversary serves as a reminder to people that the church’s goal is to be a place of kindness and comfort for the community.
“It’s really cool. The biggest thing about it is that it’s a sobering responsibility to continue to double-down on the mission the founders had. That was to be the salt and light, a city set on a hill as a place for Gospel hope for all people in this community,” Wayman said.
“It’s amazing. It’s a testament to the faithfulness and the commitment for 175 years of people who wanted to be the heartbeat of the city of Clarksburg and to be a beacon of light here and to love this community. It’s one of those things where we celebrate the past, but it also motivates us and reminds us to continue to be faithful so we can carry on that legacy of love,” Weddle said.
The church’s leadership wanted to make sure the anniversary was a celebration of not just past and current members, but also of the people who will lead the church in the future.
“When we planned it, we wanted to make sure that we celebrated the past but also recognize that there are people who have only been here one year or three years or maybe this is their first time here. We wanted to remain on mission and on the focus of why we’re here today,” Wayman said.
“To have such a diverse population here of different ages is one thing I’ve always loved about CBC. There’s that intergenerational ministry. We can have kids come up and sing, and we have 20-, 30- and 40-year olds-come up as well. Every age group is represented, and to be able to have some of the people who served here years before come here and be able to share stories with them reminds us that this church is made up of so many different people, all unified together to love this community,” Weddle said.
As the church enters its next 175 years, members hope it will be able to continue growing and changing while also honoring those who came before them.
“I hope that we continue to lean on Jesus and not try to do things within our own strength, but be totally led and totally dependent on the grace of God to sustain us, carry us and bring us to the future. We want to remain faithful and obedient,” Weddle said.
“I hope that we might remain on mission to love God, to love people and to go into the community to be there for vulnerable people. We don’t want to just exist; we want to thrive. If we’re a church that continues to be here for the community, the community might know that we’re a place that they can lean on,” Wayman said.
SHINNSTON, W.Va. (WV News) — Shinnston honored veterans Saturday morning with the town’s 2023 Veterans Day Parade.
Veterans ride on a float in the 2023 Shinnston Veterans Day parade.
The Shinnston Lions Club organizes the parade each year in partnership with Shinnston American Legion Post 31.
“As a veteran myself, it’s an opportunity to show that we support our veterans and it’s a really good feeling. ... We do our best to let them know we care,” said David Minor, president of the Shinnston Lions Club and a U.S. Navy veteran.
“I appreciate everybody that comes out and supports us throughout. ... It’s just a nice feeling that people do come out and help us, because without the people that care, there’s no parade,” he said.
The Lincoln Navy JROTC Color Guard leads the 2023 Shinnston Veterans Day Parade.
Woody Maley, a U.S. Army veteran, drove a float carrying veterans in this year’s parade.
“I’m proud to do it and proud of the guys that suffered worse than we did. I’m more than happy to be doing this,” he said.
Noting the consistent community support for veterans, Maley reflected on when he joined the service.
“When we were kids back in the ‘60s, we had the draft. Around here, you either went into the service or you had to leave the state and find work. ... But we had the most people in the Army per capita,” Maley said.
Kenneth Sipe, a member of the Shriners Mini Corvette Unit, a U.S. Marine Corps veteran and a former parade marshal, helped lead the crew of iconic, little yellow cars in Saturday’s parade.
Kenneth Sipe leads the Shriners Mini Corvette Unit in the 2023 Shinnston Veterans Day Parade.
“Seeing everyone celebrate veterans in this town is outstanding,” Sipe said.
Local students also had a presence in this year’s parade, with the Lincoln High School marching band, the Lincoln High School Navy Junior Reserve Officers’ Training Corps and a variety of other youth groups taking part.
The Lincoln High School marching band performs in the 2023 Shinnston Veterans Day parade.
“We see this as a very big opportunity to show that we have a lot of respect for our veterans. We value them a lot in our program. ... It’s nice to pay it back,” said NJROTC Cadet Lt. Grayson Guthrie.
“We value and respect the uniform, and we want to show that we truly care about the Armed Forces and the people that were in it,” said NJROTC Lt. Jr. Grade Isaiah Martin.
Del. Kayla Young, D-Kanawha, raises concerns Monday about federal COVID grant misuse by county school systems.
WHEELING, W.Va. — West Virginia lawmakers learned Monday that issues surrounding county school systems’ spending of COVID-19 dollars go far beyond the actions of one or two counties.
“It seems like there is a massive problem and we should be reviewing everything,” said Del. Kayla Young, D-Kanawha. “It seems like that we don’t have full control over what these [county school boards] … are spending.”
Members of the Joint Standing Committee on Government Organization heard a report Monday from the Legislature’s Performance Evaluation and Research Division (PERD) regarding the spending of federal dollars made available between 2020 and 2021 during the COVID-19 pandemic.
Legislative auditors found numerous issues with how school systems spent millions in available COVID-19 dollars, including allegedly misusing funds and doing business with vendors not registered in West Virginia. Auditors also found that the state Department of Education was unable to adequately monitor misuse of COVID dollars.
West Virginia received more than $1.2 billion between three phases of Elementary and Secondary School Emergency Relief (ESSER) funds between 2020 and 2021 through the Coronavirus Aid Relief, and Economic Security (CARES) Act, the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act and the American Rescue Plan Act (ARPA).
For all of those dollars, the state Department of Education’s Office of Federal Programs (OFP) had a total of three employees to do cyclic monitoring of ESSER expenditures by school systems once their fiscal year spending was completed.
While county school systems turn in full reports on spending, OFP staff review only a sample of transactions.
“The fiscal monitoring system lacks appropriate risk assessment,” said Brandon Burton, a research manager with the Legislative Auditor’s Office. “The frequency of improper purchasing procedures and other ESSER grant violations warranted a reassessment of risk and adjustment to the system’s capacity and structure. The current monitoring process lacks appropriate structure due to a lack of written policies and procedures for the cyclical monitoring process.”
According to a review of OFP’s monitoring, 37 county school systems out of 54 monitored were found to be non-compliant for not following proper purchasing procedures, spending money on unallowable expenses, or exceeding indirect cost rates. As a result, more than $457,000 has been recovered from counties from the Department of Education.
According to PERD’s review, of the 29 counties that OFP deemed were compliant, legislative auditors found seven transactions — or $285,000 in spending — was non-compliant. More than $2.1 million of COVID funds were spent with vendors not registered with the West Virginia Secretary of State’s Office.
OFP has completed its cyclical monitoring of county ESSER I funds and has nearly completed its review of ESSER II funds. ESSER III funds from the American Rescue Plan are now being reviewed. According to legislative auditors, preliminary findings are turning up similar issues found with earlier COVID funding phases.
The Department of Education and county school systems have until September 2024 to spend their remaining COVID funds. The most recent phase — ESSER III — comes from the $1.9 trillion American Rescue Plan Act, which included $81 billion in ESSER Funds
West Virginia was awarded $762 million in ESSER III funds in March 2021. The U.S. Department of Education approved the remainder of West Virginia’s ESSER III plan on July 15, 2021, awarding the state the remaining $252.3 million. The first tranche of $597.6 million was awarded on March 24, 2021.
PERD staff recommended that the Department of Education increase its monitoring and internal control capacity in OFP, including using available ARPA dollars to hire temporary staff to assist in monitoring. In a written response to the report, the department said it was not feasible to either transfer additional staff to OFP or use COVID dollars to hire temporary staff, with “just ten months” remaining of ARPA spending authority.
Two county school systems have already been taken control of by the Department of Education due in part to improper use of COVID dollars, including in Upshur County. Burton said further reviews could result in additional county takeovers.
“The examples of Upshur County is indicative that other special circumstance reviews could potentially occur going forward as the OFP continues to monitor the final rounds of federal COVID grant purchases over the next several months,” Burton said.
The Board of Education voted earlier this year to place Upshur County Schools under department authority after declaring a state of emergency. A department review team found hundreds of thousands of dollars of misused federal funds, including purchases of passes to the State Wildlife Center and family pool passes.
The state board voted in 2022 to intervene in Logan County Schools due to multiple issues, including spending $19,500 as part of a larger $500,000 contract with Heritage Educational Services for virtual learning services. The Logan County Board of Education entered into a no-bid contract with Heritage Educational that included no written contract. Heritage Educational provides programs for Christian school and home school families.
Melanie Purkey, the federal programs officers for the Department of Education, explained that her office monitors the federal grant spending by counties once a fiscal year closes and after the money has already been spent. She blamed the chaos in the early days of the COVID-19 pandemic for driving bad spending decisions, coupled with receiving more funds later on than the schools were used to receiving.
“I think school systems were in a panic.” Purkey said. “If we found a vendor who can supply this, we’re going to buy it because people all over the country were having trouble buying masks, hand sanitizers, even computers.
“Then the second round came in the spring of ‘21 … we’re talking about three times, a little more than four times what the original was,” Purkey continued. “That’s when we realized that now we’ve purchased the computers and we’re moving out of needing masks and so forth. So now we have some more substantial money and we increased the monitoring.”
As the monitoring entity on behalf of the federal government, the state Department of Education can recoup the ESSER funds from counties if unallowable expenditures are found. Those funds can be given back to a county once they make allowable purchases.
“We basically recoup the funds because they spend it on something that was not allowable, but it goes back into their account so they can get access to use it again on something that is allowable,” Purkey said. “So from the federal standpoint, their issue is if it’s not allowable, you can’t spend the money. We’re going to get it back. If you didn’t follow procurement, then we’re going to do some corrective action and work with you to fix your procurement problems.”
Read the full report here.
CLARKSBURG, W.Va. (WV News) — Students and faculty in Harrison County Schools are ready to kick back and relax during Thanksgiving break.
As the week-long break approaches, students and administrators are in high spirits and have big plans for the vacation.
“This break will be a good time for students and teachers to relax before our busy time of the year,” said David Decker, principal at Lincoln High School. “The rest of the year will be focused heavily on preparing students for the SATs and the ACTs. Standardized testing will be coming up soon as well.”
The school year has run pretty smoothly, said David Mazza, assistant principal at Liberty High School.
“The students and faculty have been feeling good,” he said. “Our athletic programs have been doing great. Overall, I couldn’t be happier with how the year has started.”
“I think everyone here is ready for a week-long break,” said Eric Post, assistant principal at Robert C. Byrd High School. “The faculty and students have worked incredibly hard, and they have earned it. Fall sports went well and without a hitch, so I’d say there is need for time off.”
James Powell, a sophomore at Lincoln High School, said he is feeling good going into the break.
“It has been a long few months, but it’s all worth it,” he said. “School has been going pretty good, and my grades are high.”
“Thanksgiving week is my week to relax and be out in nature. I am planning on deer hunting next week and participating in the Turkey Trot.” Powell said.
The Turkey Trot is a 5K run/walk held in Shinnston on Thanksgiving morning.
Seth Nay, a freshman at Lincoln, is also looking forward to the chance to unwind.
“I am ready for a break,” he said. “Coming into high school after being in middle school is a huge change. I feel as if Thanksgiving break will allow me the chance to relax.”
Aleah Love, a senior at RCB, said she cannot wait for Thanksgiving break.
“I am really excited for break next week,” she said. “I plan on spending time with my family and not worrying about school work. It’s always exciting to see my extended family.”
James McMillion, a sophomore at Byrd, said that while he loves the school, he is ready for a break.
“Next week can’t get here fast enough,” he said. “I am ready to kick back and relax. I plan on spending time with my family, working out and hanging out with my friends.”
Even the administrators are getting in on the Thanksgiving fun.
Collegiate and professional sports are on Decker’s agenda for next week.
“I am planning on relaxing,” he said. “College basketball, college football, NBA and NFL seasons are in full swing, and I plan on taking advantage of that.”
Post said this Thanksgiving will be a particularly special one for him and his family.
“I plan on spending time with my family during break,” he said. “This is my first Thanksgiving as a father. My wife and I are so excited to have our first Thanksgiving with our son.”
Mazza will be traveling for the holiday, with the Sunshine State as his destination.
“I am hopping on a plane in Bridgeport Friday evening,” he said. “My son and his family live in Tampa, and my wife and I are going to spend the week with them. I will be leaving the cold weather behind for sunny Tampa.”
West Virginia Revenue Secretary Dave Hardy testifies during the September meeting of the West Virginia Legislature’s Joint Finance Committee.
WHEELING, W.Va. (WV News) — National bond rating agencies have mostly praise for West Virginia’s financial footing, according to state revenue officials.
Officials with the state Department of Revenue briefed members of the Joint Standing Committee on Finance about matters concerning the budget for the current fiscal year, which will end in June 2024, during Monday’s legislative interim meetings in Wheeling.
Department of Revenue Cabinet Secretary Dave Hardy, who participated in Monday’s meeting by phone from Charleston, told lawmakers that state officials participated in phone calls last week with Moody’s, Standard and Poor’s, and Fitch. The calls help these bond rating agencies when determining future ratings.
According to Hardy, all three rating agencies praised West Virginia for maintaining a strong rainy day fund, also called the revenue shortfall fund, which had more than $1.1 billion as of the end of October.
“We always get good feedback about our rainy day fund balance,” Hardy said. “This year, of course, it was nearly $1.2 billion, and that’s always viewed very favorably by the rating agencies, and that’s nothing new.”
The state’s Public Employee Retirement System is nearly fully funded at 98.8%, while the Teacher’s Retirement System is 78.4% funded, up from 67.1% when Justice first took office in 2017.
While there is some debate, the U.S. Government Accountability Office considers a state and local pension plan healthy if it is close to 80% funded.
“We have improved by 11.3% in the last seven years, and we continue to climb out of that hole, and that’s quite an accomplishment,” Hardy said.
The state was also able to turn around over a decade its other post-employment benefits (OPEB) liability. The state had an OPEB liability of $3 billion in 2018, dropping to $1.6 billion in 2019. Hardy said as of this year, the state’s OPEB liability has been erased and is in the positive by $158 million.
“That was such a good outcome that we actually went back and audited those numbers,” Hardy said. “We get those numbers from PEIA and the retirement board, and that obviously was very well received by the rating agencies.”
Hardy also said the old worker’s compensation debt remaining from when the state privatized its worker’s compensation program (Now Encova Insurance), which was more than $2.2 billion in 2006, has now been retired. The fund now has a balance of $7 million.
Some of the questions state officials received from the ratings agencies last week revolved around the state’s recent tax reform plans. The West Virginia Legislature passed House Bill 2526. The bill included a 21.25% across-the-board cut in personal income tax rates retroactive to the beginning of January.
Hardy said despite the personal income tax cut, total tax collections year-to-date for fiscal year 2024 beginning in July were $1.8 billion, which was 15.5% more than the $1.6 billion revenue estimate set for the first four months of the fiscal year, providing a year-to-date surplus of $242.2 million.
The ratings agencies were pleased that the state created a personal income tax reserve fund in case personal income tax collections don’t meet expectations following the tax cut. That fund has a balance of $460 million.
The agencies were also pleased that annual triggers included in the tax cut bill that allow for up to a 10% further reduction in personal income tax rates depending in a set formula that does not factor in the up-and-down revenues from the severance tax on coal, oil , and natural gas. Revenue officials said they won’t know if the trigger kicks in until August 2024, and the next personal income tax rate reduction wouldn’t begin until calendar year 2025.
According to the Governor’s Office, the state collected $55.7 million in severance tax dollars, or $52.7 million more than the $3 million estimate for October. However, the state returned more than $74 million in severance tax collections, leaving the state with a negative $37.5 million balance in the severance tax line item for October.
Johansen
