MOUNTAIN STATE WRAP - Quick But Not Slick, WV "Selling Sector Outstrips Making Sector," Trash Camera Watching You, DUIs Become Trash Men?

(06/11/2003)
STATE POLICE SNOOKERED BY PYRAMID SCHEME - State Police troopers have been putting money away in what appears to be a pyramid scheme, dating back to the 1950's and 60's. The payroll deductions were to help troopers and their families. The fund was not initiated by the state legislature, and is now coming up short about $1.2 million in promised benefits.

An auditor reported that a trooper could make nearly $3,000 more by putting the schemes $20 a month in a savings account paying 1 percent interest. "It's a pyramid scheme. Someone at the end gets burned," said Sen. Joe Minard, D-Harrison.

"I'm absolutely astounded a state agency got snookered into a pyramid scheme," added Sen. Sarah Minear, R-Tucker. "It shouldn't be allowed to continue. It's illegal," expressing dismay that someone in the agency couldn't figure it out.

Joe Martin, state secretary of military affairs and public safety, asked lawmakers to give him until the 2004 legislative session to come up with a satisfactory resolution.

LEGISLATURE ENTERS SPECIAL SESSION TODAY -Governor Wise has called a special session for lawmakers to deal with workers' compensation and other problems. A 12-member committee trying to save the near-bankrupt system for injured workers have a bill that contains nearly three-hundred pages.

They will also discuss the process by which members of the state Economic Development Grant Committee are selected. A recent Supreme Court ruling states that lawmakers cannot make appointments to the committee and other special panels in the manner they have done in the past - a system which apparently showed favoritism.

WV SELLING SECTOR OUTSTRIPS MAKING SECTOR - Edward Peeks, labor reporter wrote this week in the Charleston Gazette about the West Virginia economy, saying Weirton Steel was once the largest private employer, a position now held by Wal-Mart. "The giant retailer casts a symbolic shadow over the economic landscape. It troubles some West Virginians that the selling sector of the economy outstrips the making sector of steel, metals and chemicals," (or even light manufacturing).

"The result is not only jobs that pay less, but offer less in fringe benefits. Wal-Mart and other giants skimp on employee benefits by hiring large numbers of part-time workers who are not covered by labor laws. Microsoft, for instance, has cut part-time employment from protest and threat of lawsuits," says Peeks.

Government analysts and few media outlets report the tens of thousands of jobs going abroad (NAFTA, GATT, etc) as a continuing drain on the economy or for the current recession, or for the poor economic conditions present with state governments - not enough workers paying taxes.

State governments will be facing major down sizing soon, a process already started in West Virginia.

TRASH CAMERA MAY BE WATCHING - A Mason County man had to pay $300 after a hidden surveillance camera caught him in the act of tossing a beer can into an illegal open dump. The man's cousin also had to pay a fine after the camera revealed his vehicle was improperly registered. Hidden cameras are being installed at sites around West Virginia as part of a crackdown on illegal dumping. The Department of Environmental Protection has hired a contractor to install the cameras, according to DEP press release.

DUI'S SHOULD PICK UP TRASH - Regional Jail and Correctional Facility Authority Director Steve Canterbury wants first-time drunken driving offenders to pick up trash on the state's roadways. He says placing drunken driving offenders on roadway cleanup crews would ease jail overcrowding. The concept has gained popularity in several states.

TORCHING PROPERTY IN WV - WV's Insurance Availability and Medical Malpractice Insurance Committee heard a report that a "significant" number of fire-related claims filed with insurers are deemed fraudulent by the state fire marshal's office. More than one-third of the 913 fires investigated by the marshal's office in the last nine months were considered fraud-related. They may seek to tighten the laws related to arson.

SWITCHES TO RUN AGAINST FORMER BOSS - A former deputy state auditor has announced plans to run against her ex-boss, three-term Democrat incumbent Auditor Glen Gainer. A lifelong Democrat, Lisa Thornburg of Milton has switched to the Republican Party, saying it better represents her.

BRIDGEPORT AVIATION FIRM BEING SOLD - A major aviation company, Bombardier has announced plans to sell its military aviation services, including a rather large operation at Bridgeport, West Virginia. The division provides maintenance, repair, overhaul and technical services for military aircraft. It is being sold to L-3 Communications for $90 million dollars.

The division employs about 950 people and has facilities in Quebec and Mirabel, Canada, and Bridgeport, West Virginia. It was not announced how it will affect West Virginia workers.

BITING THE HAND - Penn National Gaming, one of West Virginia's gambling outfits that has Charlestown races and owns slot machines, is now biting the hand that made it possible. The company plans to sue the state of Illinois over what it calls "a devastating and ill-thought-out tax increase.

West Virginia, like many other states, is resorting to gambling income to keep it going.

Penn CEO Peter Carlino says the increase Illinois lawmakers approved two weeks ago will cost shareholders tens of millions of dollars a year, as it seeks money for state tax coffers. In reaction, the company will lay off workers, charge admission and parking fees at its Aurora, Illinois riverboat casino. They will also remove table games and replace them with slot machines that are cheaper to operate.

Illinois lawmakers passed a bill to get an additional $200 million dollars in tax revenue, with $21 million coming from Penn National.

QUICK BUT NOT SLICK - An appliance dealer who has been in trouble for years for selling bogus appliances is now accused of stealing a car. A Jeep was taken from the parking lot of a South Charleston Wal-Mart just minutes after Don Mullins. 43, was released from jail.

Mullins was found in civil contempt of three earlier court orders permanently barring him from selling used appliances, and had been released from South Central Jail. He apparently had been placed back in jail for violating home confinement orders.

NEW VA BONUS ON HORIZON - Governor Bob Wise has announced the beginning of obtaining a bonus for current veterans of wars. West Virginia has taken "bonus" action for veterans since the time of World War I. The last time the bonus was given was after the Persian Gulf War.

"We want to do it again," said Wise. "We want to make all of the soldiers who served in Iraq, Afghanistan and Kosovo to know that we support them."

WHAT WORK? - Hundreds of welfare recipients were still working in state-assigned jobs when they reached their five-year limit and lost their benefits. Few jobs are to be had, even with training programs available.

The Bureau for Children and Families has phased in several recent changes. The changes are based on 52 recommendations from caseworkers, advocates and others. They include better assessment and increased monitoring of welfare recipients. After people get jobs the caseworkers are to check on them at least three times during the first six months.

STEEL PENSION FUNDS IN DOUBT - A hearing on the takeover of WHX Steel Corporation's under funded pension plan has been postponed, but the company must resolve the pension issue by June 30 so one of its subsidiaries Wheeling-Pittsburgh Steel can stay in operation.

One of the state's largest employers, Weirton Steel, has recently taken out bankruptcy, claiming foreign imports has ruined the company.

WHX wants to collect a 250 million-dollar federal loan. The Pension Benefit Guaranty Corporation wants to take over the pensions at both Wheeling-Pitt and another subsidiary, Handy and Harman of Rye, New York. WHX is fighting the takeover.

In recent years, hundreds of steelworkers lost their lifetime pension funds when their companies closed in the steel triangle of Ohio, WV and PA. Most of the companies took the worker's pension funds and invested them in projects.