Mingo Co. Commissioner accepts deal, pleads guilty

Mingo County Commissioner David Baisden pleaded guilty yesterday to a charge stemming from a federal investigation into corruption in the county. Baisden agreed to a plea bargain from federal prosecutors and will await his sentencing in January.
“No comment.”

That’s about all Mingo County Commissioner David Baisden had to say as he exited the U.S. District Courthouse in Charleston after pleading guilty to federal charges.

Judge John Copenhaver went over the terms of Baisden’s plea agreement just minutes before he was released on a $10,000 unsecured bond. The commissioner’s only other comment was about the people of Mingo County.

“I love them and continue to pray for me. Thank you,” he said as he climbed into the driver’s seat of a pick-up truck.

According to federal sentencing guidelines, Baisden faces a maximum of 20 years in prison and a $250,000 fine for attempting to extort Appalachian Tire, a Williamson business that sold tires at a discounted rate for county owned vehicles.

In June of 2009, Baisden directed a county employee to buy a set of tires at the government price from Appalachian for his wife’s vehicle.

When Appalachian refused, Baisden threatened to take county business to another dealer and made good on the threat when managers at Appalachian didn’t respond to the voicemail left on the store’s answering machine.

“You know, this shows you that elected officials have to play by the same set of rules as everyone else,” U.S. Prosecuting Attorney Booth Goodwin said after the hearing. “What Commissioner Baisden did was abuse his power to shakedown a business for special favors.”

As a part of his plea agreement with Goodwin’s office, Baisden agreed to resign as commissioner before his sentencing date, is banned for life from ever seeking elected office and waived his right to appeal to his sentence.

Goodwin said he also agreed to fully cooperate in any future investigations into corruption in Mingo County by the federal prosecutor’s office, an investigation that is on going.

“Our investigation into Mingo County corruption continues. I would anticipate further developments,” he said.

Baisden’s sentencing is scheduled for January 14 in Charleston. He said he will wait until that day to resign as County Commissioner.

Mingo County Judge Michael Thornsbury is expected to plead guilty to charges stemming from a separate investigation Wednesday, October 2.
 

Health care exchange begins enrollment in W.Va.

West Virginia’s Department of Health and Human Resources has been working for months to organize their federal-state partnered health insurance exchange beginning enrollment on October 1.

Likened to the travel website Expedia, the exchange will allow consumers to go online, compare plans from private insurance providers and choose the one that’s best for them, but the site will also determine your eligibility for coverage on state programs like Medicaid.
For the state of West Virginia, the passage of the federal Affordable Care Act meant new requirements, like establishing a health care exchange, but for consumers, Assistant Secretary for the state Department of Health and Human Resources Jeremiah Samples said the ACA means options. Options for insurance coverage and providers.

Those options, however, aren’t as abundant here as in many other states.  

As West Virginians begin to navigate the healthcare exchange looking for insurance to cover themselves and their families, the plans they have to choose from will all come from one provider: Highmark Blue Cross Blue Shield.

“Private insurance companies made the decision to not proceed with offering coverage on the exchange and there’s a number of reasons for that. Our market is not very large so it’s not as attractive to many insurance companies, and there’s also challenges to the paradigm shift from the health insurance laws,” Samples said. 

“That exposes insurance companies to risks that they’ve never had to deal with before and so there are a lot of challenges there that many insurance companies felt they were not in a position to precede.”

Samples said even though there is only one private insurance provider, Blue Cross Blue Shield will still provide a variety of plan options at different cost levels.  

But some West Virginians will take a different path to coverage. Samples estimated more than 130,000 West Virginians will find through the exchange they are eligible for Medicaid. 

The DHHR sent out eligibility letters to more than 118,00 of those West Virginians to allow them to enroll by simply checking a box to agree to the program and then mailing the form back in to the state.

“We already have about 45,000 folks that have sent those letters in,” Samples said. “That’s 45,000 people that didn’t have insurance before, 45,000 people that will not be coming in to the county office bogging down the systems using our resources. It will also be the most streamlined process by which that consumer can go through to have their eligibility determined.”

Those individuals became eligible for coverage when Governor Tomblin announced Medicaid’s expansion in May, covering individuals earning between 17 and 138 percent of the federal poverty level. Many of those are SNAP, more commonly known as food stamp, participants and parents whose children were already covered through the state.

But if you’re still not sure where you fall, whether you are eligible for Medicaid, or want to find an insurance plan to fit your budget, Samples said the process starts online at healthcare.gov, with a phone call to the federal call center, through a private insurance agent, or at your local DHHR county office.

“Each DHHR office will have an in-person assistor embedded into it. An in-person assistor will be trained on how to provide consumers information about private health insurance,” Samples said. “So, for example, if a consumer wants to know, what is a co-pay? What is co-insurance? What do these terms mean to me? Than that in-person assistor will be able to provide them with some support as they go through the exchange.”

Open enrollment through the health care exchange begins October 1 and ends March 31. Health insurance bought through the exchange goes into effect January 1.  

The website to enroll is www.healthcare.gov.

State falling short in revenue collections for FY 2014

Newly appointed Secretary of Revenue Bob Kiss and members of his department presented an overview of last year’s budget to lawmakers. Legislators…

Newly appointed Secretary of Revenue Bob Kiss and members of his department presented an overview of last year’s budget to lawmakers. Legislators scrutinized the governor’s last minute decision to cut almost $18 million from Medicaid to balance the budget at the end of the last fiscal year, but they were also given some crucial insight into the revenue numbers for this year.
To fulfill his Constitutional duties in balancing the state budget, Governor Tomblin cut the state’s Medicaid program by nearly $18 million at the end of the Fiscal Year 2013.

But where that money went is still in question by some lawmakers, including House Minority Whip Daryl Cowles. He questioned Secretary Kiss during a Joint Committee on Finance.

“What was that money spent on? If we appropriated it to Medicaid, what was that money spent on?” Cowles asked.

“It wasn’t spent on anything. It didn’t exist so to speak. So, the budget had to be cut to make sure you finished the year with a balanced budget,” Kiss responded. “That $17 million didn’t go any place.”

So, it wasn’t spent. Kiss explained the governor made the total Medicaid budget smaller than what the legislature had appropriated for that year in order to keep West Virginia out of the red.

But that last minute cut wasn’t the only time Medicaid had been shorted in Fiscal Year 2013.

The fiscal year ended before a funding bill passed by the legislature for the program could take effect. That bill would have taken $67 million out of excess lottery funds and put them toward Medicaid.

Regular lottery funds were down last year as well. Of the $50 million dollars from that fund that is dedicated to Medicaid, only $29 million actually came in, adding another $21 million to the program’s deficit.

In total, Medicaid was shorted about $109 million in Fiscal Year 2013.

Director of the State Budget Office Mike McKown said for now, the program is financially stable.

“Medicaid’s cash flow is pretty good right now, but by the middle of probably March if we don’t appropriate some money to Medicaid, there’s going to be some cash flow problems,” McKowan said.

“On the last day of the fiscal year we didn’t really have many options to balance the budget. If we had not cut them the last day, nothing would have gotten re-appropriated which would have caused some major problems for some of the agencies and we felt that the cash flow was strong in the Medicaid program for a few months so that was the reasoning behind that.”

Secretary Kiss reassured the committee the emergency $18 million cut to the program’s funding is not a permanent one. The legislature will be able to restore those funds and the $67 million dollars appropriated from lottery funds is still in the state accounts to be put toward the program.

But Medicaid isn’t the only state funded program feeling financial woes. A letter in early August from Kiss and Tomblin asked state agencies to prepare its budgets as if it were taking a 7.5 percent cut. For the second year in a row.

Tomblin stressed this was a precautionary measure, but three months into the Fiscal Year, McKown said revenues are already below estimates.
 
“At the end of August, after two months into this fiscal year, we were down $32 million for estimate,” he told the committee. “So, this year started off not strong, but we’re keeping a close eye on that.”

McKown did bring some good news to the committee. He said budget cuts have been made without having to furlough or lay off any workers, the state has kept up with retirement contributions and the bond rating is still very good because of a strong Rainy Day Fund, ranked one of the top five in the nation.

Currently holding about $907 million, McKown added that fund, however, is not enough to fall back on. If the state lost all sources of revenue, the Rainy Day Fund could only sustain state spending for an additional two and a half months.
 

WVEA wants higher salaries from lawmakers

The state’s largest teacher’s union announced a new initiative pushing for a competitive salary for teachers and school personnel. Union leaders call the…

The state’s largest teacher’s union announced a new initiative pushing for a competitive salary for teachers and school personnel. Union leaders call the pay increase the next step in improving public education and student achievement across West Virginia.
The West Virginia Education Association kicked off the “Competitive Pay Campaign” at their Charleston headquarters.

West Virginia currently ranks 48th in the nation in teacher pay at an annual salary of $45,000.

While WVEA President Dale Lee declined to put a dollar amount on what the union considers a competitive salary, he said it should be a major priority for lawmakers despite a struggling state economy.

“It’s not our job to find the resources for them, but it is their job to place a priority,” Lee said during a press conference. “This has to become a priority and anything up at the Capitol that they make a priority they are able to find the funding for it.”

Lee said every $1,000 raise for teachers would cost the state more than $26 million.

He said implementing a multi-year program would allow the state more time to find some of that amount while catching West Virginia teacher up with the national average of $55,000 a year.
 

Legislative audit shows state purchasing laws not followed

Legislative auditors told an interim legislative committee the state's $38 million expansion of a statewide microwave communications network ignored West…

Legislative auditors told an interim legislative committee the state’s $38 million expansion of a statewide microwave communications network ignored West Virginia purchasing laws. Legislative leaders say they’re committed to reviewing the purchase process to prevent future misconduct.

The audit says the state grant implementation team didn’t seek competitive bids for the tower project. Instead, they used a Lewis County Commission contract to authorize Premier Construction to build the new towers.

The statewide plan includes building 12 towers and refurbishing five others to fill a gap in the microwave communication system for law enforcement and other first responders.

Lewis County had hired Premier in 2009 to build one microwave tower as a part of that plan in Roanoke.
State rules allow purchases from contracts issued by other public bodies, but the audit says state Purchasing Director David Tincher wasn’t asked to approve using Lewis County’s contract for the state project.

According to the audit, Tincher advised state officials to stop the towers’ construction, but his request wasn’t followed.

Senate President Jeff Kessler and House Speaker Tim Miley said in a release they have already begun a thorough review of the state’s purchasing laws and will to determine if there is the need for new legislation.

A representative of the governor’s office said Governor Tomlin will embrace the audit’s suggestions and plans to ask lawmakers to consider implementing legislation based on the report’s findings.
 

DHHR Secretary stays focused on filling 600+ vacancies

In her first appearance before legislators, Department of Health and Human Resources Secretary Karen Bowling said the department is not yet prepared to release a detailed response to a performance review completed earlier this year. Instead, she shared some generalizations about major issues the department is trying to address. The biggest of those issues is hiring and retaining the necessary personnel to run the state’s largest agency.

Called a fragmented department with duplicative programs seeing little results and a lack of a strategic goal-setting vision, the performance review released in April of the Department of Health and Human Resources was less than positive.

Completed by Pennsylvania-based consulting firm Public Works, the report is still in review by the DHHR and its new secretary, Karen Bowling.

On the job since July 1, Bowling admitted she’s still trying to digest the 116 pages, but was called on by the Legislative Oversight Committee on Health and Human Resources Accountability for an update during interim meetings at the Capitol.

“I’m not sure that we would ever have enough hours to present 78 recommendations, but I think just the idea of just some of the most important points in that Public Works report,” Bowling said Monday, “I wanted to make sure I emphasized those and talked about those so everyone could understand the direction in which we were going.”

But moving any direction is proving to be a slow process for the state’s largest agency.

With more than 630 vacancies, Bowling said one of the department’s top priorities is trying to fill those positions. Public Works accounted those vacancies to an “unstable work environment,” which lead to a turnover rate of 30 percent and an additional $7 million in mandatory overtime pay last year.

“Part of the turnover rate and part of the vacancy rate and part of the overtime issues are not being able to fill the jobs quick enough. Part of it is getting qualified people into the jobs fast enough and getting them oriented and ready to go,” Bowling said.

“We, the DHHR, will have to work with other areas to make sure that we change the process to the extent that we can so we can move quicker on filling vacancies.”

So to address the problem, Bowling said the DHHR is beginning to work with the Department of Personnel and the Department of Administration to try to streamline the hiring process.

Senator Ron Stollings, the committee co-chair, said that high turnover rate comes down to those on the front lines—social workers in child protective services or other areas—being overworked and under paid.

“Unfortunately, we probably don’t pay these front line workers competitive salaries and we haven’t hired,” Stollings said. “There are so many vacancies so the ones that are working are working so hard and I’d say there’s a very early burn out. So when there’s something better that comes along in a private arena they leave.”

Aside from streamlining the hiring process, Bowling said they’re looking at other factors like mentor systems and managerial training to create a better work environment and reduce the turnover rate.

On other issues, however, Bowling responded with broader answers. She said the department isn’t prepared to talk specifics for many of the areas of the complex review until they complete an internal self-study.

That answer seemed to be acceptable for the committee and Bowling will return in December to present more concrete, specific examples of how the department is making changes.

There was one question, however, Bowling was prepared to take a stance on. A position brought up by Delegate Don Perdue, who serves as co-chair of the committee, to break the DHHR into separate entities, one dealing with human services, the other with Medicaid.

“That was one of two suggestions that have been made periodically over the last 16 years that I know of. Each time, each time the Department has said, no, we don’t want to cut it a part into health and human resources, we don’t want to take out Medicaid, we don’t want to do anything like that,” Perdue said during the meeting, “and yet, Madame Secretary, our statistics are not changing. They’re getting worse.”

“I am really concerned that if we continue to gather all these chicks into one nest, they are going to be some that suffer and that’s what’s happening now in my belief. I hope you can prove me wrong.”

Bowling said she believes she can. She stood behind her predecessors, but said the DHHR can be more successful than it is today under her leadership in the future. The Secretary said she can help the department achieve the outcomes Perdue wants to see.

“My belief is that actually further integration and breaking down silos. You know, bureaus can get stuck in silos and I think breaking those down will actually improve efficiencies and will give us a greater opportunity to make positive change in the state,” she said.

“My job will be to show statistically that I can make that happen through leadership and maybe through some changes in organizational structure and management and then maybe Chairman Perdue will see that change in years to come and agree with me.”

Most of those changes Bowling believes can be made internally without much legislative action needed, but Stollings said he stands firmly behind the department and is prepared to support any legislative action that may be necessary to help turn the DHHR around.

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