At the center of the West Virginia state Capitol is an area known as The Well.

It is the informal gathering place for lobbyists, reporters, constituents, and lawmakers.

Centrally situated between the chambers of the House of Delegates and Senate,

The Well is where information is often shared, alliances are formed, and deals are made.

 

86th West Virginia Legislature

September Interim Meetings

Parkersburg

September 8-10, 2024

 

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LICENSING, EYE CARE: The Legislature’s Joint Committee on Government Organization heard reports about occupational licensing and the shortage of ophthalmologists.

WATER DEVELOPMENT: The Legislature’s Joint Standing Committee on Technology and Infrastructure learned 167 public water projects are underway in 50 counties.

FISCAL UPDATES: The Joint Committee on Finance heard a variety of fiscal updates.

SPECIAL SESSION: Governor Jim Justice has called a special session for Monday, September 30, in Charleston for the Legislature to consider a tax cut and other proposals.

 

Committee hears about licensing, eye care

 

The Legislature’s Joint Committee on Government Organization, meeting Sunday in Parkersburg, heard reports about occupational licensing and the nation’s shortage of ophthalmologists.

During the meeting in Parkersburg, Dr. Edward Timmons, Service Associate Professor of Economics and Director of the Knee Regulatory Research Center at the John Chambers School of Business and Economics at West Virginia University, made the presentations.

Occupational Licensing

Dr. Timmons’s discussed economic considerations relating to occupational licensing.

In terms of an economic model, more stringent licensing requirements may have a supply-and-demand component, he said, reducing access to services by limiting ease of licensure, especially licensure transportability, which may result in “underemployment” of professionals who await clearances to practice their professions.

Dr. Timmons’s central point, however, was that “there is no evidence that licensure improves quality.” Rather, he said, licensure may enforce “rigidity” and is often typified by delay, paperwork, and lessened supply of professionals who may have to complete additional training to secure licensure, reducing “mobility” of licensed persons from other states who might, due to spousal transfer, want to practice in another state or locale.

He posited the greater question is one that focuses on “more emphasis on outputs than inputs,” meaning initial training.

Dr. Timmons, in discussing state compact approaches for licensure, noted the approach is incremental and often results in an emphasis on inputs as compared to universal recognition of endorsements or occupational licensing reciprocity, which 26 states recognize.

Noting the state’s emphasis to reform licensure, Dr. Timmons said most West Virginia legislative emphasis has not affected Chapter 30 registrations — most of which impact professionals, such as accountants and psychologists.

He said West Virginia has 173 licensed occupations compared to larger states, such as Texas’ 199 occupations and Kansas’ 136 licensed occupations.

The House of Delegates passed a bill in 2021 allowing for transfer of out-of-state occupational licensing. The measure, however, was not taken up by the Senate.

Eye-Care Professionals

Dr. Timmons began saying, “We don’t have enough ophthalmologists,” noting a projected 12% decline in the number of eye-care specialists throughout the nation.

In terms of an economic frame, Dr. Timmons posited whether optometrists, specially trained eyecare professionals who do not have medical degrees, could provide expanded eyecare services given that ophthalmologists perform major medical and surgical procedures.

In West Virginia, optometrists can use lasers for diagnostics but not for therapeutic treatment of eye and vision conditions.

Dr. Timmons said optometrists could alleviate the projected shortage of ophthalmologists without a decline in the efficacy of medical services.

In terms of demand, Dr. Timmons said an aging state population needs age-related services for cataract and glaucoma treatment or surgeries, which are increasingly being done through laser intervention.

Thus, supply and demand center on whether optometrists could provide those services given the specialized training they increasingly receive when pursuing optometrist licensure.

Dr. Timmons cited two studies regarding the efficacy of optometrists providing laser interventions.

A Knee Center study found two “negative outcomes” with the practice, although he said the study was not comprehensive.

Placing that study within context of an earlier Oklahoma study, he said that research concluded there were some consequential medical efficacy questions, namely that laser interventions as completed by optometrists included “repeat” laser interventions.

In that the study is dated, Dr. Timmons said optometrists are increasingly being trained to provide laser interventions, especially as enhanced by technological advancements, including AI medical applications. He said 11 states, including neighboring Kentucky and Virginia, allow optometrists to use lasers to treat certain conditions, such as post-cataract haze, minor glaucoma treatments, and refractive laser surgery, also known as LASIK, although only Alaska and Oklahoma allow optometrists to perform LASIK surgeries that treat nearsightedness, astigmatism, and other conditions.

“Historically, we’ve seen a really big shift in what optometrists are able to do and what they’re able to provide to patients,” Dr. Timmons said. “If you give patients the opportunity to get treatment from other providers, they’re likely to get that treatment.”

Using another economic analogy, Timmons said, “the benefits outweigh the costs” and that greater reliance on optometrists “does, in fact, reduce healthcare costs” without compromising patient medical care.

Delegate Diana Winzenreid of Ohio County wanted to know whether or how ophthalmologists would accept optometrists providing enhanced services.

Dr. Timmons said historical pushback, taken to a logical extreme, is tantamount to “everyone (having) to follow the same pathway … to treat patients,” and it is not a competition story. He said optometrists are not taking business away from ophthalmologists.

 

Authority chief reports on water projects

 

The Legislature’s Joint Standing Committee on Technology and Infrastructure received an update on Sunday in Parkersburg on public water access concerns.

Marie Prezioso, West Virginia Water Development Authority Executive Director, told the Committee that the use of American Rescue Plan Act Funds (ARPA), coupled with a $427 million state economic development grant, is resulting in 167 public water projects in 50 counties.

Ms. Prezioso said the projects include 138 sewer and water projects and 29 related projects.

Additionally, she said, funds the Authority received resulted in levering more than $1.7 billion for state water/sewer projects.

Given a December 31 federal deadline to submit ARPA funds requests, which must be spent by December 2026, Ms. Prezioso said the Authority is dealing with some hurdles, namely easements and what she termed the biggest hurdle — bid overruns.

The latter, Ms. Prezioso said, is being addressed by shifting available Authority funds from completed or revised projects, as well as legislative appropriations.

What gives her “heartburn,” she said, is the balancing of project completion deadlines and the complexities of securing easements and addressing project bidding overrun

In answer to Senator Chandler Swope of Mercer County, Ms. Prezioso said the state has “billions of needs” in terms of infrastructure.

“The needs we have, we can take every penny you give to us,” she said.

In later discussion, Senator Swope cited a figure of $11 billion for infrastructure needs.

Returning to bid overruns, Ms. Prezioso said the dilemma occurs when “you can’t take too much out” in terms of proposed projects.

Ms. Prezioso thanked legislators for their support, including easing some Public Service Commission statutory and regulatory mandates.

Delegate Paul Espinoza of Jefferson County, citing a $7 million project that he said was not funded, inquired about possible reasons.

Ms. Prezioso replied, “They have to come to us to qualify and come to us to follow all the steps.”

Later, in response to a similar question by House Chair Daniel Linville of Cabell County, Ms. Prezioso said a few county projects “are on a watchlist” for problems in filing applications. She declined to name counties or projects.

In response to another question Delegate Linville posed, Ms. Prezioso said it would be difficult to determine the number of needed projects that weren’t submitted and not funded.

“I do not have that number,” she said.

Although the Committee was to discuss broadband access, the Committee instead was provided e-mailed details, according to Senator Ben Queen of Harrison County, who chaired the meeting.

There was no quorum, however, with Senator Queen being the only Senator present.

 

Updates: sales tax up, income tax down

 

The Joint Committee on Finance met Monday during the Parkersburg interim meetings to hear a variety of fiscal updates.

Mark Muchow, Deputy Secretary of the Department of Revenue, reported that sales tax collection has exceeded estimates, while personal income tax collection has declined. He announced that the Federal Reserve was expected to cut interest rates.

While there are no numbers yet, Mr. Muchow noted that two new programs, Hope Scholarship and Third Grade Success, are being phased in and will be incorporated into the 2025 budget. The Social Security tax deduction amounting to about $4 million also is being phased in, and he reminded the Committee that the child tax credit did not pass the Legislature.

Citing that 2024 turned out better than expected, Mr. Muchow said the Department of Revenue is expecting a surplus but not as much as in previous years. He added that unemployment is now at a record low for West Virginia, and the state no longer is last in labor-force participation.

“Mississippi has taken that,” Mr. Muchow said.

Senator Eric Tarr of Putnam County expressed concern about inflationary growth and the proposal from the Governor to reduce income taxes by another $100 million.

“Should the Legislature be concerned by that?” Senator Tarr asked.

Randall Reid-Smith, Cabinet Secretary of the Department of Arts, Culture, and History, provided information about the impact that arts, culture, and history has on local economies, emphasizing the effects in the Mid-Ohio Valley.

He described arts and culture as a $1.5 billion industry, compared to forestry and agriculture at $400 million, and he also noted that almost 16,000 jobs are arts related. His department funds arts classes, community events, construction projects, full-time jobs, symphonies, small businesses, and 17 grant programs.

Secretary Reid-Smith pointed out that Wood County has 40 listings on the National Register of Historic Properties, adding a side note to encourage legislators to preserve Parkersburg High School, which is on the national register.

“The state of the arts is very strong in West Virginia,” concluded Secretary Reid-Smith.

Switching subjects, Andy Neptune, Executive Director of the School Building Authority (SBA), provided an update on additional funding the Legislature provided. He said the SBA currently has projects in 47 of 55 counties, with almost $300 million invested. Twelve new schools have been built at a cost of $435 million but, there are many more renovation projects than new building projects.

Director Neptune said the old formula for construction costs was not in alignment with the current market, so officials have adjusted square-footage costs for new construction. He assured the Committee that everything is caught up with regard to funding.

Finally, the Committee heard from Cabinet Secretary Cynthia Persily of the Department of Human Services. Senator Tarr asked about the surplus, continuing a discussion that occurred in Charleston at the last interim session. Secretary Persily responded that it is her understanding that the Legislature does not want the Department to move Medicaid dollars.

She was then asked where childcare funding actually comes from. Persily replied that it’s “a mix of a number of different funding sources.” They include federal government block grants for a total of $124 million.

Secretary Persily said the trends are good on prescription drugs with better management of the prescription-drug program and lower numbers of people covered. She added the Department also is maximizing pharmacy rebates.

Asked about long-term care, she said it was $103 million over budget last year, but the new rates will start and a $60 million savings is anticipated in the first year.

Members of the Committee brought up the statement from Jeremiah Samples at the August meeting, which they described as “very discouraging” regarding substance abuse. One legislator pointed out that 10 times the amount spent five years ago to address substance use has not worked, adding, “We’ve lost ground in every matrix. The deaths and substance use — it gets worse, worse, worse.”

Secretary Persily responded that officials are working on measures that include national measures of success, but that overdoses are not truly reflective of the work being done.

 

Governor calls September 30 special session

 

With West Virginia legislators in Parkersburg for September interim sessions, Governor Jim Justice called a special session for noon Monday, September 30, in Charleston for the Legislature to consider his personal income tax-cut plan and other proposals, the Parkersburg News and Sentinel reported.

He made the announcement in a news release and video.

Governor Justice said last week he would call a special session for the end of September to consider an additional 5% cut to personal income tax rates and a tax rebate for childcare.

 

2024 Interim Meetings

 

·     October 6-8

·     November 10-12

·     December 8-10

 

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