OLYMPIA, Wash.- The State Attorney General’s Office will investigate whether Franklin County Commissioners converting VEBA health benefits to a taxable wage in 2016 was unconstitutional.
“We have determined to process your request as a formal opinion, which means it will be fully researched, subjected to peer review, and submitted to the Attorney General for approval to be published as an official opinion,” wrote Deputy Solicitor General Alicia Young in a letter dated June 26th, 2023.
A May 2023 audit of Franklin County payroll and practices found that Franklin County Commissioners may have received unconstitutional payments beginning in 2016.
“We are looking forward to getting a formal opinion from the Attorney General,” said Franklin County Administrator Mike Gonzalez. “This has certainly taken a lot of time and energy. We want to make sure we are following and adhering to the law in every facet of our organization.”
Commissioners voted in favor of converting a VEBA health benefit into a taxable wage in 2016 according to a press release from Franklin County. The conversion may be unconstitutional under a Washington law that prevents elected officials from giving themselves raises while in office.
“Starting in 2016, Franklin County Commissioners passed a post-election resolution enabling the conversion of excess health care benefits into cash, and subsequently to their salary,” said Franklin County Auditor Matt Beaton. “In this case, VEBA benefits were allowed to be taken into cash, thus giving themselves a raise.”
Franklin County’s audit found that Commissioner Brad Peck would owe nearly $47,000. Former Commissioner Bob Koch nearly $20,000, and former Commissioner Rick Miller would owe a little more than $21,000 if the VEBA to income conversion is deemed unconstitutional.
Commissioner Clint Didier and Commissioner Rocky Mullen were not aware of the illegal payments when they were voted into office in 2018 and would owe $334.40 from pay received since taking office according to today’s press release.
