Senate Bill 326 History
Senate Bill No. 326
Plymale, Prezioso, Laird, Miller, Unger, Wells,
Boley, Beach and Tucker
[Introduced February 20, 2013; referred to the Committee on
Education; and then to the Committee on Finance .]
A BILL to amend and reenact §18B-1A-5 of the Code of West Virginia,
1931, as amended; and to amend and reenact §18B-2A-3 of said
code, all relating to institutional operating budgets; the
West Virginia Network of Educational Telecomputing; requiring
the Higher Education Policy Commission and Council for
Community and Technical College Education to propose
procedural rules by certain date; specifying prior approval by
Legislative Oversight Commission on Education Accountability;
setting forth goals and objectives for state institutions of
higher education and specifying procedures for measuring
attainment; designating a pilot year and requiring certain
reports; specifying percentages of operating budgets to be
applied to outcomes-based funding annually and designating
total percentages; requiring establishment of legislative committee to advise in developing procedural rules;
collecting, synthesizing and disseminating data from state
institutions of higher education; directing institutional
boards of governors to cooperate in certain data-related
operations; and providing certain privacy protections.
Be it enacted by the Legislature of West Virginia:
That §18B-1A-5 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; and that §18B-2A-3 of said code be
amended and reenacted, all
to read as follows:
ARTICLE 1A. COMPACT WITH HIGHER EDUCATION FOR THE FUTURE OF WEST
§18B-1A-5. Financing; institutional operating budgets, additional
(a) The commission and council each has the responsibility to
develop a budget for the state system of higher education under its
respective jurisdiction. The commission submits the budget request
for higher education, including the budget request as developed by
the council, to the Governor before
the September 1, annually. The
budget requests of the commission and the council specifically
shall include the amount of the institutional operating budgets, as
defined in section two, article one of this chapter, required for
all state institutions of higher education under their respective
jurisdictions. The budget appropriation for the state systems of higher education under this chapter and other provisions of the law
shall consist of separate control accounts or institutional control
accounts, or some combination of these accounts, for appropriation
of institutional operating budgets and other funds. The commission
and council each is responsible for allocating state appropriations
to supplement institutional operating budgets in accordance with
this section. In addition to the institutional operating budget
and incentive funding, however, the commission and council each is
responsible for allocating funds that are appropriated to it for
By July 1, 2013, the commission and council each shall
promulgate a procedural rule pursuant to the provisions of article
three-a, chapter twenty-nine-a of this code setting out a procedure
to govern appropriation requests pursuant to this section.
(1) The procedural rules may not be implemented without prior
approval of the Legislative Oversight Commission on Education
(2) Any change the commission or council proposes to the rules
required by this subsection after the initial approval and
adoption, including amendment or repeal, require prior approval by
the Legislative Oversight Commission on Education Accountability.
(c) The procedural rules shall establish formulae that take
into consideration different institutional missions and measures each institution's success in accomplishing certain goals,
including, but not limited to, the following:
(1) Student success as represented by certificate or degree
(2) Student progression and persistence towards certificate or
(3) Affordability and productivity represented by on-time
certificate or degree completion;
(4) Institution differentiation as represented by a mission
focus on research, job placement, workforce training, etc.;
(5) Educating priority populations of adult and low-income
(6) Increasing certificates or degrees in high need fields.
(d) The procedural rules shall establish appropriate weights,
based on student numbers, to be assigned to each of the goals set
forth in subsection (c) of this section. The appropriate weights
shall be established to accomplish best the goal of an additional
20,000 certificates or degrees earned in the state system of higher
education by July 1, 2018.
(e) The formulae established by the procedural rules shall be
used in a pilot project for the fiscal year beginning on July 1,
2013, to determine what changes in request for appropriations from
general revenue to each institution would have been made for that fiscal year.
(1) For the pilot year the formulae shall assume that a total
of five per cent of the appropriations from general revenue for the
previous fiscal year would be reallocated among the institutions in
the state system of higher education based on the objectives
achieved by each institution within the broad goals set out above.
(2) The results of this application of the formulae for the
pilot year shall be reported to each institution and to the
Legislative Oversight Commission on Education Accountability.
(f) For the fiscal year beginning on July 1, 2014, the
formulae shall be used by the commission and council in their
respective appropriation requests to reallocate among the
institutions of higher education under their jurisdiction five per
cent of the appropriations from general revenue in the prior fiscal
year. In each successive fiscal year the appropriation request
shall reallocate an additional five percent of general revenue
based on the appropriate formula until a total of twenty-five per
cent of reallocation is included in the appropriation request for
each succeeding fiscal year.
(g) The President of the Senate and the Speaker of the House
of Delegates jointly shall appoint a select committee for
outcomes-based formulae rules finalization which shall advise the
commission and council on promulgation of the procedural rules required by this section. The select committee periodically shall
advise the commission and council on amendments to the formulae and
procedural rules considered necessary to advance the goals set out
in this section.
(h) The commission and council may not request an increase in
appropriations under this section for any institution without an
approved compact pursuant to section seven, article one-d of this
ARTICLE 2A. INSTITUTIONAL BOARDS OF GOVERNORS.
18B-2A-3. Supervision of governing boards; promulgation of rules;
data collection and dissemination.
(a) The governing boards are subject to the supervision of the
commission or the council, as appropriate, except in those
instances where specific statutory exceptions are granted by law to
the governing boards of Marshall University and West Virginia
(b) The governing boards of all state institutions of higher
education are subject to the provisions of law that relate to the
administration of personnel matters including, specifically,
articles seven, eight, nine and nine-a of this chapter and to rules
promulgated and adopted in accordance with these provisions.
(c) The Chancellor for Higher Education and the Chancellor for
Community and Technical College Education, under the supervision of their respective boards, are responsible for the coordination of
policies, purposes and rules of the governing boards and shall
provide for and facilitate sufficient interaction among the
governing boards and between the governing boards and the State
Board of Education to meet the goals and objectives provided in the
compacts and in section one-a, article one and article one-d of
(d) The governing boards and the State Board of Education
shall provide all information requested by the commission and the
council, whether the request is made separately or jointly, in an
appropriate format and in a timely manner.
(1) Each governing board shall cooperate with the West
Virginia Network for Educational Telecomputing (WVNET) in designing
appropriate interfaces with the databases of institutions under its
jurisdiction and shall grant WVNET direct access to these
____(2) WVNET, on behalf of the commission or council or both,
shall generate reports from the data accessed for the purposes set
forth in section five, article one-a and sections eight and ten,
article one-d of this chapter.
____(3) All data accessed or received from an institution shall be
treated in a manner consistent with the privacy protections
outlined in section ten, article one-d of this chapter.
NOTE: The purpose of this bill is to establish a process for
making appropriation requests for the state system of higher
education based on progress toward meeting established objectives
and to establish a process for collecting and sharing data between
WVNET and state institutions of higher education.
§18B-1A-5 is substantially rewritten; therefore,
strike-throughs and underscoring have been omitted.
Strike-throughs indicate language that would be stricken from
the present law; and underscoring indicates new language that would
This bill was recommended for introduction and passage during
the Regular Session of the Legislature by the Select Committee on
Outcomes-Based Funding Models in Higher Education.