FUND(S):

$20,000

Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    H.B. No. 2795, if approved, would combine various administrative, informational, technological, financial and operating systems and functions of West Virginia University Institute of Technology (WVU Tech) with and into such systems and functions of West Virginia University.
    
    
    According to officials at West Virginia University, initially there will be additional efforts associated with this bill for consolidating student information systems; however the revised estimates reflect that most of this work will be done with existing personnel so there is no fiscal impact.
    
    
    If the ultimate goal of this bill is to achieve efficiencies and cost savings, the above functions would need to be combined resulting in eventual elimination of positions. WVU Tech is one of the largest employers in Montgomery and employment is critical to the community – any elimination of positions could negatively affect the community.
    
    
    Another aspect of this consolidation would be the potential effect consolidation would have on the administratively-linked community and technical college of WVU Tech. Recently the Council for Community and Technical College Education (Council) approved procedural audits for ensuring that chargeback agreements are reasonable and equitable between each administratively-linked institution. With the potential absorption of WVU Tech (and its administratively-linked CTC) into the financial systems of WVU, procedural audits could become more complicated and costly. Currently the proposal for separate audits for the administratively-linked community and technical colleges are not being recommended. However with the passing of this bill a separate audit for the community and technical college of WVU Tech would be necessary. The estimates for a separate audit would be approximately $20,000.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 20,000 20,000
Personal Services 0 20,000 20,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    



Memorandum


    The relationships between WVU and WVU Tech with the Higher Education Policy Commission delineated in this bill would need to be clarified assuming that other proposed bills (such as S.B. No. 603 / H.B. No. 3121) are approved. Person submitting Fiscal Note: Patricia Hunt
     Email Address: phunt@hepc.wvnet.edu