FISCAL NOTE
FUND(S):
0586,0596
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.
House Bill 3059 requires compensation at a rate of pay equal to or greater than the rate of pay based on the employee's salary to any employee performing any work assignment outside the regular employment duties or beyond contracted employment terms. The fiscal impact on the cost of summer school instruction could be substantial. Most full-time faculty are typically paid at significantly lower rates to teach classes in the summer. If their pay was based on a proration of their annual salaries, the institutions could incur approximately $6.7 million in additional costs. The bill would also limit options for employees who need and want earnings associated from secondary assignments.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2011
Increase/Decrease
(use"-") |
2012
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
6,713,000 |
6,713,000 |
| Personal Services |
0 |
0 |
0 |
| 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):
The average faculty cost per credit hour including benefits is about $2,842. The average faculty cost per credit hour including benefits for summer school is $773, assuming that faculty paid at the average part-time faculty rate for summer school. The total number of credit hours for the summer of 2010 was 5,408. The difference between the average faculty per credit cost and the estimated per credit hour faculty cost for summer school is $2,069. This difference multiplied by the total credit hours is $11,189,000. It is estimated that the actual cost may be about 60 percent of this amount because summer school faculty for graduate and professional programs may be paid amounts that are closer to their annual salary rates. The resulting estimate is $6,713,000.
Some employee work secondary assignments to make additional money. For example, a counselor may work as a ticket-taker at a football game. If an institution was required to pay such employees at higher pay rates for secondary assignments, budget constraints may necessitate the employment non-institutional personnel at the lower pay rates. This would remove the opportunity for some employees to make augment their earnings.
Memorandum
Person submitting Fiscal Note: Ed Magee
Email Address: emagee@hepc.wvnet.edu