FISCAL NOTE
Date Requested: March 08, 2017
Time Requested: 01:07 PM |
| Agency: |
Higher Education Policy Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2796 |
Introduced |
HB2849 |
|
|---|
| CBD Subject: |
Education (Higher) |
|---|
|
FUND(S):
0589
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 2849, if enacted, requires the compensation level of the Chancellor for the Higher Education Policy Commission to be no greater than the salary of the Governor. The Governor’s base salary is $150,000. The Chancellor’s base salary for FY 2017 is $276,504. If this legislation is enacted, the salaries of all of the Commission institutions’ presidents and many of their top administrators would exceed that of the Chancellor. For example, WVU alone has 259 faculty and administrators who are paid in excess of $150,000 annually and 52 staff that have salaries exceeding $200,000. Marshall University has 48 employees above $150,000. Presidents’ salaries currently range from $173,000 at Bluefield State College to $1,000,504 at WVU. At the lower compensation level, it is unlikely that the Commission could hire and retain a Chancellor that would meet the qualifications required of the position. Because the public higher education human resources market is relatively competitive compared to other governmental units, salaries are at a higher level. The additional costs related to the potential prolonged absence of a qualified leader in this position cannot be determined. The total expenses for the Policy Commission and the Commission institutions exceeded $1.68 billion in FY 2016. The savings realized from the enactment of this legislation would be about $127,000.
The Commission sets the chancellor’s salary which may not exceed by more than twenty percent of the average annual salary of chief executive officers of state systems of higher education in the states that comprise the membership of the Southern Regional Education Board. The current average salary of these sixteen individuals is $275,736.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2017
Increase/Decrease
(use"-") |
2018
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
-126,504 |
-126,504 |
| 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):
Memorandum
Person submitting Fiscal Note: Ed Magee
Email Address: edward.magee@wvhepc.edu