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.
Senate Bill 330, if approved, would require full funding of the classified salary schedule and the hiring of 4 new positions. In addition, the Senior Director of Human Resources’ salary would be increased and her job title would be changed to Vice Chancellor for Human Resources. The bill also requires the HEPC to conduct a market salary review, a human resources audit, and an HEPC climate study. The cost to fully fund the salary schedule would be approximately $5.1 million. Of this amount, approximately $1.8 million would be paid from state appropriated funds. About $369,000 would be expended to fund the salary increase for the Senior Director of Human Resources and the additional personnel costs. The one-time costs associated with the three studies would be approximately $180,000. The total estimated cost to be paid from state appropriations for Senate Bill 330 is about $2,349,000.
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 |
112,601 |
2,115,000 |
2,115,000 |
| Personal Services |
112,601 |
2,115,000 |
2,115,000 |
| Current Expenses |
0 |
234,000 |
54,000 |
| 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):
Full funding of the salary schedule would cost approximately $4.5 million for salary and wage increases. An additional $600,000 in associated fringe benefit costs is expected. It is estimated the 35 percent or $1.8 million of these costs would be paid from state appropriated funds. Based on prior experience when the salary schedule was implemented, it is estimated that approximately $1.5 million in one-time costs could be incurred to address employee grievances associated with new requirements.
The costs associated with the staffing changes and consultants are provided below:
Staffing Costs: Total
Personal Services:
Vice Chancellor for Human Resources $14,358
Director of Classification, Compensation 81,187
Director of Training and Professional Development 81,187
Human Resources Generalist 69,222
Human Resources Information Systems Analyst 69,222
Total Personal Services $315,175
Other Expenses
Travel 15,000
Resources (computers, suplies) 25,000
Professional memberships/development 2,500
Office supplies 2,000
Space (600 square feet) 9,300
Total Other Expenses 53,800
Total Staffing Costs $368,975
Consultant Fees
Market salary review (mercer update) $60,000
HR audit initial joint review 70,000
Climate study 50,000
Total Consultant Fees $180,000
Memorandum
Person submitting Fiscal Note: Ed Magee
Email Address: emagee@hepc.wvnet.edu