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 2340, if enacted, would require public higher education institutions to compensate employees performing any work assignment outside the regular employment duties or beyond contracted employment terms at a rate of pay equal to or greater than the calculated daily rate of pay based on the employee's current salary. All statutory and policy protections provided to the employee during regular employment would extend to the employment occurring outside the normal workday or contract. It is estimated that the annual additional costs associated with this bill would be about $12 million.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 12,000,000 12,000,000
Personal Services 0 12,000,000 12,000,000
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):


The total annual salaries for higher education classified and non classified employee s who are exempt from overtime is about $198 million. Records of uncompensated hours are not maintained for these employees. If these employees exceed their contracted 37.5 hours per week by an average of two hours per week, the estimated additional costs would be about $12 million, including additional payroll taxes and retirement costs. It is estimated that the additional payroll taxes and retirment costs would equal 13.65 percent of additonial salary costs. Additional costs may result from differentials between faculty summer school pay rates and their normal school year pay rates. Because the summer school pay policies vary significantly, sufficient data is not available to estimate the associated additional costs. In addition, classified employees may perform duties beyond t heir pay grade. Sufficient data is also not available to estimate the additional costs that would be incurred to address this circumstance.



Memorandum






    Person submitting Fiscal Note: Ed Magee
    Email Address: emagee@hepc.wvnet.edu