FISCAL NOTE
Date Requested: February 25, 2015 Time Requested: 09:31 AM |
Agency: |
Higher Education Policy Commission |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3291 |
Introduced |
HB2935 |
|
CBD Subject: |
Education (Higher) |
---|
|
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 2935, if enacted, would clarify the roles of each institution of higher learning, the Higher Education Policy Commission, and the Council for Community and Technical College Education by creating a system whereby legislative policy maximizes the ability of organizations to attract, recruit, retain, and motivate highly qualified and diverse employees, including compensating employees within an organization fairly and at levels that are competitive with appropriate external markets. The bill sets forth certain specific powers, duties, and limitations of the Higher Education Policy Commission, the Council for Community and Technical College Education whereby those entities provide appropriate oversight without redundancy and the provides certain human resources services to the institutions. It is estimated that the initial cost of the legislation would be approximately $4.3 million. The annual cost thereafter would be about $1,260,000.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2015 Increase/Decrease (use"-") |
2016 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
4,300,000 |
1,260,000 |
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 bill would allow each institution to perform compensation studies. It is estimated that the cost for each of the 19 institutions would average about $220,000, for a total of $4,180,000. If institutions elect to collaborate on the compensation studies, this cost could be significantly reduced. Under current Code, the Higher Education Policy Commission is to perform a study for all institutions. Therefore, approximately $1.2 million has been budgeted for this purpose. The net cost increase for the compensation studies conducted by the institutions after subtracting the current amount budgeted for the study conducted by the Commission would be about $3 million. If each institution hires an employee to administer compensation and classification duties, it is estimated that the annual salary and benefit total for each of these employees would be approximately $70,000. The total salary and benefit costs for the 18 institutions excluding West Virginia University would be approximately $1,260,000.
Memorandum
Person submitting Fiscal Note: Ed Magee
Email Address: emagee@hepc.wvnet.edu