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