FISCAL NOTE

Date Requested: February 08, 2017
Time Requested: 06:32 PM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
1027 Introduced SB17
CBD Subject: Education (Higher)


FUND(S):

0589,0596

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 17, if enacted, would provide that when developed and adopted by the Higher Education Policy Commission and the Council for Community and Technical College Education, a new salary structure would replace the schedule that currently exists for higher education classified employees. The bill also provides that any provision of law in conflict with the new salary structure is null and void. The bill, additionally, requires the commission and council to recommend legislation in 2018 to enact the new market salary structure into law but prior to adopting the new structure to seek comments from affected constituents. The legislation does not require funding of this initiative; consequently, no additional appropriations are required by its enactment. If it is funded, the adoption of the new structure will initially cost about $486,732 in general revenue funds. This expense could be funded over a multi-year period with savings realized from this legislation’s expanded flexibilities.



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 0 0
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 total estimated salary portion of the cost is about $428,273. The estimated Federal Insurance Contributions Act (FICA) tax would be about $32,763 or 7.65% of the estimated salary portion. Additional pension expenses would be about $25,696 or 6% of the estimated salary portion. To administer the new structure, the Commission will expend funds from existing resources.



Memorandum






    Person submitting Fiscal Note: Ed Magee
    Email Address: edward.magee@wvhepc.edu