H. B. 2653


(By Delegates Ball, Mezzatesta, Love,


Haskins, Kiss, Pino and Compton)

[Introduced February 22, 1995; referred to the

Committee on Education then Finance.]




A BILL to amend and reenact section two, article five, chapter eighteen-b of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to resource allocation model and policies; allocation of appropriations; salary and benefit increases for full-time employees.

Be it enacted by the Legislature of West Virginia:
That section two article five, chapter eighteen-b of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:

ARTICLE 5. HIGHER EDUCATION BUDGETS AND EXPENDITURES.
§18B-5-2. Resource allocation model and policies; allocation of appropriations.

(a) To promote the missions and achieve the goals and objectives of the systems under their jurisdiction and to provide information and guidance for the allocation of funding between the two systems in an equitable manner, the governing boards, through the central office, shall develop a resource allocation model for the allocation of general revenue funds appropriated for the state system of higher education. In developing the resource allocation model, the boards shall consider such factors as peer institution information, enrollment information and such other data as shall further an equitable distribution of general revenue funds for higher education. The governing boards, through the central office, shall develop the model prior to the first day of July, one thousand nine hundred ninety-three, and may modify the model thereafter: Provided, That such modifications are subject to the provisions of article three-a, chapter twenty-nine-a of this code.
Each year at such time as budget information for the next fiscal year shall be is due, each year the governing boards shall make allocation decisions for the upcoming fiscal year in accordance with the model then in effect and shall inform the secretary of education and the arts of the division of the recommended appropriation for higher education for submission to the appropriate state agency for incorporation in the executive budget. The governing boards shall provide such other information as may be requested by the secretary of education and the arts to support the allocation division. Prior to the first day of January of each year, the governing boards shall present this and any other appropriate information to the Legislature to support the proposed allocation of appropriation as between the governing boards.
(b) To promote the missions and achieve the goals and objectives of the institutions under the jurisdiction of the board of trustees and board of directors and to provide information and guidance for the allocation of funding among the institutions in the separate systems in an equitable manner in relation to their missions, goals and objectives, the board of trustees and the board of directors shall each develop a resource allocation policy based on comparative information which includes the following factors:
(1) Full-time equivalent enrollment;
(2) Average state appropriations per full-time-equivalent student at similar institutions in the southern regional education board; and
(3) Other relevant factors.
The Legislature finds that an emergency situation exists and therefore, the governing boards are hereby authorized to establish by emergency rule a resource allocation policy for each governing board prior to the first day of January, one thousand nine hundred ninety-four. Either governing board may modify its policy thereafter, such modification to be submitted to the legislative oversight commission on education accountability subject to the provisions of article three-a, chapter eighteen-a of this code.
Upon approval of the resource allocation policy, each governing board, prior to the first day of January of each year, shall present information to the secretary of education and the arts and the Legislature which sets forth the allocation decisions made by the respective governing boards for the then current fiscal year based on the policy then in effect, and the allocation decisions proposed for the next year, based on the policy in effect for the next succeeding fiscal year.
(c) From appropriations to the institutional control accounts of the respective governing boards for allocation to the state institutions of higher education under their jurisdiction, the governing boards shall allocate all such funds above the amounts actually allocated from appropriations for fiscal year one thousand nine hundred ninety-three to their respective institutions proportional to such amounts as are indicated by application of the resource allocation policy then in effect.
For fiscal year one thousand nine hundred ninety-four, All funds that are in excess of the funds received by the governing boards for expenditure by the state institutions of higher education for any fiscal year one thousand nine hundred ninety-three shall be allocated in accordance with the governing boards' resource allocation model and each governing board's institutional resource allocation policy to the extent that a policy is in place, whether or not the policy has been approved in accordance with the provisions of subsection (b) of this section: Provided, That all funds provided by the Legislature for salary and benefit increases shall be distributed among the institutions in accordance with the actual full-time classified employees and full-time faculty at each institution qualifying for such increases.
(d) Beginning with fiscal year one thousand nine hundred ninety-five, each governing board shall apply its resource allocation policy to existing base budgets in order to effect an equalization of the institutional state funding differences at twenty percent per year over a five-year period until such time as the percentage of institutional differences as determined by the resource allocation policy for that system are equalized. After a five-year phase-in period, all appropriations to the institutional accounts of the respective governing boards shall be allocated to their respective institutions proportional to such amounts as are indicated by application of the resource allocation policy for that system.
(e) From appropriations for the higher education governing boards, the governing boards shall jointly allocate funds for the operation of the central office under the senior administrator and shall share equally the cost of suitable offices for the senior administrator and other staff in Charleston.
(f) Any tuition and registration fee collections paid into tuition and registration fee special capital improvement funds and special revenue bond funds which accrue in excess of the amounts necessary to protect the interests of all holders of obligations for which such fees were pledged by the board of regents and shall remain pledged under the governing boards, shall be allocated to each governing board in proportion to the amounts of such fees collected through the institutions under its jurisdiction and shall be deposited in special capital improvement funds in the state treasury under the name of the governing board for expenditure for capital improvements at the institutions under the appropriate board's jurisdiction.



NOTE: The purpose of this bill is to distribute among higher education institutions all funds allocated by the Legislature for salary and benefit increases in accordance with the actual full-time classified employees and full-time faculty.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.