FISCAL NOTE

Date Requested: February 20, 2017
Time Requested: 12:59 PM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
2209 Introduced HB2542
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.


House Bill 2542 addresses provisions of the West Virginia Code regarding higher education human resources administration. If enacted, the bill would strike language mandating a temporary salary schedule and redefine classified and nonclassified employees. It would also remove bumping rights based upon seniority. The bill gives WVU and MU the right to develop their own classification and compensation systems and gives other institutions the option to apply to the Higher Education Policy Commission or the Community and Technical College Council for the same right. The bill enables WVU, MU and any other authorized institution to develop rules for classification, compensation and human resources. The mandate for a Vice Chancellor of Human Resources position is removed, along with all references thereto. Provisions that are considered to be obsolete are eliminated. It is anticipated that the enactment of this legislation would not result in additional costs. It is not possible to determine the level of savings, if any realized from the bill’s proposed changes.



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):


Savings may be attained from the redefinition of classified and nonclassified employees as well as the removal of bumping rights. It is not possible to determine the magnitude of savings that would result from these changes because it would it depend upon each institution’s microeconomic status and management expertise. It is not likely that West Virginia University and Marshall University would require additional resources to develop their own classification and compensation system. The number of the other institutions that would be authorized to develop their own classification and compensation systems as well as rules for classification, compensation and human resources cannot be determined. It is unlikely that institutions would request such authorization if the expected costs would exceed savings. The removal of the mandate for a Vice Chancellor would not result in savings if the institutions other than West Virginia University and Marshall University would not be authorized to develop their own classification and compensation systems. The duties performed by the Vice Chancellor would still be necessary. It is not likely that all institutions would request and receive such authorizations because not all of them have the human or financial resources to do so.



Memorandum






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