FISCAL NOTE
Date Requested: February 22, 2016
Time Requested: 04:25 PM |
| Agency: |
Higher Education Policy Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2850 |
Introduced |
SB642 |
|
|---|
| 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 642, 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 2017 to enact the new market salary structure into law but prior to adopting the new structure to seek comments from affected constituents. It is estimated that that the adoption of the new structure will initially cost about $2,338,175. This cost will continue on an annual basis and it could change if market adjustments are made to the structure.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2016
Increase/Decrease
(use"-") |
2017
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
2,338,175 |
2,338,175 |
| Personal Services |
0 |
2,216,175 |
2,216,175 |
| Current Expenses |
0 |
122,000 |
122,000 |
| 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 $1,950,000. The estimated Federal Insurance Contributions Act (FICA) tax would be about $149,175 or 7.65% of the estimated salary portion. Additional pension expenses would be about $117,000 or 6% of the estimated salary portion.
To administer the new structure, the Commission will need to expend about $55,000 per year for software licenses; $65,000 for compensation survey updates and about $2,000 for travel and training costs related to the implementation of the structure.
Memorandum
Person submitting Fiscal Note: Ed Magee
Email Address: edward.magee@wvhepc.edu