COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         0462-03

Bill No.:          Perfected HB 213

Subject:           Education, Higher; Higher Education Department

Type:              Original

Date:               April 12, 2007

Bill Summary:            This proposal requires institutions of higher education to report to the General Assembly about the steps the institution is taking to ensure intellectual diversity and the free exchange of ideas.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

In response to the previous version of this proposal the following institutions responded as follows:

Officials at the Department of Higher Education assume that according to this legislation, the Coordinating Board for Higher Education would be responsible for requiring each public institution to annually report to the general assembly a detailed description of measures taken to ensure intellectual diversity and the free exchange of ideas, which may have a fiscal impact on the institutions. In addition, the Coordinating Board for Higher Education may incur additional expenses associated with tracking related institutional policies and ensuring compliance with the statutory requirements. The fiscal impact is unknown.

Officials at the Metropolitan Community College assume that compliance would cost approximately $50,000 to $100,000 in the first year with an ongoing annual cost of approximately $50,000 a year.

Officials at the University of Missouri, Linn State Technical College and the Lincoln University each assume minimal fiscal impact to their institutions from this proposal.

Officials at the Truman State University state they are unable to determine the fiscal impact for the University.

Officials at the Missouri State University assume under this proposal they would have to hire an ombudsman at an estimated cost of $150,000 for the first year.

Officials at the University of Central Missouri (UCM) assume one full time staff position could easily be consumed in completing the report and a clerical assistant would have to be provided. A number of the suggested items for the report are already in place and additional efforts would result in duplication of existing policies, procedures or guidelines. Lastly, there is a requirement that students are notified annually that measures to promote intellectual diversity are in place and how to report alleged violations of policy. UCM has received the following cost estimates for fulfilling the requirements of this statutory mandate.

ASSUMPTION (continued)

Staff:

Ombudsman (CJS 17)

            New position                                                  salary $49,503.00

                                                                                    benefits $12,375.75

            or modify existing Campus Advocate position salary difference $ 7,772.00

                                                                                        benefits difference $ 1,942.75

Support staff (CJS 9)

            New position                                                  salary $19,202.00

                                                                                    benefits $ 6,720.70

General operating budget: $ 8,250.00

Office space: (400 square ft.) $ 2,400.00

Total cost estimate for staff & office $46,287.45 using existing position - $98,451.45 new position

Printed materials:

Email to all students (comparatively small amount of staff time) $_

Inclusion in Calendar handbook or brochure (1 full page notice) $ 500.00

Oversight assumes that the cost to the institutions to develop a report on diversity would be minimal and could be absorbed by the institutions.

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

FISCAL DESCRIPTION

The proposed legislation appears to have no fiscal impact.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Department of Higher Education

Metropolitan Community College

Truman State University

University of Missouri

Linn State Technical College 

Lincoln University

University of Central Missouri

Missouri State University

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                April 12, 2007