Fiscal Note & Local Impact Statement
127 th General Assembly of Ohio
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BILL: |
DATE: |
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STATUS: |
SPONSOR: |
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LOCAL IMPACT
STATEMENT REQUIRED: |
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CONTENTS: |
To transfer appointment of the Chancellor of the Ohio Board of
Regents to the Governor and to transfer all authority from the Board to the
Chancellor |
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STATE FUND |
FY 2007 |
FY 2008 |
FUTURE YEARS |
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General Revenue Fund |
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Revenues |
- 0 - |
- 0 - |
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Expenditures |
Potential increase of
approximately $150,000 - $250,000 |
- 0 - |
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Note: The state
fiscal year is July 1 through June 30.
For example, FY 2007 is July 1, 2006 – June 30, 2007.
·
According
to the Board of Regents, it would cost approximately $150,000 - $250,000 to
complete the report mandated by the bill.
·
There
may be additional costs or savings from changes in the Chancellor's salary and
number of Board meetings.
·
No
direct fiscal effect on political subdivisions.
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Summary of the bill
The Board of Regents is a
nongoverning entity that guides the development of higher education policy and
coordinates policy implementation. It
does not exercise direct managerial control over institutions of higher
education, but does make policy recommendations and administers state funding
and financial aid for institutions of higher education. The Board is also responsible for approving
institutions' program changes, collecting data, and providing fiscal and
operational oversight of public institutions of higher education. The Chancellor of the Board of Regents is
the administrative officer of the Board and is responsible for day-to-day
operations of the Board's staff agency.
Currently, the nine-member
Board of Regents has the authority to appoint the Chancellor who reports
directly to the Board. The bill
transfers the appointment of the Chancellor to the Governor, with the advice
and consent of the Senate. It also
transfers the full duty and authority of the nine-member Board of Regents to
the Chancellor. The Board would become
an advisory body to the Chancellor and have no authoritative control over the
operations of the staff agency.
The bill also mandates that
the Chancellor report to the General Assembly and the Governor no later than
September 28, 2007 with recommendations and a plan to:
(1)
Make
colleges more affordable and accessible;
(2)
Encourage
graduates to remain in Ohio after earning their degrees; and
(3)
Maximize
higher education as a driver of the state's economy.
Fiscal effects
According to the Board of Regents, the
report mandated by the bill would require research beyond that in which the
agency is already engaged; it would require paid consultants, complex data and
economic analyses, university surveys, etc. in order to produce results of
appropriate quality to inform policy decisions. The Regents indicates that it is unlikely that the current level
of staff and resources could accommodate a high quality research project of
this magnitude and that without additional resources staff will be able only to
conduct a partial literature review and convene a small number of consultations
of experts willing to help at no charge.
The Regents estimates that for analogous efforts in the past the cost
was between $150,000 and $250,000.
The bill changes the
authority of the Chancellor to include greater responsibility, which may become
a factor in determining the compensation level of the incoming Chancellor. The most recent Chancellor was paid $106 per
hour for an annual salary of $220,480, excluding fringe benefits. Under the bill, the Governor will determine
the incoming Chancellor's compensation level.
The nine-member Board of
Regents currently meets approximately 10-11 times annually, and members are
reimbursed for mileage, lodging, and meals.
In addition, there are some conference room and equipment rental costs
associated with these Board meetings.
For calendar year 2007 the estimated amount of the expenses associated
with the Board will be approximately $22,700.
If the Board no longer met as a voting authority the Chancellor may
choose to alter the number of Board meetings, increasing or decreasing
expenditures depending on frequency.
LSC fiscal staff: Mary E. Morris, Budget Analyst