HBA-KMH H.B. 3164 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3164 By: McReynolds Higher Education 3/29/1999 Introduced BACKGROUND AND PURPOSE On average, salaries for faculty at public universities in Texas are 9.22 percent lower than the average of the other 10 most populous states, according to the American Association of University Professors. This difference could affect a university's ability to recruit prospective faculty. The need for greater recruitment efforts has been heightened by the expected rise in enrollments resulting from population growth and legislative efforts to increase educational access. Faculty retention also has become a problem. As institutions increase salaries for new hires, the salaries for current employees remain stagnant. Many experienced professors and instructors are leaving the state for higher paying jobs. H.B. 3164 requires the governing board of institutions of higher education to perform a study and then implement a plan, if determined necessary, to raise faculty salary levels to that of their colleagues in the 10 most populous states, over the next six years. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter Z, Chapter 51, Education Code, by adding Section 51.9081, as follows: Sec. 51.9081. FACULTY COMPENSATION POLICIES UNTIL 2005. (a) Requires the governing board of each institution of higher education to compare the average salary of each faculty level at the institution for the state fiscal biennium ending September 1, 1999, with the average salary for that faculty level in the 10 most populous states, excluding Texas, according to the most recent available data. Requires the study to be completed by January 1, 2000. Requires the Texas Higher Education Coordinating Board (coordinating board) to assist the governing body of the institution in obtaining the information necessary to administer the section. (b) Requires the governing body to report a determination that the average salary for that institution is less than that paid in other states and the relevant data to the coordinating board. Requires the coordinating board to adopt a formula for that institution to reduce the percentage difference between the average salary of each faculty level by one-third in each of the next three state fiscal bienniums, to the extent funds are available, in order to at least equalize the salaries by that time. Requires the institution to implement the formula or take other action necessary to achieve the same or greater average salary of each faculty level by the end of each biennium covered by the formula. (c) Requires the coordinating board in establishing funding formulas under Section 61.059 (Appropriations), to account for any salary increases required to be made at those institutions under Subsection (b). (d) Provides that this section expires September 1, 2005. SECTION 2. Emergency clause. Effective date: upon passage.