Brief Description: Authorizing community and technical college boards of trustees to set and adjust college presidents' compensation.

Sponsors: Representatives Kenney, Fromhold, Jarrett, Sommers, Ormsby, Kagi, Roberts and Haigh.

Hearing Date: 1/28/05

Staff: Barbara McLain (786-7383).

Background:

Boards of Trustees of community and technical colleges are authorized to employ college presidents and fix their duties and compensation. Compensation can include items that supplement the benefits typically available to state employees: premiums for supplemental insurance beyond what is provided by the Public Employees' Benefits Board, deferred salary, relocation assistance, and premiums for tax-deferred annuities. However, any increases in compensation or salary cannot exceed the amount or percentage established by the Legislature in the appropriations act.

The 2003-05 appropriations act states that salary increases provided in the budget are the "only allowable increases provided at institutions of higher education, excluding increases associated with normally occurring promotions and increases related to faculty and professional staff retention...." Since no state funds were provided for general salary increases in the 2003-05 budget, a Board seeking to increase a president's compensation or salary must rely on promotion or retention as a possible justification.

A 1998 Attorney General Opinion advised that community colleges cannot avoid the limitations in the statute and appropriations act by altering a president's duties during the term of a contract, or by re-hiring the same individual on a new contract. The opinion also questioned whether a Board could increase a president's duties, given the broad scope of any president's responsibilities.

The governing boards of the four-year institutions are also authorized to employ a president for the institution, but there are no statutory limitations on salary or compensation increases.

Summary of Bill:

The Boards of Trustees of community and technical colleges have authority to fix, as well as adjust, the duties and compensation of the college president. Compensation and salary increases are no longer limited to the amount or percentage established by the Legislature in the appropriations act.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.