FISCAL NOTE

Date Requested: January 21, 2019
Time Requested: 01:36 PM
Agency: Education, WV State Board of
CBD Number: Version: Bill Number: Resolution Number:
2225 Introduced HB2551
CBD Subject: Education (K12)


FUND(S):

0317

Sources of Revenue:

General Fund

Legislation creates:





Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


There is no estimated cost to the State for the proposed legislation. The proposed legislation requires the State Board of Education to propose a plan to fund student transportation differently than the current methodology before September 1, 2019. Development of such an alternative plan by the State Board would be completed with existing staff resources.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
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):


There is no estimated cost to the State for the proposed legislation. The proposed legislation requires the State Board of Education to propose a plan to fund student transportation differently than the current methodology before September 1,2019. Development of such an alternative plan by the State Board would be completed with existing staff resources.



Memorandum


The proposed legislation indicates that the current methodology for calculating student transportation costs bases the transportation cost allowances on "the number of students transported." That is not an accurate statement. Under WVC 18-9A-7, the Step 4 calculation is comprised of several components, none of which are based on the number of students transported. The calculation consists of the following: (a) An allowance for the operations, maintenance and contracted services of student transportation services, exclusive of salaries, based on the following percentages of actual expenditures for such costs, with the county school districts categorized into the four groups indicated below, based on the number of net enrollment students per square mileage of the county: Sparse (Less than 5 net students/sq. mile) - 95.0% of actual expenditures Low (5 to less than 10 net students/sq. mile)- 92.5% of actual expenditures Medium (10 to less than 20 net students/sq. mile) - 90.0% of actual expenditures High (More than 20 net students/sq. mile) - 87.5% of actual expenditures b) An additional allowance of 10% of actual expenditures for that portion of the bus fleet that is using propane or compressed natural gas (CNG) as an alternative fuel; (c) An additional allowance of 10% of actual expenditures for operations, maintenance, and contracted services, exclusive of salaries, for that portion of the bus fleet used to transport students to and from multi-county vocational centers; (d) 100% of the insurance premium costs on buses, buildings and equipment used in transportation; (e) 8.33% of the current replacement value of each school district's school bus fleet plus the remaining replacement value of buses purchased after July 1, 1999 that attain 180,000 miles. In addition, districts that experience an increase in net enrollment may apply for funding for additional buses, and (f) Aid paid to students in lieu of transportation, based on the state average amount paid per pupil.



    Person submitting Fiscal Note: Brenda Freed
    Email Address: bfreed@k12.wv.us