FISCAL NOTE
FUND(S):
Sources of Revenue:
Other Fund N/A
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to restrict the additional percentage allowance for school buses to those using compressed natural gas or propane as an alternative fuel and to reduce the cap on the foundation allowance for Regional Education Service Agencies by 7.5%.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2013
Increase/Decrease
(use"-") |
2014
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
-4,463,198 |
-4,463,198 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
-4,463,198 |
-4,463,198 |
| 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):
The estimated cost savings to the State under the Public School Support Program (PSSP) for the reduction in the RESA cap is $299,250 per year.
The estimated cost savings to the State under the PSSP for the change in the alternative fuel additional allowance calculation is as follows:
2014 $4,163,948
2015 $4,163,948
2016 $4,120,281
2017 $3,989,210
2018 $3,770,787
For the 2014 fiscal year, Step 4 of PSSP is based on expenditures and mileage for FY12. During that fiscal year, no counties were using propane buses, so no counties would receive the additional allowance. For the 2015 fiscal year, Step 4 of PSSP is based on expenditures and mileage for FY13, another year in which no counties have utilized propane buses. The first potential year for a county to earn the additional allowance for alternative fuels would be FY16. For that year, it is estimated that only 1/12 of the bus fleet would be propane, for only 10% of the counties. For FY17, it is estimated that 2/12 of the bus fleet would be propane for 20% of the counties. For FY18, it is estimated that 3/12 of the bus fleet would be propane for 30% of the counties.
Memorandum
Person submitting Fiscal Note: Brenda Freed
Email Address: bfreed@access.k12.wv.us