Date Requested: January 23, 2015
Time Requested: 12:57 PM
Agency: Education, Department of
CBD Number: Version: Bill Number: Resolution Number:
2437 Introduced SB288
CBD Subject: Education (K12)


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 revise certain aspects of public school finance and the school aid formula. First, it eliminates the authority of growth county boards of education to designate regular school board levy revenues due to new construction or improvements to a Growth County School Facilities Act Fund. Second, it authorizes propane as an eligible fuel for the ten percent additional percentage allowance for school bus systems using alternative fuels. Third, it extends the bus replacement cycle from twelve to fifteen years. Fourth, it eliminates certain adjustments in the basic foundation program.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 -13,051,112 -11,934,722
Personal Services 0 0 0
Current Expenses 0 -13,051,112 -11,934,722
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 savings to the State under the Public School Support Program for the proposed legislation is $13,051,112 for fiscal year 2016 and $11,934,722 for all fiscal years, thereafter.
    
    The fiscal year 2015-16 savings of $13,051,112 is made up of $8,738,937 due to extending the bus replacement cycle from 12 to 15 years,$2,447,042 savings due to eliminating the authority of growth county boards of education to designate regular school board levy revenues due to new construction or improvements to a Growth County School Facilities Act Fund, and $1,865,133 due to requiring certain adjustments to local share.
    
    For the subsequent fiscal years, the total savings of $11,934,722 is made up of $7,622,547 due to extending the bus replacement cycle from 12 to 15 years, $2,447,042 savings due to eliminating the authority of growth county boards of education to designate regular school board levy revenues due to new construction or improvements to a Growth County School Facilities Act Fund, and $1,865,133 due to requiring certain adjustments to local share. The estimated savings from extending the bus replacement cycle from 12 to 15 years is less for the subsequent years because the savings are offset by an estimated increase in bus maintenance costs of $1,116,390. The estimated increase in the maintenance costs is based on an estimated increase in annual maintenance costs of $400 per bus for the buses that are eleven years or older.
    
    An estimated cost could not be provided for including propane as an alternative fuel, since no county boards of education currently use propane fuel in their bus fleet, therefore, no comparisons could be made regarding differences in fuel costs, mileage rates and engine maintenance costs due to the different fuels.



Memorandum


    



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