Date Requested: February 04, 2015
Time Requested: 11:15 AM
Agency: Education, Department of
CBD Number: Version: Bill Number: Resolution Number:
2412 Introduced HB2582
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 require the State Board of Education to cause school buses to be equipped with safety belts, phased in over a period of five years.



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 22,045,749 110,228,745
Personal Services 0 0 0
Current Expenses 0 22,045,749 110,228,745
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 to the State for the proposed legislation is $22,045,749 annually for the years 2015-16 through 2019-20 and $4,618,399 thereafter.
    
    The estimate herein assumes all existing buses must be retrofitted with seat belts during over a five year period beginning July 1, 2015 and that all newly purchased buses will include factory or dealer installed seat belts. The proposed legislation is unclear as to whether county boards of education or the State will bear the direct cost of retrofitting buses. The language of the proposed legislation suggests, and this estimate herein assumes that the State will bear the direct cost of retrofitting existing buses with seat belts. The 2015-16 through 2019-20 estimated annual cost to the State of $22,045,749 is made up of $17,427,350 for retrofitting existing buses and $4,618,399 paid to county boards of education as increased Step 4 bus replacement allowance due to the increased replacement cost of buses. The total estimated cost to retrofit the existing bus fleet with seat belts is $87,136,750, which equates to the $17,427,350 per year for the 5 years. The $87,136,750 was calculated assuming a cost of $1,000 per seat to retrofit buses older than 2010 (2,784 buses with a total of 67,147 seats) and a cost of $750 per seat to retrofit buses purchased after 2010 (1,083 buses with a total of 26,653 seats).
    
    The cost to the State for fiscal years after 2019-20 is made up entirely of $4,618,399 paid to county boards of education as increased Step 4 bus replacement allowance due to the increased replacement cost of buses by $675 per seat for the addition of seat belts.
    
    This fiscal note does not include potential costs to the county boards of education for increased maintenance costs on seat belts, additional bus aides to assist pre-k and kindergarten students with buckling their seat belts, installation of driver seat belt monitoring systems, and potential costs related to loss of seating capacity due to installation of thicker seat backs and fixed buckle spacing.
    



Memorandum


    



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