OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 ↓ (860) 240-0200
http: //www. cga. ct. gov/ofa
sHB-5033
AN ACT REQUIRING SCHOOL BUSES TO BE EQUIPPED WITH SEAT SAFETY BELTS.
OFA Fiscal Note
Agency Affected |
Fund-Effect |
Over the Next Twelve Years $ |
State Technical High Schools |
GF - Cost |
690,000 - 1. 5 million1 |
Education, Dept. |
GF - Cost |
See Below |
Agency Affected |
Fund-Effect |
FY 11 $ |
FY 12 $ |
Department of Motor Vehicles |
TF - Cost |
65,329 |
65,329 |
Department of Motor Vehicles |
TF - One-time |
17,050 |
None |
Municipalities |
Effect |
Over the Next Twelve Years $ |
Local and Regional School Districts |
STATE MANDATE - Cost |
48. 5 million - 106. 6 million21 |
Explanation
The bill requires that school buses be equipped with lap/shoulder, or 3-point seat belts starting with the 2012 model year. The bill results in significant costs to local and regional boards of education and the technical high school system, over the course of replacing the entire state fleet of large school buses, which is anticipated to be approximately twelve years3.
The bill only applies to large school buses, as the National Highway Traffic Safety Administration (NHTSA) already requires seat belts on small school buses. There are approximately 6,553 large school buses registered with the Department of Motor Vehicles (DMV), 92 of which are operated by the technical high school system. It is anticipated that starting at the end of FY 11 and continuing, through 2023, local and regional boards of education, and the technical high school system will begin the process of replacing older buses with the 2012, or newer models, which would include lap/shoulder, or 3 point seat belts. There are three cost components associated with purchasing new buses with lap/shoulder, or 3 point, seat belts: (1) equipment costs, (2) maintenance costs, and (3) capacity costs.
Table 1 below provides a summary of the cost components on requiring lap/shoulder, or 3 point seat belts on large school buses.
Table 1 | |||
Equipment Costs ($) Over the 12 years of replacing the state fleet |
Maintenance Costs ($) Will vary annually based on the number of buses replaced |
Capacity Costs ($) Per bus | |
Technical High School System |
644,000-1. 5 million |
Up to 46,000 |
82,000-116,000 |
Local and Regional Boards of Education |
45. 2 million-103. 4 million |
Up to 3. 2 million |
82,000-116,000 |
Cost Components:
Equipment Costs
It is anticipated that purchasing a new, large school bus, with lap/shoulder, or 3 point seat belts costs between $7,000 and $16,000 more than a new bus without seat belts4. This results in an increased cost to the technical high school system of approximately $644,000 - $1. 5 million and an increased cost to local and regional boards of education of approximately $45. 3 million - $103. 4 million over the twelve year period of replacing the entire state fleet of large school buses.
Maintenance Costs
It is anticipated that large school buses with lap/shoulder, or 3 point seat belts costs up to an additional $500 annually, to maintain. The increased maintenance costs are associated with repairing and replacing damaged belts and latch systems. This results in an increased cost to the technical high school system of up to $46,000 annually and $3. 2 million to local and regional boards of education. The increased costs will vary, annually, depending on how many new buses have been replaced. Once the entire state fleet has been replaced the increased annual maintenance costs could be up to $3. 2 million.
Capacity Costs
Each new, large school bus equipped with lap/shoulder, or 3 point seat belts has less capacity than large school buses without seat belts. On average, a new bus with seat belts holds up to twelve fewer middle school students than a bus without seat belts. To the extent that local and regional boards of education and the technical high school system have capacity issues, the schools could either be forced to run extra bus routes or buy additional school buses to make up for the difference in capacity. On average, a new school bus with lap/shoulder, or 3 point seat belts costs between $82,000 and $116,000.
Department of Motor Vehicle Inspections
The Department of Motor Vehicles (DMV) will incur an ongoing cost of $65,329 for one additional inspector and a one-time cost of $17,050 in FY 11 to comply with the provisions of the bill. The ongoing costs include: (1) one Motor Vehicle Inspector (PS 11 Step 1) with an annual salary of $50,466 plus fringes5, and $14,863 for motor vehicle rental, fuel, telecommunication, software and uniform. There is also a one-time cost of $17,050 for motor vehicle equipment and painting. DMV currently has 8 Motor Vehicle Inspectors performing such inspections.
Student transportation vehicles, including school buses, activity vehicles, vans, livery and camp vehicles, are subject to annual inspections before the start of the new school year. The latest data provided by DMV indicates that there are 7,113 school buses currently registered. Of that amount, 6,553 are Type 1 (10,000 pounds or more) and 860 are Type 2 (less than 10,000 pounds).
Impact on the Transportation of School Children State Grant
Local and regional school district transportation costs are reimbursed by the state through the transportation of school children grant, in the year subsequent to the year in which the local expenditure occurred. The FY 10 appropriation for the grant is approximately $48. 0 million. The transportation of school children grant is formulated using a wealth-based sliding scale. Currently, the state is reimbursing municipalities for approximately 26% of local eligible costs. Based on this percentage, a portion of the equipment, maintenance, and capacity costs referenced above could be eligible for a state grant, thus increasing costs for the state. However, for both FY 10 and FY 11 the transportation of school children grant was flat funded and capped at approximately 57% of full formula funding.
The Out Years
The annualized ongoing fiscal impact identified above would continue through 2023, or until the entire state fleet of large school buses is replaced, except for the maintenance costs, additional costs of bus routes, and the increase to the state grant, which will continue into the future, subject to the rate of inflation, or an increase to the appropriation. The out year impact to DMV is a one-time cost of $17,050 in FY 13 and an on going cost of $130,658 for an additional DMV Inspector.
Sources: |
National Association of State Directors of Pupil Transportation Services, Institute for Transportation Research and Education at North Carolina State University, www. washingtonpost. com, The Connecticut School Transportation Association, www. edmunds. com |
1 Cost does not include capacity costs; see Table 1 below for a description of capacity costs.
Sources indicate that the average replacement cycle of an average school bus is approximately twelve years.
On average a new school bus without lap/shoulder, or 3 point seat belts costs between $75,000 and $100,000.
The estimated non-pension fringe benefit rate as a percentage of payroll is 26. 66% which includes health insurance, social security, Medicare, life insurance, and unemployment compensation. Fringe benefit costs for new positions do not include pension costs as new positions will not impact the state's pension contribution until FY 12 after the next scheduled actuarial valuation.