AN ACT REQUIRING A STUDY OF SEAT SAFETY BELTS ON SCHOOL BUSES.

OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 ↓ (860) 240-0200

http: //www.cga.ct.gov/ofa

HB-5033

AN ACT REQUIRING A STUDY OF SEAT SAFETY BELTS ON SCHOOL BUSES.

AMENDMENT

LCO No.: 4704

File Copy No.: 611

House Calendar No.: 143

Agency Affected	Fund-Effect	FY 11 $	FY 12 $
Department of Motor Vehicles	TF - Cost	65, 329	130, 658
Department of Motor Vehicles	TF - One-time	17, 050	17, 050
Department of Motor Vehicles	School Bus Seat Belt Account (Non-lapsing GF) - Revenue Gain	2, 100, 000	2, 100, 000
Education, Dept.	GF - Cost	Potential Significant	Potential Significant

Explanation

The amendment strikes the language of the original bill and eliminates the associated fiscal impact.

The amendment does the following:

Section 1 establishes a 50% Sales Tax rebate program on the purchase of new school buses equipped with seatbelts from July 1, 2011 through December 31, 2017. Assuming that school districts only apply for the rebate once per year, the Department of Motor Vehicles (DMV) will not incur any additional costs to administer the program. However, additional resources may be requires if school districts submit multiple rebate applications each year.

Assuming that all school districts¹ choose to participate, it is anticipated that DMV will need to add one additional motor vehicle inspector² each year in the first four years. The table below summarizes the number of inspectors needed and the associated costs:


Motor Vehicle Inspectors needed for School Bus Program
	FY 11	FY 12	FY 13	FY 14	FY 15 +
Motor Vehicle Inspector(s) Positions	1	2	3	4	4
Salary (not including fringes³)	$50, 466	$100, 932	$151, 398	$201, 864	$201, 864
Vehicle Rental, Telecom, Software & Uniform Expenses	$14, 863	$29, 726	$44, 589	$59, 452	$59, 452
Vehicle Equipment One-Time Cost per Vehicle	$17, 050	$17, 050	$17, 050	$17, 050
Total Cost	$82, 379	$147, 708	$213, 037	$278, 366	$261, 316

Section 1 will result in additional costs to school districts that choose to have three point seat belts installed in buses, as the proposed rebate will cover less than half of the anticipated costs.

Additionally, there is a potential state impact. 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. If local and regional costs increase, the amount a municipality is eligible to receive will also increase. 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.

There will result in a minimal cost to local and regional boards of education, which chose to participate in the program, associated with providing written notice concerning the availability and proper use of seat belts on school buses.

Section 1 will result in a minimal cost to local and regional boards of education, which chose to participate in the program, associated with providing written notice concerning the availability and proper use of seat belts on school buses.

Section 2 increases from $125 to $175, the restoration fee on drivers' licenses and motor vehicle registrations that were suspended or revoked. This will result in an annual revenue gain of approximately $2.1 million⁴ per year to the non-lapsing School Bus Seat Belt account within the General Fund established in Section 1. If all school districts participate in the program, it is unclear whether there this will be sufficient funds to provide all towns with the 50% Sales Tax rebate. It should be noted revenue from the restoration fee will continue to be deposited into the School Bus Seat Belt account after end of the rebate period.

The Out Years

State Impact:

Agency Affected	Fund-Effect	FY 13 $	FY 14 $	FY 15 $
Department of Motor Vehicles	TF - Cost	195, 987	261, 316	261, 316
Department of Motor Vehicles	TF - One-time	17, 050	17, 050	None
Department of Motor Vehicles	School Bus Seat Belt Account (Non-lapsing GF) - Revenue Gain	2, 100, 000	2, 100, 000	2, 100, 000
Education, Dept.	GF - Cost	Potential Significant	Potential Significant	Potential Significant

Municipalities	Effect	FY 13 $	FY 14 $	FY 15 $
Various Municipalities	Cost	See Above	See Above	See Above

The out year figures reflect additional inspectors and associated costs needed for seat belt inspections for school transportation vehicles.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

¹ DMV's most recent data indicates that there are 7, 113 school buses currently registered. Of that total, 6, 553 are Type 1 (10, 000 pounds or more) and 860 are Type 2 (less than 10, 000 pounds) .

² 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 seatbelt inspection adds approximately one-half hour to the inspection process of each bus. DMV currently has 8 Motor Vehicle Inspectors performing such inspections.

³ 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.

⁴ It is anticipated that a total of $13.6 million will be deposited into the account during the period that the rebate program is in effect (from 7/1/11 to 12/31/17) .