LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  February 27, 1997
         
         
      TO: Honorable Teel Bivins, Chair            IN RE:  Senate Bill No. 517
          Committee on Education                              By: Bivins
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB517 ( Relating 
to the transportation of public school students.) this office 
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB517-As Introduced
         
No fiscal implication to the State is anticipated.
         

         
 
          
Bill Summary

The bill would permit local school districts 
to use passenger vans for the transportation of students on 
routes having 14 or fewer students.  The bill also defines passenger 
car and passenger van for purposes of Section 34.003, Education 
Code.

It should be noted that federal laws prohibit the sale 
of passenger vans for the purpose of transporting students, 
but there is no federal law prohibiting the use of such vehicles 
acquired for a different purpose (such as transportation of 
faculty).

This legislation would take effect for the 1997-98 
school year.

Administrative Costs to Local Government

It 
is possible that school districts could lower operating costs, 
particularly for the amortized cost of the vehicle, if passenger 
vans were used for school transportation routes.  The state 
Foundation School Program funds approximately 48% of total public 
school transportation costs, but the state reimbursement rate 
does not depend on the type of vehicle in which students are 
transported.  Any cost savings would therefore be realized exclusively 
by local districts.  

It is difficult to predict the actual 
cost savings, since the precise configuration of routes must 
be known, along with the operating costs, to compare.  The state 
has no data on the number of routes which might be converted 
to passenger vans as a result of this proposed change in law. 
 

For the 1993-94 school year, fuel and related "supply" 
costs totaled $62 million and capital outlay (bus fleet depreciation) 
totaled $58 million (LBB data).  A standard 15-passenger van 
has a cost advantage over a standard 71-passenger bus of approximately 
$15,000 ($25,000 vs. $40,000) and a fuel efficiency advantage 
of 50 to 200 percent (15 m.p.g. vs. 5-10 m.p.g.).  Considering 
only these two factors, it is assumed that districts that exercise 
the option to operate passenger vans on applicable routes would 
realize average cost savings of 10 percent.  This would represent 
a total statewide savings of approximately $12 million.

Continuing 
Fiscal Implications - Local

The fiscal implications described 
above would be likely to continue beyond 2002.
          
   Source:            Agencies:   701   Texas Education Agency - Administration
                                         
                      LBB Staff:   JK ,LP ,GJ ,DH