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COMMITTEE REPORT
May 11, 2005
H. 3702
Introduced by Reps. J.R. Smith, Loftis, Hinson, G.R. Smith, Haskins, Barfield, Vaughn, Clark, Frye, Davenport, Viers, Haley, Altman, Bailey, Cato, Ceips, Chellis, Clemmons, Dantzler, Edge, Hagood, Hamilton, Harrell, Herbkersman, Huggins, Limehouse, Littlejohn, McGee, Merrill, Perry, E.H. Pitts, Rice, Sandifer, Scarborough, D.C. Smith, W.D. Smith, Talley, Tripp and Young
S. Printed 5/11/05--H.
Read the first time March 3, 2005.
To whom was referred a Bill (H. 3702) to amend Section 59-67-460, Code of Laws of South Carolina, 1976, relating to contracts for school transportation services, so as to provide that a school, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by deleting all after the enacting words and inserting:
/ SECTION 1. Section 59-67-460 of the 1976 Code is amended to read:
"Section 59-67-460. (A) Any county board of education A school district may at any time contract for any part or all of its transportation services with private individuals or contractors for the furnishing of such these services. In any such this instance the county board of education school district shall execute the contracts. The county board shall school district must be responsible for the payment of all sums due under contracts so entered into pursuant to this section and shall receive aid from the State for pupils thus transported only on the basis of the average per pupil operating cost of State-owned equipment for the current year as determined by the State Board of Education. as calculated by the State Budget and Control Board to include that district's proportional share of the current year's state appropriations of any money used for school transportation activities, including fuel, maintenance, parts, driver's salaries, insurance, and any other relevant activities, based on actual expenditures in that district as they relate to total statewide expenditures for school transportation activities, including fuel, maintenance, parts, driver's salaries, insurance, and any other relevant activities in the year previous to the decision to contract. In addition, the district may receive, at its discretion, from the State all school buses and school bus maintenance vehicles provided by the State to the district in the year previous to the decision to contract or the proceeds from the sale of those vehicles as a one-time payment. The State Department of Education promptly shall deliver to the Budget and Control Board a full and complete accounting of all state expenditures on school transportation pursuant to this subsection upon request.
(B) The Board board may enter into agreements an agreement with county boards of education a school district whereby pupils living in isolated areas may be transported by special arrangements when such transportation can be provided at lower cost than by operating a regular bus route."
SECTION 2. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
ROBERT W. HARRELL, JR. for Committee.
EXPLANATION OF IMPACT:
School Districts that choose to contract for Transportation services under this bill would receive a proportionate share of the current year's appropriations for such operations based on the previous year's expenditures. In addition, districts would, at their discretion, receive both those school buses and service vehicles assigned to the district in the previous year or the proceeds from the sale of those vehicles on a one-time basis. As a result there is no direct additional expenditure of state appropriations associated with enactment of this bill. Transportation receipts (other funds) and corresponding expenditures at the State Department of Education (SDE) may decline based on the number of districts that choose to contract.
SPECIAL NOTES:
Recurring state appropriations for school bus operations, including recurring bus purchase funds, total approximately $77 million. For FY 2004-05 SDE anticipates using approximately $15 million of non-recurring lottery proceeds for school bus transportation operations. Allocations to school districts that choose to contract for transportation services may fluctuate from year to year based on total appropriations (recurring and non-recurring). For FY 2005-06 the House of Representatives and Senate have recommended an additional $18 million and $22 million respectively for school bus purchases and/or operations.
Any potential impact on the districts depends on the individual contracts negotiated. Future allocations to the districts from the state may not compensate for increased operating costs. In addition, there are no state-owned and operated maintenance facilities in forty-five of the state's eighty-five school districts. The bill does not address the disposition of those facilities located in districts that choose to contract for services.
Approved By:
Don Addy
Office of State Budget
TO AMEND SECTION 59-67-460, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONTRACTS FOR SCHOOL TRANSPORTATION SERVICES, SO AS TO PROVIDE THAT A SCHOOL DISTRICT MAY CONTRACT WITH PRIVATE INDIVIDUALS OR CONTRACTORS FOR ITS TRANSPORTATION SERVICES AND TO PROVIDE THE FORMULA BY WHICH THE STATE BUDGET AND CONTROL BOARD SHALL CALCULATE STATE AID.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 59-67-460 of the 1976 Code is amended to read:
"Section 59-67-460. (A) Any county board of education A school district may at any time contract for any part or all of its transportation services with private individuals or contractors for the furnishing of such these services. In any such this instance the county board of education school district shall execute the contracts. The county board shall school district must be responsible for the payment of all sums due under contracts so entered into pursuant to this section and shall receive aid from the State for pupils thus transported only on the basis of the average per pupil operating cost of State-owned equipment for the current year as determined by the State Board of Education. on the basis of the following per pupil calculation to be made by the State Budget and Control Board the:
(1) full replacement cost of school buses and school bus maintenance vehicles provided to that district by the State in the previous school year, divided by twelve;
(2) full value of other state monies and support services for school transportation activities, including fuel, maintenance, parts, driver's salaries, insurance, and any other relevant activities, given by the State to that school district in the previous year; and
(3) total value calculated in items (1) and (2) divided by the total number of pupils in the school district in the previous year.
For the years in which the district contracts out all or part of its transportation services, the district shall receive aid from the State for the full per pupil cost calculated.
(B) The Board board may enter into agreements an agreement with county boards of education a school district whereby pupils living in isolated areas may be transported by special arrangements when such transportation can be provided at lower cost than by operating a regular bus route."
SECTION 2. This act takes effect upon approval by the Governor.
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