LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 3990

STATE OF NEW JERSEY

220th LEGISLATURE

 

DATED: JUNE 30, 2022

 

 

SUMMARY

 

Synopsis:

Provides temporary one-year extension of service life of school buses for 2022-2023 school year; authorizes chief administrator to allow one-year extension in subsequent two school years.

Type of Impact:

Temporary decrease in local costs; temporary increase in State costs.

Agencies Affected:

School Districts; New Jersey Motor Vehicle Commission.

 

 

Office of Legislative Services Estimate

Fiscal Impact

 

Years 1-3 

 

 

State Cost Increase

 

Indeterminate

 

 

Local Cost Decrease

 

Indeterminate

 

 

 

 

 

·         The Office of Legislative Services (OLS) finds that the bill will likely result in a decrease in local costs for the 2022-2023 school year by delaying school districts’ need to purchase new school buses by one year.  The cost is indeterminate because it is unclear how many school bus owners will request an extension and, therefore, how many school buses will have their service lives extended.

·         The OLS estimates that the bill may result in an indeterminate decrease in local costs in the 2023-2024 school year and 2024-2025 school year if the New Jersey Motor Vehicle Commission further extends the service lives of school buses as authorized under the bill.

·         The OLS estimates that the bill will likely increase the commission’s workload for up to three years due to the requirement to report to the Governor and Legislature concerning the extension of the service lives of school buses.  The cost of this reporting requirement is unknown but should be producible by current commission staff using existing resources.

 

BILL DESCRIPTION

 

      This bill provides a temporary extension of the service lives of certain school buses.  The New Jersey Motor Vehicle Commission is required, upon request by the owner of the school bus, to extend the retirement date of a school bus used for pupil transportation in the 2021-2022 school year that would otherwise be required to be retired in 2022.  Under the bill, the service lives of these school buses would be extended from 12 years, 15 years, and 20 years to 13 years, 16 years, and 21 years, respectively, depending on the type of school bus.

      Thereafter, the commission may, in consultation with the Department of Education and upon request by the owner of the school bus, allow an additional year of service for any school bus that was used for pupil transportation in the prior school year that would otherwise be required to be retired in 2023 or 2024.  The commission is prohibited from granting more than one extension for any school bus.

      For any year that the service lives of school buses are extended, the commission is required to provide a report to the Governor and the Legislature concerning the extension.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS finds that this bill will likely result in an indeterminate temporary decrease in local costs and an indeterminate temporary increase in State costs.

      The bill is expected to decrease local costs in the 2022-2023 school year by allowing certain school districts, which own one or more school buses that are required to be retired in the 2022-2023 school year, to request an extension of the useful lives of such buses for one additional year, thereby delaying the district’s need to purchase new school buses by one year.  The OLS is unable to quantify the magnitude of these expenditure decreases because it is unclear how many school bus owners will request an extension and, therefore, how many school buses will have their service lives extended under the bill.  The bill also requires the New Jersey Motor Vehicle Commission to provide a report to the Governor and Legislature concerning the extension of the service lives of school buses, which requirement will increase the commission’s workload.  The OLS does not have information indicating the costs that may be incurred by the commission to provide this report, but it should be producible by current staff using existing resources.

      The bill may also result in an indeterminate increase in State costs and indeterminate decrease in local costs in the 2023-2024 school year and 2024-2025 school year if the commission, in consultation with the Department of Education, decides to extend the school bus retirement date for one or both years.  As noted above, if the service lives of school buses are extended beyond the 2022-2023 school year, school districts may experience a decrease in local costs by delaying the cost to purchase new school buses for any applicable year.  If the commission decides to extend the service lives of school buses in either the 2023-2024 school year or the 2024-2025 school year, or both, the commission is required to provide additional reports to the Governor and Legislature, which will increase the commission’s workload for any applicable year.

 

Section:

Authorities, Utilities, Transportation and Communications

Analyst:

Lauren M. Stutz

Senior Counsel

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).