702 KAR 5:020.
Program cost calculation.
RELATES TO: KRS
156.031, 157.370
STATUTORY
AUTHORITY: KRS 156.070, 157.320, 157.370
NECESSITY,
FUNCTION, AND CONFORMITY: KRS 156.031 requires that administrative regulations
relating to statutes amended by the 1990 Kentucky Education Reform Act be
reviewed, amended if necessary, and resubmitted to the Legislative Research
Commission prior to December 30, 1990; and KRS 157.370 sets forth the basic
statutory framework by which local school districts are to be reimbursed from
the Fund to Support Education Excellence in Kentucky for transportation costs.
This administrative regulation implements and interprets, where necessary,
those statutory provisions, in order to set out the method and steps for
completion of the calculation of the districts' pupil transportation program
costs.
Section 1. A
county district's net transported pupil density shall be determined by dividing
the district's net ADA for pupils transported one (1) mile or more to school by
the number of square miles in this district's primarily served area.
Section 2. The
net ADA for a county district's pupils transported one (1) mile or more to
school shall be determined from the local superintendent's annual statistical
report for the district.
Section 3. The
number of square miles in the primarily served area of a county district shall
be determined by deducting from the total square mile area of the county, the
square mile area of any independent district located within the county, and by
deducting the square mile area of any portion of the district located more than
one (1) mile from one (1) of the district's pupil transportation vehicle
routes.
Section 4. A
county district's gross transported pupil density shall be used in constructing
a graph required by KRS 157.370. This density shall be determined by dividing
the district's gross ADA for all pupils transported as shown on the
superintendent's annual statistical report for the district by the number of
square miles in the district's primarily served area.
Section 5. An
independent district's net transported pupil density shall be determined by
dividing the district's net ADA for pupils transported one (1) mile or more to
school by the number of square miles in this district's primarily served area.
Section 6. The
net ADA for an independent district's pupils transported one (1) mile or more
shall be determined from the local superintendent's annual statistical report
for the district.
Section 7. The
number of square miles in the primarily served area of an independent district
shall be determined by deducting from the total square mile area of the
district, the square mile area of any portions of the district that are located
more than one (1) mile from one (1) of the district's pupil transportation
vehicle routes.
Section 8. An
independent district's gross transported pupil density shall be used in
constructing the graph required by KRS 157.370. This density shall be
determined by dividing the district's gross ADA for all pupils transported as
shown on the local superintendent's annual statistical report for the district
by the number of square miles in the district's primarily served area.
Section 9. In
calculating the amount to be added each year to the district's pupil
transportation program cost for pupil transportation vehicle depreciation, only
those wholly district-owned vehicles shown on the district's pupil
transportation school bus inventory for each year as having a rated pupil
seating capacity of ten (10) or more, as meeting the Kentucky Minimum
Specifications for School Buses; Revised, for the model year in which the
vehicles were manufactured, and as remaining within the applicable depreciation
schedule, shall be included. School buses used exclusively for activity
purposes or that are not properly equipped and maintained in safe and
satisfactory condition for the transportation of pupils shall not be included
in the district's pupil transportation vehicle depreciation schedule.
Section 10. In
calculating the depreciation cost for a new school bus purchased by a district
during any school year, the model year of the vehicle chassis shall be
considered to be the model year of the vehicle with the exception that, for
inventory and calculation purposes by the Division of Pupil Transportation, all
school buses purchased new and shown by the district as having been added to
its school bus inventory during the school year shall be considered to be of
the same model year regardless of when said vehicles were delivered during that
school year or manufacturer's model year designation. The model year of all
said vehicles to be the same as the year shown on the cover of the booklet
containing the Kentucky Minimum Specifications for School Buses; Revised, as
referenced by 702 KAR 5:060, that were in effect during the first half of the
school year in which said vehicle was added to the district's inventory.
Section 11. The
annual depreciation cost for any school bus shown on the district's annual
school bus inventory that is within the applicable depreciation schedule shall
not be calculated unless said vehicle is maintained by the district in a safe
and satisfactory condition, as evidenced by safety inspections performed
pursuant to 702 KAR 5:030, for transporting pupils to and from school.
Section 12. The
amount to be added each school year to the district's pupil transportation
program cost for pupil transportation vehicle depreciation shall be determined
by:
(1)(a)
Multiplying the number of qualifying diesel powered vehicles of the same type
and rating purchased new prior to the 1985 model year and gasoline powered
vehicles of the same type and rating purchased new prior to the 1987 model
year, and less than nine (9) model years old, by one-eighth (1/8) of the bid
price of a school bus of the same type and rating purchased through the state
bid price contract plan in the same school year. The annual depreciation amount
for each school bus shall be calculated to the nearest whole dollar.
(b) Starting
with the 1987 model year vehicles and including the 1985 and 1986 model year
diesel powered vehicles, the amount calculated for annual depreciation on each
vehicle of the same type and rating purchased new through the state bid price
contract plan shall be determined by the following depreciation schedule:
YEARS
DEPRECIATION RATE
1 and 2
12% of the state bid price
3 through 8
10% of the state bid price
9 and 10
8% of the state bid price
11 through 14
6% of the state bid price
(c) A district
that purchases a new school bus during any school year of a type and rating
that was not purchased through the state bid price contract plan during that
same school year shall furnish the Division of Pupil Transportation with
certain qualifying information including the price paid for said vehicle from which
said division shall establish a reasonable price to be used for the purpose of
calculating the annual depreciation on said vehicles based on the number of
seats and other major cost factors.
(d) The amount
calculated for the depreciation for all qualifying school buses on the
district's inventory shall be determined in the manner prescribed in subsection
(1) of this section. The model year of the vehicle chassis shall determine the
number of years that these vehicles remain within the applicable depreciation
schedule except where exceptions are shown in other sections of this
administrative regulation.
(2) Whenever a
district purchases a used school bus of a model year that would place it within
the applicable depreciation schedule and which meets the safety requirements of
the Kentucky Minimum Specifications for School Buses; Revised, for the model
year in which the vehicle was manufactured, certain qualifying information and
the price paid for said vehicle shall be reported to the Division of Pupil Transportation.
Depreciation for said vehicle shall be calculated for each school year for
which said vehicle remains within the applicable depreciation schedule on the
same basis as a vehicle of the same type and rating purchased through the state
bid price contract plan during that particular model year. In no case shall
this amount exceed the annual amount of depreciation calculated for a vehicle
of the same model year and rated pupil seating capacity category that was
purchased new through the state bid price contract plan. For inventory and
calculation purposes by the Division of Pupil Transportation, the model year of
the older component, either chassis or body, shall be considered to be the
model year of the vehicle and shall determine the number of years that said
used vehicle remains within the applicable depreciation schedule.
(3) Whenever a
district purchases a new school bus chassis and has its district-owned used
school bus body installed thereon or purchases a new school bus body and has it
installed on its district-owned used school bus chassis, certain qualifying
information and the price paid for said new component shall be reported to the
Division of Pupil Transportation. For inventory and calculation purposes by the
Division of Pupil Transportation, the model year of such vehicle shall be
considered to be the model year of the older component, chassis or body, and
the depreciation shall be calculated for the number of years the vehicle
remains within the applicable depreciation schedule on the same basis as a new
vehicle of the same purchased through the state bid price contract plan during
that particular model year.
(4) The amounts
calculated for school bus depreciation under subsections (1), (2), and (3) of
this section shall be added together to make up the district's annual cost for
pupil transportation vehicle depreciation.
Section 13. The
final step in the district's tentative cost calculation shall be made by
multiplying the district's graph adjusted cost per pupil per day by the aggregate
number of days attendance of the district's pupils transported one (1) mile or
more to school.
Section 14. The
graph adjusted pupil transportation cost per pupil per day shall be determined
by applying the district's transported pupil density of the graph as provided
in KRS 157.370.
Section 15. The
aggregate number of days the district's pupils were transported one (1) mile or
more to school shall be determined by multiplying the average daily attendance
of these pupils by the number of days the district's schools were in session up
to the number required under the Fund to Support Education Excellence in
Kentucky.
Section 16. When
the net average daily attendance of T-1 and T-5 transported pupils in any
district for the first two (2) months of the current school year is greater
than it was for the first two (2) months of the previous school year, the
district is eligible to apply for an adjustment for the current year increase.
Section 17.
Application for an adjustment increase or a report on the absence of an
increase shall be made by each district board prior to December 1.
Section 18. The
net average daily attendance of the district's T-1 and T-5 transported pupils
computed for the first two (2) months of the previous school year shall be compared
with the same two (2) month period of the current school year and the percent
of growth determined.
Section 19. The
district's tentative formula adjusted cost for pupil transportation shall then
be multiplied by the percent of growth to determine the additional cost to be
added as a current year increase.
Section 20. The
calculated amount for current year increase shall then be added to the
district's tentative pupil transportation cost calculation to make up the
district's final formula adjusted cost for pupil transportation for the current
school year.
Section 21.
During the school year in which any independent school district starts to
provide pupil transportation when said district's schools open, the district's
adjustment for current year growth shall be calculated by multiplying the
district's net average daily attendance of T-1 and T-5 transported pupils for
the first two (2) months that the district's schools are in session by the
average calculated cost per pupil per year for all independent school districts
as shown in the pupil transportation tentative cost calculations bulletin dated
for that school year. The amount calculated for growth shall be the only pupil
transportation program cost considered for program allotment purposes for that
school year.
Section 22.
During the school year in which any independent school district starts to
provide pupil transportation after said district's schools have been in session
for two (2) months or more, there shall be no adjustment calculated for current
year growth for program allotment purposes for that school year.
Section 23.
During any school year following the school year in which any independent
school district started to provide pupil transportation that the average daily
attendance for the first two (2) months that the district's schools were in
session shows a growth in T-1 and T-5 transported pupils of 100 percent or
less, the adjustment for current year growth shall be calculated as provided in
Sections 16, 17, 18, 19, and 20 of this administrative regulation. If the
district's growth in T-1 and T-5 transported pupils for the first two (2)
months shows a growth of more than 100 percent, the adjustment for current year
growth shall be calculated first as provided in Sections 16, 17, 18, 19, and 20
of this administrative regulation; and secondly, by multiplying the net
increase in the average daily attendance of T-1 and T-5 transported pupils by
the average calculated cost per pupil per year for all independent districts as
shown in the pupil transportation tentative cost calculation bulletin dated for
that school year. The lesser of the two (2) amounts shall then be added to the
district's pupil transportation tentative cost calculation for allotment
purposes. (1 Ky.R. 1049; Am. 2 Ky.R. 242; eff. 10-8-75; 9 Ky.R. 1306; eff.
7-6-83; 10 Ky.R. 1176; eff. 6-28-84; 12 Ky.R. 1854; eff. 7-2-86; 17 Ky.R. 432;
eff. 10-14-90.)
