702 KAR 5:020. Program cost calculation

Link to law: http://www.lrc.ky.gov/kar/702/005/020.htm
Published: 2015

      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.)
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