LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 364 HLS 21RS 480
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 7, 2021 4:05 PM Author: WHITE, M
Dept./Agy.: Education
Subject: School Bus Operator Compensation Analyst: Garrett Ordner
SCHOOLS/BUS OPERATORS RE INCREASE LF EX See Note Page 1 of 2
Provides relative to the compensation of school bus operators
Proposed legislation replaces existing operational pay schedule for school bus operators with a minimum pay rate of $1.4683
per mile of paid mileage for school buses with capacities of 48 or fewer passengers, and a minimum of $1.756 per mile of
paid mileage for school buses with capacities greater than 48 passengers. Mile of paid mileage is defined as the distance the
bus travels after picking up its first student until it reaches the final student discharge destination or school of each morning
and afternoon route officially designated by the public school governing authority. Requires the compensation to be paid for
the number of days of actual operation, but not less than 180 days during the school year, and for the actual days of
operation during the summer semester, if applicable. Requires public school governing authorities to compensate school bus
drivers for expenses associated with the purchase, maintenance, modification, repair and replacement of air-conditioning
equipment and certain equipment required for transporting students with disabilities when such expenses are required by
the governing authority. Implementation begins with the 2021-2022 school year.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds INCREASE INCREASE INCREASE INCREASE INCREASE
Annual Total
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
There will be an indeterminable increase in local funds expenditures for local school districts to provide for an increased
operational pay rate to school bus operators “owner/operators,” and to provide for supplemental payments for certain
equipment purchases. District costs will depend on the difference between the new compensation structure and districts’
existing operational pay structures. Costs will vary based on the number of owner/operators, the size of school buses, and
the supplemental payment system established by districts.
HCR 20 of the 2020 Regular Session requested that the Board of Elementary and Secondary Education (BESE) produce a
report examining the compensation structure for school bus owner/operators. Under current law, state-mandated
operational pay averages $9,200 for a 48 passenger school bus and $11,000 for a 72 passenger school bus. However,
according to estimates by the task force, the actual annual operational costs of 48 and 72 passenger buses are $18,500 and
$22,100, respectively. The proposed legislation provides for compensation rates from $1.4683 to $1.756 per one-way mile
to offset these costs for an owner/operator.
Based on a survey of districts, 905 school buses in the state are independently owned by owner/operators; an estimated
12.2% of owner/operators operate buses with capacities of 48 or fewer passengers, and the remaining 87.8% of
owner/operators operate buses with capacities of more than 48 passengers. Thus, there are an estimated 110 operators
who will receive an additional $9,300 and 795 operators who will receive an additional $11,100 under the proposed
legislation, on average. By itself, the compensation under the proposed measure will result in an estimated $9.8 M in
increased expenditures for local school districts (110 buses w/ 48 or fewer passengers x $9,300 = $1 M; and $795 buses w/
more than 48 passengers x $11,100 = $8.8 M).
SEE EXPENDITURE EXPLANATION CONTINUED ON PAGE TWO
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Alan M. Boxberger
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 364 HLS 21RS 480
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 7, 2021 4:05 PM Author: WHITE, M
Dept./Agy.: Education
Subject: School Bus Operator Compensation Analyst: Garrett Ordner
CONTINUED EXPLANATION from page one: Page 2 of 2
EXPENDITURE EXPLANATION CONTINUED FROM PAGE ONE
However, many districts supplement the minimum operational pay under current law. In order to incorporate the new
compensation rates, it is likely that districts will reduce or eliminate existing supplemental pay, although this may vary by
district. For example, St. Tammany Parish, which employs over 40% of the state’s school bus owner/operators, supplements
the current state-mandated operational pay with a monthly stipend as well as an allowance based on local diesel fuel costs.
Under the district’s current pay structure, an owner/operator with a route of 70 miles round-trip and a 72 passenger bus
would receive an annual total of approximately $8,600 in supplemental pay, in addition to the state-mandated operational
pay, for a total compensation of approximately $19,700 per year. Districts will experience potentially significant cost
increases to the extent the new compensation structure exceeds their existing compensation structures.
The proposed legislation further requires each public school governing authority to establish supplemental operational
payments to owner/operators for costs associated with the purchase and maintenance of air-conditioning equipment and
equipment for transporting students with disabilities. The established supplemental pay structures will vary by district;
therefore, costs are indeterminable.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Alan M. Boxberger
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director


Statutes affected:
HB364 Original: 17:497(A)(1), 17:497(A)(3)
HB364 Engrossed: 17:497(A)(1), 17:497(A)(3)
HB364 Reengrossed: 17:497(A), 17:497(F)