HB 593 – SB 656
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 15, 2025
Fiscal Analyst: Natalie Dusek | Email: natalie.dusek@capitol.tn.gov | Phone: 615-741-2564
HB 593 – SB 656
SUMMARY OF BILL: Increases, from 200,000 miles to 230,000 miles, the maximum
number of miles a Class D school bus may have recorded in order to remain in operation.
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE General Fund
FY25-26 & Subsequent Years $352,700
EXPENDITURES General Fund
FY25-26 $422,000
FY26-27 & Subsequent Years $348,100
Total Positions Required: 3
OTHER FISCAL IMPACT
Due to multiple unknown variables, the net decrease in local expenditures cannot be quantified with
reasonable certainty.
Assumptions:
• Pursuant to Tenn. Code Ann. § 49-6-2109(b), a conventional or Class D school bus (bus)
may be used until it reaches its 18
th
year from its in-service date. The Commissioner of the
Department of Safety (DOS), through an inspection process, may approve additional years
of service beyond the 18
th
year, provided that the bus has less than 200,000 miles of recorded
travel. The proposed legislation increases this mileage limit to 230,000 miles.
• The DOS is required to inspect each school bus that has been in use for less than 15 years
from its in-service date annually. Beginning in its 16
th
year of service, a bus must be
inspected by the DOS at least twice annually.
• The fee for inspection by the DOS is $385. Therefore, for buses in the extended-use
program (those in the 16
th
year or more of service), the annual inspection fee requirement is
$770 per bus ($385 per bus x 2 inspections per year).
• According to the DOS, there are currently 2,004 buses in the extended use program. Based
on an evaluation of the other buses under annual inspection, the proposed legislation is
estimated to increase the in-service life of an average of 458 buses by at least one year. This
HB 593 – SB 656 2
is assumed to remain constant so that the sustained impact would be an additional 458
buses required to be inspected in the extended use program.
• The DOS attests that it cannot accommodate this increase in the inspection workload
within existing personnel. The DOS estimates that it will require one additional
Administrative Services Assistant 2 and two additional trooper positions.
• The increase in state expenditures to the DOS related to salary and benefits for the
positions is estimated to be $280,955 in FY25-26 and subsequent years as follows:
Title Salary Benefits
#
Positions Total
Trooper $83,232 $21,836 2 $210,136
Admin Services Asst. 2 $53,856 $16,963 1 $70,819
Total: $280,955
• In addition, the new positions will require an estimated $141,000 in equipment, supplies,
motor vehicle expenses, training, and communication in FY25-26, and an estimated $67,100
in equipment, supplies, motor vehicle expenses, training, and communication in FY26-27
and subsequent years.
• The total increase in state expenditures to the DOS is estimated to be $421,955 ($280,955
salary and benefits + $141,000 operational) in FY25-26.
• The total increase in state expenditures to the DOS is estimated to be $348,055 ($280,955
salary and benefits + $67,100 operational) in FY26-27 and subsequent years.
• The legislation is estimated to require approximately 458 buses to receive two safety
inspections for an additional year in the program by the DOS. The annual cost for the two
inspections is $770 per bus.
• Therefore, the increase in state revenue to the DOS is estimated to be $352,660 (458 buses
x $770 per bus) in FY25-26 and subsequent years.
• It is assumed that some of the fees for the inspections are paid by private bus owners and
some are paid for by local school districts. According to information previously provided by
the Department of Education, district-owned buses represent approximately 72 percent of
all buses.
• There will be a permissive increase in expenditures to local school districts related to bus
inspection fees estimated to be $253,915 ($352,660 x 72%) in FY25-26 and subsequent
years.
• However, it is assumed that local school districts will opt to keep such buses in operation if
safety standards are met and such action results in cost savings to the districts. Due to
multiple unknown variables, such savings cannot be quantified with reasonable certainty.
Therefore, the net decrease in local expenditures is unknown.
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CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director