Provides an incentive for school districts to negotiate lower cost transportation contracts

3 Co-sponsors

• John A. DeFrancisco
• Mark Grisanti
• Michael H. Ranzenhofer

BILL NUMBER:S4961

Title of bill

An act to amend the education law, in relation to an incentive for school districts to lower their transportation costs

Purpose or general idea of bill

The intent of this legislation is to provide school districts with financial flexibility by providing them with the ability to keep certain transportation aid for up to five years.

Summary of specific provisions

Section 1: Subdivision 3 of section 3623-a of the education law is amended to add a new paragraph (d.) which includes the following provisions:

(1) for the purpose of this program, allows school districts to compute their transportation aid based on the higher-cost district operated transportation system.

(2) this section sets forth the requirements a school district must meet in order to take advantage of the program. The program can only be utilized for the portion of the district's transportation system that is not currently operated by a private school bus operator. The school district must issue a request for proposal for transportation services from qualified transportation contractors.

(3) affords the school district the ability to sell or lease transportation equipment which was purchased in support of the school district's transportation system and keep the proceeds and any amortized transportation aid.

(4 and 5) limits the program to expiration of the first contract with the private school bus operator/contractor not to exceed five years.

Section 2: Sets forth an immediate effective date.

Justification

School districts continue to face unprecedented fiscal and academic pressures. Even with education funding at record levels, many public schools are finding it increasingly difficult to manage costs and hold the line on school property taxes. The legislation will help reduce the cost of student transportation and provide school districts with savings that can be used to directly support academic efforts in the classroom. It is essential that the legislature support the efforts of school districts to explore innovative and cost-effective solutions, so that school do not have to lay-off teachers, cut programs or other vital educational resources.

Prior legislative history

(2012) S.6257-D Budget Resolution Passed Senate (2013) S.2607-C Budget Resolution Passed Senate

Fiscal implications

This bill will provide savings to both local school districts and to the state.

Effective date

This act shall take effect immediately.