Student Transportation Financials

1. Student Transportation Financials

2. Overview • Quick Funding Formula Recap • Claim Form • Changes • Non-claimable, non-reimbursable, 50%, 85% • Mileage • Common errors/tips for future claims • Depreciation • Bid process • Depreciation Calculation • Depreciation Account • Questions

3. Funding Formula • District/Charter owned: • Non-claimable costs removed upfront • Non-reimbursable costs removed by ratio • 50%/85% categories • Contracted: • Non-claimable costs removed upfront • Most non-reimbursable costs reported separately • Blended average of state costs (about 60%)

4. Funding Formula (cont.) • Both Type of Programs: • Funding cap at 103% cost per rider/mile • Hardship waivers by route (must meet two): • Riders per mile less than 50% stage average • Less than majority of miles are paved • 10% or more miles with 5% slope • Block Grant • Change in support units, statewide enrollment, and statewide transportation reimbursement • $7.5 million proportional move to discretionary • Funds still received, but not under transportation line item.

5. Claim Form • Changes: • Combining similar categories: • Oil/Lubricants now in 85% shop materials/parts • Office, cleaning, and 50% shop supplies combined. • Laundry service/coveralls splits between 50% services and 50% supplies. • Remove “other” category in services • Tracking amount in depreciation account

6. Types of Expenses • Non-Claimable (removed upfront): • Repairs or supplies for facility itself: • Garage door repairs, light bulbs for building, bathroom supplies. • Non-consumable office supplies: • File trays, staplers, computer screens/keyboards/mice, etc. • Repairs, supplies, parts for support vehicles • Includes fuel (paid through mileage) • Costs for non-inventoried/conforming fleet operation • Most capital purchases (computers, large equipment, etc.)

7. Types of Expenses (cont.) • Non-Reimbursable (Should be Claimed): • Most conforming/Inventoried vehicle costs for non-reimbursable mileage • Driver salaries/benefits, fuel, etc. • Does not include driver lodgings of meals while on extended non-reimbursable trip.

8. Types of Expenses (cont.) • 85% items defined by Idaho Code 33-1006(5) • SDE trainings (Tech Workshop, Joint IAPT/Train the Trainer Summer Conference, SDE Regional Trainings) • SDE assessment fee • Bus Depreciation • Bus Maintenance (Technician salaries/benefits, third party repairs, parts/supplies/tools to keep vehicle maintained).

9. Types of Expenses (cont.) • All other reimbursable costs are 50% • Non-Technician transportation staff • Services not directly needed for a bus to be maintained (Sump pump, bus washing by third party, FCC license, utilities). • Supplies not directly needed for a bus to be maintained (e.g. floor dry, windshield fluid, fuel, consumable office supplies, cleaning supplies etc.)

10. Mileage • Reimbursable: • Regular to/from school • IRI and NCLB special programs • Shuttle between facilities owned or exclusively leased by a district/charter school for regular recurring attendance during regular school days and hours • Summer school for IRI, Special Needs ESY, and Summer Migrant programs only.

11. Mileage (cont.) • Non-Reimbursable: • Extracurricular/Activity • Field Trips • Fueling, training, other travel miles • Transporting ineligible riders • Before of after school programs outside IRI/NCLB programs • Other shuttle or summer school miles

12. Mileage (cont.) • Maintenance Miles • Not reimbursable, but not held against district/charter school. • Miles to and from third party repair shop • Miles to diagnose problems. • Driving replacement bus to site of broken down vehicle.

13. Common Errors/Tips • 50% items claimed as 85%: • Windshield fluid, fuel additives, bungee cords, trash cans, etc. • 85% items claimed as 50%: • Nuts/bolts/screws, seat repair parts, degreasers/penetrating oils/solvents, personal mileage to pick-up parts, etc. • Reimbursable items not claimed: • Conforming/Inventoried vehicle driver salaries/benefits.

14. Common Errors/Tips (cont.) • Different types of purchase on one invoice • Have vendor run one charge for 50% items and one for 85% • Miscommunication on what an item is • Work with business office on coding purchases as they are processed

15. Depreciation • Bid Process: • Writing Specifications: • Know what you want • Be sure to use “or equivalent” • Publish notice twice, once two weeks before opening bids, once one week before. • Selecting successful bidder: • District/Charter may elect to not take low bid, however in most cases depreciation will be calculated using low bid price.

16. Depreciation (cont.) • Calculation • New Bus uses the lower of basic bus price at the time of the local boards approval of purchase, plus allowable options, or actual purchase price minus non-allowable options (white roof, tinted windows, maintenance software, training expenses, etc.) • Used bus does the same, but uses yellow book value at time of purchase instead of basic bus price.

17. Depreciation (cont.) • Calculation (cont.) • New bus: • Calculated on a 12 year declining balance of 16.67% per year (you receive a smaller portion of the cost each year, but never 100%) • Used bus: • Calculated over the remaining useful life of the bus with an assumed life expectancy of 10 years. • Rate depends on remaining life • Bus must be 5 years old or less • Amount calculated above is reimbursable at 85% each year, and is still subject to the cap and $7.5 million proportional adjustment.

18. Depreciation (cont.) • Depreciation Account: • Per last SISBO update, funds received for depreciation or from sale of buses must be kept in a separate account and may only be used for the purchase of replacement buses. • At a minimum, this means the depreciation amount for the year after the 85%, funding cap, and $7.5 million adjustment is made. • We however recommend using base depreciation or base depreciation at 85% for simplicity sake and to help bank the district/charter’s portion for later.

19. Questions?