Provides an incentive for school districts to negotiate lower cost transportation contracts.
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.
STATE OF NEW YORK ________________________________________________________________________ 4961 2013-2014 Regular Sessions IN SENATE May 1, 2013 ___________Introduced by Sen. FLANAGAN -- read twice and ordered printed, and when printed to be committed to the Committee on Education AN ACT to amend the education law, in relation to an incentive for school districts to lower their transportation costs THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 3 of section 3623-a of the education law is amended by adding a new paragraph d to read as follows: D. (1) NOTWITHSTANDING ANY LAW TO THE CONTRARY, WHERE A SCHOOL DISTRICT PROVIDING TRANSPORTATION FOR SOME OR ALL OF ITS DISTRICT PUPILS THROUGH A DISTRICT OPERATED TRANSPORTATION SYSTEM AS OF THE FIRST DAY OF SEPTEMBER TWO THOUSAND THIRTEEN CONTRACTS FOR THE TRANSPORTATION OF ITS PUPILS WITH A CONTRACTOR AND SUCH CONTRACT RESULTS IN A LOWER ALLOWABLE TRANSPORTATION EXPENSE PURSUANT TO THIS SECTION THAN THE DISTRICT OPER- ATED TRANSPORTATION SYSTEM SUCH DISTRICT MAY COMPUTE ITS TRANSPORTATION AID PURSUANT TO THIS SECTION BASED UPON THE HIGHER DISTRICT OPERATED TRANSPORTATION SYSTEM COSTS; PROVIDED, HOWEVER, THAT SUCH SCHOOL DISTRICT MEETS THE REQUIREMENTS SET FORTH IN SUBPARAGRAPH TWO OF THIS PARAGRAPH. (2) A SCHOOL DISTRICT WHICH COMPUTES ITS TRANSPORTATION AID PURSUANT TO SUBPARAGRAPH ONE OF THIS PARAGRAPH SHALL MEET THE FOLLOWING REQUIRE- MENTS: (I) CALCULATE ITS ALLOWABLE TRANSPORTATION EXPENSES PURSUANT TO THIS SECTION FOR A DISTRICT OPERATED TRANSPORTATION SYSTEM FOR THE TWO THOU- SAND TWELVE--TWO THOUSAND THIRTEEN SCHOOL YEAR. SUCH CALCULATION SHALL BE BASED ON THAT PORTION OF THE TRANSPORTATION SYSTEM THAT IS DISTRICT OPERATED AND PROPOSED TO BE CONTRACTED TO A QUALIFIED PUPIL TRANSPORTA- TION CONTRACTOR; (II) IF A SCHOOL DISTRICT PRESENTLY PROVIDES FOR TRANSPORTATION FOR ITS PUPILS THROUGH A COMBINATION OF A DISTRICT OPERATED TRANSPORTATION SYSTEM AND A CONTRACTOR TRANSPORTATION SYSTEM, ONLY THAT PORTION OF THEEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10531-01-3 S. 4961 2
TRANSPORTATION SYSTEM WHICH IS DISTRICT OPERATED IS ELIGIBLE FOR TREAT- MENT UNDER THIS PARAGRAPH; (III) ISSUE A REQUEST FOR PROPOSAL FOR SUCH DISTRICT OPERATED TRANS- PORTATION SERVICES; AND (IV) AWARD A CONTRACT FOR SUCH DISTRICT OPERATED TRANSPORTATION SERVICES TO A QUALIFIED PUPIL TRANSPORTATION CONTRACTOR. (3) NOTWITHSTANDING ANY LAW TO THE CONTRARY, A SCHOOL DISTRICT SWITCH- ING FROM A DISTRICT OPERATED TRANSPORTATION SYSTEM TO A CONTRACTOR TRANSPORTATION SYSTEM MAY SELL OR LEASE EQUIPMENT PURCHASED IN SUPPORT OF THE DISTRICT OPERATED TRANSPORTATION SYSTEM AND RETAIN ANY PROCEEDS AND AMORTIZED TRANSPORTATION AID. (4) A SCHOOL DISTRICT SHALL BE INELIGIBLE FOR RETENTION OF TRANSPORTA- TION AID PURSUANT TO THIS PARAGRAPH UPON EXPIRATION OF THE INITIAL CONTRACT ENTERED INTO BETWEEN THE SCHOOL DISTRICT AND THE PUPIL TRANS- PORTATION CONTRACTOR. (5) A SCHOOL DISTRICT SHALL BE ELIGIBLE FOR RETENTION OF TRANSPORTA- TION AID PURSUANT TO THIS PARAGRAPH FOR NO MORE THAN FIVE YEARS. S 2. This act shall take effect immediately.