2008-2009 School Bus Subsidy Approvals And Denials

INFORMATIONAL LETTER: 85
POLICY CODE: EEAEB

TO: Superintendents of Schools, Business Managers and Transportation Supervisors

FROM: Susan A. Gendron, Commissioner of Education

DATE:February 20, 2008

SUBJECT: 2008-2009 School Bus Subsidy Approvals And Denials

The Department of Education has completed the review of all applications for distribution of School Bus Subsidy Funds in fiscal year 2010. The results of this review will be posted on the Department’s Pupil Transportation website at: http://www.maine.gov/education/const/trans.htm .

SAU’s will not receive individual letters notifying them of approvals or denials.

Under the current statute, Title 20-A MRSA § 5401, total approvals will be limited to an amount established by the Commissioner of Education. The approval limit for cash, note and lease-purchase approvals for FY09 is $ 8.2 million, to be distributed in FY 2010. All school bus purchases and lease-purchases will be considered separate from transportation operating costs and treated as capital expenditures. Interest on note and lease-purchase payments will not be included in the subsidy calculation.

To receive subsidy on any purchase or lease-purchase, the purchase must have the prior approval of the Department. A SAU must also submit a completed School Bus Purchase Report (EF-T-20) for each new bus acquired. If a SAU wishes to change the method or timing of payments for an approved purchase, a request must be submitted to the Department prior to making the change. SAUs are also required to submit a properly completed EF-T-20 if they decide to cancel an approved bus purchase. Failure to meet these requirements could result in a loss of subsidy for the SAU, as well as a decrease in total funds available for bus purchases.

As a final note, the State School Bus Purchasing Program is entering into its eighth contract year. The program offers favorable pricing for a variety of conventional and transit type school buses to meet your needs. To date, over 850 school buses have been purchased through this program. Pricing, specifications and instructions for participation are available on the Department’s Pupil Transportation website at the address provided above. You are encouraged to utilize this program. Your participation will make it possible to negotiate the best possible price for a quality school bus.

If you have any questions regarding school bus subsidy approvals and denials, or the School Bus Purchasing Program, please contact Rick Soules at 207-624-6884 or richard.j.soules@maine.gov