FY 2016 Appropriation

The Pupil Transportation program provides revenue to assist the State's school districts in transporting students to and from school each day. "These funds are to be used to transport students to and from school who are eligible for busing based on the distance they live from school, and to pay for equipment and administrative expenses" (USOE School Finance Reference Manual).

Formula -- State revenue is distributed to the school districts based on the Transportation Finance Formula. This formula includes the statutory required items, namely, "an allowance per mile for approved bus routes; an allowance per hour for approved bus routes; and a minimum allocation for each school district eligible for transportation funding" (UCA 53A-17a-127).

The Utah State Office of Education (USOE) developed the Transportation Finance Formula to govern the distribution of State Pupil Transportation funds. The formula is divided into two schedules and the total state revenue received by a school district is the sum of these two schedules.

Schedule A represents the portion of state revenue received by a school district that is 'formula driven.' School districts receive these funds by transporting eligible students to and from school. Schedule A contains three components. These components, when summed, determine the level of funding a school district receives for this portion of the program. Each of the Schedule A components are detailed below:

  1. Time Allowance - school districts are paid a rate that "reflects the state average cost per minute for driver salaries, retirement, social security and health and accident insurance."

  1. Mileage Allowance - school districts are paid a rate that "reflects the state average cost per mile for bus fuel, lubrication, tires/tubes, and repair parts."

  1. Administration Allowance - school districts are provided funds for the "salaries and benefits of district transportation administrators. The calculation for administrative allowance consists of three parts: an allowance for pupils transported, an allowance for route minutes, and an allowance for route miles" (USOE School Finance and Statistics, Transportation Finance Formula, July 2006).

Each of the components listed above has a reimbursement rate that governs the distribution of Schedule A revenue. Prior to FY 2010, the Transportation Finance Formula included a component that reimbursed school districts for the cost of depreciation of school buses. The Legislature removed this provision from the formula in H.B. 2 "Minimum School Program Budget Amendments" (2009 General Session). As a result of this change, funding for To & From Pupil Transportation was reduced by $8.8 million.

Schedule B is much less complex than Schedule A. Essentially, school districts receive Schedule B revenue through application. School districts may "request state reimbursement for miscellaneous, non-formula related expenses incurred in transporting eligible students" (USOE School Finance and Statistics, Transportation Finance Formula, July 2006). Approximately 2.5 percent of the total funding allocated to the program is distributed through Schedule B.

Funding History

Funding Issues

Enrollment Growth

Total enrollment in the public education system is projected to increase by 7,951 students in FY 2016, with a total enrollment of 630,104. Additional students in the system increases the cost to certain programs as designated by statute or legislative precedent. Adjustments are made in the following programs based on consensus enrollment and WPU estimates: Basic School Program: $24,284,600 Funds an additional 8,380 WPUs in FY 2016. Related to Basic School Program: $10,698,800 Provides a 1.3% increase to the following programs: Pupil Transportation, Enhancement for At-Risk Students, Youth-in-Custody, Adult Education, Enhancement for Accelerated Students, and Concurrent Enrollment. Provides an increase of $4,459,600 to the Local Replacement and $83,200 to the Administrative Cost programs for charter schools. Finally, increases th eamount for the Educator Salary Adjustment by $3,429,500 to account for additional teachers hired by LEAs in fall 2014. Voted & Board Local Levy: $23,023,600 Adjusts funding levels to provide the state guarante rate for all qualifying WPUs. Increases the state guarantee rate as provided in statute from $27.92 per WPU to $30.11 per WPU. The total local property tax revenue contribution to the cost of the Basic School Program is expected to increase by $8,462,600 in FY 2016. This amount works as an off-set to the total increased cost of the Basic School Program above.
Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $75,830,200 from all sources for To and From School - Pupil Transportation. This is a 5.4 percent increase from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $75,830,200 from the General/Education Funds, an increase of 5.4 percent from revised Fiscal Year 2015 estimates.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time Enrollment Growth$935,700$0
OngoingOne-TimeFinancing Source
$935,700$0Education Fund
Total enrollment in the public education system is projected to increase by 7,951 students in FY 2016, with a total enrollment of 630,104. Additional students in the system increases the cost to certain programs as designated by statute or legislative precedent. Adjustments are made in the following programs based on consensus enrollment and WPU estimates: Basic School Program: $24,284,600 Funds an additional 8,380 WPUs in FY 2016. Related to Basic School Program: $10,698,800 Provides a 1.3% increase to the following programs: Pupil Transportation, Enhancement for At-Risk Students, Youth-in-Custody, Adult Education, Enhancement for Accelerated Students, and Concurrent Enrollment. Provides an increase of $4,459,600 to the Local Replacement and $83,200 to the Administrative Cost programs for charter schools. Finally, increases th eamount for the Educator Salary Adjustment by $3,429,500 to account for additional teachers hired by LEAs in fall 2014. Voted & Board Local Levy: $23,023,600 Adjusts funding levels to provide the state guarante rate for all qualifying WPUs. Increases the state guarantee rate as provided in statute from $27.92 per WPU to $30.11 per WPU. The total local property tax revenue contribution to the cost of the Basic School Program is expected to increase by $8,462,600 in FY 2016. This amount works as an off-set to the total increased cost of the Basic School Program above.
WPU Value Increase (4%)$2,916,500$0
OngoingOne-TimeFinancing Source
$2,916,500$0Education Fund
It costs approximately $26 million for each 1 percent increase or decrease in the WPU Value. Programs impacted include: The Basic School Program (all WPUs), Pupil Transportation, Concurrent Enrollment, Enhancement for At-Risk Students, Youth-in-Custody, Enhancement for Accelerated Students in the Related to Basic School Program.

Statute

The statutory authority for Pupil Transportation rests primarily in three statutes. These statutes provide for the funding and governance structure for pupil transportation in the State.

  • UCA 53A-17a-126 -- Provisions detail how appropriated funds are distributed among qualifying school districts and the Utah Schools for the Deaf and Blind. The statute requires that allocations be reduced proportionately if the level of funding appropriated by the Legislature is insufficient to cover the total cost of pupil transportation in the state.
  • UCA 53A-17a-127 -- Details the eligibility requirements to receive state-supported pupil transportation funds and establishes a state Transportation Advisory Committee. Eligible students must reside 1 ½ miles from school (grades K-6) or 2 miles from school (grades 7-12) to qualify for state transportation funding.

Administrative Rule R277-600 was passed by the State Board of Education. The rule provides administrative procedures associated with the governance of Pupil Transportation.

In addition to providing direct student transportation services, program funding is used by school districts to pay for "in lieu of" transportation expenses as an alternative to busing some students. Program funding also supports the establishment of guidelines for personnel training, as well as guidelines for bus routing and mapping.

Program funding also supports the pupil transportation program at the Utah Schools for the Deaf and Blind. Each year, the Legislature establishes in the amount of pupil transportation funding for the schools based on current contract requirements.

School districts only receive state revenue for transporting eligible students as defined by statute. Based on available state revenues, statute requires that the state contribute 85 percent of the funding toward paying for approved pupil transportation costs in the school districts. School districts must use other available revenues (either unrestricted state revenues or local property tax revenue) to pay the difference between the state allocation and actual program costs.

Intent Language

HB0002: Item 2

The Legislature intends that the State Board of Education review the Pupil Transportation Allocation Formula and recommend ways to improve the formula to increase efficiency, simplify allocation methodology to school districts, and provide incentives for alternative transportation methods. The Legislature further intends that the State Board of Education report its recommendations to the Education Interim Committee and the Public Education Appropriations Subcommittee by October 31, 2015.

HB0002: Item 2

The Legislature intends that the State Board of Education and State Board of Regents provide joint recommendations on how to ensure that each concurrent enrollment course is taught by a qualified instructor, that credits earned by students count towards major and minor degree requirements at state colleges and universities, and that students are advised on the transferability of credits to private and out of state institutions. The Legislature also intends that these recommendations be reported to the Education Interim Committee and the Public Education Appropriations Committee by October 31, 2015.

Transportation funding for the Utah Schools for the Deaf and the Blind (USDB) is also appropriated through the To and From School program. Of the total appropriation listed below, $3,450,200 is allocated to USDB. The remaining appropriation is allocated to school districts based on the Transportation Finance Formula.

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COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.