Oregon Public School Transportation Funding - The Chalkboard ...

Comments from State/Local Officials
The funding formula is currently being reviewed. The stated issues with the
current formula relate to its complexity and the inability of local operations to use
the techniques and information in a meaningful manner to increase operational
efficiencies. An oversight agency believed the complexity of the current formula
prevented its effective use by local districts and a review was initiated.
The Ohio Department of Education, in conjunction with a team of 20 stakeholders
“invited because of their active roles in various aspects of school transportation,”
has developed and is proposing a new “volume-based” formula. The group
identified four basic formula objectives:
1. Should be understandable
2. Should reward efficiency
3. Should promote ridership
4. Should accommodate special logistical circumstances
The proposed formula includes a “Base payment” determined by identifying the
average cost for transportation from the previous year, either cost per mile or cost
per student, whichever is greater. This average is then applied to each district’s
reported ridership.
The “base” is then adjusted by considerations for the volume of mandated nonpublic
school transportation required in the district (up to 10% of base), an
“efficiency” adjustment, defined below (up to 10% of base), a walk distance
adjustment (up to 2.5% of base), and a high school bus service adjustment (up to
2.5% of base.)
The “efficiency targets” are based on the relative rider population density of a
district and identify an “expected” number of students that “should” be
transported on a bus in a given district. This target compares the state’s median
bus load from the previous year (state mandated October student counts: 79
students) with the district load levels adjusted for relative population density. If a
district has a low population density, their target will be lower than the 79 state
median. The converse is true for districts with high population density. 7
Example: Number of students transported divided by district’s square miles =
rider density (riders per bus) for each district. This factor is then used to adjust
the target rider ratio, and ultimately the funding adjustment for efficiency.
7 The Department of Education has identified and published the anticipated efficiency targets for 2008 even
though their application cannot be implemented until the formula achieves legislative approval and funding.
The state mean would be recalculated each year based on the student counts received in the October reports.
The funding distribution would then be adjusted beginning in January, providing a closer link between state
support and current expenditures. Given the “distribution formula” is linked to a legislatively adopted
appropriation, no addition to total dollar availability is anticipated.
School Transportation ECONorthwest January 2009 Page 28