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Committee advances bill increasing state share of school transportation costs
Summary
House Bill 405 would raise the state reimbursement schedule for school transportation, increasing the state portion by an estimated $8 million and reducing local property-tax burden. The committee voted the bill out of committee in executive action.
Representative Thane moved House Bill 405 in executive action, explaining the bill would update school transportation reimbursement schedules that have not changed since 2004. "What this bill would do would be to cause the state share to increase by $8,000,000," Thane said, adding the county permissive share would correspondingly increase, resulting in an estimated $8,100,000 decrease in local school property taxes beginning in FY 2026 in the fiscal note.
Committee members said the measure addresses long-running funding pressures for school transportation as costs have risen. Vice Chair Romano and Representative Eiseley voiced support, calling the measure "long overdue." In roll call the committee approved the bill; the clerk read a roll call with recorded ayes and nays and reported the bill will advance from committee to Appropriations and the House floor.
Representative Thane urged members to consider inflation and driver and aide shortages, saying the state share has not adjusted in two decades and districts struggle to operate routes under the old reimbursement schedule. The bill's fiscal note estimates a $16 million infusion into transportation costs statewide (an $8 million increase in state share and $8 million in permissive county share) with an expected $8.1 million reduction in local property-tax levy for schools.
