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Panel introduces RS 32642 to change school transportation funding, exclude some virtual students from busing reimbursements

2892100 · March 11, 2025
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Summary

Rep. Dan Garner introduced RS 32642 to recast school districts as authorized transportation districts, revise reimbursement formulas (including excluding some virtual students), and allow alternative vehicles with local controls on driver training; committee approved introducing the bill.

Rep. Dan Garner (District 28) asked the House Committee on Education to introduce RS 32642, a substantial revision to school transportation funding and operations that sponsors said will rename school districts in the statute as "authorized transportation districts," adjust reimbursement formulas, and change how virtual students are handled for bus funding.

The proposal: Garner described several key elements. The draft removes a previously debated block-grant description from sponsor materials but—after committee questions—staff and other sponsors clarified the block grant remains in the statute and will be used to distribute transportation funds. The RS also would exclude support units "attributable to students educated primarily through home-based or virtual meetings," a change that staff said will reduce reported transportation reimbursements for districts that include virtual programs within their district.

Why it matters: Sponsors said the goal is to better reflect actual transportation costs, provide alternative reimbursement for small-group or special-needs transport using smaller vehicles, and reduce opportunities to "game" the system. Representative Mark Sautter said his districts support the change because it "pays a little bit better than the old system, and it's less likely to get gamed." Jack Nelson, who reviewed historical funding, said the new spreadsheet accompanying the RS shows individual district reimbursements and that most districts would receive an increase under the proposed formula, though small rural districts might see smaller gains relative to need.

Technical and funding details: Gideon Tullman of the State Department of Education told the committee that the draft includes a statutory provision excluding virtual students from certain support-unit calculations (page 4, line 10 in the draft) and that the spreadsheet accompanying the RS also reflects a $7,500,000 appropriation the sponsor said was made by statute but has not been distributed. Tullman said the block-grant language remains in the code and that staff will work with legislative offices to simplify that portion.

Safety and licensing: Sponsors noted vehicle safety concerns and pointed committee members to federal safety ratings for bus models. On licensing, Garner said a commercial driver's license (CDL) will still be required for traditional school buses per state statute; the RS requires additional training for operators of alternative vehicles and leaves to local districts whether that additional training must be a CDL. Representative Hawkins and others clarified that vehicles carrying more than the CDL threshold (for example, 15-passenger vans used commercially) remain subject to CDL rules.

Committee action: Representative Harris moved to introduce RS 32642; the motion carried by voice vote. No recorded roll-call tally was provided in the hearing transcript.

Outstanding items and next steps: Sponsors said a separate RS will follow to extract virtual-student funding language into its own bill for detailed consideration. Staff indicated they will coordinate with the speaker's office and legislative services office on the block-grant language and on final spreadsheet distribution calculations.