1. Pupil Transportation Funding Derek Graham, Section Chief Transportation Services North Carolina Dept. of Public Instruction

2. Allotments for School Transportation NC Department of Public Instruction, Division of School Support, Transportation Services Charged with equitably distributing funds to 117 LEAs for operation of a safe, efficient school bus transportation system Separate appropriation for replacing school buses

3. Pupil Transportation Funding: A Little History Property and Cost Clerks –Allotted for 12 months based on a formula considering the number of buses Mechanics, Directors, Supervisors and Foremen –Allotted for 12 months based on a formula considering the number of buses Contracts: Reimbursed for actual expenses Fuel, tires,parts, etc. reimbursed for actual expenses

4. 1989 Legislative Action SB 44, Sec. 55 “The Department of Public Instruction shall implement the Pupil Transportation Operational Study authorized by Section 94 of Chapter 1086 of the 1987 Session Laws, The State Board of Education shall allocate up to $400,000 of the funds appropriated for the 1989-90 fiscal year for aid to local school administrative units for pupil transportation to implement the findings of this study. The Department shall also report its final recommendations for achieving improved efficiency and economy in the pupil transportation system to the 1990 Session of the General Assembly. These recommendations shlal included incentives for encouraging cost-effective operations in local school administrative units, as provided in GS 115C-240(e) and GS 115C-246(a).

5. Ernst & Young Study Results - Jan. 1991 Allot funds in a way that will provide incentives for the LEAs to provide pupil transportation service as efficiently as possible. Structure the funding process to maximize the LEAs’ discretion in deciding how pupil transportation objectives are to be met and to hold them accountable for the results of those decisions relative to meeting the dual objectives of service quality and economy. Provide information that helps each LEA to identify the source of any inefficiencies.

6. Accountability Block Grant Allotments:Eliminated Line Item Allotments –Fuel –Salaries –Tires/Repair Parts Flexibility to Use Funds where needed Block Grant based on a Budget Rating –Expenditures –Students Transported –Buses Operated Budget Rating is an indication of Efficiency Local Control

9. Transportation Funding: Step by Step 1. Determine Funding Base 2. Determine Budget Rating 3. Multiply (1) x (2) and Adjust

10. Step 1: Determine Funding Base (Previous Years’ Eligible Expenditures) All State Expenditures except for equipment line items All Local Expenditures corresponding to a state object code, except equipment Exceptions: –Salaries in excess of the state maximum –Salary bonuses

11. All State Expenditures except for equipment line items All Local Expenditures corresponding to a state object code, except equipment Legislative appropriation assumes allotment growth consistent with enrollment growth plus legislated increased (salary increases, etc) A few counties are capped each year due to expenses that increased beyond these projections

12. Capped Expenses Does not count “against” the LEA in the calculation of budget ratings. Does not get included in the funding base carried forward to the next year.

13. Step 2: Determine Budget Rating Inputs: Expenditures, Students Transported, Buses Operated Adjustments for Site Characteristics –Avg. Distance from School; Street Network –Pupil Density; Student Clustering –Median Family Income; Seats per Bus

14. Step 3: Apply Rating to Base Funding and Adjust Multiply Budget Rating By Base Funding (Step 1). Add funding for (positive) growth in students transported Adjust for Legislated Increases

15. Determining the Ratings Calculate the cost per student transported for each county Calculate the # buses operated per 100 students transported for each county Use Linear Regression to make sure that there is nothing beyond the county’s control that unfairly penalizes them: Site Characteristics

16. Factor Efficiencies - Step 1 0 50 100 150 200 250 300 350 00.511.522.53 Buses per 100 Adjusted Students Expenditures per Adjusted Student A O Cost Eff = XL / XA Y M L X Bus Eff = YM / YA Combined Eff = AVG(Bus Eff, Cost Eff)

17. Factor Efficiencies - Step 2 0 50 100 150 200 250 300 350 00.511.522.53 Buses per 100 Adjusted Students Expenditures per Adjusted Student O A B C D Overall Efficiency A = Combined Efficiency A Average Combined Efficiencies F (F=Frontier Points)

18. Leveling the Playing Field: Consider Site Characteristics Beyond the Control of the LEA Pupil Density (Students Transported per Mile of Road Distance of Students to School Circuity % EC Students

19. Unadjusted Bus Efficiency Buses - 3rd Quartile Distance to School R 2 = 0.3781 0 2 4 6 8 10 12 14 00.20.40.60.81 Unadjuested Bus Efficiency 3rd Quart. Dist. 3Quart Dist Linear (3Quart Dist)

20. Bus Efficiency Adjusted for Distance to School 3rd Quartile Bus Efficiency Adjusted for Distance 3rd Quartile R 2 = 3E-05 0 2 4 6 8 10 12 14 020406080100 Bus Efficiency Distnace to School 3rd Quartile 3Quart Dist Linear (3Quart Dist)

21. Site Characteristics

22. Pupil Transportation Funding Derek Graham, Section Chief Transportation Services North Carolina Dept. of Public Instruction