Next Stop: Pupil Transportation

The Michigan Department of Education (MDE) recently released guidance to help schools navigate the complexities of pupil transportation. MDE’s guidance explains new funding and reporting requirements established by Public Act 120 of 2024 (PA 120) and provides important reminders to help schools steer clear of common pupil transportation pitfalls.

Funding Requirements

PA 120 allocated $125 million to school transportation reimbursement funding for the 2024-2025 school year. Michigan school districts and intermediate school districts are eligible for this funding under State School Aid Act Section 22l. As you are likely aware, to remain eligible, school districts are to submit the District Nonpublic School Student Transportation Reporting Form by December 1, 2024 to its ISD. On this form, school districts identify the number of riders that it expects to transport to nonpublic schools each day of the week.

Revised School Code Section 1321 requires school districts to transport nonpublic school riders if the school district provides transportation to the grade level that the pupil is enrolled in and the pupil attends the nearest state-approved nonpublic school in the school district. A school district is not required to transport or pay for the transportation of a resident pupil who lives less than 1.5 miles from the nonpublic school or who attends a state-approved nonpublic school located outside of the district, unless the school district also transports its resident pupils to public schools outside of the district.

By February 1, 2025, ISDs must collect and submit the Nonpublic School Student Transportation Reporting Form to MDE. This form requires an ISD to list each school district and public school academy within its boundaries and identify each entity’s total number of anticipated nonpublic school riders. It also requires a projected total number of nonpublic school riders within the entire ISD, which can be calculated by tallying the totals provided by constituent districts.

MDE will compile this information and issue a report no later than March 1 of each fiscal year.

Reminders

MDE issued several important reminders that will help schools avoid common pupil transportation pitfalls:

1. Schools cannot use vehicles other than school buses with a manufacturer’s rated seating capacity of 11 or more passengers, including the driver, to transport pupils to or from school-related events. Schools may contract with a licensed passenger motor carrier to use a motor bus for occasional pupil transportation to or from school-related events, but certified motor carriers cannot use a motor bus to transport pupils to and from school.
2. Schools must submit a MDE-approved school transportation vehicle waiver for all of its vehicles with a seating capacity of 10 passengers or less.
3. The owner or lessor of a school bus must remove or destroy the pass sticker (i.e., green tag) before selling or returning a leased school bus.
4. School buses must be inspected before use. See the Michigan State Police School Bus Inspection Manual for more information.
5. If a defect or deficiency is discovered or reported to a school-employed or contracted driver, the driver must prepare and sign a vehicle inspection report.
6. Pre-trip school bus inspections are mandatory, must be retained for two years, and will be audited by either MDE or the Michigan State Police beginning in the 2025-2026 school year.

For Thrun Policy Service subscribers, bus inspection requirements are outlined in Policy 3309.

By following this guidance, school officials can help ensure they satisfy pupil transportation reimburse­ment requirements and provide safe and reliable transportation for their students.