581-023-0040 Approved Transportation Costs for Payments from the State School Fund (1) Definitions for the purpose of this rule: (a) “Elementary School Student” means, notwithstanding any other OAR or statute, pupils attending a school offering only an elementary curriculum, any combination of grades K through 8; (b) “Secondary School Student” means, notwithstanding any other OAR or statute, pupils attending a school offering any secondary curriculum for grades 9, 10, 11, or 12. Additionally, all students attending a school designated by the local school board through board action as a junior high school or middle school may be considered secondary students; (c) “Local School Board” means, notwithstanding any other OAR or statute, the local school board for the district in which the student’s legal residence is physically located. Local school boards are not required to provide transportation for students who have requested and received approval to attend a school other than that designated by the local school board for students living in their specified attendance area; (d) “Manufacturer’s Rated Capacity” means the number of students to be used in the calculations specified in paragraph (5)(n)(B) of this rule and described below: (A) Buses transporting only elementary students will have a passenger capacity as stated on the manufacturer’s identification plate; (B) Buses transporting only high school students, grades 9 through 12 will have a passenger capacity based on two students for each 39 inch bus seat; (C) Buses transporting mixed groups from grades K–12 (in any combination) or groups of only junior high or middle school students will have a passenger capacity based on 2.5 students for each 39-inch bus seat. “EXAMPLE: A bus with a manufacturer’s passenger capacity stated on the identification plate of 72 would have the following ratings: elementary — 72, high school only — 48, mixed groups — 60, middle school and junior high school — 60.” (e) “Mile(s) from School” means the distance a student lives from school, measured from the closest, reasonable, and prudent point between the school property identified by the local board for that pupil’s attendance and the property where the pupil lives. The distance will be measured over the shortest practicable route on maintained public roadways or over existing pedestrian facilities or pedestrian facilities capable of meeting the requirements listed in ORS 332.405(4); (f) “Patron” means any individual, organization, or entity that is able to use student transportation services except for charter schools (as defined in ORS 338) or a public agency (described in ORS 339.133(4), ORS 327.527, ORS 327.540 or ORS 327.390) if the school or agency reimburses school districts up to one hundred percent (100%) of incurred transportation costs pursuant to ORS 338.145, 339.133(4), ORS 327.527, ORS 327.540 or 327.390. (g) “Supplemental Plan” means a plan adopted by local school board resolution identifying groups or categories of students who live within the 1 and 1.5 mile limitations and require transportation based on health or safety reasons, including special education. Supplemental plan approvals may be ordered by the State Board of Education or its designated representatives. The State Board shall have the right of final review of any actions regarding supplemental plans. Appeals will be directed to the State Board for final consideration. The Plan must include the following: (A) The approximate number of students to be transported based on the plan; (B) The health or safety reasons cited for providing transportation; (C) The local board resolution specifying the supplemental plan as submitted; and (D) Any additional information or documentation supporting the supplemental plan deemed appropriate locally. (h) “Alternative Transportation,” and “Active Transportation costs” have the definitions given in ORS 327.033. (i) “Suitable and sufficient” means transportation that is appropriate for a particular student or group of students based on: (A) The age of the student; (B) The physical or mental capabilities of the student; (C) The distance the student is to be transported; and (D) The safety of the student to be transported. (2) Approved transportation costs shall include those costs incurred in transporting pupils to and from instructional programs during the regularly scheduled school term within the limitations specified by ORS 327.006 and 327.033. Approved transportation costs may include costs incurred in transporting students participating in extended school year programs eligible for funding from the State School Fund. (3) Approved transportation costs shall include those district expenditures associated with: (a) Home-to-school transportation of elementary school pupils who live at least one mile from school; (b) Home-to-school transportation of secondary school pupils who live at least one and one-half miles from school; (c) Transportation of pupils between educational facilities either within or across district boundaries, if the facilities are used as part of the regularly-scheduled instructional program approved by the Board; (d) Transportation of pupils for in-state field trips when such represents an extension of classroom activities for instructional purposes, and shall include out-of-state destinations within 100 miles of the Oregon border; (e) Transportation of pupils home to school for whom a supplemental plan has been approved by the State Board of Education in addressing safety, health, and special education needs; (f) Transportation of preschool children in Early Childhood Special Education Services having an Individual Family Service Plan requiring transportation and preschool children receiving Early Intervention Services under the authority of ORS 343.533. (g) School to home transportation following extended school day instructional programs for: (A) Elementary school pupils who live at least one mile from school; (B) Secondary school pupils who live at least one and one-half miles from school. (h) For the 2020-21 school year, maintaining an adequate level of pupil transportation services while school districts are administering Comprehensive Distance Learning in response to the COVID-19 pandemic. (4) Approved Alternative Transportation costs: (a) Include those district expenditures associated with: (A) The facilitation of Active Transportation for human-powered forms of travel, including walking or bicycling, between home and school for students who live less than three miles from school. These costs may include: (i) A pedestrian or bicycle group; (ii) A crossing guard; or (iii) Staff time required for coordinating active transportation options. (B) The facilitation of Public Transportation between home and school for secondary school students. This may include staff time required for coordinating public transportation options. (b) Require that new positions or extra duty opportunities created as a result of the implementation of Alternative Transportation will be direct employees of the school district. (c) Do not include costs for transportation that is subcontracted by a school district to a private transportation provider. (5) Approved transportation costs shall exclude those district expenditures associated with transportation for the following unless the school program is required under provisions of the Individuals with Disabilities Education Act, ORS 343.533 or 339.010 through 339.090 and 339.250: (a) Pupils living within the limits prescribed in ORS 327.006(2) for whom no supplemental plan has been approved by the State Board; (b) Activity trips other than for instructional purposes; (c) Athletic trips; (d) School lunch purposes; (e) Summer school; (f) Adult education; (g) Evening school; (h) Preschool and/or nursery school; (i) Board and room in lieu of transportation associated with field trips; (j) Transportation facility and staff costs other than those directly related to approved pupil transportation activities. (6) The computation shall be made as follows: (a) Pupil Transportation Salaries; (b) Pupil Transportation Supplies, Equipment, Repairs, and Maintenance; (c) All contracted Transportation; (d) Travel of Pupil Transportation Personnel; (e) Employee Benefits on Pupil Transportation Salaries; (f) Pupil Transportation Insurance; (g) Payments in Lieu of Transportation; (h) Other Expenses of Pupil Transportation; (i) Payments to Other Districts for Pupil Transportation; (j) Leases and Rentals; (k) Depreciation: (A) Depreciation of Garage, but this shall not include land; (B) Depreciation of Buses that are used at least 50% for reimbursable mileage. (C) Shall include the costs to the district to retrofit, repower, or to replace as defined in ORS 468A.795, school buses for the purpose of reducing or eliminating diesel engine emissions. These costs: (i) Shall not include the costs paid with moneys received from the state by a school district from the Clean Diesel Engine Fund that are described in 468A.801 (2)(a); and (ii) Shall include costs to paid with moneys received from the state as allowed by the Environmental Mitigation Trust Agreement as defined in ORS 468A.801 (2)(c). (l)Total of subsections (5)(a) through (k) of this rule; (m) Deduct (if cost is included in detail above): (A) Payments Received from Other Districts and from Patrons for reimbursable transportation; (B) Non-reimbursable Transportation Costs: (i) For 2023 – 24: (I) Number of miles at $3.18 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity of greater than 20 persons including the driver, or (II) Number of miles at $1.60 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity of 20 or less including the driver. (ii) For 2024 – 25: (I) Number of miles at $3.29 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity of greater than 20 persons including the driver, or (II) Number of miles at $1.65 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity of 20 or less including the driver. (iii) For 2025-26: (I) Number of miles at $3.39 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity of greater than 20 persons including the driver, or (II) Number of miles at $1.70 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity of 20 or less including the driver. (iv) For 2026-27: (I) Number of miles at $3.50 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity of greater than 20 persons including the driver, or (II) Number of miles at $1.76 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity of 20 or less including the driver. (v) For the purposes of forecasting costs for 2027-28: (I) Number of miles at $3.61 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity of greater than 20 persons including the driver, or (II) Number of miles at $1.82 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity of 20 or less including the driver. (vi) For the purposes of forecasting costs for 2028-29: (I) Number of miles at $3.72 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity of greater than 20 persons including the driver, or (II) Number of miles at $1.88 per mile for all school buses and school activity vehicles having a manufacturers’ designed passenger capacity of 20 or less including the driver. (vii) Those local school board certified marginal costs attributable to services provided to students who are not eligible for home-to-school transportation under section 3, calculated and documented as follows: Documentation maintained by local district shall include: bus and route identification, school(s) being served, number of eligible students on board, number of ineligible students on board; (I) Calculation of marginal costs shall be as follows: District Cost Per Mile of bus operation divided by the total number of students transported on each bus to derive an average cost per student. The cost per student multiplied by the number of ineligible students and the number of miles transported provides the amount for deduction. Example: Cost per student = district cost per bus mile - number of students on bus; Total Deduction = cost per student x ineligible students x number of miles transported. (I) No deduction will be made for transportation inside prescribed limits if the local board certifies student demographics would require student bus rides to or from school of more than one hour if the bus is routed in a manner making it accessible to the number of eligible students living outside the prescribed mileage limit equal to 130 percent of the bus manufacturer’s rated capacity; or (III) The local school board certifies that buses are routed in a manner to serve at least the number of eligible students living outside the prescribed mileage limits equal to 130 percent of the bus manufacturer’s rated passenger capacity; and (IV) In either of the aforementioned situations, no additional costs have been incurred by the district for the identified service. (C) State and Federal Receipts for Transportation, except those apportioned under ORS 327.006 or third party Medicaid payments for transportation, if used to support expenditures in subsections (5)(a) through (l) of this rule; (D) Rental or Lease Payments from Private Contractors; (E) The percentage of transportation facility depreciation commensurate with the percentage of the total district fleet value based upon purchase price (see subsection (6)(k) of this rule) represented by non-pupil transportation equipment. Examples of nonpupil transportation equipment would include the following: lawnmowers, tractors, backhoes, trucks, pickups, cars, trailers, snow blowers, etc. (n) Total Deductions ((5)(m)(A)+(m)(B)+(m)(C)+(m)(D)+ (m)(E)); (o) Approved Cost ((5)(l) minus (5)(n)). (7) In the above computation, the following definitions apply: (a) Pupil Transportation Salaries. Salaries and wages paid school bus drivers, assistants to driver, and that portion of salaries paid mechanics and other bus maintenance employees, supervisors of transportation, secretarial and clerical assistants, and persons assigned transportation oversight and coordination responsibilities attributable to the transportation program and documented through position descriptions and payroll records. No school district General Administration salaries may be included in this area; (b) Pupil Transportation Supplies, Equipment, Repairs, and Maintenance. Costs of fuel, oil, lubricants, tires, tire repair, batteries, vehicle diagnosis and repair equipment identified as capital expenditures in the “Program Budget Manual,” vehicle repair parts and supplies, repair of vehicles by other than the school district, garage maintenance and operation, and garage equipment repair and maintenance; (c) All Contracted Transportation. Payments to parents and independent public or private contractors for transporting pupils from home to school, between educational facilities and for non-reimbursable activities enumerated in paragraph (6)(l)(B) of this rule; and fares to public carriers for transporting pupils from home to school and between educational facilities: (A) If a district retains ownership of buses and garages and contracts for the operation of the transportation system with provision in the contract for lease or rental of the buses and garages, the contracted transportation cost shown should reflect the gross bid including the lease or rental payment. The lease or rental payment shall be deducted in the computation as reported in paragraph (5)(n)(D) of this rule; (B) If the district retains ownership of buses and garages and participates in a transportation cooperative or consortium through an intergovernmental agreement, depreciation apportionment provided under ORS 327.033 will be disbursed directly to the district. No depreciation component is approved for cooperative-owned buses or garages. (d) Travel of Pupil Transportation Personnel. Meals, lodging, mileage, per diem and other travel expenses of pupil transportation personnel, and private car mileage if paid to bus drivers for travel to and from the point where school bus is parked if other than the central garage. The same travel expenses plus tuition or registration are included for attendance at Department of Education sponsored or presented pupil transportation training programs and seminars; (e) Employee Benefits on Pupil Transportation Salaries. The district’s contributions for employee benefits including social security and retirement, employee health insurance, workers’ compensation, and unemployment insurance; (f) Pupil Transportation Insurance. Payments for public liability and property damage, medical care, collision, fire and theft, and insurance on garages and shops; (g) Payments in Lieu of Transportation. Payments for pupils’ board and room in lieu of transportation, consistent with ORS 332.405(2); (h) Other Expenses of Pupil Transportation. District-paid fees for school bus drivers’ physical examinations; interest on bus or garage contracts payable including lease-purchase agreements if capitalized (see subsection (6)(k) of this rule); (i) Payments to Other In-State or Out-of-State Districts for Transportation. Payments to other districts for approved pupil transportation costs; (j) Leases and Rentals. Rental or lease payments for the use of land or buildings used for approved pupil transportation. Rental or lease payments for buses operated by district personnel for approved pupil transportation. “NOTE: Only those leases which do not contain an option to purchase or application of rentals to purchase should be included in subsection (5)(j) of this rule. See subsection (6)(k) of this rule as to the proper treatment of other lease-purchase agreements.” (k) Depreciation. For purposes of computing depreciation, capitalized cost is defined to include the unit cost of the asset, exclusive of interest, for such assets purchased outright, by conventional contract, or by lease-purchase agreement if such agreement contains any provision to acquire ownership at the end of the agreement by application of a portion of the rentals paid or a terminal payment. The computation of the capitalized cost and the depreciation shall be according to the following: (A) Portions of Garages and Other Buildings Used for Approved Pupil Transportation: (i) Outright purchase (including purchase by conventional contract). For each outright purchase or purchase by conventional contract, each district shall report to the Oregon Department of Education, on the forms provided, the unit cost of the garage or other building purchased and the dollar amount of interest payments associated with such purchase. The purchase of land shall not be included in the Garage Depreciation. The capitalized value shall represent the unit cost, exclusive of interest. Depreciation shall be computed at an annual rate of four percent; (ii) Lease-purchase agreements. For each lease-purchase agreement, the district shall report to the Oregon Department of Education, on the forms provided, the dollar amount of the agreement, the interest payments contained in the agreement, and the schedule of such interest payments contained in the agreement. Land shall not be included in the lease purchase agreement for the purpose of reimbursement. Subsequent to July 1, 1975, the capitalized value shall represent the lease-purchase price less any interest payments contained in the agreement. Depreciation shall be computed at an annual rate of four percent. (B) Buses and Other Vehicles Used for Approved Pupil Transportation: (i) Outright purchase (including purchase by conventional contract). For each outright purchase or purchase by conventional contract, each district shall report to the Oregon Department of Education, on the forms provided, the unit cost of the vehicle(s) purchased and the dollar amount of interest payments associated with such purchase. The capitalized value shall represent the unit cost, exclusive of interest. Depreciation shall be computed at an annual rate of ten percent; (ii) Lease-purchase agreements. For each lease-purchase agreement, the district shall report to the Oregon Department of Education, on the forms provided, the dollar amount of the agreement, any applicable trade-in value, the dollar amounts of interest payments contained in the agreement, and the schedule of such interest payments contained in the agreement. The capitalized value of the vehicles shall represent the lease-purchase price including the trade-in allowance less interest payments contained in the agreement. Depreciation shall be computed at an annual rate of ten percent; (iii) Lease agreements. If the district is leasing its buses under a lease agreement, the district shall report the annual lease cost. A lease agreement as used in this paragraph means an agreement whereby the lessor retains title to the buses being leased to the lessee school district and the title to the buses is never received by the lessee. Under such a lease agreement, the use of the buses by the lessee is limited by the term of the lease. If there is an auxiliary agreement either written or oral whereby at the end of the lease term, the title of the buses shall pass to the lessee school district, the agreement is not a lease agreement as described in this paragraph but is a lease-purchase agreement as outlined in subparagraph (ii) of this paragraph. The lease payment made by a school district obtaining the use of buses pursuant to a lease as defined in this paragraph shall be used in the computation of the reimbursement in place of the depreciation set forth in subparagraphs (i) and (ii) of this paragraph. (C) Deductions: (i) Payments Received from Other Districts and from Patrons. Money received from other school districts, parents, guardians, or students for transportation if paid in support of expenditures listed in subsections (5)(a) through (l) of this rule; (ii) Nonreimbursable Transportation Costs. Actual bus mileage of excludable trips shall include the actual mileage in district owned or contracted buses for transportation for activity trips, athletic trips, school lunch purposes, summer school, adult education, evening school, nursery school, and any other nonreimbursable purposes. Such mileage shall be deducted at the rate indicated in subsection (5)(m)(B) of this rule. The rate of deduction may be reviewed periodically by the State Board of Education and adjusted accordingly; (iii) State and Federal Receipts for Transportation. All state and federal receipts for transportation expenditures, exclusive of funds apportioned under ORS 327.006 and 327.033, that have been included in subsection (5)(a) through (l) of this rule; (iv) Rental or Lease Payments from Private Contractors. Payments received from private contractors for the use of district owned buses and garages in the operation of the pupil transportation system by the private contractor. This item must be shown as Revenue Code 1930 in the school district audit and the gross payments to the contractor must be included in subsection (5)(c) of this rule. (8) Each district shall maintain a record, by purpose, of total pupil transportation miles and shall submit a report of such to the Oregon Department of Education on the form provided. The accuracy of such records shall be certified by the district clerk. (9) If an education service district offers a special service under the provisions of section (4) of ORS 334.175, including home-to-school transportation that would qualify for reimbursement under the provisions of ORS 327.006 if provided by a local school district, the following procedure in crediting the transportation expenditure to the local district may be employed: (a) The education service district shall compute approved home-to-school transportation costs as provided in section (4) of this rule; (b) The approved costs so determined shall be billed to and paid by each of the local school districts. The expenditure shall be accounted for by the local district as a transportation expenditure paid to another education agency; (c) The audited district expenditure shall be recognized by the State Superintendent of Public Instruction in computing the local district’s entitlement under ORS 327.006; (d) If the education service district reimburses the local district the difference between that portion billed and that paid under ORS 327.006, such reimbursement — if derived from property tax sources by education service district resolution — shall not be deducted by the state in determining the local district’s approved costs. The local district shall account for the education service district reimbursement as other general receipts are accounted for from the education service district. (10) For purposes of computing board and room entitlement for a district operating a dormitory under provisions of ORS 327.006, the state assumes responsibility for its proportionate share of costs associated with the provision of food, facilities, staff, operation, and maintenance necessary to provide students with safe and healthy living conditions. The state does not assume responsibility for costs associated with recreation or entertainment of students. The approved cost against which the computation is made for state liability shall not exceed the limit stated in ORS 332.405. In addition, the state will assume its proportionate share of the cost of field trips as defined in subsection (3)(c) of this rule. (11) The computation of approved expenditures for board and room entitlement shall be made as follows: (a) Salaries; (b) Operation: (A) Utilities; (B) Supplies; (C) Other Operational Costs. (c) Maintenance: (A) Upkeep; (B) Replacement. (d) Fixed Charges: (A) Employee Benefits; (B) Other Fixed Charges. (e) Food; (f) Operation of Buses and Other Vehicles — Supplies, Repairs and Maintenance; (g) Depreciation: (A) Dormitory; (B) Buses and Other Vehicles. (h) Total Expenditures (Sum of subsections (10)(a) through (g) of this rule)); (i) Deductions (subtract if cost is included in cost above): (A) Payments Received from Other Districts and from Patrons; (B) Nonreimbursable Transportation Costs as indicated in subsection (5)(m)(B) of this rule; (C) State and Federal Receipts for Transportation, except those apportioned under ORS 327.006, 327.033, or third party Medicaid payments, if used to support expenditures in subsections (10)(a) through (g) of this rule; (D) Federal School Lunch, Breakfast, and Milk Reimbursements; (E) Sales of Food. (j) Total Deductions (sum (10)(i)(A) + (i)(B) + (i)(C) + (i)(D) + (i)(E)); (k) Approved Cost ((10)(h) minus (10)(j) of this rule). (12) The items included in the board and room entitlement computation are defined as follows: (a) Salaries. Salaries and wages paid dormitory personnel, including the dormitory manager, cooks, custodians, and other personnel directly concerned with operation of the dormitory, and that portion of salaries paid secretarial and clerical assistants and other personnel attributable to the dormitory program; (b) Operation: (A) Utilities. Heat for buildings, water and sewage, electricity, telephone, and other utilities necessary for the operation of the dormitory; (B) Supplies. Custodial supplies, supplies for care of grounds, linens, and other supplies necessary for the operation of the dormitory including food services. Purchase of food is included in subsection (11)(e) of this rule; (C) Other Operational Costs. Contracted custodial services, window washing, laundry or linen services, etc., necessary for the operation of the dormitory. (c) Maintenance: (A) Upkeep. Expenditures associated with maintaining the existing dormitory facilities in a safe, healthy, and efficient condition, including supplies and materials for upkeep of dormitory grounds and the dormitory building. Costs associated with maintenance of recreational or entertainment facilities are excluded; (B) Replacement of Equipment. Expenditures associated with replacing equipment necessary to the safe, healthy, and efficient operation of the dormitory. Replacement of equipment used for recreational or entertainment purposes are excluded. (d) Fixed Charges: (A) Employee Benefits. Expenditures for dormitory employees’ benefits including social security and retirement, employee health insurance, workers’ compensation, and unemployment insurance; (B) Other Fixed Charges. Expenditures for property insurance, liability insurance, rental of land and buildings for purposes associated with operation of the dormitory, and other fixed charges directly attributable to operation of the dormitory. (e) Food. Expenditures for food necessary for the operation of the dormitory; (f) Operation of Buses and Other Vehicles — Supplies, Repairs, and Maintenance. Expenditures for fuel, oil, lubricants, tires, tire repair, batteries, vehicle repair parts and supplies, repair of vehicles by other than the school district, garage maintenance and operation, and garage equipment repair and maintenance necessary for the operation of buses utilized for purposes stated in section (3) of this rule and of other vehicles necessary for the operation of the dormitory; (g) Depreciation: (A) Dormitory. For purposes of computing dormitory depreciation, capitalized cost is defined as the unit cost of the asset (including the cost of original equipment), exclusive of interest, plus the cost of substantial improvements or remodeling. The purchase of land shall not be included. Costs associated with providing recreational or entertainment facilities are not included. Depreciation shall be computed at an annual rate of four percent; (B) Buses and Other Vehicles. Depreciation for buses used for approved pupil transportation and that portion of other vehicles necessary for operation of the dormitory shall be computed in accordance with the formula and definition stated in paragraph (6)(k)(B) of this rule. (h) Total. Sum of subsections (10)(a) through (g) of this rule; (i) Deductions: (A) Payments Received from Other Districts and from Patrons. Money received from other school districts, parents, guardians, or students for transportation or room and board if paid in support of expenditures listed in subsections (10)(a) through (f) of this rule; (B) Nonreimbursable Transportation Costs. Costs for nonreimbursable transportation according to the formula and definition stated in paragraph (6)(l)(B) of this rule; (C) State and Federal Receipts for Transportation. All state and federal receipts for transportation or room and board expenditures exclusive of funds apportioned under ORS 327.006 that have been included in subsections (10)(a) through (f) of this rule; (D) Federal School Lunch, Breakfast, and Milk Reimbursements. All federal receipts for school lunch, breakfast, and milk expenditures that have been included in subsections (10)(a) through (f) of this rule; (E) Sales of Food. Money received from teachers, students, or other individuals from food sales for which the expenditures are included in subsections (10)(a) through (f) of this rule. (13) Beginning with the 2024-25 school year, school districts may request a waiver and/or supplemental plan to include Alternative Transportation as a reimbursable expense under their Transportation Grant. In order to include Alternative Transportation costs as a reimbursable expense, school districts must: (a) Submit a proposed or revised supplemental plan and/or waiver for their district that includes explanations of the alternative transportation methods to be used. (b) Demonstrate that the inclusion of Alternative Transportation will result in Transportation Grant expenses that are equal to or less than planned expenses without Alternative Transportation, or demonstrate that costs exceeding this amount will be paid from a source other than the transportation grant from the State School Fund. (c) Document the local community engagement that was conducted to develop the plan for Alternative Transportation. (d) For Alternative Transportation plans that include Public Transportation, districts must demonstrate that: (A) No other transportation options, including Active Transportation options, are suitable and sufficient; (B) They have made a good faith effort to recruit, hire, train, retain and pay transportation positions at competitive wages consistent with collective bargaining agreements and were unable to hire a sufficient workforce to ensure reliable service by a school bus and timely transport of students to and from school. (e) School districts shall resubmit their supplemental plans and/or waivers for the inclusion of Alternative Transportation to be reauthorized by the State Board of Education every two years. (f) Notwithstanding subsections (13)(a-e) of this section, a school district that, prior to the effective date of July 1, 2024, had been receiving reimbursement for costs incurred in providing transit passes under a supplemental plan or a waiver shall continue to receive reimbursement under the terms and conditions the school district was receiving reimbursement prior to the effective date of July 1, 2024 unless the State Board of Education and the school district agree otherwise. (14) Approved Alternative Transportation costs shall include costs identified in or aligned with the plan presented in their request for a waiver and/or supplemental plan that has been approved by the State Board of Education. (a) The Department may reimburse estimated Alternative Transportation costs during the school year the costs are incurred based on estimates provided by the school district, and then reconcile to actual costs the following school year. (b) The Department shall not reimburse Alternative Transportation costs that exceed 5% of the school district’s total Transportation Grant for the concurrent school year. (15) Such items of expenditure as may be questionable in applying the policy stated in this administrative rule shall be resolved by the State Superintendent of Public Instruction and such determination shall be final. (16) Apportionment of the State School Fund for 2001–02 and subsequent years. Statutory/Other Authority: ORS 327.013 & ORS 820.100 - 820.120 Statutes/Other Implemented: ORS 327.013 & ORS 820.100 - 820.120 History: ODE 4-2026, amend filed 02/19/2026, effective 02/20/2026 ODE 4-2024, amend filed 02/16/2024, effective 02/16/2024 ODE 51-2022, amend filed 10/26/2022, effective 10/26/2022 ODE 4-2021, amend filed 01/28/2021, effective 01/28/2021 ODE 38-2020, temporary amend filed 09/18/2020, effective 09/18/2020 through 03/16/2021 ODE 2-2020, amend filed 02/27/2020, effective 02/28/2020 ODE 4-2018, amend filed 02/21/2018, effective 02/21/2018 ODE 46-2016, f. & cert. ef. 11-1-16 ODE 4-2016, f. & cert. ef. 2-5-16 ODE 39-2014, f. & cert. ef. 9-3-14 ODE 22-2011, f. & cert. ef. 12-15-11 ODE 6-2010, f. & cert. ef. 4-26-10 ODE 8-2008, f. & cert. ef. 3-21-08 ODE 10-2006, f. & cert. ef. 2-21-06 ODE 9-2003, f. & cert. ef. 6-13-03 ODE 25-2001, f. & cert. ef. 11-7-01 ODE 9-2000, f. & cert. ef. 4-5-00 EB 4-1997, f. & cert. ef. 4-25-97 EB 21-1993, f. & cert. ef. 6-2-93 EB 3-1992, f. & cert. ef. 2-21-92 EB 42-1988, f. & cert. ef. 11-15-88 EB 32-1987, f. & ef. 12-10-87 EB 4-1987, f. & ef. 2-20-87 1EB 5-1986, f. 1-30-86, ef. 2-1-86 1EB 1-1985, f. 1-4-85, ef. 1-7-85 1EB 17-1983, f. 11-23-83, ef. 11-25-83 1EB 15-1982, f. 8-4-82, ef. 8-5-82 1EB 4-1982, f. & ef. 2-10-82 1EB 6-1981, f. 3-2-81, ef. 3-3-81 1EB 10-1980, f. & ef. 5-5-80 1EB 4-1978, f. 1-27-78, ef. 1-27-78 1EB 233, f. 6-11-76, ef. 6-18-76 1EB 220, f. 2-17-76, ef. 3-15-76 1EB 209, f. 12-5-75, ef. 1-16-76 1EB 181, f. 1-17-75, ef. 7-1-75 1EB 177, f. 10-2-74