School Bus Purchasing and Depreciation.
School districts are responsible for selecting, paying for, and maintaining student transportation vehicles purchased by the district. The Office of the Superintendent of Public Instruction (OSPI) is responsible for developing categories and competitive specifications for school bus and vehicle acquisitions, as well as a corresponding list of school bus and vehicle dealers with the lowest purchase price quotes.
School districts and educational service districts that purchase vehicles through OSPI's competitive quote process or through a separate lowest-price competitive bid process are eligible for certain state funds that are based on the category of vehicle, the anticipated lifetime of vehicles of this category, and a state reimbursement rate. The accumulated value of the state payments received by the district and the potential investment return is designed to be equal to the replacement cost of the vehicle, less its salvage value, at the end of its anticipated lifetime. The anticipated lifetime varies by bus type. Smaller "Type A" buses with seating capacity no greater than 36 passengers have an 8-year depreciation lifespan, while larger "Type C and D" buses have a 13-year depreciation lifespan.
Clean School Bus Program.
The Environmental Protection Agency (EPA) provides $5 billion over five years beginning in federal fiscal year 2022 for the Clean School Bus (CSB) Rebate Program. The CSB Rebate Program provides rebates or grants to an eligible entity to replace existing school buses with zero-emission (ZE) and CSBs. Funds may be used for purchase of ZE or CSBs, eligible infrastructure, and other costs, and may also include workforce training. Beginning in 2023, the EPA established the CSB Grant Program which provides additional funding with the same goal.
Running Start.
The Running Start (RS) program allows high school students to enroll in participating public institutions of higher education and to simultaneously earn both high school and college credit. Beginning in the 2023-24 school year, students participating in RS programs may be funded up to a combined maximum enrollment of 1.4 full-time equivalents (FTEs), if enrolled dually across the school district and institution of higher education or enrolled full-time at the institution of higher education. The school district portion of a student's RS enrollment may not exceed one FTE.
Transition to Kindergarten Program.
In 2023, the Transition to Kindergarten (TTK) Program was established to assist eligible children in need of additional preparation to be successful kindergarten students in the following school year. OSPI was directed to adopt rules for the administration of, the allocation of state funding for, and minimum standards and requirements for, the TTK Program. The rules must include specified minimum requirements for school districts, charter schools, and state-tribal education compact schools operating a TTK Program. School districts, charter schools, and state-tribal education compact schools operating a TTK Program must adopt policies regarding eligibility, recruitment, and enrollment for the TTK Program that, at a minimum, meet the requirements of the OSPI rules. Funding for the TTK Program is calculated using the number of annual average full-time equivalent (AAFTE) eligible children enrolled in the program as specified in the omnibus appropriations act and based on portions of the prototypical school funding model. The current omnibus bill provides funding for 7,266 AAFTEs during the 2025-26 school year.
Bus Depreciation.
The lifespan used to calculate bus depreciation payments are changed as follows:
The OSPI must adjust a school district's reimbursement payment if a district is awarded a federal grant or rebate to purchase a student transportation vehicle. The adjustment must reduce the quote for that category of vehicle by the amount of the grant or rebate.
Running Start.
Beginning in the 2026-27 school year, the combined maximum enrollment limit for running start students is reduced from 1.4 FTE to 1.2 FTE.
Transition to Kindergarten.
Funding for the TTK Program is limited to the amount of funding specified in the omnibus appropriations act. OSPI must develop rules for the allocation of state funding that prioritizes existing TTK programs and areas that lack early learning opportunities.
OSPI rules must include authorization for TTK programs to charge tuition or sliding-scale fees for students not receiving special education. Special education students in TTK must be counted as kindergarteners for the purpose of special education funding formulas.