SCH CD-TRANSPORT REIMBURSE

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Senate Amendment 001

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1657

Introduced 2/5/2025, by Sen. Ram Villivalam

SYNOPSIS AS INTRODUCED:

105 ILCS 5/29-5

from Ch. 122, par. 29-5

Amends the Transportation Article of the School Code. Provides that
the allowable direct cost of transporting pupils for regular, vocational,
and special education pupil transportation shall be limited to, among
other costs, expenditures to electrification-as-a-service contractors that
provide electric school buses or a combination of electric vehicle
charging infrastructure, equipment, or daily charge management services,
plus a depreciation allowance of 8.33% for 12 years for electric school
buses and vehicles approved for transporting pupils to and from school.
LRB104 07589 LNS 17633 b

A BILL FOR

SB1657
LRB104 07589 LNS 17633 b
1

AN ACT concerning education.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The School Code is amended by changing Section
5
29-5 as follows:

6

(105 ILCS 5/29-5)

(from Ch. 122, par. 29-5)
7

Sec. 29-5.
Reimbursement by State for transportation.
Any
8
school district or State-authorized charter school,
9
maintaining a school, transporting resident pupils to another
10
school district's vocational program, offered through a joint
11
agreement approved by the State Board of Education, as
12
provided in Section 10-22.22 or transporting its resident
13
pupils to a school which meets the standards for recognition
14
as established by the State Board of Education which provides
15
transportation meeting the standards of safety, comfort,
16
convenience, efficiency and operation prescribed by the State
17
Board of Education for resident pupils in kindergarten or any
18
of grades 1 through 12 who: (a) reside at least 1 1/2 miles as
19
measured by the customary route of travel, from the school
20
attended; or (b) reside in areas where conditions are such
21
that walking constitutes a hazard to the safety of the child
22
when determined under Section 29-3; and (c) are transported to
23
the school attended from pick-up points at the beginning of

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LRB104 07589 LNS 17633 b
1
the school day and back again at the close of the school day or
2
transported to and from their assigned attendance centers
3
during the school day shall be reimbursed by the State as
4
hereinafter provided in this Section.
5

The State will pay the prorated allowable cost of
6
transporting eligible pupils less the real equalized assessed
7
valuation as computed under paragraph (3) of subsection (d) of
8
Section 18-8.15 in a dual school district maintaining
9
secondary grades 9 to 12 inclusive times a qualifying rate of
10
.05%; in elementary school districts maintaining grades K to 8
11
times a qualifying rate of .06%; and in unit districts
12
maintaining grades K to 12, including partial elementary unit
13
districts formed pursuant to Article 11E, times a qualifying
14
rate of .07%. For a State-authorized charter school, the State
15
shall pay the prorated allowable cost of transporting eligible
16
pupils less a real equalized assessed valuation calculated
17
pursuant to this Section times a qualifying rate. For purposes
18
of calculating the real equalized assessed valuation for a
19
State-authorized charter school whose resident district is not
20
a school district organized under Article 34 of this Code, the
21
State Board of Education shall calculate the average of the
22
number of students in grades kindergarten through 12 reported
23
as enrolled in the charter school in the State Board's Student
24
Information System on October 1 and March 1 of the immediately
25
preceding school year. That value shall be divided by the
26
average of the number of students in grades kindergarten

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1
through 12 reported as enrolled in the charter school's
2
resident district on October 1 and March 1 of the immediately
3
preceding school year. That proportion shall be multiplied by
4
the real equalized assessed valuation as computed under
5
paragraph (3) of subsection (d) of Section 18-8.15 for each
6
State-authorized charter school's applicable resident
7
district. A State-authorized charter school whose resident
8
district is organized under Article 34 of this Code shall have
9
a real equalized assessed valuation equal to the real
10
equalized assessed valuation of its resident district as
11
computed under paragraph (3) of subsection (d) of Section
12
18-8.15. A State-authorized charter school's qualifying rate
13
shall be the same as the rate that applies to the charter
14
school's resident district.
15

To be eligible to receive reimbursement in excess of 4/5
16
of the cost to transport eligible pupils, a school district or
17
partial elementary unit district formed pursuant to Article
18
11E shall have a Transportation Fund tax rate of at least .12%.
19
The Transportation Fund tax rate for a partial elementary unit
20
district formed pursuant Article 11E shall be the combined
21
elementary and high school rates pursuant to paragraph (4) of
22
subsection (a) of Section 18-8.15.
23

If a school district or partial elementary unit district
24
formed pursuant to Article 11E does not have a .12%
25
Transportation Fund tax rate, the amount of its claim in
26
excess of 4/5 of the cost of transporting pupils shall be

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LRB104 07589 LNS 17633 b
1
reduced by the sum arrived at by subtracting the
2
Transportation Fund tax rate from .12% and multiplying that
3
amount by the district's real equalized assessed valuation as
4
computed under paragraph (3) of subsection (d) of Section
5
18-8.15, provided that in no case shall said reduction result
6
in reimbursement of less than 4/5 of the cost to transport
7
eligible pupils. No such adjustment may be applied to a claim
8
filed by a State-authorized charter school.
9

Subject to the calculation of equalized assessed
10
valuation, an adjustment for an insufficient tax rate, and the
11
use of a qualifying rate as provided in this Section, a
12
State-authorized charter school may make a claim for
13
reimbursement by the State that is calculated in the same
14
manner as a school district.
15

The minimum amount to be received by a district is $16
16
times the number of eligible pupils transported.
17

When calculating the reimbursement for transportation
18
costs, the State Board of Education may not deduct the number
19
of pupils enrolled in early education programs from the number
20
of pupils eligible for reimbursement if the pupils enrolled in
21
the early education programs are transported at the same time
22
as other eligible pupils.
23

Any such district transporting resident pupils during the
24
school day to an area vocational school or another school
25
district's vocational program more than 1 1/2 miles from the
26
school attended, as provided in Sections 10-22.20a and

SB1657
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1
10-22.22, shall be reimbursed by the State for 4/5 of the cost
2
of transporting eligible pupils.
3

School day means that period of time during which the
4
pupil is required to be in attendance for instructional
5
purposes.
6

If a pupil is at a location within the school district
7
other than his residence for child care purposes at the time
8
for transportation to school, that location may be considered
9
for purposes of determining the 1 1/2 miles from the school
10
attended.
11

Claims for reimbursement that include children who attend
12
any school other than a public school shall show the number of
13
such children transported.
14

Claims for reimbursement under this Section shall not be
15
paid for the transportation of pupils for whom transportation
16
costs are claimed for payment under other Sections of this
17
Act.
18

The allowable direct cost of transporting pupils for
19
regular, vocational, and special education pupil
20
transportation shall be limited to the sum of the cost of
21
physical examinations required for employment as a school bus
22
driver; the salaries of full-time or part-time drivers and
23
school bus maintenance personnel; employee benefits excluding
24
Illinois municipal retirement payments, social security
25
payments, unemployment insurance payments and workers'
26
compensation insurance premiums; expenditures to independent

SB1657
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LRB104 07589 LNS 17633 b
1
carriers who operate school buses; payments to other school
2
districts for pupil transportation services;
expenditures to
3
electrification-as-a-service contractors that provide
4
electric school buses or a combination of electric vehicle
5
charging infrastructure, equipment, or daily charge management
6
services;
pre-approved contractual expenditures for
7
computerized bus scheduling; expenditures for housing
8
assistance and homeless prevention under Sections 1-17 and
9
1-18 of the Education for Homeless Children Act that are not in
10
excess of the school district's actual costs for providing
11
transportation services and are not otherwise claimed in
12
another State or federal grant that permits those costs to a
13
parent, a legal guardian, any other person who enrolled a
14
pupil, or a homeless assistance agency that is part of the
15
federal McKinney-Vento Homeless Assistance Act's continuum of
16
care for the area in which the district is located; the cost of
17
gasoline, oil, tires, and other supplies necessary for the
18
operation of school buses; the cost of converting buses'
19
gasoline engines to more fuel efficient engines or to engines
20
which use alternative energy sources; the cost of travel to
21
meetings and workshops conducted by the regional
22
superintendent or the State Superintendent of Education
23
pursuant to the standards established by the Secretary of
24
State under Section 6-106 of the Illinois Vehicle Code to
25
improve the driving skills of school bus drivers; the cost of
26
maintenance of school buses including parts and materials

SB1657
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LRB104 07589 LNS 17633 b
1
used; expenditures for leasing transportation vehicles, except
2
interest and service charges; the cost of insurance and
3
licenses for transportation vehicles; expenditures for the
4
rental of transportation equipment; plus a depreciation
5
allowance of 20% for 5 years for school buses and vehicles
6
approved for transporting pupils to and from school
, a
7
depreciation allowance of 8.33% for 12 years for electric
8
school buses and vehicles approved for transporting pupils to
9
and from school,
and a depreciation allowance of 10% for 10
10
years for other transportation equipment so used. Each school
11
year, if a school district has made expenditures to the
12
Regional Transportation Authority or any of its service
13
boards, a mass transit district, or an urban transportation
14
district under an intergovernmental agreement with the
15
district to provide for the transportation of pupils and if
16
the public transit carrier received direct payment for
17
services or passes from a school district within its service
18
area during the 2000-2001 school year, then the allowable
19
direct cost of transporting pupils for regular, vocational,
20
and special education pupil transportation shall also include
21
the expenditures that the district has made to the public
22
transit carrier. In addition to the above allowable costs,
23
school districts shall also claim all transportation
24
supervisory salary costs, including Illinois municipal
25
retirement payments, and all transportation related building
26
and building maintenance costs without limitation.

SB1657
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LRB104 07589 LNS 17633 b
1

Special education allowable costs shall also include
2
expenditures for the salaries of attendants or aides for that
3
portion of the time they assist special education pupils while
4
in transit and expenditures for parents and public carriers
5
for transporting special education pupils when pre-approved by
6
the State Superintendent of Education.
7

Indirect costs shall be included in the reimbursement
8
claim for districts which own and operate their own school
9
buses. Such indirect costs shall include administrative costs,
10
or any costs attributable to transporting pupils from their
11
attendance centers to another school building for
12
instructional purposes. No school district which owns and
13
operates its own school buses may claim reimbursement for
14
indirect costs which exceed 5% of the total allowable direct
15
costs for pupil transportation.
16

The State Board of Education shall prescribe uniform
17
regulations for determining the above standards and shall
18
prescribe forms of cost accounting and standards of
19
determining reasonable depreciation. Such depreciation shall
20
include the cost of equipping school buses with the safety
21
features required by law or by the rules, regulations and
22
standards promulgated by the State Board of Education, and the
23
Department of Transportation for the safety and construction
24
of school buses provided, however, any equipment cost
25
reimbursed by the Department of Transportation for equipping
26
school buses with such safety equipment shall be deducted from

SB1657
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LRB104 07589 LNS 17633 b
1
the allowable cost in the computation of reimbursement under
2
this Section in the same percentage as the cost of the
3
equipment is depreciated.
4

On or before August 15, annually, the chief school
5
administrator for the district shall certify to the State
6
Superintendent of Education the district's claim for
7
reimbursement for the school year ending on June 30 next
8
preceding. The State Superintendent of Education shall check
9
and approve the claims and prepare the vouchers showing the
10
amounts due for district reimbursement claims. Each fiscal
11
year, the State Superintendent of Education shall prepare and
12
transmit the first 3 vouchers to the Comptroller on the 30th
13
day of September, December and March, respectively, and the
14
final voucher, no later than June 20.
15

If the amount appropriated for transportation
16
reimbursement is insufficient to fund total claims for any
17
fiscal year, the State Board of Education shall reduce each
18
school district's allowable costs and flat grant amount
19
proportionately to make total adjusted claims equal the total
20
amount appropriated.
21

For purposes of calculating claims for reimbursement under
22
this Section for any school year beginning July 1, 2016, the
23
equalized assessed valuation for a school district or partial
24
elementary unit district formed pursuant to Article 11E used
25
to compute reimbursement shall be the real equalized assessed
26
valuation as computed under paragraph (3) of subsection (d) of

SB1657
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LRB104 07589 LNS 17633 b
1
Section 18-8.15.
2

All reimbursements received from the State shall be
3
deposited into the district's transportation fund or into the
4
fund from which the allowable expenditures were made.
5

Notwithstanding any other provision of law, any school
6
district receiving a payment under this Section or under
7
Section 14-7.02, 14-7.02b, or 14-13.01 of this Code may
8
classify all or a portion of the funds that it receives in a
9
particular fiscal year or from State aid pursuant to Section
10
18-8.15 of this Code as funds received in connection with any
11
funding program for which it is entitled to receive funds from
12
the State in that fiscal year (including, without limitation,
13
any funding program referenced in this Section), regardless of
14
the source or timing of the receipt. The district may not
15
classify more funds as funds received in connection with the
16
funding program than the district is entitled to receive in
17
that fiscal year for that program. Any classification by a
18
district must be made by a resolution of its board of
19
education. The resolution must identify the amount of any
20
payments or general State aid to be classified under this
21
paragraph and must specify the funding program to which the
22
funds are to be treated as received in connection therewith.
23
This resolution is controlling as to the classification of
24
funds referenced therein. A certified copy of the resolution
25
must be sent to the State Superintendent of Education. The
26
resolution shall still take effect even though a copy of the

SB1657
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LRB104 07589 LNS 17633 b
1
resolution has not been sent to the State Superintendent of
2
Education in a timely manner. No classification under this
3
paragraph by a district shall affect the total amount or
4
timing of money the district is entitled to receive under this
5
Code. No classification under this paragraph by a district
6
shall in any way relieve the district from or affect any
7
requirements that otherwise would apply with respect to that
8
funding program, including any accounting of funds by source,
9
reporting expenditures by original source and purpose,
10
reporting requirements, or requirements of providing services.
11

Any school district with a population of not more than
12
500,000 must deposit all funds received under this Article
13
into the transportation fund and use those funds for the
14
provision of transportation services.
15
(Source: P.A. 102-539, eff. 8-20-21; 102-813, eff. 5-13-22;
16
103-588, eff. 1-1-25
.)

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