News & Insights

As school transportation contractors enter into bid season, it is in the interest of the contractor to price competitively; however, contractors should be careful to consider the possibility of changes to their operational costs during the term of the contract. Currently, there is much discussion at the state and federal level on laws that could affect costs for transportation contractors, such as laws related to changes in infrastructure and school bus safety equipment. In the event that such c...

Across the nation, numerous school transportation contractors continue to experience the financial strain caused by school closures due to the coronavirus. The sudden elimination of in-person school days during the 2019-2020 and 2020-2021 school years has driven many school districts to refuse to pay their transportation contractors, citing that because no driving occurred, there is no service to pay for. However, even when no driving is performed, transportation contractors continue to provide ...

On Nov. 25, 2020 Governor Wolf signed SB 1216/Act 136 which included language addressing school transportation subsidies for the 2020-2021 school year. The new law assures that Pennsylvania schools will receive a transportation subsidy payment from the Pennsylvania Department of Education equal to the amount allocated for the previous school year if the school pays their contracted transportation provider as if there were no COVID-19 interruptions in the 2020-2021 reduced school year minus varia...

Many schools continue to resist payments to school bus contractors, with some schools ignoring invoices, rejecting invoices, or paying unilaterally reduced amounts. As the 2020-2021 school year is underway, non-payment issues continue, leaving many school bus contractors wondering what to do. Fortunately, many states have Prompt Payment Laws that make public entities liable for interest and attorney’s fees if the public entity does not promptly pay invoices from contractors. These laws vary fro...

As remote learning in some form or another continues into the new school year contractors continue to face challenges getting paid for partial services and special operations due to coronavirus. This article suggests some ways to address these issues.

Now that the Payroll Protection Plan loans have started funding – the questions re: how to qualify for forgiveness and how to coordinate these funds with other benefits are on everyone’s mind. School bus contractors have their own unique difficulties in this area, especially in coordination with their contracts and the school year calendar. Just like the application process, the tax issues are as clear as mud in many regards. Some questions can be answered, but some just cannot, so far. So, Ri...

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Families First Coronavirus Response Act (FFCRA) are two new federal laws with important implications for school bus contractors. The CARES Act directs schools to continue paying school bus contractors during Coronavirus school closures, enhances existing unemployment compensation benefits, and makes loans and grants available to businesses during Coronavirus school closures. The Families First Act modifies the Family Medi...