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Letter Head: Jack O'Connell, State Superintendent of Public Instruction, Phone number 916-319-0800

March 23, 2007

Dear County Superintendents of Schools and County Chief Business Officials:

SMALL SCHOOL DISTRICT AND COUNTY OFFICE OF EDUCATION BUS
REPLACEMENT PROGRAM

The California Department of Education (CDE) is pleased to announce that $10.444 million in funds appropriated in the Budget Acts of 2005 and 2006 for the Small School District Bus Replacement program are available to small school districts, including direct-funded charter schools, and county offices of education for grants in priority order for bus replacement, bus reconditioning, and fleet expansion. For the purposes of this program, a small school district, county office of education or direct-funded charter school is one with average daily attendance of less than 2,501.  

Under current law, grants are available to replace school buses that do not conform to federal safety standards. In previous years, the CDE funded applications to replace and recondition buses that were manufactured before the 1977 adoption of federal safety standard number 222 relating to school bus passenger seating and crash protection. Because of the dwindling number of pre-1977 buses, the CDE is advancing the funding threshold, as is permitted by law, to a more recent significant safety standard. In 1992, federal safety standard number 131 was adopted relating to school bus pedestrian safety devices. Eligible local educational agencies (LEAs) may now apply for funds to replace buses manufactured prior to 1992. 

As required by law, funds for bus replacement have been set aside to fund applications that will be ranked based on excess age and mileage. Additional funds have been set aside to replace buses based on their condition. LEAs may also apply for funds to recondition school buses or for fleet expansion, although these applications are to be funded as a second and third priority, respectively.  Any bus that is replaced or reconditioned must be owned by the LEA.

There are two application periods and due dates for 2005-06 and 2006-07 funds. The first due date is May 1, 2007, and the second due date is June 15, 2007. Awards will be announced on May 18, 2007, and July 17, 2007, respectively. A revised Program Information Manual with more detailed information and timelines, application form CDE-100 for 2005-06 and 2006-07, and application instruction and checklist are available on the CDE Web site at http://www.cde.ca.gov/fg/fo/r14/busreplacementrfa.asp.

LEAs may be funded for a maximum of one grant from either 2005-06 or 2006-07 funds. The one grant may be in any one of the three categories (replacement, reconditioning, or fleet expansion), keeping in mind that there may be funds sufficient for replacement grants only.

As noted above, in 2004-05, grants were awarded to replace and recondition buses manufactured prior to 1977. Currently, there is in excess of $2 million in 2004-05 funds for which there are no funding requests for bus replacement or reconditioning. As such, the CDE is announcing the availability of these funds for fleet expansion. In addition, any funds remaining from 2005-06 and 2006-07 after applications are received by the second due date, June 15, 2007, will be available to fund fleet expansion.

All applications for fleet expansion must be received by May 1, 2007, in order to be considered for funding. To apply for funds, download and complete form CDE-101, select the fiscal year for which application is being made and follow all instructions. Please submit the completed application electronically as an excel attachment via e-mail and by hard copy via U.S. mail. For mailing addresses, please refer to the fleet expansion application which is posted on the CDE Web site at http://www.cde.ca.gov/fg/fo/r14/busreplacementrfa.asp.

LEAs that previously received a 2004-05 grant to replace or recondition a bus may not receive a 2004-05 fleet expansion grant. LEAs that receive a 2004-05 fleet expansion grant must submit documentation supporting the purchase price by June 12, 2007, and a Request for Final Apportionment and accompanying documentation of purchase and delivery of the bus by October 16, 2007. If the CDE does not receive these items by October 16, 2007, the CDE will issue an invoice to recover all funds awarded.

County superintendents and chief business officials are requested to immediately inform the small school districts in their jurisdiction of these funding opportunities. If you have any questions, please contact Janice Huarte, Fiscal Analyst, by e-mail at jhuarte@cde.ca.gov or 916-322-9128 or Nancy Cook, Fiscal Analyst, by e-mail at ncook@cde.ca.gov or 916-324-4549.

Sincerely,

Scott Hannan, Director
School Fiscal Services Division

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