To amend sections 3317.0212, 3327.01, and 3327.016; to enact new section 3327.021 and section 3317.071; and to repeal section 3327.021 of the Revised Code and to amend Sections 265.10, 265.300, 512.10, and 516.10 of H.B. 96 of the 136th General Assembly to enact the School Busing Improvement Act regarding transportation of students and to make an appropriation.
HB545, titled the School Busing Improvement Act, revises Ohio’s school transportation funding and compliance framework for city, local, and exempted village school districts. For fiscal years 2026 and 2027, it creates new definitions and reporting requirements for “qualifying riders,” “qualifying ridership,” rider density, and transportation costs, and directs the Department of Education and Workforce to calculate statewide transportation cost benchmarks using district data. Those benchmarks would then be used to determine each district’s transportation base payment, an efficiency adjustment payment tied to riders per bus, and a transportation supplement that varies by district density. The bill also establishes a payment structure for community schools when districts or schools assume transportation responsibility under existing law.
The bill also adds a new bus purchasing grant program, requiring the department to distribute grants of at least $45,000 to eligible districts to replace the oldest and highest-mileage buses, subject to appropriation. In addition, it strengthens transportation planning and enforcement rules by requiring community and chartered nonpublic schools to provide start and end times earlier, requiring districts to develop transportation plans around those times, and authorizing the department to withhold transportation payments from districts that are consistently or repeatedly noncompliant with transportation obligations, unless extenuating circumstances are shown. The bill amends the state budget act to fund the new school bus purchase line item and related education appropriations.
HB545 would significantly affect state education finance and local district transportation operations. It changes how transportation aid is calculated, expands the data districts must report, creates a new grant-funded capital program for bus replacement, and gives the state a stronger enforcement mechanism against districts that fail to provide required transportation. It also touches community schools and chartered nonpublic schools by tying their transportation arrangements and payments more closely to district obligations and school scheduling.
The general sentiment reflected in the bill text is that it is intended as a transportation improvement and modernization measure, with a focus on efficiency, accountability, and fleet replacement. Because there are no committee transcripts or votes provided, there is no recorded public debate in the supplied materials to indicate broader support or opposition. The bill’s structure suggests an effort to address longstanding school transportation concerns through both funding and compliance tools.
The main points of potential contention are likely to be the new payment formulas, the efficiency-based incentives, and the enforcement penalties for noncompliance. Districts with lower density, longer routes, or higher transportation costs may view the formulas as difficult to meet or as insufficiently tailored to local conditions, while community and nonpublic school advocates may focus on whether the bill improves or complicates access to transportation. The requirement that schools set start and end times early enough to fit district routing needs may also be controversial, as could the department’s authority to reduce transportation payments when districts miss service obligations.
The bill amends Ohio Revised Code sections governing pupil transportation and school funding, and adds new sections that would change how transportation aid is calculated, reported, and enforced for city, local, and exempted village school districts. It creates a new bus purchasing grant program in the Revised Code and amends the state budget act to appropriate money for that program, including a new School Bus Purchase fund transfer. It also revises transportation-related budget lines and cash transfers in H.B. 96 to support the new program and related education spending.
Based on the bill text and the absence of committee testimony or recorded votes, the overall sentiment appears generally supportive of improving school transportation, especially through better funding, fleet replacement, and accountability. The bill is framed as a corrective measure to transportation inefficiencies and service gaps rather than as a controversial policy shift. However, the lack of discussion records means no formal consensus or opposition can be confirmed from the supplied materials.
Likely areas of contention include the new statewide formulas for transportation payments, the efficiency adjustment tied to riders per bus, and the supplement based on rider density, since districts vary widely in geography and route complexity. Districts may also object to the compliance penalty that allows the department to deduct transportation payments for persistent failures, particularly where shortages, scheduling conflicts, or other operational issues create service problems. Community schools and chartered nonpublic schools may be concerned about the new timing requirements and the extent to which district routing needs can limit transportation access.