School Bus Purchases

Training for: Legal Notes

Believe it or not, we get questions from time to time about school bus purchases. Here’s a synopsis of Maine law on the subject.

Under 20-A M.R.S.A. § 5401(15), school administrative units (municipal schools, RSUs, CSDs, AOLs, and so on) may acquire school buses by purchase from current funds, by purchase funded by a short-term loan, or by lease-purchase.

All school bus purchases are subject to approval by the Commissioner of Education, who may approve up to $5,000,000 annually in outright purchases, plus an additional sum for annual payments on loans and lease-purchases. The Commissioner must encourage schools, whenever possible, to purchase buses from current funds rather than using short-term loans.

Loans and lease-purchases may not exceed a five-year term. Loans must be authorized by the school unit’s legislative body (in a municipal school unit, either the voters or a town or city council, depending on whether there is a municipal charter; in all other types of school units, the voters).

Lease-purchases, however, do not require approval by the unit’s legislative body if funds sufficient for the initial lease-purchase payment have been appropriated by the unit’s legislative body. This is an exception to the general rule that multi-year contractual obligations require the approval of a municipality’s legislative body – again, either the voters or a town or city council, depending (see “Multi-Year Contracts,” Maine Townsman, Legal Notes, February 2011).

In general, the superintendent of a school unit, with the approval of the school board, is authorized to provide for the transportation of school students. For details, see other provisions of 20-A M.R.S.A. § 5401. (By R.P.F.) n

Believe it or not, we get questions from time to time about school bus purchases. Here’s a synopsis of Maine law on the subject.

Under 20-A M.R.S.A. § 5401(15), school administrative units (municipal schools, RSUs, CSDs, AOLs, and so on) may acquire school buses by purchase from current funds, by purchase funded by a short-term loan, or by lease-purchase.

All school bus purchases are subject to approval by the Commissioner of Education, who may approve up to $5,000,000 annually in outright purchases, plus an additional sum for annual payments on loans and lease-purchases. The Commissioner must encourage schools, whenever possible, to purchase buses from current funds rather than using short-term loans.

Loans and lease-purchases may not exceed a five-year term. Loans must be authorized by the school unit’s legislative body (in a municipal school unit, either the voters or a town or city council, depending on whether there is a municipal charter; in all other types of school units, the voters).

Lease-purchases, however, do not require approval by the unit’s legislative body if funds sufficient for the initial lease-purchase payment have been appropriated by the unit’s legislative body. This is an exception to the general rule that multi-year contractual obligations require the approval of a municipality’s legislative body – again, either the voters or a town or city council, depending (see “Multi-Year Contracts,” Maine Townsman, Legal Notes, February 2011).

In general, the superintendent of a school unit, with the approval of the school board, is authorized to provide for the transportation of school students. For details, see other provisions of 20-A M.R.S.A. § 5401. (By R.P.F.) n