Obion County Board of Education
May 18, 2009

Background Information:

During the current fiscal year, the Trenton, Bradford, and Gibson County Special School Districts, and the Humboldt City Schools all asked that we sign an agreement with them for transportation services for their students who attend the West Tennessee School for the Deaf. Since our route goes through these school districts and since our bus is not full with our students, we agreed to transport their students. A copy of the agreement with Trenton is attached for the Board’s information. The total amount of the agreements for this fiscal year will amount to $13,500, and we are paid whether the student rides the bus everyday or not. The special education bus was initially purchased during the 2006 – 2007 fiscal year and we were reimbursed with federal high cost funds. Eventually, this bus will have to be replaced; therefore, we are asking the Board to designate all revenues from these agreements with other school systems for the replacement of the special education bus. In accordance with generally accepted governmental accounting standards, all designations of fund balance must be approved by the Board.

Staff Recommendation:

I recommend that all revenues derived from service agreements for the transportation of special education students be designated for the purchase of a special education bus.