MN SF2553

Modifies Minnesota Statutes section 123B.92, subdivision 5, regarding how school districts report and allocate pupil transportation expenditures.

Specifies that salaries and fringe benefits for district transportation directors, their direct support staff, and direct transportation service providers (bus drivers and aides) may be included in transportation expenditures, with documentation required for part-time employees.

Expands cost allocation methods for transportation expenditures from "cost-per-mile or cost-per-student" to include "cost-per-hour" and "cost-per-route" as additional allocation options.

Allows districts contracting for transportation services to use alternative cost allocation methods if they bid contracts separately by transportation category, receive multiple vendor bids, and maintain cost-per-mile consistency within ten percent across categories.

Requires the department to mandate cost reallocation for contractor-owned operations when reported costs vary more than ten percent among transportation categories.