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The Honolulu Advertiser
Posted on: Wednesday, April 9, 2008

DOE cuts may force school bus fare hike

By Loren Moreno
Advertiser Staff Writer

CURRENT SCHOOL BUS FARES

One-way: 35 cents

Quarterly pass: $31.50

Annual pass: $119.70

Source: state Department of Education

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The threat of a $10 million cut to the Department of Education budget could affect school bus fares, education officials said.

Both the state House and Senate are proposing to trim the Department of Education's budget by at least $9.7 million, and that has education officials floating the idea of raising bus fees.

The DOE had attempted last year to raise bus fares from the current 35-cent one-way fare to $1. That proposal failed to gain Board of Education support.

But some board members seemed willing to consider the idea of raising bus fares at a committee meeting this week, where education officials outlined cuts to the DOE budget that are pending in the state Legislature.

About a fourth of all public school students — 40,000 — ride a bus each day. And while some board members say they are worried about the effect increased bus fares could have on families, others say the DOE may have no other choice.

"I don't want to have to charge people more at a time they can least afford it. It is the last alternative, but it may be the only way," said board chairwoman Donna Ikeda.

Ikeda said that the other option would be to move money from other areas of the DOE's $2.34 billion budget to cover the shortfall.

"I'm not sure we could find $10 million to cover that," she said.

James Brese, DOE's chief financial officer, said based on where lawmakers plan on cutting from the budget, that the DOE may have to raise fees for services.

Brese raised the possibility of not only increasing bus fares, but possibly increasing fees for the A+ after-school program, school lunches and adult education.

Increases to school lunches seem least likely because those costs were increased by 25 cents to a total of $1.25 per lunch last year.

"We've recently (raised lunch fees), so I don't know that we have any leeway in that area or that the board would even entertain that," Brese said.

SUPPORT REDUCED

Legislators are specifically trimming from the portion of the budget that covers student support — student transportation, lunches, school maintenance — and from the A+ program and adult education. The House has proposed a $9.7 million reduction in the DOE's overall operating budget. The Senate has proposed a $10.6 million reduction.

Rep. Roy Takumi (D-Pearl City, Momilani, Pacific Palisades), the House education committee chairman, did not return a call seeking comment.

State lawmakers still have to meet in conference before an official budget reduction is made, Brese said.

Even while some board members are beginning to consider the idea of bus fare increases, it could be awhile before any change goes into effect.

Bus fare increases would require an official change to the DOE's administrative rules, which must be approved by the Board of Education after public hearings.

Changing administrative rules is a long and tedious process, which means it could be a year before any change is made, said Randy Moore, assistant superintendent of business services.

"Even if the board tomorrow said they want to increase bus fares, they'll have to go through statewide public hearings," Moore said.

"If we scrambled, we might have it effective beginning the second semester of next school year. It's a long process."

Ikeda suggested yet another way to deal with the impending budget shortfall would be to reduce bus services, which could hurt many families.

"I wish the Legislature would recognize who they are hurting with these cuts," Ikeda said.

ACTION UNCERTAIN

Still, other board members are not yet convinced the situation is dire and would require a bus fare increase.

"I think we need to have the conversation, but whether or not we're going to act on this, I don't know," said Karen Knudsen, first vice chairwoman of the BOE.

Knudsen pointed out that the bus service is already heavily subsidized and questioned whether it would even be worth it to increase bus fares.

Of the approximately $40 million that it cost to operate the bus service this year, only about $2 million is paid for by fares.

While students who qualify for free lunch are able to ride the bus at no charge, all other students, including those who qualify for reduced-price lunch, must pay full cost.

"Often it is the middle class or lower middle class who bear the impact," Knudsen said.

"If you have four children and you're talking a $1-a-day times four — that can really take a chunk out of a family's budget."

Reach Loren Moreno at lmoreno@honoluluadvertiser.com.