Reminder to Properly Execute and File Transportation Contracts to Prevent Aid Deductions

All transportation contracts (excluding 4408 contracts) must be claimed on Schedule J in order to receive transportation aid. Contracts not approved by the Pupil Transportation Unit cannot be aided. In order to receive aid and avoid penalties, contracts must be properly executed and filed with the Pupil Transportation Unit.

Pursuant to NYS Education Law Section 3625, every transportation contract must be filed with the Department within one hundred twenty days of the commencement of service under such contract, and no transportation expense is allowed for a period greater than one hundred twenty days prior to the filing of any contract for the transportation of pupils with the Education Department. Additionally, Department policy stipulates that transportation contracts must be properly executed before service begins, and no transportation expense is allowed for the period prior to the execution of the contract.

For more information on transportation contracts see:
Commissioner Regulations for Pupil Transportation Contracts

Contact transportation@nysed.gov or call (518)474-6541 for assistance in filing transportation contracts.

Calculation of Expenditure Deductions:

Late Filed:
If a contract or extension is received at SED (SED Received Date) more than 120 days after service begins (First Day of Service) it is considered late-filed. The computation for the late-file deduct is:

Late Filed: (Number of Days Late Filed/Total Days of Service) * Schedule J Expense

If a contract or extension is received at SED (SED Received Date) after the last day of service, it is aided only on the number of actual school days within the 120-day grace period, provided that the contract expense is reported on SAMS Form FT Schedule J within the statute of limitations for State Aid claims.

Late Executed:
If a contract’s or extension’s Agreement Date is after the First Day of Service, then it is considered late-executed. The computation for the late-execution deduct is:

Late Executed: (Number of Days Late Excuted/Total Days of Service) * Schedule J Expense

When a contract or extension is both late-executed and late-filed, the late-execution deduction is calculated first and deducted from the contract expense. Then the late-file deduction is calculated based on the contract expense remaining after the late-execution deduction. 

Last Updated: August 4, 2020