the YELLOW BUS Newsletter Spring Issue.pdf2 The Yellow Bus, Spring 2014 This publication is a member service of the New York State Bus Contractors Association P.O. Box 268, Latham,

LENS Implementation

The New York State DMV now offers notification of changes to drivers’ medical certification status through

the License Event Notification Service (LENS). When a change in medical certification status occurs, the following information will display:Med Cert Status: (Certified/Not Certified/Not Required)Self-Cert Type: (NA; NI; EA; or EI) Med Cert Expiration Date: mm/dd/yyyy* (if applicable)

the YELLOW BUSNewsletter

www.nysbca.com P.O. Box 268 • Latham, NY 12110E-mail: [email protected] Phone: 518-220-9905 • Fax: 518-220-9906

Spring 2014

Cuomo Budget Proposal Calls on School Districts to Explore Efficiencies

This year Governor Cuomo’s executive budget proposal challenges New York school districts

to find more ways to become efficient. Cuomo’s budget proposal seeks to help schools save money through consolidations and shared services in or-der to freeze property taxes for two years.With many cash-strapped schools still trying to manage the state’s new 2% property tax cap law, school districts will be hard-pressed to find even more ways to become efficient. Many school districts have been pushed to the brink; they have cut teachers, classroom resources and after school pro-grams. Even amid the Governor’s record funding propos-als for education, the New York State United Teachers union points out that 69% of our school districts receive fewer tax dollars than they did five years ago. So the question becomes, what else can be done to help school districts reduce costs? Well the New York School Bus Contractors Association has a very simple solution, a single budget initiative that will help taxpayers and our

cash-strapped school districts save over $14 million per year. The $14 million per year savings is based on a fiscal review performed by the New York State Department of Taxation and Finance. Currently, the State of New York and school districts pay the state and local sales tax on the purchase of school buses purchased by private operators as part of their transportation contracts. It is unbeliev-able…and it is time to end this silly budget merry-go-round. It is time to exempt school buses from

the state and local sales tax.

The unfortunate reality is that school districts that utilize private school bus contractors currently pay as a portion of their transportation contracts the costs associated with the state and local sales tax. The state then reimburses the school district for the expense of the transportation contract not paid by school district taxpayers.

The legislature and Governor exempted private coach buses from the sales tax back in the mid-90’s because of the public and environmental benefits of riding a bus; it seems logical that school buses should receive the same treatment.

Here are some additional vehicles which are exempted from the state and local sales tax: Commercial airplanes, ferry boats, transit buses, fishing vessels, tractors, trailers, semi-trailers and Race Horses – yes – race horses.

Exempting school buses, the parts, maintenance, and fuel used to transport school children is the right thing to do. It will have no negative impact on the state’s fiscal plan and it can save tax payers millions of dollars each year.

By Andre Claridge, PC Public Affairs for NYSBCA

Calendar of EventsMarch 27th – NYSBCA Board MeetingAlbany, NY

March 27th – NYDOT Partners MeetingAlbany, NY

May 17th – NYS School Bus Safety CompetitionRockland Lake State Park, NY

June 5th – Commissioner’s SBDI Advisory CommitteeState Education Building, Albany, NY

October 17 – 19th – NYSBCA Annual ConventionDanfords Hotel & Marina, Port Jefferson, NY

October 20-24, 2014 - National School Bus Safety Week“At my Stop - You Stop!”

(See “LENS Implementation” on page 3)

2 The Yellow Bus, Spring 2014

This publication is a member service

of theNew York State Bus

Contractors AssociationP.O. Box 268, Latham, NY 12210

(518) 220-9905 • (518) 220-9906 (fax)www.NYSBCA.com

———

2013-14 NYSBCA Board of Directors

OFFICERS Robert Pape

Dell Transportation

Frank Luciano, 1st Vice-President First Student, Inc.

Michael Martucci, Secretary Quality Bus Service, LLC

John J. Corrado, Treasurer Suffolk Transportation

Phil Vallone, Past President Rolling V. Bus Corporation

DIRECTORSKyle Albers

Huntington Coach Corporation

Tim Birnie Birnie Bus Service

Howard Boyce, Jr. Veterans Transportation

Robert Brown Brown Transportation

Charlie Bruce National Express Corporation

John Corr The Trans Group

Seth Corwin Chappaqua Transportation

Tim Flood The Trans Group

Gene Kowalczewski Student Transportation of America

Paul Mori Huntington Coach Corporation

Neil Strahl Pioneer Transportation

Carmen Tomeo WE Transport, Inc.

R. Thomas Weeks Ridge Road Express

HONORARY LIFETIME MEMBERSEd Arrigoni

NY Bus Service

Kevin Clifford Huntington Coach Corp. & Hendrickson Bus

Joan Corwin Chappaqua Transportation

STAFFJennifer Hickey Bruce, CMP

Executive Director

Andre Claridge Government Affairs

43rd Annual NYS School Bus Safety

Competition Information Now Available Online

The 43rd Annual New York State School Bus Safety Competition, organized by the New York School Bus Contractors Association (NYSBCA), will be held on

the grounds of Rockland Lake State Park (299 Rockland Lake Road ~ Valley Cot-tage, NY 10989), on Saturday May 17th. Online you will find the following information:

Competition Rules and Regulations• Competition Driver Application• Competition Judge Application• Advertising & Sponsorship Opportunities• Directions to Rockland Lake State Park (Parking Field #4) •

Please consider sending your drivers. Registration is only $40 per contestant and includes the competition itself, a barbeque lunch and a t-shirt.We are ALWAYS in need of judges. Please help with this fun event by signing up to help. Even if you are unfamiliar with judging, we will put you in a group of people that can help you during the event. Score keepers and runners are always needed too! As our way of saying thanks, we promise you a day of fun, a conti-nental breakfast with coffee, a barbeque lunch, a t-shirt and bragging rights.Even if you cannot make it to the competition, be there in spirit! Support our drivers and judges by sponsoring an ad in the Booster Booklet. Possibly even consider sponsoring the t-shirts, the lunch or the awards.Visit the NYSBCA website to find out more!

—————————

President Obama and Chairman Camp Address Transportation Funding

ST. PAUL, MINNESOTA – President Obama announced several transportation policy priorities as the nation’s Highway Trust Fund (HTF) hurtles closer to

the brink of bankruptcy. Joined by Transportation Secretary Foxx, most notably, President Obama advocated for a $302 billion 4-year surface transportation re-authorization bill which adequately funds the HTF through a series of savings to be realized through comprehensive tax reform. Current surface transportation authority is set to expire on September 30. The tax reform savings component of this plan will be unveiled next month in the President’s Budget he will be sending to Congress. The plan is to dedicate $150 billion in one-time transition revenue from pro-growth business tax reform to address the funding crisis. The White House plans to work with Republican and Democratic Congressional leaders on these proposals. President’s infrastructure announcement included the launching of $600 million for TIGER grants, a competitive capital projects funding program. The program supports projects including roads, bridges, transit, rail, and ports. A fact sheet from the White House on this news can be found here.Also, House Ways and Means Committee Chairman Dave Camp (R-MI) released a bill which serves as a blueprint for the arduous task of comprehensive tax re-form. Among the many proposals in the nearly 1,000 page bill is a provision to dedicate $126.5 billion to the Highway Trust Fund upfront, funding infrastructure for eight years in a proposal that dovetails with Obama’s plan described above. While we believe prospects for tax reform for this year are unlikely, it is significant that the President and Republican Chair of the House Ways and Means Commit-tee both put forth proposals to address the looming highway trust fund cliff.

Spring 2014, The Yellow Bus 3

Medical Variance Expiration Date: mm/dd/yyyy* (if applicable)*Employers/Organizations will also receive notification 60 days prior to the expiration date of the medical certificate or medical variance on file.

Employers and organizations with drivers enrolled in LENS may choose to receive Med Cert Notifications by logging on to the LENS page at: https://secure.dmv.ny.gov/vpass.

Employers and organizations who are not currently receiv-ing notifications through LENS are encouraged to establish an account using the link below and enroll their drivers. LENS provides a convenient way to remain informed of cer-tain changes in the license status of your drivers, and help ensure your drivers remain medically qualified.

LENS is an automated reporting system that allows an em-ployer or organization to receive notifications of certain items which post to the driver license record of the persons whom they monitor. Every day LENS reviews the driver license records of enrolled drivers and reports changes to the driver’s employer or organization. Search and notification fees may apply; please visit the LENS website at: http://dmv.ny.gov/org/records/license-event-notification- service-lens-accounts for additional information and enroll-ment instructions.

LENS Implementation (continued)

Gardian Angel Safety Lighting

System approved in Michigan

Unity School Bus Parts is proud to announce that the Gardian Angel Safety Lighting System has been fully

approved in the state of Michigan.

Currently Unity is running pilot programs in Georgia, Illi-nois and Indiana. Other states such as Colorado, Arizona, Montana and New York has expressed interested as well. The story of Gardian can be observed in a short video that appears on our web page, www.unityparts.com. The sys-tem consists of a 1,000 lumen LED work light that mounts on the front bumper of a school bus and is activated in conjunction with the red overhead flashers, stop arm and crossing gate. Its benefit is 3 fold: 1. Provides a pathway of light for students crossing from

the driver’s side of the bus safely. 2. Heightens awareness of traffic approaching from the

front and rear of the bus. 3. Increases visibility of students crossing by the bus

driver. Anyone who is interested in learning more about the Gard-ian should contact Nick Mastry of Unity School Bus Parts at (586) 615-0807 or leave a message with our staff mem-bers at (800) 937-3906.

Paquette Promoted within Durham School

Services

ALBANY, New York – Karen Paquette, Past President of NYSBCA, has been promoted to Area General

Manager with Durham School Services. Karen is now re-sponsible for three of Durham’s locations: Albany, Troy, and Schenectady. Karen has been the General Manager in Albany for more than 15 years. Congratulations Karen!



Again showing its commitment to offering industry-lead-ing customer support, Leonard Bus Sales recently an-

nounced a realignment of several key positions into a new leadership team focused on further improving the support offered to contractors and school district partners. “We pride ourselves on being the best at what we do,” said Mike Leonard. “We offer ‘one-stop-shop’ customer and ve-hicle support, cost-saving fleet management services, and the ability to service and provide parts for every make and model bus. And, we are continually working to improve these offerings as part of our overall value proposition. This realignment will help us do just that. ”Leonard Bus Sales’ new operations division will be headed by Chris O’Hara, who formerly served as operations man-ager for the company’s Saratoga Springs and Garden City Park locations. The team will also include Leonard Bus Sales’ Parts Director Jim Hogan, whose talents and expertise are nationally recognized, and Service Director Mark Ing-ham, who has shown superior leadership improving service across all company locations. Among other tasks, the team will work to further integrate the service and parts processes across the company.“As we continue our pursuit of excellence across our organi-zation, we compared ourselves to our peers and competitors to find best practices that could improve our customers’ ex-perience even more,” said Mike Leonard. “We soon realized that putting additional focus on our operational processes

will provide us the best opportunity to improve the already outstanding support we offer customers.”School bus contractors that have worked with Leonard Bus Sales have come to know the award-winning support of-fered by the entire company. O’Hara and the team will work to build on that reputation, while expanding their range of services. This renewed focus on improved support takes place as Leonard Bus Sales also expands its engine offerings and its ability to perform service work on other makes and models, all a result of IC Bus now including the Cummins ISB engine as an option in the CE Series. “Being a partner and trusted advisor doesn’t come easy,” Mike Leonard added. “We’ve challenged this seasoned team of leaders to dive deep into all of our key processes and to lead us ever closer toward achieving our goal of providing the best customers service and support possible.” Leonard Bus Sales, Inc. is owned and operated by the Leon-ard family, a recognized leader in the distribution and sup-port of quality, environmentally-friendly school and com-mercial buses. The company is a leading-distributor of IC Bus™ brand buses in Upstate New York. It also distrib-utes Type-A school and commercial buses from Trans Tech throughout New York and Type-A commercial buses from Champion Bus in Upstate New York. Headquartered in De-posit, NY and the company operates four additional full-ser-vice facilities in Bergen, Rome, Saratoga Springs and a Trans Tech Type-A facility in Garden City Park, N.Y.

Leonard Bus Sales Adopts New Structure to Ensure the Best Customer Support in the Business

NY Main Office:9505 Avenue DBrooklyn, NY 11236718-649-8400

5001 2nd AvenueBrooklyn, NY 11232718-492-8600

58-80 Borden AvenueMaspeth, NY 11378718-894-4850

1370 Viele AvenueBronx, NY 10474718-328-1616

191 Cabot StreetWest Babylon, NY 11704631-454-7888

2222 Smithtown AvenueRonkonkoma, NY 11779631-981-1960

46-100 Paris StreetNewark, NJ 07105732-495-0440


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It’s that magical time of year again, when businesses and individuals gather up their tax information to review prior

year’s results and plan for the current year changes. To stim-ulate the thought process, we are providing several current points of particular interest that will hopefully be useful for you and your business.

Things to keep in mindHigher Wage Base—No surprise: The Social Security • wage base has increased again to $117,000 in 2014 (up from $113,700 in 2013). At least the tax rate for em-ployers and employees remains the same at 7.65% on amounts up to the base and 1.45% above that. Another payroll factor: A 0.9% Medicare surtax applies to single filers with wages above $200,000 and joint filers above $250,000.

New Mileage Rates—The IRS recently announced stan-• dard mileage rates for 2014 tax deduction purposes. And this time there was a small surprise: The rates of 56 cents per mile for business driving and 23.5 cents per mile for medical-related driving were each a half cent per mile lower than in 2013. The rate for charitable travel is 14 cents per mile, the same as it was last year.

Flexible Spending Accounts—generally, you must use • the funds in a flexible spending account (FSA) before the end of the year or lose them. However, an employer may allow a 2½-month grace period. Now the IRS says an employer may permit a participant to carry over up to $500 of unused FSA funds to the next year. The catch: You cannot combine the carryover provision with the grace period.

Friendly Hire—Sometimes the easiest way to fill a job • opening is to hire a friend. But that is where the difficul-ties may begin. It can create a ripple effect, with negative ramifications in the workplace while possibly compro-mising a friendship. Do not consider it an outright pro-hibition, but tread carefully in this area. Usually, the best solution is to simply hire the best person for the job.

Fast-track Settlements—the IRS has announced a na-• tionwide rollout of the Fast Track Settlement (FTS) pro-gram. This streamlined program is available to small businesses and self-employed individuals under exami-

nation by the IRS. It uses alternative dispute resolution techniques to save time and avoid litigation. Typically, FTS matters are resolved within 60 days.

Where’s Your Refund? Due to the government shutdown last year, the IRS was • forced to delay the start of the tax filing season for in-dividuals. Now that we are in “crunch time,” you can expect some additional delays in processing returns. Of course there will be no delay and debiting your accounts for any taxes due!

If you are waiting for a refund, you can track its progress • using the “Where’s My Refund” feature at www.irs.gov. For those procrastinators out there; April 15 will be here before you know it.

Time for an S Corp Election?The benefits of shifting to S corporation status are well • known. Shareholders are taxed like partners in a part-nership, and there is no corporate-level tax.

Alert:• The date for electing S corp status for 2014 is March 15, 2014. After that, the election generally will not take effect until 2015 unless special criteria can be met.

How Long to Keep Tax Records?With another tax season approaching, you may be won-• dering how long you need to hold on to your tax records. The standard answer is a minimum of three years, but maybe longer, especially if you are risk-aversive.

Reason: The usual statute of limitations is three years. • So the IRS has three years to review the situation and assess any tax deficiencies. But the three-year period is extended to six years if gross income is understated by more than 25%. If tax fraud is involved, returns may be challenged at any time.

Contact Rick Anastasia ([email protected]) or Mary MacKrell ([email protected]) to get more information on these and other tax planning opportunities and to see how our firm can help you and your business realize the most tax savings possible. LCS&Z, L.L.P. provides accounting, tax and con-sulting services to a wide range of businesses in the trans-portation industry.

Quarterly Tax Planning Update

Don’t Want to Compete in the Safety Competition?

Help us out and be a Judge!

The 43rd Annual NYS School Bus Safety Competition, sponsored by the New York School Bus Contractors Associa-tion (NYSBCA), will be held on Saturday, May 17th at Rockland Lake State Park (Parking Field #4).

We are in the process of looking for judges and volunteers for this year’s competition. Please call the office at 518-220-9905 or send an email to [email protected] and give us your name and contact information and we will add you to the list and place you in the most-effective event location. You will receive your assignment and instructions the day of the event, as well as a complimentary t-shirt, continental breakfast and barbeque lunch.



We’ve all heard the quote: “An ounce of prevention is worth a pound of cure.” Bullying can happen any-

where; on the school grounds, online, in the classroom, and often on the ride to school. Education and awareness are two great ways to prevent bullying, but where do you start?

The following is a step-by-step guide on how you can bully-proof your bus:

Step 1: Start with a Bullying AssessmentStopbullying.gov, a federal government website dedicated to providing tools and resources to prevent bullying, sug-gests you start with an assessment of the problem through an anonymous survey. Adults can underestimate bullying because children often don’t report it.

An anonymous survey of students will help give you a clear picture of what types of bullying are actually happening on your bus and help you better target your bullying preven-tion and intervention efforts. Most importantly, the survey results can serve as a benchmark for measuring how well your bullying prevention programs are working.

To give you some ideas on what questions to include in the survey, download the Center for Disease Control and Pre-vention’s Compendium of Assessment Tools (http://www.cdc.gov/ViolencePrevention/pub/measuring_bullying.html) designed to help measure bullying victimization, perpetration, and bystander experiences. Another great re-source is the Office of Safe and Healthy Students who pub-lished a collection of surveys ( http://safesupportivelearn-ing.ed.gov/topic-research/school-climate-measurement/school-climate-survey-compendium) to assess a school climate.

Step 2: Set Rules & Policies to Create a Safe and Respectful EnvironmentCreating a safe and respectful environment on the school bus can go a long way in preventing bullying. Bullying ranges from verbal taunting and name-calling to severe physical abuse. It is important to create a culture of awareness where students and drivers can easily identify and deter bullying behavior before it becomes a bigger problem.

Establish and enforce a set of rules and policies that clearly outlines how you expect students to treat one another, and publish guidelines for drivers to follow in preventing and intervening in bullying situations.

Engage students, drivers, parents, and school administra-tors in your policy-making and ensure that your guidelines match up with already established school rules and state laws. Once you have established your bullying policy, make sure that all stakeholders are aware of the rules and the methods for reporting incidences of bullying.

Step 3: Educate Drivers on Bullying Prevention & InterventionOnce you’ve established a set of rules & policies, the next step is educating your drivers. The school bus driver is the first and last person a child sees during the school day, and your driver’s relationship and interaction with students is a critical part of bullying prevention.

The National Association for Pupil Transportation (NAPT) in partnership with the Education Department’s Office of Safe and Drug-free Schools, and the Safe and Supportive Schools Technical Assistance Center has developed two fan-tastic driver training modules that provide a step-by-step trainer’s guide, a PowerPoint presentation (in PDF For-mat), handouts for driver activities, palm cards for drivers, and posters to display in the transportation department or throughout the school system to reinforce the messages.

Here is a link to the materials that you can download to con-duct your own driver training:

https://netforum.avectra.com/eweb/DynamicPage.aspx?Site=NAPT&WebCode=bullying

Step 4: Engage Parents and StudentsRemember to engage parents and students in your anti-bullying efforts. Ask parents to get involved with your campaign against bullying by watching for warning signs and having a discussion about bullying with their own chil-dren. Today’s Parent magazine recently published an article you can refer to parents as a resource -Anti-bullying 101: 14 Strategies to Squelch Bullying Tendencies in your Children. (http://www.todaysparentusa.com/site/2013/09/anti-bullying-101-14-strategies-to-squelch-bullying-tendencies-in-your-children-2/)

How to Bully-Proof Your School Bus: Resources for Anti-bullying

Education & AwarenessBy Lori Jetha |Seon

(See “How to Bully-Proof Your School Bus” continued on pg. 10)


Annual Convention Call for

Presentations

The New York School Bus Contractors Association (NYS-BCA) is accepting workshop and demonstration propos-

als for its 60th Annual Convention, being held October 17-19 at Danfords Hotel & Marina in Port Jefferson, New York.The association seeks presenters who have innovative ways of doing things, allowing them to accomplish more and do better as a result. When submitting your program idea, please include: Presentation Title, Short Description, Length of Program, Speaker name(s), Company, Phone and e-mail address.Proposals should feature practical information and advice and must be specifically tailored to meet the administrative or operational needs of pupil transportation professionals. To be considered as a speaker, your program must be edu-cational in nature — that is, sales presentations will not be accepted. If selected as a conference speaker, you will gain visibility in the industry and contribute to the advancement of your profession.Proposals must be received no later than September 1st. Se-lected entrants will be invited to participate in the conven-tion by September 15, 2014.

And don’t forget about the kids! Setting expectations for how children treat one another, and creating an environ-ment of safety and respect is essential. Educate students on your anti-bullying policy by creating kid-friendly bus rules to hand out at the beginning of the school year or post inside the bus as a reminder.

Step 5: Rally Community Efforts to Stop BullyingBullying doesn’t just happen at school. Community mem-bers can use their unique strengths and skills to prevent bul-lying wherever it happens. Reach out to your local commu-nity. Involve anyone who wants to learn about bullying and reduce its impact in the community. Partner with one of your local anti-bullying organizations to develop community-wide strategies to identify and support children who are bullied, redirect the behavior of bullies, and change the attitudes of adults and youth who tolerate bullying behaviors.One organization we’ve joined is The Bully Project, a social action campaign inspired by the award-winning film BULLY. They’ve sparked a national movement to stop bullying that is transforming kids’ lives and changing a culture of bully-ing into one of empathy and action. Check out their web site at www.thebullyproject.com to get involved.

Get Started!Getting started is half the battle, but hopefully we have given you some ideas and resources to jump-start your ef-forts to bully-proof your buses. We began our own journey by launching a Bullies Aren’t Cool Coloring Contest which yielded results we had never even dreamed of.Visit www.seon.com/anti-bullying for more inspiration to help you get started on your own anti-bullying journey.

How to Bully-Proof Your School Bus (continued)

Seon Design Raises Money for

Anti-Bullying Cause

COQUITLAM, British Columbia — Seon Design has sup-ported Canadian anti-bullying campaign Pink Shirt Day

by purchasing official Pink Shirt Day T-shirts for company employees, raising over $600 for the cause. Officials said that 100% of the proceeds from the T-shirt purchases go to the Boys and Girls Clubs of Greater Vancouver. To highlight the significance of Pink Shirt Day, Seon also held a corporate event at SilverCity Coquitlam Theatres on last month. All staff wore the Pink Shirt Day T-shirts to celebrate the company’s own “No Bullies on My Bus” anti-bullying campaign.Seon’s “No Bullies on My Bus” anti-bullying campaign was inspired by the company’s participation in Pink Shirt Day last year. Since then, Seon has conducted a coloring contest for children across North America, posted anti-bullying ed-ucation and awareness blog posts and, most recently, raised $25,000 for anti-bullying education grants. School bus transportation directors or managers can apply for a grant on Seon’s website by submitting their plan for anti-bullying education.“We have worked hard to put a stop to bullying this past year,” said Terry Akiyama, Seon’s president. “Today, we celebrate Pink Shirt Day, one of the inspirations behind our anti-bullying campaign. We wear the pink shirts with pride and are excited to celebrate this special day in Canada.”Visit www.seon.com/anti-bullying for more details about Seon’s anti-bullying campaign.

White House Releases FY15

Budget and MAP-21 Framework

On March 4, President Obama sent his Fiscal Year 2015 Budget

to Congress. The Budget, which is widely seen as a wish list from the White House, has zeroed out fund-ing for the DERA program. NSTA is already working with the DERA Coalition, of which it is a member, to advocate for significant fund-ing when Congress moves forward with their budget proceedings later this year. The President’s Budget also sets the framework for a 4-year reauthorization of MAP-21. The White House has stated that they plan to send an actual proposed MAP-21 bill to Congress later this year for consideration.



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Trans Tech All-Electric Bus Passes Certification

in California

WARWICK, N.Y. — Trans Tech Bus’ SSTe all-electric school bus has

passed the California Highway Patrol’s certification and is now legal to begin service in the state, company officials announced on Friday.

The first SSTe is scheduled to go to Kings Canyon Unified School District in Reedley, Calif.

“We are extremely excited to know that the SSTe passed inspection in Califor-nia,” said Brian Barrington, national sales manager for Trans Tech Bus. “This validates the work and effort that

Trans Tech and Motiv Power Systems put into the SSTe.” The SSTe is scheduled to start full production later in 2014, according to Trans Tech Bus.Trans Tech Bus and Motiv Power Sys-tems introduced the bus during the National Association for Pupil Trans-portation’s Summit in Grand Rapids, Mich., last year, and it was one of the items on view during the trade show.The bus is built on a Ford E-450 chas-sis, utilizing the all-battery, all-chassis compatible Motiv electric Powertrain Control System (ePCS). The ePCS is in-

stalled as a Ford ship-through chassis modification similar to a compressed natural gas modification, enabling minimal changes between the fossil fuel and electric versions of the school buses. The Motiv ePCS is compatible with a wide variety of chassis and batteries, officials said. The ePCS allows buses to be compatible with any battery cur-rently on the market or available in the future. Additionally, one pack can be replaced without replacing all the bat-teries on the vehicle. The SSTe school buses are available with range options of 80 or 100 miles.


Bird Bus Sales wants to consolidate its Long Island and Westchester op-

erations in Plainview, bringing 37 jobs to the Island, officials said this week.

Bird Bus Sales plans to purchase a 13,000-square-foot building and land at 155 Terminal Dr. that once was used for automobile auctions. The $2.4-mil-lion project will bring under one roof operations that are now split between Port Washington and the Westchester County community of Elmsford. The project is forecasted to be complete by September 2014.

Bird Bus Sales primarily sells buses and services to New York School Bus Contractors, according to chief execu-tive Robert Reichenbach, a Manhasset resident.

The Plainview location, he said, would allow customers to buy parts and have buses repaired “without having to cross a bridge.” Seventy percent of his sales are to the elite school bus contrac-tors servicing school districts in New York City and in Nassau and Suffolk counties. His Elmsford location would handle contractors and districts north of the Bronx up to Albany.

The Nassau County Industrial Devel-opment Agency voted Wednesday to support Bird Buses’ expansion with a $19,406 sales-tax exemption and $13,650 off the mortgage recording tax. The company’s property taxes will be frozen for 10 years and then increase by 1.66 percent in each of the next five years.

Reichenbach said he would add 37 jobs to his current Nassau payroll of seven. Records show that workers earn, on average, $50,000 per year, excluding benefits.

Bird Bus Sales specializes in Blue Bird school buses and commercial buses. Besides elementary and secondary schools, its customers include assisted living centers, churches and day care centers.

Reichenbach feels any of his competi-tors can sell a bus, “I believe our cus-tomers don’t want to be sold, they want to buy”. The success of his company is finding a solution to his client’s needs on the road not yet traveled.

Bird Bus Sales moving to Plainview gets tax breaks

Originally published: December 19, 2013 6:34 PMUpdated: December 19, 2013 7:11 PMBy JAMES T. MADORE, Newsday


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Bus companies can continue to take accelerated deprecia-tion and bonus depreciation on equipment purchases in

2013. That’s good news for the short term, but there is an-other long-term opportunity for owners to reduce taxable gains on the value of their businesses if they act prudently.

First, let’s look at the short term. Section 179 of the tax code allows for the immediate deduction — dol-lar for dollar — of up to $500,000 in new and used equipment placed in service in 2013. That can include new and used buses, service vehi-cles, GPS equipment, lifts and heavy tools and any qualifying equipment for the care and operation of the business. There are annual limits. If your company’s total equipment purchases exceeded $2 million, you begin to lose the dollar for dollar deduction, and total purchases exceed-ing $2.5 million lose the deduction entirely. Also, if the de-duction creates a net operating loss, then a portion of the deduction must be carried over to the following year.

However, companies can still take a 50-percent “bonus de-preciation” on new equipment purchases during 2013 (that’s 50 percent of the actual cost). The key word is “NEW” for the deduction to be allowed. There is no dollar limit on the total equipment purchase with bonus depreciation, and you don’t lose this deduction even if your company is showing a net operating loss. This is a great deduction for small and large bus companies, so keep track of all purchases in a given tax year to properly calculate your deduction.

Now let’s look at the long-term tax opportunity. You may have heard that there are potential tax benefits of making an election as an S Corporation if your company is currently structured as a C Corporation, the main benefit being the avoidance of double taxation. This can be extremely pain-ful when a business is sold. Typically when a business sale occurs, the purchaser prefers to buy the assets of the business instead of the stock from the prior owner; thus

avoiding any unknown liabilities that may pop up after the purchase is complete. The logic is that when assets are sold by a C Corporation, the gain is taxed at the corporate level. Then the sellers are taxed a second time on the liqui-dating dividends (up to 20 percent Federal tax rate) when

the C Corporation stock is liquidated. As an S Corporation, taxation occurs only once at the shareholder level.

There is an interesting wrinkle in this logic for New York State bus companies. In our state, income re-ceived through school districts is tax exempt at the corporate level. This exemption does not pass through to owners of S Corporations or partner-

ships. Therefore, when you make an S Corporation election, you may want to consider doing so at the Federal level only. This will allow you to retain your tax-exempt status as a C Corporation in New York State. You will only be taxed on the distributions you take out of the business as dividends thereby deferring your taxation at the state level on any un-distributed earnings. Unfortunately using this strategy, the double taxation will hit you for New York State purposes on the sale of your business assets.

The clock is ticking. In order to prevent a C Corporation from electing S Corporation status to avoid the double taxation discussed earlier, the IRS has a special tax. The tax known as the Built in Gains, AKA “BIG” tax can ap-ply for the first 10 years after electing S Corporation status. Therefore, the sooner the S Corporation Election is made; the sooner the 10 year period expires. This election is a very important tax saving tool that should be considered by all closely held businesses. Discuss how to proceed with your tax advisor now or call GKG CPAs for more information.

Wayne L. Martin, CPA, is a partner with GKG CPAs, offering 28 years of public accounting experience and a particular focus on school bus industry tax planning and compliance. Contact him at [email protected] or 845-567-3600.

Taxes: Bus Companies Benefit from Depreciation and Entity Election

By Wayne L. Martin, CPA

NTSB Chairman Hersman to Depart

National Transportation Safety Board (NTSB) Chairman Debbie Hersman announced that she will be departing the agency and will not serve her full term as Chairman in order to serve

as President and CEO of the National Safety Council in Chicago. NSC is a national non-profit organization dedicated to preventing death and injuries in transportation and in the workplace. Chairman Hersman was first appointed as a NTSB Board Member by President Bush in 2004 and was reappointed to two additional five-year terms by President Obama in 2009 and 2013. She was appointed Chairman by President Obama in 2009, 2011 and 2013, with unanimous Senate confirma-tion votes. She previously worked as a professional Democratic staff member to the Senate Com-merce, Science and Transportation Committee and as a staffer for former Congressman Bob Wise (D-WV). Her last day at NTSB will be April 28.


Generally, you can deduct monetary gifts made to charity with no worries, as-

suming you keep the proper records. But the rules are far more complicated if you donate property instead of cash to a qualified chari-table organization, especially if the property has appreciated in value. Fortunately, astute taxpayers can turn these rules to their tax ad-vantage.Background: One key element is the length of time you have owned the property when you donate it. If you have held the property long enough for it to qualify for long-term capital gain had you sold it—in other words, more than one year—you can deduct an amount equal to the property’s fair market value. On the other hand, if the property would not qualify for long-term capital gain treatment on a sale (i.e., owned for a year or less), your deduction is limited to your basis in the prop-erty (generally, its original cost).Thus, this rule can change the way you give property to char-ity. For instance, suppose you own stock bought 10 months ago for $5,000. The stock is currently worth $7,000. If you give the stock to charity today, you can only deduct your basis in the stock, or $5,000. However, if you wait two more months to donate the stock, your deduction is increased to its fair market value, or $7,000.In other words, you get the tax benefit of appreciation in value when you donate property held longer than one year. You are never taxed on the $2,000 appreciation in value.There are a few other obstacles to overcome. Significantly, if you donate property that is not used to further the char-

ity’s tax-exempt function, your deduction is limited to your basis in the property. For ex-ample, if you donate artwork to your alma mater, insist on having the school display the art in a place where students can view it and study it. That way, you can deduct the art’s fair market value, assuming you owned it for more than one year. However, if the school simply keeps the art in a storeroom, you get no tax benefit from the appreciation in value.What happens if the property has depreci-ated in value? In that case, your deduction is limited to the fair market value, regardless of how long you have held the property. You can’t deduct the difference in your basis and the fair market value. Let’s say you donate

a used car to charity. If you bought the car for $25,000 and it’s now worth $10,000, you may deduct $10,000 on your tax return.Also, be aware that certain itemized deductions are reduced for high-income taxpayers. This reduction applies to deduc-tions for charitable gifts.Final words: Regardless of whether property has appreciated or depreciated in value, it is recommended that you obtain an independent appraisal of the property’s current worth. This is the best proof you can have if your deduction is ever challenged. The IRS requires an independent appraisal for property donations exceeding $5,000. The mission of LCS&Z, LLP CPA’s and Consultants is to provide timely, proactive, innovative, and independent financial and tax services to privately owned businesses, their owners and families. To find out more, visit lcszcpa.com or call (518) 783-7200.

Strings Attached to Charitable Gifts of Property

Submitted by LCS & Z, LLP CPA’s and Consultants

On January 2, 2014, fifty-two (52) brand new Thomas school buses

began transporting children in the New York City area. In the wake of the demise of Atlantic Express, Nesco Bus responded to our customers’ needs for new Thomas school buses. The New York City Board of Education only as-signed routes to our customers on De-cember 13, 2013, but Nesco Bus quickly responded and delivered the school buses, inspected and in time for the start of the New Year. In other news, preparations are now underway for a busy summer delivery season. Sufficient school bus and air con-

ditioning inventory have been ordered to meet the needs of our customers. Our featured bus is the Thomas Saf-T-Liner® EFX. Seating for up to 78 pas-sengers and a wider loading aisle make this bus ready for whatever the school year brings. It has the maneuverability you need for twisty, narrow roads. The

cockpit is designed for driver comfort and safety with ample legroom and optimized access to controls. The flat front with an expansive windshield offers incredible visibility, enhancing safety while driving and when loading children. The Saf-T-Liner® EFX is a front engine, transit-style bus that is multipurpose and an excellent value. Plus, the engine cover allows for quick, easy and tool-free access to the engine, fluids and belts, keeping routine maintenance time to a minimum. So, if you want comfort and efficiency, the sleek, versa-tile EFX is an ideal choice.

What’s Happening Now New Thomas Buses for the NYC Board of Ed

Featured Bus


Nominations for the Distinguished

Service Award Now Being Accepted

Many of our NYSBCA members invest a great deal of time and effort toward keeping the Association

focused on important issues affecting the school trans-portation industry. Therefore, NYSBCA recognizes one or more members each year under the category of Distin-guished Service.This category is to recognize school bus contractors, sup-pliers, and/or manufacturers for significant, substantial and special contributions made in the industry. The NY-SBCA Awards Committee invites you to nominate your colleague(s) for this special award.Please mail, fax or e-mail a brief summary of the nomi-nee’s accomplishments, indicating what makes him/her worthy of the award. An NYSBCA Award Committee member may contact you to obtain additional informa-tion. Accompanying materials, especially letters of sup-port, are strongly encouraged. All nominations should be submitted in writing by September 15th to NYSBCA Headquarters by e-mail ([email protected]), fax (518-220-9906) or standard mail (PO Box 268, Latham, NY 12110).

BbSome Affordable Health Care Act

Elements Delayed

The Obama Administration announced several rule changes attendant to the Affordable Care Act this

week. Highlights of these changes include: People will be allowed to buy noncompliant health • insurance until October 2016. Those policies could be in effect until September 2017. It is unclear, however, how effective this extension will be as most insur-ance carriers have pulled their non-compliant exist-ing plans and are phasing them out as each group renews.Unions, universities and other self-ensured employ-• ers are now exempt from the $63 per person reinsur-ance fund fee.States using the federal exchange will now have until • the fall of 2015 to offer an opt-out of the “employee choice” option to small businesses. States say the fea-ture will still be ready.

The Administration also announced it would not be ex-tending the March 31 deadline for consumers to sign up for coverage this year under healthcare.gov, the federal insurance marketplace on which three dozen states are relying. The next open-enrollment period is November 15 - February 15.

Drug, Alcohol Clearinghouse for

CDL Drivers Proposed

WASHINGTON, D.C. — A new proposed rule from the Federal Motor Carrier Safety Administration (FMCSA)

would establish a drug and alcohol clearinghouse for all na-tional commercial driver’s license (CDL) holders.Federal officials said that the clearinghouse would help improve roadway safety by making it easier to determine whether a truck or bus driver is prohibited from operating a commercial motor vehicle for failing to comply with federal drug and alcohol regulations, including mandatory testing.Current federal regulations require employers to conduct mandatory pre-employment screening of a CDL driver’s qualifications based on his or her driving record. However, there has not been a single federal repository recording posi-tive drug and alcohol tests by CDL holders that employers would be able to search to ensure that the driver is able to perform safety-sensitive duties.The new proposed rule, announced last week, would create such a repository and would require employers to conduct pre-employment searches for all new CDL drivers and annual searches on current drivers.FMCSA spokesperson Donna Aggazio told SBF that the pro-posed rule would apply to all employers of CDL holders, in-cluding school bus drivers.“Employers of school bus drivers, whether it’s the school dis-trict or a for-hire contractor working for the school district, must have programs that satisfy the rule,” Aggazio said. “This means the service providers that handle the drug and alco-hol testing must report the positive test results for school bus drivers to the clearinghouse, and the employers of the school bus drivers must query the system to ensure that any school bus driver they employ is not identified as failing to fulfill all of the return to duty requirements after testing positive.”For the privacy of drivers involved, each CDL holder would need to provide his or her consent before an employer could access the clearinghouse.FMCSA Administrator Anne Ferro said in a statement that the agency is “leveraging technology to create a one-stop verifica-tion point to help companies hire drug- and alcohol-free driv-ers. This proposal moves us further down the road toward improving safety for truck and bus companies, commercial drivers and the motoring public everywhere.”For each of the past three years, federal and state safety in-spectors have conducted approximately 3.5 million random roadside inspections of commercial vehicles and of their driv-ers.In 2013, on 2,095 occasions (0.23% of the unannounced inspec-tions), a CDL holder was immediately placed out of service and cited for violating federal regulations on alcohol con-sumption. On 1,240 occasions (0.13% of the unannounced in-spections), a CDL holder was placed out of service and cited for violating federal regulations on controlled substances.The new proposed rule was directed by Congress in the most recent transportation bill, the Moving Ahead for Progress in the 21st Century Act.



Q&A: Fuel tax credit for school busesBy Kim A. Mahanna

Article shared with us by School Bus Fleet Magazine

Over the past 34 years, I have dealt with several IRS audits involving the fuel tax credit claimed by our bus company

clients. Below are frequently asked questions I hear from bus company owners.

What fuel and what vehicles qualify for the fuel tax credit? Gasoline and diesel fuel used in school buses and qualified local buses qualify.

What is the definition of a school bus and a qualified local bus for fuel tax credit purposes? Many states have their own definition for what a school bus is. For example, Minnesota’s definition of a school bus is pub-lished under Minnesota statute 169.011 subdivision 71. How-ever, the federal fuel tax credit does not use a state statute for its definition. The federal statute does not give a specific definition as to what a school bus is. However, over the years, it has become apparent that the bus-looking vehicle with accordion doors is the starting point. The fuel tax credit is available for vehicles registered as a school bus with the state where the vehicle is licensed. The school bus fuel tax credit is not available for traditional passenger vehicles, such as minivans or other automobiles registered as a van or private automobile. The smaller ve-hicles must be modified by installing the accordion doors and other safety modifications in order to qualify for the fuel tax credit. For example, a standard Dodge Grand Caravan painted yellow is not a school bus for federal fuel tax pur-poses. The publications do not define the fuel credit as available for fuel used in any vehicle used to transport school students; it specifically says “bus (school bus)”: “In a school bus means fuel used in a bus engaged in the transportation of students or employees of schools.” In a qualified local bus means fuel used in a bus meeting all of the following requirements:

It is engaged in furnishing (for compensation) intra-city • passenger land transportation available to the general public. It operates along scheduled, regular routes. • It has a seating capacity of at least 20 adults (excluding • the driver). It is under contract with (or is receiving more than a • nominal subsidy from) any state or local government to furnish the transportation.

We have several clients using traditional automobiles to transport students. We have not taken fuel tax credit for

school transportation on traditional automobiles, but we do for school buses and qualified local buses.

What is the difference between a qualified local bus and a school bus? A qualified local bus is eligible for the fuel tax credit when it is a vehicle other than a traditional school bus and is used to transport people. A school bus is generally the traditional “yellow bus,” which has the distinctive accordion doors and school bus safety features you would recognize, such as a 65- or 77-passenger school bus. A qualified local bus is a bus which does not qualify as a school bus, but has a seating ca-pacity of at least 20 adults, excluding the driver.

What information is needed? I always start each year by asking our clients about the gaso-line gallons and then the diesel gallons used in their school buses during the prior year. Then we ask the same question for their qualified local bus fuel usage.

Why do the gallons and type of fuel matter? There are different rates of fuel tax credit available based upon whether the vehicle is a school bus or a qualified local bus and the type of fuel used.

Do you need a vehicle fueling log and/or receipts to obtain credit? As we have gone through the audits over the years, the IRS has asked for a listing of the company vehicles, the fuel type and the seating capacity of each. If there are vehicles other than school buses, or if there are qualified local buses that may have used fuel out of the tanks at the terminal, fuel cards or logs by vehicle have been asked for. The process typically in-cludes providing fuel invoices from bulk deliveries, plus fuel receipts for fuel purchased at the pump to prove that federal fuel taxes have been paid and reconciling the gallons claimed as a fuel tax credit against the total gallons purchased.

How do I claim the fuel tax credit? What is the deadline for filing a claim? Generally, the filing is done annually along with your compa-ny’s business income taxes using Form 4136 (for tax credits), but you can also file annually on fuel and any other applica-ble excise taxes (for rebate payments) using Form 8849 along with the appropriate attachment (Schedule 1, in your case). If you want to file quarterly you can use Form 720. Kim Mahanna is a certified public accountant with Smith Scha-fer Associates Ltd. with 34 years of experience, including working with bus company owners. For more information on this topic, or tax and tax-planning questions, contact the Smith Schafer trans-portation team at (651) 770-8414 or [email protected].

FMCSA Issues Final Rule on Patterns of Safety Violations

FMCSA recently issued a Final Rule on Patterns of Safety Violations implementing FMCSA’s authority to shut down a bus or truck company if the company, or a company officer, has a history of purposely violating the Federal regulations. The rule allows

FMCSA to suspend or revoke a motor carrier’s operating authority and assess civil penalties if the carrier engages in a pattern or practice of avoiding compliance, or the carrier reincarnates to conceal a negative history or noncompliance with safety regulations.


P.O. Box 268Latham, New York 12110

Read These Stories InsideCuomo Budget Proposal Calls on School Districts to Explore Efficiencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1LENS Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Calendar of Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143rd Annual NYS School Bus Safety Competition Information Now Available Online . . . . . . . . . . . . . . . . . . . . . . . . . 2President Obama and Chairman Camp Address Transportation Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Gardian Angel Safety Lighting System approved in Michigan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Paquette Promoted within Durham School Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Leonard Bus Sales Adopts New Structure to Ensure the Best Customer Support in the Business . . . . . . . . . . . . . . . 5Quarterly Tax Planning Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Don’t Want to Compete in the Safety Competition? Help us out and be a Judge! . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7How to Bully-Proof Your School Bus: Resources for Anti-bullying Education & Awareness . . . . . . . . . . . . . . . . . . . . . 9White House Releases FY15 Budget and Map-21 Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Annual Convention Call for Presentations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Seon Design Raises Money for Anti-Bullying Cause . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Trans Tech All-Electric Bus Passes Certification in California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Bird Bus Sales moving to Plainview gets tax breaks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Taxes: Bus Companies Benefit from Depreciation and Entity Election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15NTSB Chairman Hersman to Depart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Strings Attached to Charitable Gifts of Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16New Thomas Buses for the NYC Board of Ed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Drug, Alcohol Clearinghouse for CDL Drivers Proposed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Nominations for the Distinguished Service Award Now Being Accepted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Some Affordable Health Care Act Elements Delayed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Q &A: Fuel Tax Credit for School Buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19FMCSA Issues Final Rule on Patterns of Safety Violations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Documents

the YELLOW BUS Newsletter Spring Issue.pdf2 The Yellow Bus, Spring 2014 This publication is a member service of the New York State Bus Contractors Association P.O. Box 268, Latham,