Rose Tree Media School District v. Department of Public Instruction

50 Pa. D. & C.2d 456, 1970 Pa. Dist. & Cnty. Dec. LEXIS 93
CourtPennsylvania Court of Common Pleas, Dauphin County
DecidedOctober 19, 1970
DocketCommonwealth Docket, 1966, no. 481; Commonwealth Docket, 1968, no. 471, and Commonwealth Docket, 1969, no. 164
StatusPublished

This text of 50 Pa. D. & C.2d 456 (Rose Tree Media School District v. Department of Public Instruction) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Dauphin County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rose Tree Media School District v. Department of Public Instruction, 50 Pa. D. & C.2d 456, 1970 Pa. Dist. & Cnty. Dec. LEXIS 93 (Pa. Super. Ct. 1970).

Opinion

CALDWELL, J.,

This is a mandamus action in which plaintiff seeks to compel the Department of Public Instruction (hereinafter called “the department”) to reimburse it for certain pupil transportation expense which it claims is owing and unpaid. Plaintiff’s claim covers each of the 10 school years from 1958-59 through 1967-68 and has been presented in three separate suits which have been consolidated for hearing and disposition.

For each of the 10 school years in question, plaintiff filed with the department an application for reimbursement for pupil transportation expense. The applications were made on forms provided by the department and were completed by plaintiff according to the instructions printed thereon. The information requested by the department included a statement of the actual expenses incurred by plaintiff in transporting pupils in plaintiff’s fleet of school busses, total mileage, and other statistical information. Upon receipt, each application was reviewed in the department and certain cost limitations, established by the [458]*458Department for various items, were applied to the reported figures.1

The department refused to recognize any expense that exceeded its limitations, and plaintiff was reimbursed in an amount less than its actual expense. By these actions, plaintiff seeeks to compel payment of the difference between the reimbursement it re-

ceived and the expenses it actually incurred, as follows:

Plaintiff’s School Reported Amount Plaintiff’s Year Expense Reimbursed Claim

1958-59 $27,588.17 $26,371.15 $1,217.02

1959-60 35,951.57 34,471.85 1,479.72

1960-61 40,151.73 34,685.02 5,466.71

1961-62 45,704.14 40,092.20 5,611.94

1962-63 40,988.67 38,104.08 2,884.59

1963-64 43,317.54 41,145.70 2,171.84

1964-65 47,651.44 44,945.01 2,706.43

1965-66 52,845.67 51,955.07 890.60

1966-67 47,233.81 45,067.72 2,166.09

1967-68 48,435.79 47,882.79 553.00

Total Claim $25,147.94

In denying plaintiff’s claim, the department does not question that plaintiff incurred the costs reported. The reimbursement limitations imposed by the department have been uniformly applied over the years to all Pennsylvania school districts and, so far as we [459]*459can determine, plaintiff is the first and only school district to attack the department’s position on reimbursement for bussing expense.

This matter was previously before our court when we sustained defendant’s preliminary objections: Rose Tree Media School District v. Department of Public Instruction, 88 Dauph. 382 (1967). Our action was reversed on appeal to the Supreme Court and the matter was remanded for further proceedings.

The legal issue presented in this case is whether the department must reimburse plaintiff on the basis of its actual cost for pupil transportation, or whether the department has the right to pass upon and/or limit reimbursement to plaintiff school district for this expense. In our view, this issue was resolved in the course of the Supreme Court’s decision: Rose Tree Media School District v. Department of Public Instruction, 431 Pa. 233, 244 A. 2d 754 (1968).

Section 2543 of the Public School Code of March 10, 1949, P. L. 30, as amended 24 PS §25-2543, provides the basis for reimbursement to local school districts for the transportation of pupils. The procedure for obtaining reimbursement is contained in section 2541 of the code, 24 PS §25-2541, which provides as follows:

“School districts shall be paid by the Commonwealth for every school year on account of pupil transportation which, and the means and contracts providing for which, have been approved by the Department of Public Instruction, in the cases hereinafter enumerated, an amount to be determined by multiplying the cost of approved reimbursable pupil transportation incurred by the district’s aid ratio . . .” (Italics supplied.)

In its decision in this case, the Supreme Court observed that when “approval” is given by the department to the costs submitted by an applicant there is [460]*460no further discretion in the department and reimbursement must be calculated by multiplying the “approved” costs by the district’s aid ratio. However, the court recognized that under the statute “approval” of plaintiff’s costs in the first instance is discretionary, and that the department is under no legal obligation to approve the figures submitted by a local school district. The concurring opinion of Justice Roberts succinctly states this distinction:

“Since the thrust of appellant’s [Rose Tree’s] complaint is that they have received less than they would have gotten had the formula been applied to their own submitted figures, relief in mandamus must eventually depend on whether this lesser amount actually resulted from an arbitrary misapplication of the formula to appellant’s figures, or from a correct application of the formula but to some other set of figures, approved only after the Department, in its discretion, had changed appellant’s original submitted costs. If the latter situation should prove true, in my view mandamus would not he proper,” (Pages 239-40. Italics supplied.)

As indicated by the opinions of the Supreme Court, the only factual determination for us to make in this case is whether the department “approved” the expenses reported by plaintiff for any of the years under consideration.

Although plaintiff contended that the costs it reported were approved by the department, it did not sustain its burden of proving such fact. It is our finding and conclusion that the department did not approve many of the cost figures submitted by plaintiff because they exceeded the department’s maximum allowances for such expenses. As an illustration, we refer to the 1964-65 school year: for that period the department set máximums of $.05 per mile reimbursement for the expenses of gas and oil; $.07 per [461]*461mile for tires, repairs and maintenance; $50 per bus for insurance; $120 per bus for garaging, etc. The costs incurred and reported by plaintiff for these items exceeded the allowances established by the department and were not approved. In its review of the application, the department applied its maximum allowances to the statistics reported by plaintiff and gave “approval” to the lower figures resulting from this comparison. The pattern for the other years covered by these actions was the same, and no expenses were approved that exceeded the department’s limitations.

Plaintiff contends that under the wording of the statute the department is without authority to adjust the actual “cost” of providing pupil transportation and must make reimbursement of the cost so long as the expense is reasonable. This point has never been directly litigated, but we are convinced the Supreme Court’s decision in this case establishes that, under the school code, the department does have the right to disapprove plaintiff’s actual costs as the measure of reimbursement and need not “approve” the figures submitted to it. The wisdom of such holding seems obvious to us, for the limitations imposed by the department encourage and compel efficient transportation policies and practices by local school districts.

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Bluebook (online)
50 Pa. D. & C.2d 456, 1970 Pa. Dist. & Cnty. Dec. LEXIS 93, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rose-tree-media-school-district-v-department-of-public-instruction-pactcompldauphi-1970.