Indiana lawmakers may allow ads on school buses
Lawmakers could allow advertising on school buses in Beech Grove, Franklin Township and Zionsville under a bill approved by the Indiana Senate.
The cash-strapped school districts say the ads offer a way to raise revenue without increasing taxes, but a critic says the new money would come at the expense of student safety.
“The guy reading that sign is not going to be paying attention to what that bus is doing,” said Jim Howard, vice president of the Indiana State School Bus Drivers Association, which represents about 400 drivers. “Is it worth the risk?”
The measure would create a pilot program to let the three school districts sell advertising on school buses, with the money raised going to transportation costs.
Sen. Patricia Miller sponsored the plan as an amendment to House Bill 1062. The bill, with this and other amendments, passed the Senate 49-0 on Thursday. It now goes back to the House, where that chamber can concur with the changes or send it to a conference committee.
Miller said 11 other states, including Arizona, New Jersey and Texas, allow school bus advertising without sacrificing student safety.
The plan, she said, is an innovative way for schools to raise money without raising taxes.
“The tax caps have clearly had an impact on public schools, as well as cities, towns and everybody else,” said Miller, R-Indianapolis. “There’s no interest by the public to do anything about raising property taxes.”
Many districts already sell advertising, Miller said, noting auto dealer Ray Skillman has sponsorship deals on high school stadiums in Center Grove, Franklin Township, Lawrence Central and Perry Township.
Ads on Zionsville’s 74 district buses could raise up to $60,000 in the first year, estimated Mike Shafer, the district’s chief financial officer.
“We’ve done our homework, and we don’t think safety is an issue,” he said. “We are hoping we can get a good selection of advertisers for this pilot project.”
When done properly, ads can be placed in a way that won’t affect safety, said Wayne Saunders, transportation director for Beech Grove Schools.
“There’s not going to be much advertising space,” he said. “I think some of our small businesses here in Beech Grove would jump on that. It’s a great way for them to advertise.”
Michael Beauchamp, president of Alpha Media, a Dallas-based firm that manages advertising on more than 650 school buses in five states, said a district with 100 buses could generate up to $100,000 a year in advertising deals.
The ads are placed on sides of the buses toward the back. The signs are not visible to oncoming or following motorists, he said.
Safety is not compromised even in Utah, where ads can cover up to 35 percent of the school bus, Beachamp said.
“It’s still very obvious and clear that it’s a bright yellow bus.”
Schools and other local taxing units have seen their ability to raise revenue curtailed by the tax caps, which limit property taxes to 1 percent of a home’s assessed value. The limits are 2 percent on rentals and 3 percent on business properties.
Bus ads would bring in money to cover transportation costs at a time when many school districts are desperate for cash.
Franklin Township on Indianapolis’ Southeastside has about 90 school buses. The district faced a crisis when a tax referendum failed, and it eliminated bus service for the 2011-12 school year, drawing the ire of parents and the attention of lawmakers.
In 2012, legislators let Franklin Township and other districts refinance their debt and made it illegal for schools to stop providing bus service.
Franklin Township Schools receives $18 million a year less than if property owners paid the full levy, Superintendent Flora Reichanadter said.
“We are constantly looking for alternatives to make up for the loss,” she said. “We’ve had to make some really serious cuts.”
Call Star reporter Vic Ryckaert at (317) 444-2701. Follow him on Twitter: @VicRyc.