Lehighton Area School District’s board of directors approved a $111,073 payment to George’s Transportation Company on Monday night, closing the books on the 2019-20 school year for the bus contractor.

State law signed in late March allowed school districts to negotiate interim contract agreements with transportation contractors during the COVID-19 shutdown.

Act 13 was meant to ensure contractors could pay personnel costs, fixed costs, administrative costs and equipment costs during the period of school closure.

In a letter to the district, Leon George, owner of the bus company, said the payment request includes $78,766 in insurance costs, $24,000 for property rent and $8,307 for a bank loan on new buses.

“The numbers are based on actual costs needed or last year averages, since wages have not yet incurred,” George said. “This number is higher than the original request given earlier in the year since we didn’t figure costs through September on the original request. We have since cut items where necessary to keep our costs down as to not increase amounts for the school. We are still only requesting the amount submitted on the first proposal.”

Based on income from Lehighton during April through August 2019, revenue for the bus company is down $456,621, George said.

“This amount would have been for sports, field trips and regular transportation for April, May and June,” he said. “During those months we generally use part of that to start out the upcoming school year for insurances and wages before we submit our first bill to the school.”

The district had previously discussed the payment to George’s in June, when board members lauded the company for transporting meals to five locations around the area including Weissport, Parryville, Nis Hollow Estates, Dinkey Memorial Church and the Mahoning Academy during the shutdown.

In addition to driving meals to pickup locations, George’s supplied 20 buses for a graduation night motorcade parade throughout town for Lehighton’s Class of 2020.

“I have always had a good working experience with the LASD administrators and the school board,” George said, “and I hope to continue that working relationship.”