The Kentucky Department of Education, or KDE, selected the age of a school bus to help determine the value of the school bus. As the school bus deteriorates, it is worth less and this must be reflected on the fleet’s value. The value of the school bus also provides motivation for school boards to replace their older vehicles, as they will no longer receive funding for them. After ten years the school bus value is zero and draws an additional 24% depreciation.
By equating the age of a school bus with a dollar value, it makes it simple to see that new equipment is needed.