the district's aid ratio. In determining the formula for the
cost of approved reimbursable transportation, the Secretary of
Education may prescribe the methods of determining approved
mileages and the utilized passenger capacity of vehicles for
reimbursement purposes. For the school year 1998-1999 and each
school year thereafter, any school entity which contracts with
one or more school entities to provide pupil transportation
services shall be reimbursed in accordance with the formula
specified by the Department of Education for district-owned
vehicles. In addition thereto, the Commonwealth shall pay to
each district qualifying a payment for excessive cost of
transportation, said amount to be determined by subtracting from
the cost of the approved reimbursable transportation the sum of
the Commonwealth transportation payment immediately above, plus
the product of one-half mill (0.0005) times the latest market
value of the district as determined by the State Tax
Equalization Board, provided such amount is not negative. In
addition thereto, the Commonwealth shall pay to school districts
which own their own vehicles, an annual depreciation charge of
ten per centum (10%), to be calculated on the basis of the
approved cost at which the district acquired the vehicle for
which depreciation is claimed. With respect to vehicles
purchased prior to January 1, 1956, the number of depreciation
payments shall be limited to ten such payments. With respect to
vehicles purchased on or after January 1, 1956, the annual
depreciation charge shall not exceed seven hundred dollars
($700) for such vehicles. The number of annual depreciation
charges shall be limited, so that the total amount of such
payments shall not exceed the cost of the vehicle as approved by
the Department of Education at the time of the purchase. In no
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