(1) Whenever, during the course of a school year, the district becomes obligated to provide transportation for a student, the board of trustees immediately must:
(a) provide bus service for the eligible transportee; or
(b) enter into a contract with the parent, legal guardian or emancipated minor, and transmit a copy of the contract to the county superintendent, who transmits one copy immediately to the Superintendent of Public Instruction.
(2) The cost of such additional transportation is met by the contingency item in the transportation budget or nonoperating budget. Valid claims against the amount budgeted as contingency are reimbursable by the state and county as on-schedule costs.
(3) If there is no contingency item (or the appropriation therein is already obligated for other pupils in the district) , the district shall institute budget amendment proceedings to acquire the budget authorization necessary to provide transportation for such students.
(4) The on-schedule costs associated with the contingency transportation, in excess of the contingency amount, are reimbursable by the state and county only upon adoption of a budget amendment increase as provided by 20-9-161 through 20-9-168 , MCA, and, either county transportation committee approval of new or altered bus routes or district approval of new individual transportation contracts, and state approval of such transportation.
(a) The state shall pay its share of these on-schedule costs as provided in 20-10-145 , MCA.
(b) The county shall pay its share of these on-schedule costs as provided in 20-10-146 , MCA.
(i) The county shall include in the levy requirement for the ensuing year, any unpaid amount of the county's obligation for contingency transportation.
(5) The over-schedule costs of the contingency transportation shall be paid by the district and funded by:
(a) the district's transportation reserves;
(b) budget transfers from other line items in the transportation fund as provided in 20-9-208 , MCA, if available; and
(c) any levy assessed against the taxpayers of the district for purposes of funding the budget amendment.