MUNCIE, Ind. - The Indiana Department of Education has denied a waiver for Muncie Community Schools which would have allowed the district to stop bus service at the end of the current school year.
State law requires that a school district must give three-years notice before ending bus service.
Voters rejected a tax increase in November that officials said was necessary to keep school buses running.
The referendum called for raising property taxes by 22 cents for every $100 of assessed property value.
Officials said 54 percent of voters voted against giving the company $3.35 million for the next school year.
The Muncie Community Schools district is responsible for transporting more than 4,000 students between kindergarten and 12th grade.
School administrators have warned some staff could lose their jobs if the district were required to continue to pay for transporting students.
The 6,800-student district has faced enrollment and funding declines that led its school board to vote in November to consolidate its two high schools into one .
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