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Education

School transport providers begin receiving owed payments

Multiple companies that suspended student transport services this week due to months of unpaid invoices from the Department of Education started receiving deposits on Thursday.

Rafael Cordero Graded School building in San Juan, Puerto RicoPhoto
Rafael Cordero Graded School, San Juan, Puerto Rico, October 2021 Photo: MyraBe / Wikimedia Commons, CC BY-SA 4.0 (cropped)

The short version

  • El Vocero reported that Luis Rosado confirmed several companies including Tatito’s Transport received bank deposits on Thursday morning
  • The payments cover services already provided to public school students and come from the Department of Education budget according to Rosado
  • El Nuevo Día reported that as of Monday the department still owed $9.5 million excluding current school year services
  • Rosado told El Vocero the Oversight Board must prioritize the $9.5 million request that has cleared the Office of Management and Budget

Payments begin after suspensions

Payments to school transport providers in Puerto Rico began flowing on Thursday after months of delays that led some companies to suspend services. El Vocero reported that Luis Rosado, president of the Federation of School Transport Providers of Puerto Rico, confirmed multiple companies received deposits in their bank accounts that morning. One of the affected firms, Tatito’s Transport, had halted student transport on Tuesday in Loíza, Trujillo Alto, Carolina and San Juan.

Rosado said the funds come from the Department of Education budget. He added that Education Secretary Eliezer Ramos Parés called him Thursday morning to report that additional staff had been assigned to process invoices and that a request for $9.5 million had cleared the Office of Management and Budget (OGP) and was sent to the Oversight Board. Rosado asked the board to handle the matter with priority because it concerns 40 to 50 companies facing the most severe liquidity problems.

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Ongoing uncertainty over full amount

Earlier in the week transport providers continued to express uncertainty about when they would receive full payment. El Nuevo Día reported on Nov. 9 that José Rosado Rolón, also identified as president of the federation, said the Department of Education still owed $9.5 million for prior services, a figure that does not include work performed in the current school year. He noted conflicting statements from officials about when the Oversight Board would authorize the disbursement.

Rosado Rolón questioned why school transport providers appeared to be part of the remaining 5 percent of unpaid prior-year invoices despite claims that 95 percent had been settled. He said companies lack liquidity to continue operations while fuel prices remain high and students continue to be transported. The federation leader also raised concerns about a recent auction by the General Services Administration that selected 147 providers and left some companies, including his own, uncertain about future contracts.

Where the sources differ

El Vocero and El Nuevo Día both report that the Department of Education owes school transport providers $9.5 million. El Vocero states that payments began reaching companies on Thursday, Nov. 12, and quotes Luis Rosado confirming deposits and a call from Secretary Eliezer Ramos Parés about processing invoices and the OGP request to the Oversight Board. El Nuevo Día, reporting on Nov. 9, quotes José Rosado Rolón saying the $9.5 million does not include current-year services, that officials gave conflicting timelines involving OGP and the Oversight Board, and that providers question why they remain unpaid. The two reports use slightly different names for the federation president (Luis Rosado versus José Rosado Rolón) but appear to describe the same person and organization. El Nuevo Día adds details on the ERP system hearing, the auction outcome and sub-contracting concerns that El Vocero does not mention.

What the reports do not say

The reports do not state the total amount actually deposited on Thursday or how many companies received funds. They do not indicate when the remaining balance will be paid or whether all 225 companies that provide school transport services will be covered. The articles do not specify how many students were affected by the Tuesday suspension or whether service has fully resumed. Next steps from the Oversight Board and any timeline for the second phase of the auction are not detailed.

Sources

Every link below was opened and checked when this story was published. Official means a government body, agency or the organization itself; Reporting means a news outlet.

  1. Reporting Comienzan a fluir los pagos a transportistas escolares tras meses de reclamosEl Vocero (El Vocero) · elvocero.com · Spanish · checked Nov 12, 4:23 PM AST
  2. Reporting Transportistas escolares reclaman claridad sobre el desembolso de pagos por servicios que ya dieronEl Nuevo Día (El Nuevo Día) · elnuevodia.com · Spanish · checked Nov 12, 4:24 PM AST

How we checked this

El Vocero reported the first confirmed payments and the Education Secretary’s call on Thursday. El Nuevo Día described the providers’ continued uncertainty and auction disputes as of the previous Monday. The exact disbursement total and full resolution timeline rest on single sources in each report.

EducationSchool TransportDepartment of EducationPayments

Compiled by the PuertoRico.com News Desk from the reports and statements listed above, and checked against them before publishing. It does not include original interviews. Spot an error? Email support@puertorico.com with a link to this story.

Castillo San Felipe del Morro and Old San Juan from the airNils Huenerfuerst / Wikimedia Commons · CC BY 4.0

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