Inadequate public transportation in rural areas has long been a major impediment for rural residents' access to health care, jobs, and community activities and services. Particularly disadvantaged in transportation are the rural poor, elderly, and youth. This report highlights the benefits to be gained by passage of the Commission on Rural Resources' bill, which authorizes the integration of school buses and services into coordinated rural public transportation programs. The bill does not require school districts to participate in such programs, but only authorizes them to do so if they wish. The bill would allow school districts to: (1) rent or lease vehicles to a services coordinator or not-for-profit organization; (2) provide drivers to such organizations; (3) contract to store, maintain, and repair vehicles owned by these organizations; and (4) contract with them to provide a portion of a coordinated rural public transportation program. The bill also requires that school districts be reimbursed for the full amount of costs and expenses incurred in leasing buses or providing services. The report addresses concerns about confusion to motorists, competition with private bus services, and loss of state transportation aid. It also describes existing demonstration programs and the potential benefits of such a system. (DHP)