In this appeal, several parents appealed the District Board's decision to discontinue the practice of allowing buses from the Sibley-Ocheyden District into the Sheldon District to transport Appellants' open-enrolled students. On July 29, 1996, the superintendents of the two districts had signed a reciprocal transportation agreement. The agreement provided that buses could enter each other's districts for a maximum distance of four miles to transport open-enrolled students. This agreement was not formally approved by the boards of the two districts as provided by Iowa Code section 282.18(10). It is disputed whether the Sheldon Board was aware of the agreement. After certain board members became aware of the arrangement at the Board Retreat in December 1996, they directed the superintendent to notify the parents of open-enrolled students that the Sibley-Ocheyden buses would not be allowed to pick up their children beginning with the 1997-98 school year. At subsequent board meetings, the parents expressed their objections and concerns about the termination of the bussing agreement, but on June 9, 1997, the Board took a final position contrary to the parents' wishes.

Finding that the Board members' decision to discontinue the transportation agreement was within their authority under Iowa Code section 282.18(10)(1997), the administrative law judge and the hearing panel recommended affirmance of the Board's decision.