The school bus that the "special ed" kids would ride. Most often this is used to imply that someone has below average intelligence.
I bet that when you were a kid you rode to school on the small bus instead of the big one.
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saying someone is sped/stupid
connotation comes from the school system, which places all the special-ed kids in the small bus to go to and from school instead of the big bus with the normal kids
teacher: where is California located?
student 1: in africa
student 2 after class: you're so small bus for saying california is in africa