The video was shot by a student on Brownwood ISD's Bus 15.
Student Transportation Services is backing the driver, saying he was provoked by students on the bus. He was back on the road Tuesday.
Brownwood resident Leci Wood has three daughters that ride Bus 15. She said she's called to report problems with the same driver several times this year.
"It actually didn't surprise me. Based on everything that we've seen throughout the year, it was a matter of time," she said.
Wood's daughters ride the bus to and from school.
"They used to enjoy it because their friends were on there and stuff, but they don't want to ride the bus," she said.
"When I was younger and I went to the other schools we wouldn't have anything like this," said her fourth-grade daughter, Kyla.
Wood said she's called the bus barn on three separate occasions to report problems with the driver, but nothing was ever done.
"These kids shouldn't have to put up with that kind of stuff, and neither should the parents," she said.
Both Wood and the parents of the student who took the cell phone video have asked that the driver face consequences.
Student Transportation Services told KTAB on Monday action would be taken, but that the driver would not be fired.
Attempts to reach the driver for comment were not returned. Neither Brownwood ISD or Student Transportation Services would comment on camera.