Karen Klein tells TMZ ... she DOES NOT accept the apologies issued by the kids who taunted her on a NY school bus ... claiming "I think they can do better."
Two of the devil children penned letters of apology to the 68-year-old bus monitor ... after the video went viral this week. Klein also got a letter from the parents of a boy who participated in the incident.
But Karen and her daughter just called in to "TMZ Live" ... saying they're just not ready to forgive.
Klein also says she has a few suggestions about how the kids should be punished.
Klein says she's blown away by the outpouring of support she's received -- and has already come up with a few ideas on how to spend the hundreds of thousands of dollars people have donated to her.