That was probably stupid of me to say,
Profoundly so, yes.

but I really don't tolerate folks swearing in front of children.
You'll need to get over that right quickly. You're not the final arbiter of who may say what in front of whom, and it's rather likely that acting in the fashion you did is what landed you in the situation you're in now.

The main point of my question is that without police officer, or anyone else for that matter, to witness this event, it is the bus driver's word against mine. He's obviously contending that his lights were red, but I'm 100% positive they were yellow and he had started the process of stopping (still in motion though). Does he have the upper hand in this case?
It's possible. We can't predict the future, though.

It's in your best interests to 1) hire an attorney, 2) do as s/he tells you, and 3) leave the nonsense about "I don't tolerate people swearing in front of children" out of court.