While transportation is the least contracted-out service, privatization is growing considerably. Since 2003 transportation service contracting more than doubled (growing 139 percent), though less than 10 percent of districts contract out for this service.
With 13 districts new to contracting out, transportation experienced 27.5 percent growth over last year’s survey. The savings estimates for districts new to transportation privatization range from $10,000 to $810,436 and are listed in Graphic 7.
Graphic 6: Districts Contracting Transportation Service
The largest gain in transportation contracting came from districts in Houghton County. Five of these Upper Peninsula districts began using contractors to provide busing services to the districts’ students. The districts, Portage Township Schools, Tamarack City Schools, Calumet/Laurium/Keweenaw Public Schools, Adams Township Schools and Chassell Township Schools reported a combined savings figure of $334,136, approximately $87 per pupil.
Chassell Township Schools did not provide documents on cost comparison between in-house and contractor costs. However, it reported that its contractor will purchase the district’s aging bus fleet, which was expected to require significant updates. The district will lease the buses for its use. Not all districts choose to sell their fleets to contractors, though, and opt only for transportation management or simply leasing employees.
On June 28 the Harbor Springs Public Schools board of education voted unanimously to approve a third-party contract with METS for its transportation supervisor. The district did not provide savings documentation.
Graphic 7
Districts new to transportation contracting |
Savings |
Oak Park School District |
$810,436 |
Garden City Public Schools |
$375,000 |
Houghton-Portage Townships Schools |
$156,403 |
Adams Township School District |
$141,854 |
Lakeview Community Schools |
$136,000 |
Holton Public Schools |
$104,617 |
East Jackson Community Schools |
$29,125 |
Calumet/Laurium/Keweenaw Public Schools |
$25,879 |
Dollar Bay-Tamarack City Schools |
$10,000 |
Chassell Township Schools |
Insufficient documentation |
Bentley Community Schools |
Insufficient documentation |
Au Gres-Sims School District |
Insufficient documentation |
Harbor Springs Public Schools |
Insufficient documentation |