Graphic 6: Districts Contracting Transportation Service
Transportation contracting continues to be the fastest growing area of support- service privatization, increasing this year by 26.6 percent, though it is starting from a smaller base. The number of contracted transportation services grew nearly triple in just the past five years.
Woodhaven-Brownstown’s attempt to privatize bus drivers was also delayed by a big-labor lawsuit, but the school board stood strong and won the case. The resulting contract with First Student is expected to save the district $331,200 in its first year.
The largest amount of savings from a single new contract came from Plymouth-Canton Community Schools, which hired Michigan Educational Transportation Services. The district expects to save $3 million over previous in-house costs in the first year of the contract, and future years are projected to save an additional $600,000 once transition costs are paid in the first year. The first year’s savings translate to an effective $157 per-pupil funding increase.
Reeths-Puffer Public
Schools contracted for its bus drivers through
METS beginning in the 2010-2011 school year, and savings were estimated
at $200,000, or roughly $51 per pupil.
Ellsworth Community Schools is now privatizing its bus drivers through attrition with PCMI. As in-house drivers retire, the district will hire privatized workers to fill their positions. The district saves roughly 25 percent on each privatized employee, largely on retirement and benefits.
Graphic 7
Districts new to transportation contracting |
Savings |
Plymouth-Canton Community Schools |
$3,000,000 |
Northville Public Schools |
$425,000 |
Crestwood School District |
$400,000 |
Woodhaven-Brownstown School District |
$331,200 |
Reeths-Puffer Public Schools |
$200,000 |
Freeland Community Schools |
$60,000 |
Ellsworth Community Schools |
25% |
Lamphere Schools |
15% |
Fulton Schools |
10% |
Ubly Community Schools |
8% |
Croswell-Lexington School District |
* |
Highland Park Public Schools |
* |
Lake Linden-Hubbell Schools |
* |
Onekama Consolidated Schools |
* |
Taylor School District |
* |
*Denotes insufficient documentation