An Expert Guide on Planning Your School Transportation Budget
How to cut costs and better track your department’s finances to make better budget decisions amid a funding crisis.
In the world of pupil transportation, a prevailing concern echoes through the halls: there simply isn't enough money to go around. Budget shortfalls and inadequate funding have cast a shadow over school transportation operations, posing a threat to the safety and reliability of school bus programs nationwide. While economic downturns are often cited as the main culprit, the reality runs much deeper. A closer look is in line, so we’re diving into the reasons behind these financial dilemmas as well as practical strategies to keep in mind while creating your next budget.
Understanding the Financial Dilemma
The root causes of these financial challenges are multifaceted, but these several factors are the greatest contributors to tighter student-transportation budgets:
Rising costs: The costs of buses and equipment have escalated due to advancements in technology and the implementation of upgraded safety features. Government mandates for improved standards have also added pressure, increasing expenses for transportation departments.
Maintenance expenses: Districts are struggling to keep aging vehicles in service longer, leading to soaring maintenance costs. This approach, aimed at avoiding the purchase of new, more expensive buses, has strained budgets further.
Fluctuating fuel prices: Erratic fuel prices have created budget uncertainties, making it difficult for transportation departments to plan effectively.
Insurance premiums: Insurance premiums have seen a dramatic increase, adding to the financial burden of transportation operations.
Funding distribution: The amount of money trickling down from school districts to transportation departments is another major concern. It’s a common misperception that transportation operations should only receive a very small portion of school district budgets.
Tracking Finances for Informed Decisions
The best way to make informed budgeting decisions is by tracking your finances at a more granular level. A great way to get a clearer picture of costs is to break down your finances to cost per running-mile instead of cost per student transported.
Why? Cost per student uses a basic formula that doesn’t factor in all of the expenses related to transportation. It only represents the product of expenditures subtracted from income and divided by the number of students. Whereas cost per running mile compiles and categorizes expenses relative to all areas of your transportation operation, which can then be analyzed for inefficiencies.
Cost per running mile categorizes the following expenses for a more accurate budget:
Income and outgo into capital
Administrative transactions
Operational transactions
Maintenance transactions
The resulting figures can then be weighted with every mile run by the bus fleet. With a basic accounting technique, leaders can eliminate charges that don’t belong in the transportation budget. A common issue we see is that your transportation budgets might be getting charged for fuel costs of district vehicles that are not used by your department.
Strategies to Cut Costs — Without Compromising Safety:
The easiest way for your department to save money is by implementing cost-cutting strategies. We’ve compiled a list of our top tips that can save money without jeopardizing the safety and reliability of transportation.
Staggered bell times: Implementing staggered bell times allows the use of fewer buses to transport more students, reducing labor and equipment costs.
Increased walking distances: By extending walking distances, operational spending can be reduced. This approach also opens the door for pay-to-ride services for students who are not covered by free bus service.
Streamlined routing: Use routing software to optimize route mileage and ensure efficient bus pick-ups and drop-offs, minimizing fuel and time waste.
Collaboration with other districts: Establish joint-use agreements, or exchange favors with neighboring school districts. Pooling resources reduces the need for multiple supervisory positions and cuts down on equipment and maintenance costs.
Enhanced driver training: Investing in comprehensive driver training might incur initial costs, but results in long-term savings by reducing accidents and liabilities. Safe operations also lead to discounted insurance premiums.
Improved maintenance efficiency: Extend the lifespan of tires, filters, and other equipment in compliance with state guidelines, saving money without compromising safety standards.
Contracting car services: Privatize problematic areas of the transportation program to achieve significant savings.
Exploring grants and other funding sources: Research federal and private grants to secure additional funding for specific budget items such as special-needs training or equipment.
The Best Strategy: Constant Budget Maintenance
Effective budget management hinges on vigilance and teamwork. It requires a proactive approach, where staff members are aware of the department's financial condition and actively contribute to the efforts aimed at overcoming funding shortfalls. By fostering a culture of financial responsibility, school-transportation operators can navigate these financial challenges successfully, ensuring the safety and efficiency of their programs.
While the financial dilemmas facing school transportation operators are significant, strategic financial planning, collaboration, and a proactive mindset can pave the way for a sustainable and thriving school bus program. By understanding the challenges, implementing efficient strategies, and fostering a team-oriented approach, the department can ensure the safety of their students while managing their budgets effectively.
Looking for more hands-on help? School Bus Logistics offers budget consulting that can streamline your finances and create a tailored plan for your department. Our expertise in routing and logistics can also help you streamline your route mileage to save time and money. Get in touch to learn more.