Privatizing state school bus system could be practical

e-mail this story discuss this issue in our forums More details Phillip W. Shoopman of Greer, a member of the state Board of Education, was Gov. Mark Sanford's appointee to the Bus Privatization Study Committee. He can be reached at pshoopman@charter.net.

The goal of this effort was to determine whether privatization is practical for our state system, and to deliver our findings to the General Assembly for their consideration during the current session. The outcome of our study highlighted benefits and concerns our legislators and the governor should consider as they review our findings.

Our state exercises a unique approach in that it splits control of the school bus transportation assets and responsibilities between the state Department of Education (SDE) and the local school districts. Further, the SDE/local district ratio varies for each district. This varying bifurcation made it nearly impossible to determine the actual costs of the current transportation system. However, after an in-depth investigation, we learned the total annual expenditure for the school bus transportation system was approximately $170 million for the fiscal year 2003-04, not including the asset value of the buses. The magnitude of this expenditure alone merited a review for potential cost savings.

A significant potential benefit of outsourcing the transportation system is cost savings through competitive market forces. A competitive examination of the existing transportation operations would lead to a much clearer picture of actual costs needed for each district along with potential savings of both money and time. The premise of this approach is that, with local control, districts would tailor their specific transportation needs for the value of competitive examination.

Whether or not a savings was identifiable, this competitive-based analysis via an autonomous local district would yield a clearer understanding of the needs and a more efficient and effective operation. Likewise, if the review exposed the need for more resources in a local district, this effort would establish need for additional resources.

Testimony before the committee further revealed outsourcing allowed school administrations to focus more energy on their core mission of academics. We learned through testimony from school district representatives within and outside our state that customer satisfaction rose dramatically where outsourcing was implemented.

Those concerned with the notion of privatizing the state's student transportation system believed the current management system works well, but is handicapped by insufficient resources and restrictive policies. They believe the administrators, drivers, mechanics and others are doing the best they can under given circumstances.

A thorough review of our existing 5,600 buses yielded a sobering state of concern. More than half of the bus fleet is between 15 and 28 years old. The average odometer reading for 2003-04 was 170,006 miles, a value that substantially affects increasing maintenance costs. While the useful life of a school bus is a function of miles, safety improvements are a function of age. During our meetings, every expert testified that these statistics are unacceptable and must be addressed as a priority for the safety of the children of our state. If nothing else merits further study, these facts warrant immediate attention by the SDE and our legislators.

Substantial information was presented to our committee that, in addition to equipment problems, an over-burdensome set of laws, regulations and policies are a hindrance to efficiency. In many cases, it is justifiable that these requirements be re-examined and changed, or eliminated, to create a more flexible transportation system.

The committee majority agreed outsourcing student transportation services is feasible in our state. Taking into account the benefit of competitive pricing, the need for an updated bus fleet, and relieving the districts from the burden of managing a transportation program, the committee majority endorsed the concept of a statewide request for proposal (RFP), developed and conducted by the Budget and Control Board. The purpose would be to determine the needed costs for a transportation system at a district-level basis. The RFP would call for bids for the total transportation system needs of each district (including drivers, buses, fuel, maintenance, etc.) with the assumption that total control resides at the district level.

The RFP effort would generate much-needed information and should be offered for review by all interested entities, especially those districts interested in providing autonomous student transportation services.

Finally, the committee unanimously agreed that, should a student transportation system devolve to the local district, there must be no rise, and preferably a decrease, in the monetary burden borne by the local districts.