could ostensibly move to a larger contractor or even a transit agency or a trucking firm to increase their hourly pay. But the smaller companies are in a better position to offer more hours to drivers in more of a family atmosphere. But as small businesses, these contractor companies face po-
tential economic hardships in terms of taxes. Some, like J.R. Motor Works, are thought to be too small to be negatively affected by any proposed changes to the tax code. But Kucera at County Coach says increased taxes could have a “disastrous impact on our indus-
❝
tors the opportunity to update fleets more often. Increasing taxes have always had a negative effect on our industry’s bottom line,” he explains. “It’s impossible to raise prices for services rendered to school districts because we are locked into contract rates over the 10-month school year, without contractual accelerator clauses. Property taxes continue to increase and school budgets are now being voted down. Fuel prices are soaring and reckless spending in Washington threatens to destroy our economic security.” Te bottom line? Creativity in business operations is a must.
I have heard several times, even when people are upset, that it
means a lot to them to know who they are dealing with and that they are dealing with someone who has the authority to address their concerns.❞
— Roger Branham, J.R. Motor Works, Inc.
try.” His company currently benefits from a sales tax exemption on the purchase of motorhomes, and he said the school bus industry should push for these same incentives when buying new buses. “It would create a greatly needed tax savings and give contrac-
“In these hard economic times, with shrinking budgets and
higher costs, we must be innovative in our business practices,” Kucera adds. “We are constantly analyzing revenue and expenses in order to find creative ways to stay ahead of the competition.” ■
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tony@stnonline.com
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28 School Transportation News Magazine June 2011
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