Why Contract? Private and public sectors generally agree that stretch- ing transportation dollars is at the root of why school districts use contractors, in addition to being able to access necessary expertise. “School districts choose to contract student transportation for [many] reasons,” said Scarla Gilbert, vice president of business development at First Student. She cited aging fleets and the inability to upgrade, due to a lack of funds; redistricting challenges that are tied to population growth or decline; and administrative diffi- culties, including driver shortages and student behavior. “At the core of the decision is the knowledge that stu-
dent transportation providers’ expertise and single focus is to provide the safest, most reliable journey to and from school for all students,” she added. Shane Anderson, area general manager for Student
Transportation of America-Colorado, provided a similar viewpoint. “School districts have a lot of fiscal difficulties and they are looking for savings,” Anderson said. “School districts are tasked with moving their money around to
balance their budgets.” Anderson explained that in Colorado, government
benefits payouts, such as the Public Employees Retire- ment Association (PERA), can add up to 20 percent to the cost of providing transportation, which could be as high as $10 million annually. “Their budgets are crunched,” Anderson said. “Trans-
portation is one of the top two most expensive costs to a school district.” He explained that all school bus drivers statewide are eligible for the PERA benefit, because they are considered to be public employees. “So, as contractors, school bus drivers become our em-
ployees,” Anderson continued. “We become responsible for their benefits packages, and they’re no longer eligible for the government PERA retirement benefits. That doesn’t make them happy, so it’s important for contractors to cre- ate and offer a comprehensive benefits program through a 401(k) or a higher wage. Most often, contractors will come in with a higher wage, so that helps soften the blow.” Teri Brady, the assistant director of transportation for Portland Public Schools in Oregon, echoed Anderson’s
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