Outsourcing Probably Costs More
Just looking at the matter intuitively, it seems likely that outsourcing school transportation should cost more than providing the service in-house.
An outside contractor's costs are no less than a school district's and, in addition, the contractor must pay taxes and make a profit. Indeed, in this area, a contractor's costs are likely to be higher. Contractors, for example, don't receive state aid for purchasing school buses. Contractors also don't benefit for special purchasing arrangements available to school districts. Thus, even while outsourcing school busing to Laidlaw, the PLSD has continued to purchase all the gasoline and diesel fuel used by the buses, because the PLSD can purchase it cheaper.
As a school board member, I opposed the last renewal of Laidlaw's contract. Laidlaw then on the brink of bankruptcy, and was our only bidder. Moreover, the circumstances surrounding the withdrawal of the other two potential bidder smelled very fishy to me.
So I recommended that the administration calculate the costs of bringing busing back in-house. Our business manager flatly refused to do so, or even to work with me in calculating those costs -- which is one of the reasons I voted against the next renewal of her contract.
Thus I undertook the project myself. I obtained Laidlaw's payroll expense, figuring that ours would be about the same. I obtained bids from insurance carriers. I calculated what it would cost to lease purchase the portion of the bus fleet that the PLSD did not own from Laidlaw. We already pay half the rent for the bus garage in Pataskala, so I added in the other half of the rent. By my calculations, the PLSD's savings would have been substantial had we brought this function back in-house.
For some peculiar reason, however, the administration and three members of the board were unwilling even to listen to me, or to look seriously at this alternative.
Thus I am very disappointed that the School Board apparently has been unwilling, this time around, to take a serious look at this alternative. Perhaps, once again, their view has been clouded by the PLSD's recalcitrant business manager.