The Detroit school district says it will save $49 million over the next five years by outsourcing all of its student transportation.
Detroit already has contracts with three private companies that handle 51 percent of the district's transportation services. The remainder of the student transportation has been provided by district employees — 289 bus drivers and 56 other transportation workers. A total of 22,304 students in the district now receive busing services.
"The decision to fully outsource transportation will dramatically improve transportation services for our children across the district, who now rely on a cobbled-together system of contracted companies, district-provided services and taxi cabs," says Emergency Financial Manager Robert Bobb.
The Detroit district will save $8.1 million annually under the new contract; it also will realize a one-time savings of $5.1 million from selling the existing bus fleet, and a $3.5 million savings by eliminating the need to buy more buses in the future.