District considers purchasing bus fleet to reduce transportation costs

During the Lakota Board of Education's work session on May 6, 2025, discussions centered on the potential return to purchasing a fleet of school buses, a significant shift from the current contracting model. This proposal aims to enhance financial efficiency and improve service delivery for students.

The board members explored the implications of buying buses outright rather than continuing to lease them from a contractor. Currently, the district pays a substantial amount under its contract with Peterman, which includes both the buses and the staffing for transportation. By owning the buses, the district could potentially reduce these costs, as owning the fleet is estimated to be less expensive than leasing. The conversation highlighted the importance of balancing upfront costs with long-term savings, as well as the need for careful financial planning to avoid future budget crises.

A key point raised was the potential for increased competition in the bidding process for transportation services if the district owns its buses. This could attract more bidders, leading to better service options and pricing. The board noted that having ownership of the fleet could provide more flexibility and leverage in negotiations with service providers.

The discussion also touched on the logistics of bus maintenance and staffing. While the district would own the buses, the maintenance would still be contracted out, ensuring that the operational aspects remain efficient without the need to hire additional staff.

In addition to the bus fleet discussion, the board reviewed financial projections and the need for a reserve fund to manage future expenses related to transportation and curriculum needs. The board emphasized the importance of establishing a stable financial foundation to support ongoing educational initiatives and infrastructure improvements.

As the board moves forward, the focus will be on gathering more detailed cost assessments and exploring funding options to ensure that any transition to bus ownership aligns with the district's long-term financial health and educational goals. The outcomes of these discussions will play a crucial role in shaping the future of transportation services for Lakota students.