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RUSD presents one‑year renewal with First Student: 5.5% rate increase and $140,000 for 14 buses
Summary
District staff presented a one‑year renewal (second of three optional one‑year renewals) with First Student that includes a negotiated 5.5% rate increase and an additional $140,000 to purchase 14 replacement buses; First Student owns the buses and capital costs are rolled into future rates, staff said.
Racine Unified School District staff presented a one‑year renewal of its transportation contract with First Student at the March 3 work session. Staff said this is the second of three one‑year renewal options from the original contract and that the negotiated renewal includes a 5.5 percent rate increase for year two plus an additional $140,000 allocated toward the purchase of 14 buses to maintain the fleet.
Administration explained the additional funds for buses are intended to replace aging vehicles that reach the end of their useful life. Board members asked whether the district owns the buses; staff said First Student owns the buses and the $10,000 per bus (as presented) is the capital contribution that is recovered through rates billed to the district over time. Board members also asked whether any replacement vehicles would be electric; staff said the buses to be purchased under this renewal are not electric and that the cost for electric buses would be substantially higher.
Board members discussed driver pay and retention as part of the cost conversation; staff said driver compensation and fleet costs have risen and that replacement of older buses is necessary for safety and reliability. Because this was a work session presentation, the renewal will be returned to the board for formal approval at a business meeting. No formal vote was taken at the March 3 work session.
