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Board flags proposed First Student bus increases as unaffordable; staff may issue RFP

Phoenix-Talent School Board · January 8, 2026

Summary

Superintendent and finance staff told the board the proposed First Student contract renewals would materially raise transportation costs (two- and five-year options); Chair Michael Campbell and staff said increases appear large and staff will prepare an action for Feb. 4, possibly issuing an RFP if negotiations fail.

Board members and district staff said the rates proposed by First Student for a contract renewal would exceed the district's budget capacity and that staff will return with recommendations at the Feb. 4 meeting.

"It appears as though it is essentially 30% over the five years," Board Chair Michael Campbell said, reviewing the five-year option. Superintendent Brent Barry told the board he had requested both two- and five-year renewal proposals; finance staff modeled the dollar impacts and concluded the rates could not be afforded. Barry said First Student cited fleet upgrades and competitive wages among drivers of the increases. Staff will prepare an action item for the Feb. 4 board meeting and recommended a shorter renewal term or an RFP if terms remain unacceptable.

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