School Bus Fleet
MenuMENU
SearchSEARCH

Illinois limits school contracts

SPRINGFIELD, Ill. — A new Illinois law promises to put a damper on new contracts between school districts and private school bus operators, and other ...

October 1, 2007
4 min to read


SPRINGFIELD, Ill. — A new Illinois law promises to put a damper on new contracts between school districts and private school bus operators, and other states could soon follow suit.

Illinois Gov. Rod Blagojevich approved a bill amending the state’s school code to apply new rules for school boards that outsource support services.

Ad Loading...

Under the new law, districts are not allowed to enter into a contract during collective bargaining, and contracts can be for no more than two years.

In addition, both the district and the contractor must make cost projections for each expense category, which cannot be increased during the contract. The school board must provide a cost comparison, and a minimum of two public hearings to discuss the proposal must be held.

In addition, the contractor must match the wage and benefits package of current employees and offer positions to all qualified employees displaced by the contract. The contractor must also list the number of employees providing the services, wages, a minimum three-year cost projection and information about the criminal and disciplinary records of the employees.

The new law went into effect Aug. 17. It does not apply to districts where non-instructional services were already being provided by a third party on the effective date.

Robin Leeds, industry specialist for the National School Transportation Association (NSTA), expressed contractors’ dismay over the bill’s success.

Ad Loading...

“We think that it’s a disservice, not just to the private companies that provide school support services, but it’s also a disservice to the boards of education in Illinois who may be looking at alternatives to providing their own support services,” Leeds said. “They’re also looking for efficiencies and cost-savings, and this bill will essentially prevent them from exercising that option.”

The bill was supported by teacher and public employee unions in Illinois. Leeds said that it is misleading for unions to hold up the threat of loss of jobs as justification for this kind of legislation, because incoming contractors give preference to employees already in the system, particularly school bus drivers.

“It’s in the contractor’s best interest to do that, because those drivers know the kids, the routes, the parents, the town,” Leeds said. “They are in fact the biggest asset that the school district has, and that the contractor assumes.”

The NSTA believes that the bill’s passage in Illinois could spur unions to push for similar legislation in other states. The first law of this kind was passed in California in 2002, Leeds said. The association has been monitoring similar efforts in Minnesota, Michigan, Oregon and Ohio.

The measure limiting contracts in Ohio was not a standalone bill, but rather a provision in the governor’s budget bill that would have repealed the ability of local school districts to outsource transportation.

Ad Loading...

“The school transportation community and the contractors were successful in getting that provision removed from the bill,” Leeds said.

The bill in Minnesota would apply only to school transportation contracts. The Minnesota School Bus Operators Association and regional educational associations are fighting the measure.

“The education administration community is always opposed to these bills, because it limits their options,” Leeds said.

Bills proposed in Minnesota and Oregon have been tabled in committee and are likely to be brought up in the next legislative sessions in those states. Minnesota’s next session begins in February 2008. Oregon’s is scheduled for 2009, as the Legislature convenes every two years.

In Michigan, lawmakers are considering a bill that doesn’t go as far as the Illinois bill, according to Leeds, but it would make a school board’s decision to outsource support services a subject of collective bargaining. “This bill inserts union control into the school board’s decision-making,” Leeds said.

Ad Loading...

Up to this point, the NSTA has depended on state school transportation associations to fight this type of legislation when it is proposed, rather than contacting lawmakers directly. “But as this is becoming a bigger issue, we expect to get more actively involved in the state process,” Leeds said. “We’re certainly seeing it crop up now more than we have in the past, and it’s a trend we’d like to nip in the bud.”

The association is networking with educational organizations and other support service groups.

“We’re in the process of contacting some of those groups to see where our allies are and how we can work together,” Leeds said.

Subscribe to Our Newsletter

More Management

A line up of school buses with one out front of the group.
Managementby Elora HaynesSeptember 7, 2026

Logan Bus Company Rolls Out AI Phone System for NYC School Bus Families

A summer pilot found that AI agents could handle most routine calls, freeing up time for customer service staff to focus on emergencies and complex family concerns.

Read More →
Graphic that reads “What I Learned About Leadership” over photos of school transportation professionals participating in discussions and networking at the TAPT leadership event.
ManagementSeptember 4, 2026

From Intent to Impact: What I Learned About Leadership from TAPT

A Texas transportation supervisor shares lessons on self-awareness, accountability, managing stress and building trust — and why investing in leadership development matters at every stage of your career.

Read More →
Graphic announcing the 2026 NAPT Award Winners, featuring the National Association for Pupil Transportation logo on a blue background with gold stars.
Managementby News/Media ReleaseSeptember 3, 2026

NAPT Names 2026 Award Recipients

Who earned national recognition for their work in student transportation? This year, NAPT named five recipients of its 2026 awards for service, safety, and leadership.

Read More →
Ad Loading...
Zonar Cover for White Paper Survey Results for 2026 State of Student Transportation
SponsoredSeptember 2, 2026

2026 State of Student Transportation Report

Driver shortages. Rising costs. Growing safety expectations. More data, but not enough time to act on it. The 2026 State of Student Transportation Report reveals what transportation leaders say is putting the most pressure on their operations—and where they’re investing next. See how your priorities compare.

Read More →
Graphic reading “Managing Others’ Anger: Keeping Your Cool When Tempers Are High,” alongside a red balloon with an angry face against a stormy background.
Managementby Amanda HuggettSeptember 1, 2026

How to De-Escalate an Angry Person: 5 Steps for Handling Workplace Conflict

What makes emotions run high, and how should you handle an angry colleague or parent? Follow these steps for staying calm, listening, showing empathy, and resolving conflict.

Read More →
Image of happy school children exiting their school bus
SponsoredSeptember 1, 2026

What Readiness Looks Like This School Year

Learn about the challenges shaping the 2026–2027 school year, from persistent driver shortages and budget pressure to technology and readiness gaps. See how school districts are responding and adapting in Zonar’s 2026 Back-to-School Readiness Report.

Read More →
Ad Loading...
Graphic for School Bus Fleet’s August 2026 “Changing Lanes” personnel roundup featuring Cameron Nazemzadeh of STA, Jim Wojciechowski Jr. of Summit School Services, Matthew Klein of Zum, Kristen Shaheen of Transit Technologies, and James Hopkins of Cummins Inc.
Managementby Staff and News ReportsAugust 31, 2026

Changing Lanes: Executive Moves at Summit School Services, Zum, STA, Cummins, Transit Technologies, Driventic, & Cadex

See who's been hired, promoted, and appointed to leadership positions at various school transportation industry suppliers and private contractors.

Read More →
A green and white graphic with a black and white image of a new Bendpak facility with text reading "Industry Moves: Companies Expand & Relocate."
Managementby Elora HaynesAugust 27, 2026

Industry Moves: Companies Expand Fleet Service & EV Infrastructure Footprints

The new facilities and regional hubs could mean faster access to shop equipment, charging support, and transportation technology for fleet operators.

Read More →
Cover of a Pro-Vision whitepaper titled “Doing More With Less: A Transportation Director’s Guide to Managing Safety Budget Uncertainty,” featuring school buses, a school transportation scene, and safety technology imagery.
SponsoredAugust 27, 2026

Doing More With Less: How Transportation Directors Can Prioritize Safety Amid Budget Uncertainty

With diesel prices soaring and nearly one-third of transportation directors expecting budget cuts, maintaining student safety has never been more challenging. Download this guide to learn how leading districts are prioritizing risk, funding critical safety technology, and building stronger budget cases with data.

Read More →
Ad Loading...
Graphic showing a U.S. map with New York marked alongside the Zum logo and the text “Zum Expands to New York.”
Managementby News/Media ReleaseAugust 24, 2026

Zum Reaches 19 States With New York Expansion

The addition of the Empire State to the student transportation company's roster marks a growing expansion in the Northeast as it scales its tech and school bus services.

Read More →