There’s much to be thankful for these days. Even with all of the uncertainty we face daily, our lives are relatively carefree compared with most of the rest of the world. Having said that, things could be better.

For example, as Editor Steve Hirano points out in his article "Continued Signs of Uncertainty for School Bus Contractors" on pg. 34, the cost of delivering transportation service is rising due to a variety of factors. Whether the service is provided by a public or private fleet, the financial reality is the same: Transportation is a big-ticket item and getting bigger.

School boards, battered by funding shortfalls, are trying to compress their transportation costs as much as possible. This means reducing home-to-school service when feasible, curtailing extracurricular and athletic trips, supporting parent-pay systems and seeking concessions by their transportation providers.

These measures are not popular with anyone. Parents are unhappy. Teachers are unhappy. Most of all, transportation professionals like you are unhappy. But children, too, are deprived. More to the point, their level of safety is reduced. Many are now finding other ways to get to and from school. Others are riding in buses that were scheduled for retirement last year. This is not a good state of affairs.

What’s to be done?
For the private sector, the first thing that must be done is to fully understand the funding pressures placed on school districts by revenue shortfalls. Yes, transportation often absorbs deep cuts in its budget, but the pain is shared by teachers, many of whom have been laid off, and the central office, which also takes its share of cuts. Other ancillary services such as food service and maintenance also share in the cost-cutting burden.

Contractors must be aware that a school budget crisis also represents an opportunity to create a lasting partnership with the school district. Many of the contractors interviewed for Steve’s article said they are working with their customers to reduce costs, even to the detriment of their profit margins. For example, they’re looking at improving routing efficiency and bell time adjustments. Often, the consequence is fewer buses needed and, consequently, lower costs.

"Yes, we do lose some top-line revenue," said one contractor. "But in the grand scheme of things, we feel it's much better to be a good partner to the school district."

Not only does this type of partnership result in more money being available for classroom expenses, it also strengthens the bond between the school district and its contractor, which could lead to a longer-term business relationship.

Loyalty should be rewarded
A strong partnership with a school district is always the goal of a contractor, but it shouldn’t come at the expense of a reasonable return on investment. Many contractors will make concessions to school districts because of the economic downturn. When funding becomes more ample, however, those operators should be rewarded by their customers with equitable increases. Loyalty needs to be recognized.

Although I don’t have a crystal ball, I believe, like many others, that the economy will improve in the next 12 to 18 months. Until then, we’ll continue to struggle through each day, week and month, relying on our experience, professional attitude and strength of purpose to get us through. Rising to the challenge has always been one of this industry’s most admirable traits.