Study: 24% of Michigan districts contract out transportation
Ten years ago, only about 4% of school districts in the state outsourced school bus services, according to a report from the Mackinac Center for Public Policy.

Ten years ago, only about 4% of school districts in Michigan outsourced transportation services, according to a report from the Mackinac Center.
The percentage of school districts in Michigan that contract out for transportation services is now about six times larger than it was 10 years ago, a recent report found.
The 2014 Michigan School Privatization Survey, conducted by the Mackinac Center for Public Policy, shows that 24% (131) of districts in the state outsource with school bus contractors.
That finding was up from 20.4% in the Mackinac Center’s 2013 survey on the topic. From 2013 to 2014, 24 Michigan districts began new transportation service contracts.
However, there was some movement in the opposite direction. Four districts in the state brought their transportation back in-house between 2013 and 2014.
In 2005, just 3.8% (21) of Michigan districts outsourced school bus service.
In addition to transportation, the Mackinac Center study tracks the contracting of custodial and food services. The report's authors wrote that “there has been an explosion of privatization in these areas” since 2003.
Economic conditions have been a key reason for outsourcing, according to the study.
“Districts have largely been propelled to contract out for these services based on a desire to save money,” the researchers wrote. “In addition to this rationale, spending pressures, created in large part by rising employee health insurance and retirement costs, compelled districts to find ways to stretch dollars further.”
Read the Mackinac Center’s 2014 Michigan School Privatization Survey here.
More Management

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 →
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 →
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 →
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 →
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 →
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 →
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 →
Texas Sixth Grader Wins 2026 National School Bus Safety Poster Contest
Sai Darshana Yekolu of Moseley Middle School in Prosper, Texas, was named the newest winner for her artwork, bringing the theme of “Safe Rides, Everyday Heroes” to life.
Read More →
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 →
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 →


