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The
Troy Board of Education voted April 21 to authorize the superintendent
to negotiate a three-year agreement with First Student to
provide transportation services for its schools. The contract,
which becomes effective July 1, 2009 provides an estimated
$2.5 million savings for the District over the next three
school years.
As part of the agreement with First Student, Troy employees
will have the opportunity to remain in their positions at
their current wages and seniority. First Student will also
offer Troy employees a comprehensive health insurance plan
that features major medical coverage.
First Student representatives have already begun to meet with
the 80 impacted employees.
“We recognize that transitions are painful and that
this decision impacts individuals who are valued by our school
community,” superintendent Dr. Barbara Fowler said.
“Since 85 percent of our budget is directly related
to staffing costs, it is impossible to reduce costs without
impacting our staff members. The District is committed to
making this transition as smooth as possible for our employees.”
First Student is the nation’s largest provider of pupil
transportation services, transporting more than 4 million
students every day. The company will follow all current Troy
School District standards for safety, including training and
background checks. In addition, First Student will provide
ongoing training for drivers on matters related to pupil transportation.
First Student recently earned the National 2009 Green Cross
for Safety Medal – the highest award for safety in North
America.
The contracting of transportation services provides savings
to the District in operational areas. In addition, the District
will maintain ownership of its existing fleet but will not
be required to purchase replacement buses. Troy taxpayers
will save at least $7.65 million over the next few years by
not assuming the cost of replacing the District’s bus
fleet.
The decision to contract transportation services is one change
being made to address the financial challenges facing its
schools in a difficult economy. Since 2002, the Troy School
District has made $42 million worth of adjustments to offset
flat state revenues. This year, the District is using more
than $10 million of its Fund Equity to balance its budget.
In addition to contracting transportation services, the District
has received bids for custodial, grounds and food service
operations. Bids will be considered by the Board of Education
over the next month. The District will continue to work with
its support staff union to identify cost savings that could
avoid a change in these services. The Board of Education is
also considering $3.7 million in reductions that cross all
areas of the District.
“In this difficult economy, the District must explore
all options that will reduce our costs to ensure we are supporting
our classroom programs,” said superintendent Dr. Barbara
Fowler.
More budget information is available on the District’s
Web site at: http://www.troy.k12.mi.us/about/finance/index.htm.
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2010 Troy School District / 4400 Livernois Road, Troy, Michigan 48098 / (248) 823-4000 /