WACO studying privatization of school bus transportation

By BROOKS TAYLOR

Mt. Pleasant News

WAYLAND ? When you?re a school district besieged with financial problems, none of which you have control over, you closely scrutinize each expenditure, searching for avenues to save a buck.

During Monday night?s WACO School Board meeting, the board heard a presentation from Durham School Services on privatizing the school bus portion of the district?s transportation system.

Mark Thompson, Durham?s director of business development, told the board that his firm is the second largest bus contractor in the United States, operating approximately 20,000 school buses through the nation. Thompson, who serves Iowa, Nebraska and a portion of Missouri for Durham, said three small schools in Iowa currently use Durham for their transportation needs ?but we have a go of schools in Missouri.?

He said that Durham?s top priority is safety. ?Safety is the key to what we do as a company,? he noted. ?Each driver we hired goes through a criminal background check, and a drug and alcohol testing. We also put a new employee through 40 hours of classroom instruction, which is above and beyond what the state requires.?

Continuing, Thompson said Durham could save the district 3-5 percent on its transportation costs. WACO now spends about $360,000 a year on transportation, according to Superintendent Pat Coen. ?We realize we have to save you some money, there has to be some incentive (to switch to privatization. We looked at your numbers and we can save you 3-5 percent. We also will look at whether we can reduce the number of routes.?

Another big plus for the district, Thompson said, is the district no longer would have to pay for maintenance costs on its buses.

If WACO would opt to go to privatization, its existing bus fleet would be used by Durham, or Durham would supply new buses, Thompson remarked in response to a question from the board. He also said it would be likely that Durham would employ some of the current WACO drivers. The drivers, however, would become Durham, not school district, employees. Durham?s services would not extend to school vans and cars.

Generally, Durham enters into three-year pacts with districts for its service, but Thompson said the contract could be an annual one. He suggested that if WACO was serious about privatizing its transportation to draft a request for service proposal. Coen said the district was serious at looking at privatization and would have the matter on the April board agenda.

WACO?s proposed fiscal 2013 school budget reflects a four-cent drop in the property tax levy to $21.78127 per $1,000 taxable valuation, which is still considerably above the 2012 state average of $15.03. During the last fiscal year, WACO?s property tax rate also was the highest in the area by over $2.50 per $1,000 taxable valuation. Keokuk had the second highest levy at $19.23.

The budget calls for $8,975,316 in expenditures, a decrease of nearly $180,000 from fiscal 2012. Property tax revenue will amount to $2,918,045 for all funds.

According to the published budget, the district anticipates a beginning fund balance (of all funds, not just the general fund) of $1,160,919 on July 1, 2012, and an ending fund balance of $781,556 on June 30, 2013. Many funds, it should be noted, are included in the fund balance. Some of those funds are physical plant and equipment (PPEL), management, instructional support and school infrastructure local option tax (SILO) funds.

Asked by a patron what the district?s solvency ratio was, Superintendent Pat Coen answered, ?pretty close to negative.?

Continuing in his explanation of the budget, Coen said the district was maximizing its expenditures. ?We are doing the maximum we can do. Just because we are listing the maximum doesn?t mean we will spend it.?

He noted that much of what the district spends will be based on enrollment. ?We get about $6,000 (in state aid) per student, so it is all based on enrollment.?

WACO Business Manager Carrie Coble said that the district?s SILO funds are starting to increase. A portion of the money is used to reduce the property tax levy, school officials said. ?The (SILO) receipts are starting to show a bit of an increase. In the past, the receipts were much lower than original projections,? Coble said, adding the district receives about $70,000 annually in SILO money.

Coen reported that 85 percent of WACO?s general fund goes toward employee salaries and benefits.

The 2012-13 calendar was approved. New teachers report Aug. 15 and teacher in-service is set for Aug. 16-17. The first day of classes is Aug. 21. The calendar includes three built-in snow days and a winter break from Dec. 24-Jan. 2. The final day of classes is May 24.

In remaining business, the board:

? Accepted the early-retirement resignations of Cathy Wolf, home school teacher, and Millie Youngquist, vocal music instructor.

? Passed a resolution to refinance $1.9 million in general obligation bond debt. The district received a refinancing proposal with 1.008-percent interest which will save the district $167,000 in interest costs.

? Approved a $291,000 Technology River Boat Grant application. If received, the funds will be used for a 1:1 computer initiative and other technology-related expenses.

WACO School directors meet again in regular session Monday, April 16, at 6:30 p.m. in the high school media center.