8670 - TRANSPORTATION COST ANALYSIS

This guideline is designed to provide a more complete picture of the costs for student transportation. By developing a fuller cost analysis of this service, the District will be better able to determine how economical and effective the service is and what alterations might be explored to reduce costs and/or improve operations. Better cost analysis should also improve budget management, forestall miscalculations, and prevent year-end adjustments.

The purpose of Form 8670 F1 is to define not only direct costs but also indirect or hidden costs which are often not related to transportation per se but have significant implications not only for that service but for the District's entire fiscal operation and condition.

In addition to indirect costs related to both transportation and capital assets, the analysis provides for the determination of "opportunity" costs, that is, what the District loses in value because certain funds or assets are not available for other purposes.

This cost analysis is the responsibility of the Director of Operations and Maintenance working with the Chief Financial Officer. It is to be reviewed and revised each year within thirty (30) days after the close of the fiscal year.