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 Transportation Supervisor should work with the Treasurer and fleet maintenance staff to identify and record maintenance and operating costs for each element in the District’s student transportation operation, including costs for each individual vehicle. Accurate cost recording should be verified periodically throughout the school year. These costs should be the basis for the District’s T2 report filed with the Ohio Department of Education and Workforce ("DEW") annually.
 
A District cost analysis should be based upon the T1 and T2 reports submitted to the State. A cost analysis report based upon this data can be obtained from DEW’s financial reports posted on their website or other sources that use the same data.

The District cost analysis should be compared to State averages and optimally to other similar districts to determine if operations can be improved to increase cost efficiency. 

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 Treasurer working with the Transportation Supervisor.

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