Since the 2019-20 school year, transportation spending in the district has increased by more than 90%, while the overall operating budget has increased by 28%.
In a report critical of the district’s budget practices, the Minneapolis Federation of Teachers singled out the district’s spending on contracted services as one area where the district can trim its budget. For the current school year, the district has budgeted $102 million for contracted services. Transportation makes up about 30% of that amount.
Over half of district transportation costs come from mandatory services it provides for a subset of special education students and homeless students. State aid reimburses the district for the cost of special education transportation, and starting next year the State will also reimburse the district for the cost of transportation for homeless students.
The State special education transportation aid is reimbursed in the year after the district incurs the costs. When costs are increasing, this means the district must cover the difference between the current year’s expenses and the previous year’s expenses during the current fiscal year.
Transportation costs are increasing for two main reasons: an increasing number of students are qualifying for special education and homeless transportation, and the cost of providing bus services is increasing. Transportation costs for the district are also higher than in other districts because the district provides bus service to students who live closer to school compared to other large districts.