March 21, 2012 Shrewsbury Public School Transportation Fee Considerations

Overview Shrewsbury Public Schools Transports over 4,500 students daily. Fleet – 38 Regular Education buses, 5 Special Education buses, and 2 Assabet Valley Regional High School buses. Fifth and Final Year of contract with AA Transportation Contract is tied to CPI – FY13 Budget assumes a 3.5% increase in the daily bus rate. 38 Regular Education buses cost approximately $2.2 M Revenue to date is $603,890 or 27% of the cost to transport students. The transportation fees generate additional revenue, which reduces the amount of appropriated budget funds utilized for transportation, which in turn allows more appropriated dollars to be spent on the educational program.

Transportation Fee Transportation Fee was implemented in FY08 at $210/rider and $420 family cap. Fee was increased to its current rate in FY10 to $250/rider and $500 family cap. Late fee of $50/rider and $600 family cap. $250/rider fee equates to $1.38 per day State Law – Mandated transportation for K-6 students who live two or more miles from school, students attending vocational technical school outside the district, and students whose special education needs require specialized transportation. Students who qualify for Free/Reduce lunch do not pay a fee Families in need are offered payment plans

Ridership and Revenue – 4,578 Riders, $603,890 to date for FY12 FY08FY09FY10FY 11FY12 To date Total bus riders4,7794,623 -3% 4,519 -2% 4,622 +2% 4, % Total regular fees collected $539,650$546,298 +1% $573,250 +5%* $584,324 +2% $592,290 +1% Processing fee for free riders ($10) $4,860$6,250 +3% $5,250 -2% $0 N/A $0 N/A Late fees$8,225$16, % $26, %** $15, % $11, % Students paying late fee: Late fees collected  $25 (FY08 & 09) or $50 (FY10, 11,12) % %** % % Total fee collection $552,735$568,998 +3% $604,750 +6% $610,215 +1% $603, % Paying riders: regular fees collected  $210 fee (FY08 & 09) or $250 fee (FY10,11,12) 2,5702,601 +1% 2, %* 2,337 +2% 2, % *Regular fee revenue increased by 5% despite 12% decrease in paid ridership due to fee increase from $210 to $250 **Late fee increased from $25 to $50 in FY10; late fee revenue increased by 60% but actual students paying late decreased by 20%

Transportation Fee Considerations Considerations for the Transportation Fee include: Increasing the Fee Eliminating the Family Cap – Currently 119 students who would be required to pay but are exempt due to the family cap Projections assume same level of ridership, however higher fees my result in lower ridership as happened in FY10

Transportation Fee Projections FeeProjected RevenueAdditional Projected Revenue if No Family Cap (119 students) Total Projected Revenue if No Family Cap Current Fee$250$600,000$29,750$629,750 Increase $5$255$612,000$30,345$642,345 Increase $10$260$624,000$30,940$654,940 Increase $15$265$636,000$31,535$667,535 Increase $20$270$648,000$32,130$680,130 Increase $25$275$660,000$32,725$692,725 Increase $30$280$672,000$33,320$705,320 Increase $35$285$684,000$33,915$717,915 Increase $40$290$696,000$34,510$730,510 Increase $45$295$708,000$35,105$743,105 Increase $50$300$720,000$35,700$755,700

Conclusions School Committee instituted fees to preserve educational programming due to fiscal realities. The challenges faced in FY13 require consideration of adjusting the level of subsidy families will pay for non- mandated bus transportation to and from school. The Transportation Fee has not been increased in three years despite inflationary increases in our transportation costs.

Shrewsbury Public School Transportation Fee Considerations March 21, 2012 Questions and Comments