Bus negotiations hit traffic

Rising costs require the San Mateo Union High School District to raise its price tag for offering bus services to break even, forcing a financial problem for the San Mateo-Foster City School District which now faces a much higher-than-planned transportation bill.

Since 2003, the San Mateo-Foster City Elementary School District has contracted with the San Mateo Union High School District to provide bus services. The original contract was for one year, but was not revisited by either side. Rising costs without adjusting the agreement leaves the high school district essentially paying $670,000 to bus students not attending its schools. Covering these costs, however, means tough choices for San Mateo-Foster City during these tough financial times.

Compounding the problem are different financial estimates and proposed timelines by each district potentially leaving a six month gap without bus services for San Mateo-Foster City.

The high school district proposed a 5 percent increase through December. In the meantime, San Mateo-Foster City could search for a new contract — a process San Mateo Union plans to participate in. The new contract could begin in January, according to an Aug. 14 presentation prepared by Deputy Superintendent of Business Elizabeth McManus.

San Mateo-Foster City is ready to begin the bid process later this month. However, it plans to begin with a new contract in July and counter offered a 6 percent increase to cover services for the remaining school year.

For the elementary and middle school district, the increase cost presents an unbudgeted problem. If it does increase, the money will need to come from somewhere. Where is yet to be determined, said board President Lory Lorimer Lawson.

"We’re trying to work together. We’re the same community, serving the same families. We should work together to work this all out,” she said.

San Mateo Union Superintendent David Miller agreed, but added the district could not afford to subsidize services for another district.

"The goal of our district is to break even,” he said.

Miller suggested bringing in a third party group like FCMAT, Fiscal Crisis and Management Assistance Team, which can objectively look at the situation and make suggestions about how the agreement could move forward.

The original agreement included using the San Mateo Union buses for 28,800 miles at $1.30 per mile, according to McManus. Last year, 71,800 miles were put on the fleet. The contract also consists of housing and using 21 San Mateo-Foster City buses.

If the agreement continued through the current school year, McManus estimated the total expense for transportation — including salaries, supplies, employee benefits, gas and mechanics — will total $1.734 million. At 2003 rates, San Mateo-Foster City would pay $1.063 million — a $671,000 shortage from the costs.

Both districts worked together to eliminate and combine bus routes as a cost savings. Those savings were minimal, however.

San Mateo-Foster City received $281,000 from the state for home to school transportation last year, meaning $1 million comes from the general fund, explained Chief Business Official Micaela Ochoa.

Also an area of contention is a $70,000 bill the San Mateo-Foster City paid to Durham to provide transportation after San Mateo Union sent notification that it would not be able to give certain students rides. The school year had already begun, which is why San Mateo-Foster City contracted the services. San Mateo-Foster City believed San Mateo Union would reimburse the district for the bill, but now that does not seem to be the case.

Heather Murtagh can be reached by e-mail: heather@smdailyjournal.com or by phone: (650) 344-5200 ext. 105.