The state House Education Committee on Wednesday advanced a pair of bills intended to help the Department of Education regain control of skyrocketing school bus costs.
Since 2006, the cost of providing student transportation has nearly tripled to $72.4 million, a report by the state auditor found last year. The audit concluded the DOE had essentially lost control of its school bus program, failing to address anti-competitive behavior among contractors and allowing costs to dramatically escalate.
Senate Bill 1082 would give the DOE more flexibility in awarding, executing and managing student transportation contracts by repealing statutory rules and instead allowing the department to set its own policies.
The move is in response to a DOE-commissioned study last year that called for a complete redesign of the DOE’s student transportation branch to rein in costs.
The study said Hawaii spends about $1,750 for every student rider, far more than national norms.
It recommended the state continue to contract with private companies, but said "major revisions to virtually every associated business process" are needed. One recommendation was to use a revised competitive procurement process, which SB 1082 would allow.
Board of Education Chairman Don Horner testified in support of the bill, saying it would allow the DOE to "more effectively manage the contracting process."
Meanwhile, Senate Bill 1083 would exempt school bus contracts from the state’s wage-certification requirements.
Under that law, wages for certain contracted employees have to at least match wages paid to public employees who do similar work, in effect establishing a minimum bus driver salary.
The proposed bill explained that "removing this requirement will stimulate competitive bidding, which will help to reduce escalating transportation costs."
Both bills advance to the House Finance Committee.
