Merrimack Valley’s school board is expected to vote next week on whether to proceed with retaining a company to run its busing fleet going forward.
Contracting out the work would likely save the district between $300,000 and $500,000 next school year, according to Business Administrator Sam York.
The only bid for the job came from First Student, the largest private school bus company in the country.
The terms of the deal would require First Student to offer jobs to all current district transportation employees, York said. The company is proposing increased wages and sign-on bonuses for the current busing employees, he said.
“From my perspective, I think that the deal that we’re trying to do is what’s going to be best both for the district and financially for the employees,” York said in an interview. “And I think that’s a win-win for both.”
Last week employees for First Student threatened to strike, but a contract was reached before the buses were halted.
The cost of transportation has risen precipitously in recent years in Merrimack Valley and surrounding districts. Since the 2021-22 school year, Merrimack Valley’s transportation expenses have increased almost 50%, or about 10% per year, according to York.
Merrimack Valley currently pays roughly $3.1 million for transportation annually, including vehicle replacement, repair, maintenance, supplies and dues. First Student is proposing a $2.8 million contract for next year with 4% annual increases through 2030-31.
The deal would also likely involve First Student purchasing the district’s fleet of vehicles and related tools and supplies. The sale would be for roughly $1.3 million, York said.
First Student would be responsible only for in-district transportation. Merrimack Valley would remain on the hook for out-of-district transportation for special education students, though York said the district could potentially agree to separate agreements with First Student for out-of-district transportation.
The large range York provided in cost savings is because certain transportation expenses vary unpredictably from year to year, and because of the possibility of incorporating certain out-of-district transportation responsibilities into a potential deal.
Several other districts in the region, including Hopkinton, Shaker Regional, and Hillsboro-Deering, currently use First Student, according to those districts’ websites.
Current First Student job openings in New Hampshire offer hourly wages ranging from $20 to $29 for drivers. Some positions offer sign-on bonuses of up to $1,500.
Assuming employees agree to the new employment with First Student, York said that students and families should not expect to experience any changes.
Representatives from First Student will be present at Monday’s board meeting at 6:30 p.m. in the Merrimack Valley High School library.
