Due to increasing costs for bus service, the Millard School District in Nebraska has instituted a successful plan whereby students pay partially for bus service by purchasing coupon books. While elementary students more than one mile away are still bused at district expense, junior high students more than two miles away must pay the partial cost in order to ride the bus. (High school students are reimbursed for their own transportation, since a second high school has obviated the need for bus service.) The system has resulted in a 39 percent reduction in the transportation budget, even though the district still offers safe transportation for junior high students who need it. Other advantages include allocation of transportation costs to users, thus reducing tax burdens; and greater control and flexibility for the district in financing its transportation program and adjusting for future contingencies. Another cost-saving move is a switch from gasoline to propane as bus fuel. As a consequence of these measures, the Millard School District has managed to cut costs substantially, without affecting educational quality. (TE)