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ERIC Number: ED453570
Record Type: Non-Journal
Publication Date: 2000-Jun-13
Pages: 14
Abstractor: N/A
Reference Count: N/A
Missing the Bus: An Analysis of "Taking Them for a Ride: An Assessment of the Privatization of School Transportation in Ohio's Public School Districts."
Damask, James A.
This report critiques a study that condemned the privatization of school transportation in Ohio. The original study, authored by Mark Cassell, concluded that student transportation offered by a private company is more expensive than similar transportation that is provided in-house. The present report claims that the Cassell study ignored some direct costs and all indirect costs, including facility/equipment costs, and allocated indirect costs, such as legal expenses, insurance, and real-estate costs. It states that Cassell erred when he compared the marginal costs of providing in-house transportation (the cost of labor and materials to produce an additional unit of a product) with the average cost formula that is used by for-profit companies (costs are allocated over the total costs of the units produced). Since government enterprises frequently cross-subsidize operations and therefore understate capital requirements, any comparison of a school district's marginal costs with a transportation company's fully allocated costs will likely underestimate the district's costs. Furthermore, districts can ensure that no one company creates a monopoly of transportation services by securing the services of 2 or more organizations and by rebidding contracts every 5 years. (Contains 16 references.) (RJM)
Publication Type: Reports - Evaluative; Speeches/Meeting Papers
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: Ohio