State report reminds Act 73-minded lawmakers to consider student transportation needs and recommends new walking policies
By Guy Page
State legislators have $26 million in state aid to help school districts defray the expense of student transportation. And school districts have a growing set of problems making student transportation more expensive and difficult.
Lawmakers shouldn’t overlook student transportation as they consider school governance reform, according to a December, 2025 state-mandated report by the Agency of Education. Here are a few high points:
Help wanted! There aren’t enough bus drivers.
Supervisory unions and school districts consistently emphasized the severe, statewide shortage of bus drivers as the most significant challenge impacting school transportation. Districts reported that the requirement for a CDL license, combined with significantly higher wages available in the private sector, makes it increasingly difficult to recruit and retain drivers. Many districts cannot fill all routes every day, and several noted that even if additional transportation mandates were imposed, they currently lack the personnel necessary to meet them. This workforce constraint is particularly acute in rural areas, where alternative vendors or backup drivers are often nonexistent.
Costs are rising, especially in districts that contract for bus service and especially especially where contractors hold a virtual monopoly.
Districts also highlighted the rapidly rising and unpredictable cost of transportation services, driven in part by limited vendor competition. Several supervisory unions described year-over-year cost increases ranging from 20 to 35 percent, with some projecting even steeper future growth. In regions served by only one transportation contractor, districts find themselves negotiating from a position of limited leverage, contributing to disproportionately high per-pupil costs. Many respondents suggested that statewide contracting, regional consortia, or BOCES-style models could help mitigate financial pressures and create more uniform pricing.
Equity concerns are spurring calls for transportation across all grades – not just elementary schools, where busing students is virtually universal.
A number of districts raised equity concerns, emphasizing that transportation needs extend beyond elementary grades. In many communities, particularly those with large numbers of working families or limited vehicle access, older students rely just as heavily on school-provided transportation. Respondents noted that a one-car household, for instance, may struggle equally to transport a high school student as an elementary student. For this reason, many districts expressed that if cost were not a barrier, offering transportation to all grades would be the most equitable and family-supportive approach.
Long bus routes are a challenge, so more students should walk to a bus stop.
Geography and rural road conditions also emerged as major considerations. Districts described long distances, isolated homes, and unpaved or seasonally hazardous back roads that buses must navigate. These factors significantly increase travel times, fuel use, and fleet wear, and can make door-to-door transportation impractical or unsafe. Many districts recommended establishing clear statewide definitions of “distant students” and “safe walking routes,” as well as allowing for centralized pickup points and walking zones where appropriate.
Federal law requiring transportation of homeless students to their ‘school of origin’ is expensive and burdensome.
Finally, districts noted significant logistical and financial challenges associated with McKinney–Vento homeless transportation requirements, particularly when students change districts or must be transported across long distances. These situations often
arise unexpectedly, creating cost volatility and operational strain.
Recommendations: Larger districts, distance requirements
As the state contemplates changes to governance structure and scale, impacts on the transportation system must be included. There are clear opportunities to reduce redundancy, complexity and competition for scarce resources within larger districts, which should result in reductions in costs.
By rebuilding the education transportation system within larger districts, districts can more efficiently utilize the limited labor pool of drivers and increase access for students. Within a new governance structure of fewer, larger districts, the state might contemplate statewide requirement for districts to provide transportation to all students who live one mile from the school (elementary) and two miles from the school (secondary). Transportation policy should also consider exceptions based on hazardous walking conditions, given Vermont’s unique terrain and combination of rural and more densely populated regions. Additionally, transportation boundaries should be considered when contemplating the choice policy within larger districts.