The District 112 School Board approved two-year transportation contracts with Student Transportation of America/Positive Connections and Koch School Bus Service on April 28.

DeeDee Kahring, director of finance and operations said the contract rates “have significantly increased due to two main factors, attracting and retaining drivers, and the need for new buses.” The busing industry is experiencing a shortage of drivers and there were some issues with service this school year because of an aging bus fleet and mechanical issues, according to the district.

The rates for first year of the Student Transportation of America contract will increase by $863,520 (17.91 percent) and the first year of the Koch contract will increase by $51,000 (6 percent). The second year of the contract will mean a $142,145 (2.5 percent) rate increase for the Student Transportation of America contract and a $22,500 (3 percent) increase for the Koch contract.

Kahring said the district is expecting to pay Student Transportation of America about $4.8 million for bus service this school year. In 2016-17, the district expects to pay nearly $5.7 million and about $5.8 million in 2017-18.

Transportation Manager John Thomas said the estimated cost for Koch School Bus Service is $851,000 for 2015-16. The anticipated cost in 2016-17 is $902,000 and $929,000 in 2017-18.

Kahring said the two-year agreement will allow the district to investigate options or owning or leasing its own bus fleet; monitor the market and do a comparison study of its current transportation operation versus a district-owned operation or a transit system model where the district owns its fleet and facility and contracts with a company to operate the buses.