Muncie Community Schools Changes Bus Service, Will Apply For State Loan

Muncie students will ride to school in different buses controlled by a different company in years to come.  The district chose a carrier headquartered in Michigan instead of its long-time local bus service.

“I’ve been praying for this that I can, keeping my heart. Please don’t let our bus company die in vain. We’ve been there for 40 years, trustworthy. And we love our kids. And we love the city of Muncie.

That’s Shanna Hatton with M&M Bus Company.  It has been the bus provider for Muncie Community Schools for decades and the school is its only employer.

But with the district’s multi-million dollar deficit, Superintendent Steve Baule says MCS is looking to cut costs anywhere it can.  When the district asked for bids for bus service going forward, M&M re-submitted the same price it’s been charging for years.

“I have here the bids of two of the companies, actually three of the companies, and in looking through them, they go into great detail about everything we asked for in terms of the pricing. And here’s the bids from M&M. One sheet of paper, two lines.”

That’s board member Robert Warrner.  He says more complete and attractive bids came from other companies.  And with a 3-2 vote, the MCS board approved changing bus providers to Auxilio Services, a company from Lansing, Michigan.  Baule says their bid will save the district $1.2 million a year on bus service.

“I don’t expect that I’m going to get parent complaints anymore about buses that don’t have heat or the windows don’t work in.  It’s an entirely new bus fleet.”

The vote from the board wasn’t unanimous because of several concerns.  The primary one for parents is that the number of bus routes will change dramatically.

M&M operates 59 bus routes – carrying about 1,900 children regularly.  Auxilio’s bid says it will run 22 or 24 bus routes to get those same children to school.  Baule says they will use computer mapping software to be more efficient.

MCS entered into a five-year contract with Auxilio, so the buses will roll on for at least a year.

In 2015, the school obtained a “transportation waiver” from the state giving it permission to stop bus service in the district in 2018.  A district with a waiver doesn’t have to use it, but Baule says it still remains an option for the district with a deficit.

“We’ve been very clear with all of the vendors who were involved. We originally started with five. We had three bid. We look forward to having a long term relationship with them, but they know it could be a one year thing.”

Portions of Auxilio’s website say they are “coming soon,” and have no data, including a page listing clients.  But it has at least one other Indiana client.  Last month, Monroe County Community School Corporation in the Bloomington area hired the company to run 42 bus routes.

Superintendent Baule also asked for – and received – permission from the school board to apply for a state loan from the Distressed Unit Appeals Board.  That board can give state dollars to school districts or local government units in dire circumstances.

Several school corporations have asked for money in the last few years – the most recent being Gary Community Schools.  In that case from a week ago, the state board gave out much less money than Gary asked for and said it could only be used to pay teachers and critical vendors, if the district could not get a bank loan first.

Muncie administrators will now need to complete a lengthy application and the board’s process includes holding public hearings before making a decision.