Lorain, OH: "Dramatic increases" in SPED transport costs; $234,414 in 2019 to $1.22 million in 2024

June 21, 2025, Cleveland Plain Dealer: $1,000-a-day bus rides? Lorain Schools weighs in-house fix for exploding transportation costs

Facing a dramatic surge in transportation costs, Lorain City School District is considering a complete shift away from contracted bus services to taking full control of its transportation system.

The district has been gradually transitioning to an in-house transportation model since 2023, but the financial strain of subcontracted services — especially for students with specialized needs — is accelerating the conversation.

Director of Operations Tony Dimacchia told the Board of Education last week that a recent proposal to outsource 10 afternoon preschool routes came back with a staggering $500,000 price tag — forcing the district to turn down the service.

“We’re at the unfortunate disadvantage of, when you have to subcontract out, you have to pay their prices,” Dimacchia said.

Currently, the district operates under a hybrid model, with 23 routes handled by district-owned buses and staff and 14 routes — including those for non-public schools and students with specialized needs — managed by Auxilio, a private transportation contractor.

With Auxilio’s contract ending next year, district leaders face a critical choice: make substantial investments to expand internal operations or continue absorbing escalating contractor fees.

“That is something that we’re going to have to have serious conversations about on what that looks like moving forward after next year,” Dimacchia told the board.

But the most dramatic increases involve the transportation of students requiring special education services and those covered under the federal McKinney-Vento Act, which mandates transportation for homeless students.

The district’s spending on transportation for special education students has surged from $234,414 in 2019 to $1.22 million in 2024. Superintendent Jeff Graham told the board that these costs are largely from transporting students to specialized schools throughout Northeast Ohio — from Mentor to Cleveland to Akron — so they can attend specialized programs tailored to their needs.

Graham said that some individual students cost up to $1,000 a day to transport when they need specialized vehicles, trained drivers, medical aides and nurses.

“We try to be as cost-effective as we can be, but there are certain rules we have to play by and we need to make sure these kids get to school safely,” Graham said.

The district has found some relief through creative arrangements, including agreements with parents who can provide transportation themselves for less than contracted costs when families can safely meet their child’s medical requirements.

Meanwhile, transportation costs under the McKinney-Vento Act have risen from approximately $32,000 in 2019 to $147,000 this year, with further increases anticipated. . . .