Hopatcong Cuts Bus Driver Positions, Hands Transportation To Outside Contractor

HOPATCONG, NJ — The Hopatcong Board of Education voted Monday to eliminate its in-house bus driver and bus aide positions effective July 1, outsourcing all student transportation to Craft Bus as the district looks to close a growing financial gap driven by soaring benefit costs and years of state aid reductions.

Superintendent Jeffrey Hallenbeck told the board the decision was driven by a stark shift in the economics of running an in-house transportation department since the district expanded it during the pandemic.

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"Coming out of the pandemic, we saw transportation costs for bus transportation soar," Hallenbeck said. "We also saw a shortage of bus drivers and a shortage of the availability of contractors."

In response, the district worked with the Sussex County Regional Cooperative to purchase buses on lease during a period when new vehicle wait times stretched 18 to 20 months, and brought transportation operations in-house. But over the past three years, Hallenbeck said, the outside contractor market has stabilized while the district's own benefit costs have gone in the opposite direction.

"Our health care costs have gone up 29 percent and 31 percent just in the last two years, making the break-even for us providing transportation in-house no longer sustainable," he said.

The board voted unanimously to abolish the bus driver and bus aide positions through the Sussex County Regional Cooperative and to sell off its fleet of lease-purchase vehicles, retaining two buses for special needs students requiring wheelchair transport and for field and athletic trips.

Craft Bus was selected as the lowest responsible bidder and will take over all existing transportation routes as a single contractor — unlike arrangements in some other districts that use multiple companies. The firm has also agreed to lease the parking lot behind the high school gymnasium, generating additional revenue for the district.

Hallenbeck said Craft Bus has offered jobs to all current drivers who wish to accept them.

The projected savings range from $375,000 to $425,000 per year, though Hallenbeck noted that extended school year transportation for special education students — typically an additional $60,000 to $70,000 — is not included in that estimate and will be bid separately.

Hallenbeck said the savings are critically needed. Without a financial cushion, the district has been vulnerable to unexpected mid-year costs. He pointed to last year, when two special needs students enrolled late and their tuition at specialized private schools came to $126,000 each — not including therapy or transportation.

"In the June timeframe last year, we ended up having to cut four additional positions to be able to absorb that cost," he said. "This will give us the opportunity to have a little bit of savings to deal with whatever may come down the pike."

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