OASBO Annual Conference and

Education Industry Show

Student Transportation in Ontario Update

May 2012

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Key Metrics

About 822,000 or 43.5%

students transported

Over 19,000 vehicles

1.86 million kilometres travelled daily

The Transformation Continuum • In 2006, the ministry initiated the transportation reform strategy that

required higher levels of effectiveness and efficiency in delivering student transportation services across the province. The ministry and school boards have invested significant efforts in supporting:

• Consortium development; • Capacity building initiatives; and • E&E Reviews

• In 2010, the government passed the Broader Public Sector Accountability

Act. In 2011 the BPS Procurement Directive, the BPS Expenses Directive, and the BPS Perquisite Directives came into force.

• In 2012, there is strong evidence that the responsibility for the continued

transformation of student transportation services is now being assumed by the sector. “OASBO Transportation Contract Performance Management Committee”

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Transportation Reform Timeline

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Summary of Transportation Reform in Ontario

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Raise awareness for public accountability

Raise mgmt & operational capacity

Modernize business practices

Build public confidence

Achieve effectiveness & efficiency

Effective and Efficient Consortium

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4 key components in an effective and efficient consortium

Consortium Management

Policies and Practices

Routing and Technology

Contracting Practices

Key Components Governance Structure

Operational Management

Financial Management

Key Components Transportation Polices and Procedures

Special needs Policies and Procedures

Safety Policies and Procedures

Key Components Software & technology capacity

Digital map Student database management

Planning & routing

System Reporting

Key Components Competitive Procurement

Contract Structure Contract and Performance Management

Evolution of Service Delivery

THEN Transportation department was viewed as a day to day operational support function responsive to directions from board trustees and /or administrators

NOW Consortium is viewed as a transportation focus body that provides strategic value-added transportation services to member boards with common vision and mission

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Strategic Planning

Clarity

Continuous improvement

Department Support

• 33 consortia representing 71 boards – 15 consortia have been established as “Separate Legal Entities”

• Biggest consortia

– Transport 66,000 students

• Smallest consortia – Transport1,400 students

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Consortia Status

Accomplishments

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Cost Efficiency

Economies of Scale

Standardized Process

Autonomy

Focused Goals

• To date, we have completed 33 E&E reviews and 5 follow-up E&E reviews.

• 5 consortia have attained “High” E&E rating.

• Strong evidence of increased capacity of transportation management across the province.

Accomplishments

• Accountability – The E&E Reviews have resulted in wide adoption of leading

practices – The role and expectations of transportation management has

become much more sophisticated and demanding- the sector has risen to the challenge.

• Leverage learning and resources – Consortium members now share more information with one

another, leveraging lessons learned and making operations more effective and efficient

• Harmonized policies have been adopted in many consortia • Increased alignment between transportation funding and

expenditure

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Increased Alignment between Transportation Funding and Expenditure

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0

10

20

30

40

50

60

2006-07 2007-08

2008-09 2009-10

2010-11

22

15 14

8

6

33 34 38

50 52

17 23

20

14 14

Num

ber o

f Boa

rds

School Year

Deficits >5%

Within + or - 5%

Surplus >5%

Where are we going?

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Continue the Momentum

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• Goals: – Focus on continuous improvement to ensure sustainability of

accomplishments

– Continue to identify, refine and communicate best practices

– Strengthen accountability framework and increase transparency

• Key initiatives: – E&E Follow-up Reviews

– Full compliance with the BPS Procurement Directive

– Capacity building initiatives

– In discussions with OASBO Transportation Committee on safety initiatives

– Transportation Survey

– GSN funding policy

Follow-Up Reviews

• Consortia should have confidence that their transportation system meets the required criteria to receive a “High” overall rating before making a request for a follow-up review to the Ministry

• Consortia requesting a follow-up review will be asked to provide a full response on actions taken on the recommendations from their original E&E Review prior to being scheduled for a second review

• Written request: – 2012-13: request must be submitted before June 15, 2012

– 2013-14: request must be submitted before June 15, 2013

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Competitive Procurement

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• Minister’s letter of March 29, 2012 – Task Force report

– Drummond’s report

– 2012-13 Ontario Budget

• Ministry’s numbered memorandum 2012:B8 – Financial support for consortia conducting competitive procurement processes for

the first time

– Financial support for operator training undertaken by Ontario School Bus Operator Association

– Encourage Consortia to take full advantage of the resources available in the Ministry of Finance Supply Chain Management website and the BPS Procurement Directive Working Committee Checklist for Student Transportation

– Resource packages from the Contracting Practices Advisory Committee and the two-stage pilots

GSN: Transportation Grant

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• The Transportation Grant in 2012-13 is projected to be $847.1M

• More than $217M (or 34.3%) than in the 2002-03 school year.

• In this time of fiscal restraint and declining enrolment, we can’t expect to see these kinds of increases each year.

1,800,000

1,850,000

1,900,000

1,950,000

2,000,000

2,050,000

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

900.00

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

(Rev)

2012-13(Prj)

Enrolment

Allocation/ Expenditure ($ Millions)

Finanical Summary- Since 2002-03

Allocation

Expenditure

Enrolment

Component In Millions

Transportation Base $827.5

Enrolment Increase $3.6

Declining Enrolment Adjustment

-$4.8

Route Efficiency Adjustment -$5.9

Full Day Kindergarten Transportation

$0.6

Provincial Schools Transportation

$10.4

Unallocated (E&E Reviews - $8.8M,FDK Transportation Funding $6.9M)

$15.7

Total 2012-13 Projected Transportation Allocation (does not include fuel escalation/de-escalation)

$847.1

2012-13 Transportation Grant

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Funding strategy that provides stability but promotes efficiency

• Enrolment Adjustment – 100 percent support for a board’s increasing enrolment – Stable funding approach to declining enrolment - based

on 50 percent of a board’s decrease in enrolment

• Routing Efficiency Adjustment – 1 percent reduction to a board’s transportation

allocation where the boards have not achieved a “High” rating in Routing and Technology from the Effectiveness and Efficiency Reviews.

• Full Day Kindergarten Transportation – About 29% of the total FDK transportation funding will

be provided to 21 eligible school boards. • Fuel Escalator and De-escalator

– Provide stable revenue stream to school boards in recognition of volatility of fuel prices.

2012-13 Transportation Grant

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• In addition, I want to highlight two important items in this year’s GSN and Provincial Budget:

– There will not be a 2% cost increase for transportation in 2012-13.

– School boards are expected to find savings over the next 2-3 years from competitive procurement and other operational efficiencies.

• This is in keeping with government-wide trends to reduce expenditures and eliminate the deficit.

Further Comments

• So the answer to the question, “Where are we going?” is:

• “Where do you think we should go?”

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Any Questions?