Mayor Bloomberg’s NYC School Bus Plan Misleading, Will Increase Costs to City Not Save, New Report Finds

NEW YORK, Dec. 27 -- The Amalgamated Transit Union issued the following news release:

Rather than saving the city money, Mayor Bloomberg's City school bus plan will cost taxpayers millions more while jeopardizing the safety of school children a new report finds.

The study by Peter Donohue of San Francisco'sPBI Associates for the Amalgamated Transit Union (ATU) found Bloomberg's changes to school bus service contracts will increase costs between $60 million to $239 million and not save the $20 million to $40 million as the Mayor claims. The full report can be found here (http://www.atu.org/atu-pdfs/PBI-NYC-bus-workers-bid-Report.pdf).

"Mayor Bloomberg is intentionally misleading New Yorkers to believe his school bus plan will save the City millions while falsely blaming school bus workers for rising costs and threatening the safety of students," says ATU International President Larry Hanley. "We call on the incoming City Comptroller to hold the contracts for a thorough review."

The 'supposed savings' promised by Bloomberg through contracts without Employee Protection Provisions (EPPs), in place since 1979, will not come from cutting the cost of school bus service but from shifting its costs onto displaced bus workers, other City agencies, the State, students, their parents and taxpayers.

The report documents that the departure of experienced school bus workers for new inexperienced hires would increase the City's liabilities, small claims and insurance premiums. It would also lead to an increase in worker turnover leading to higher administrative overhead costs. Medical care and social service costs for workers displaced by the Mayor's proposed changes will also add to the bill.

Pennywise, but dollar dumb, the Mayor's plan does not produce the savings he claims the report says. The Comptroller must consider lost productivity, higher overhead and medical and social service costs for displaced experienced workers.

"The Mayor's plan does not add up to the savings he claims and has harmful and serious consequences for the City," says Hanley. "It just pushes the costs on to tax payers, other City agencies and others while jeopardizing the safety and security of the city's most precious cargo our students."

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