Hmm RC, Let’s not start comparing bus expenses from different years, shall we? We don’t know what happened to the price of buses from year to year or if they had the same features. I mean, if what you are saying is true I’d have a choice of paying $1500 today for a new TV or $400 for the next three years. Less money and I get to finance, why would anyone every buy outright! Sounds too good to be true and I want a free lunch too!
Let’s take a look at what happened this year, same bus features, same year, etc. I don’t have the figures in front of me so forgive me if I get something wrong. So our original budget the bus was $75,000 (less than your 07/08 bus figure, is something fishy there?). So instead we shaved $48,000 off the budget by going into a three year lease. So let’s see $75,000 – $48,000 (the savings we get this year for leasing) gives a per year cost of $27,000 for the lease. Three years that makes it $27,000 X 3 or $81,000. Now that’s a leasing company that’s going to say in business, its almost as if (gasp) they want to make some money for financing the purchase.
BTW, any increase in the budget due to transportation increases does not go solely to the BOE in subsequent years, the town gets a slice of that pie too. A bad thing if those expenses stay around year over year. Not a good design.
As far as your statement, “Actually only $2,000 will be cut as the BOE is not LOSING anything with the $48,000 portion of the cut/reduction. They will still get those buses. It’s a beautiful thing.” … are you kidding me? You realize that we will have to continue paying for those buses over the next few years, don’t you? Money that would have been available to us otherwise. So we have traded keeping things in the budget this year with doing less in the next few years.
So it looks like we might not be getting the Smartboards like the Woodstock Academy has then either. I’m betting that we will still have to replace some more buses next year. The difference between next year and this is we will then have to pay an additional $27,000 from this year’s bus before we can even look at replacing those. $27,000 less services we can give the town next year and the year after that. So don’t fool yourself into thinking we aren’t loosing anything.
What leasing does do is make it more likely that our transportation costs next year will be higher than they are this year. Isn’t that what you want to prevent? Yes there are years and budget seasons beyond this one.
This post represents my personal opinions and in no way should be considered an official act of the BOE or that I am speaking on behalf of the BOE in any way