Montville — The town's Finance Committee recently backed a plan to replace the school district's aging bus fleet by leasing several new vehicles in five-year cycles instead of outsourcing busing altogether.

District officials estimate the new plan would cost the town about $153,000 annually over five years for at least eight large school buses. Acting Superintendent Laurie Pallin and Business Manager Kathy Lamoureux say the plan is cheaper than privatizing busing, an idea the Board of Education rejected last year, but recently revisited as administrators looked for ways to cut long-term expenses.

Based on estimates from bids last year, district officials in February said privatizing busing would lead to a replacement schedule and savings of at least $1 million in capital and operating expenses over several years. In August, the district signed a three-year contract with bus drivers that included health insurance.

Lamoureux said if the district now decided to outsource, bidders could demand prices that aren't cost-effective because the private company would have to cover the contracted insurance. Officials said they couldn't reveal two recent outsourcing bid prices because they hadn't discussed them with the school board yet. But Lamoureux said outsourcing was "not beneficial at this point."

Finance Committee Chairman Wills Pike said the proposed annual investment to lease new buses was "a pretty good commitment from the town," as part of more than $430,000 in capital projects for the district.

"I've always been a strong advocate for a capital plan for the schools," Pike said. He called on the town to invest in capital projects and the district to avoid spending operating budget funds for building repairs, paving, equipment replacement and other projects. "They should use that for educating children."

Five of the district's 20 buses are out of service and 11 total buses are more than 15 years old. The district initially asked the town for $170,000 to buy two large buses in the 2018-19 school year. But school officials and councilors said a lease option — while requiring an annual commitment from the town — would lead to quicker fleet replacement and savings in the long run.

"Something has to be done and two per year is not going to cut it," committee member Tom McNally said.

Pallin added the district would work to improve bus driver recruitment and routes. Current vehicle and driver shortages have led to students arriving late to school or home, she said. The district also plans to explore the costs and potential benefits of propane or electric-powered buses.

Other capital expenditures include the removal of underground oil tanks and installation of above-ground tanks, new carpeting at the middle school and a new van.

School officials urge committee to keep budget as proposed

The bus discussion came as the Finance Committee continues to analyze the town and school board budgets before a final Town Council vote on May 23.

Mayor Ron McDaniel's initial overall budget for town, school and capital expenditures was about $60.5 million. As initially proposed, the budget would increase the town's tax rate by 2.23 mills.

The $37.9 million school budget includes approximately $1 million in required expenses, such as liability insurance and workers compensation, that the district delayed in 2017-18 due to midyear state cuts in December.

The Finance Committee asked district officials to provide a detailed breakdown of all delayed expenditures at a meeting at the high school library Tuesday at 4 p.m.

That session will be followed by a school board meeting at 6 p.m.

Pallin, Lamoureux and Board of Education Chairman Robert Mitchell urged the Finance Committee not to shave anything from the proposed $37.9 operating budget, saying it would lead to layoffs, program cuts or potentially a school closing. They said the school board and district earlier this year reduced proposed expenses by almost half a million dollars, in part by accepting six early retirements and laying off one teacher.

"We have 561 employees and we're working very hard to provide services to promote academic excellence for the children of Montville," Pallin said, adding the district had eliminated middle school sports, field trips and numerous staff over the years. "We've cut and cut and cut. There's not a lot left to look at."

b.kail@theday.com