First Nations Education
Transportation Assessment
Prepared for Assembly of First Nations
Prepared by MNP
LLP.
Assembly of First Nations
First Nations Education Transportation Needs Assessment
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Executive Summary
Introduction
Access to reliable, adequate and safe education transportation is crucial for First Nations communities. Not
only does it contribute to classroom learning, but it also facilitates access to language and culture
programming and provides enrichment opportunities that are critical for student success. The historical
funding for transportation provided by Indigenous Services Canada, as well as the current provincial funding
models, fall short of addressing the unique cost contributors experienced by First Nations. As a result, First
Nations have no choice but to access other funding sources, such as Jordan’s Principle, or use instructional
funding to support their transportation services.
In order to examine the unique transportation challenges experienced by First Nations communities, the
Assembly of First Nations retained MNP LLP to conduct a First Nations Education Transportation Assessment.
This research and mandate to improve education transportation is supported through AFN Resolution 2019-
34, First Nations Education Infrastructure Review, which is focused on policy or program changes to First
Nations education infrastructure. The Resolution indicates that this review will be led by the Assembly of First
Nations, Chiefs Committee on Education and National Indian Education Council. The Resolution also indicates
that “safe, adequate and sustainable education infrastructure provides a fundamental opportunity for building
relationships and advancing reconciliation between the Crown and First Nations.”
The following First Nations Education Transportation Assessment report explains the costs involved in
providing student transportation services, highlights key operational differences between First Nations and
provincial school jurisdictions, and proposes a cost model reflective of the needs and circumstances of First
Nations across Canada. The assessment is based on data collected from 18 First Nations participants (13 First
Nations school jurisdictions and five First Nations education organizations), as well as primary and secondary
research from provincial school jurisdictions, student transportation organizations, provincial governments,
and other stakeholders. Ultimately, the assessment is meant to serve as a tool and a resource to identify First
Nations education transportation needs as one of the steps to achieving reconciliation in education.
Cost Structure and Cost Drivers
Student transportation expenditures in both First Nations and provincial school jurisdictions represented the
third-largest expense category after instruction and operations and maintenance. In provincial school
jurisdictions, the total cost of running a typical 72-passenger school bus ranged between $40,000 and $60,000
per year. Bus driver wages account for the largest share of the transportation budget, followed by bus
replacement costs, maintenance and fuel.
The difference in transportation costs is primarily driven by travel distances and population density, the number
of transported students, the geography of school jurisdictions, quality of roads, and size of transportation
operations (i.e. school jurisdiction’s ability to take advantage of economies of scale).
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The cost drivers commonly experienced by First Nations school jurisdictions are summarized in the table below:
Cost Driver
Description and Impact on Transportation Expenditures
Lack of Economies
of Scale
With 70 percent of First Nations communities having less than 500 inhabitants, First
Nations school jurisdictions have much lower enrolments and smaller transportation
operations. As a result, they do not benefit from economies of scale the way their
provincial counterparts do.
Lack of economies of scale significantly increases maintenance, fuel, bus replacement,
administration and training costs incurred on a per-bus basis.
Increased Scope of
Transportation
Services
Compared to provincial school jurisdictions, First Nations communities have higher
transportation needs driven by:
Lower socio-economic status and unavailability of parent-provided
transportation to school and extracurricular activities.
Safety issues stemming from wildlife, free-ranging dogs, extreme weather, and
absence of sidewalks.
Language and culture curriculum requirements (e.g. travel to land-based
learning and cultural sites); and
The need to provide transportation services to students attending provincial
schools off-reserve.
Due to the higher number of students requiring transportation and increased
transportation needs, First Nations require a higher number of bus routes, increasing all
direct costs involved in student transportation (e.g. bus driver salaries, bus replacement
costs, maintenance and fuel costs).
Remoteness
Based on the Remoteness Index, First Nations are more remote than all other
communities in Canada, with population-weighted averages of remoteness indices of
0.142 and 0.427 respectively (0 being the least remote and 1 being the most remote). [1]
Due to their remoteness, First Nations tend to experience higher bus maintenance, fuel
and training costs. They also tend to provide higher salaries for bus drivers because of
the limited labour supply and higher cost of living.
Poor Road
Conditions
Even compared to rural and northern school boards, First Nations appear to have
lower-quality roads and infrastructure. Poor road quality not only shortens the lifespan
of their buses, but also increases regular maintenance costs and the occurrence of
major and emergency repairs.
Higher Student
Needs
The transportation costs in the participating First Nations communities are also driven
by higher student needs, including behavioural challenges and special needs.
Specifically, First Nations reported the need to hire bus monitors to ensure student
safety on buses, as well as the increased need for paratransit services to support
students with disabilities (e.g. purchasing buses with wheelchair-accessible features).
The above cost drivers increase transportation expenses beyond provincial cost benchmarks of $40,000 to
$60,000 per bus and result in provincially comparable funding being insufficient in the First Nations context.
The reported shortfall among the First Nations participants ranged from six percent to 127 percent, with a
median shortfall of 45 percent.
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Cost Model
To inform the development of the new funding formula and assist First Nations with estimating the costs of
providing transportation services, MNP developed an Excel-based transportation cost model. The cost model
is built using the province-specific cost benchmarks, as well as other information collected through First
Nations engagement and a jurisdictional scan. The model includes the following cost components:
Bus driver wages
Bus monitor wages
Fuel
Maintenance
Bus replacement
Administrative costs;
Insurance
Training; and
Extracurricular travel
The average estimates generated by the cost model range between $95,000 and $115,000 per bus per year,
not including the extracurricular travel which significantly varies from First Nation to First Nation.
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Table of Contents
Executive Summary .................................................................................................................. i
Introduction ............................................................................................................................. 2
Methodology .......................................................................................................................... 3
Components of the Study ........................................................................................................................... 3
Data Limitations ............................................................................................................................................. 7
Overview of Student Transportation ................................................................................... 8
Role of Student Transportation in First Nations Education ................................................................ 8
Delivery of Student Transportation Services ........................................................................................ 10
Regulatory Framework ............................................................................................................................... 10
Assessment of Student Transportation Costs ................................................................... 14
Transportation Expenditures Overview .................................................................................................. 14
Typical Cost Structure ................................................................................................................................. 15
Transportation Cost Elements .................................................................................................................. 16
Cost Drivers Specific to First Nations ................................................................................ 32
Lack of Economies of Scale ....................................................................................................................... 32
Increased Scope of Transportation Services ......................................................................................... 33
Poor Road Conditions................................................................................................................................. 35
Remoteness ................................................................................................................................................... 37
Higher Student Needs ................................................................................................................................ 38
Funding for Student Transportation .................................................................................. 40
Current Transportation Funding Allocations for First Nations ........................................................ 40
Analysis of Provincial Funding Approaches .......................................................................................... 41
Recommended Cost Model ................................................................................................ 49
Conclusions ........................................................................................................................... 56
References ............................................................................................................................. 59
Appendices ............................................................................................................................ 63
Appendix A: Detailed Training Cost Data .............................................................................................. 63
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Introduction
On April 1, 2019, the Government of Canada implemented a new approach to funding First Nations education.
The new approach is meant to provide access to predictable core funding comparable to provincial school
systems [2]. Due to structural, cultural, geographic, and operational differences between First Nations and
provincial school jurisdictions, many aspects of the provincial comparability funding model are not applicable
to First Nations communities. One of the areas of ongoing concern for First Nations across the country is the
funding for student transportation. Specifically, the existing transportation funding models do not account for
the unique circumstances experienced by First Nations, resulting in a funding shortfall.
In July 2019, Chiefs-in-Assembly supported Resolution 2019-34, First Nations Education Infrastructure Review,
aimed at policy or program changes to First Nations education infrastructure. Further, the Government of
Canada has recognized the need for greater transportation support through Budget 2021. Specifically, the
Budget 2021 includes a commitment to invest $726 million over five years, starting in 2021-22, and $181.8
million ongoing, to “enhance funding formulas in critical areas such as student transportation, ensure funding
for First Nations schools remains predictable from year to year, and increase First Nations control over First
Nations education by concluding more Regional Education Agreements”. [3]
To conduct the National First Nations Education Transportation Assessment, the Assembly of First Nations
(‘AFN’) retained MNP LLP (‘MNP’). The objectives of the assessment were:
To collect provincial and First Nations-specific data and identify key differences between provincial
and First Nations school jurisdictions when it comes to student transportation;
To develop a cost model that accurately reflects First Nations transportation needs across the country;
and
To inform the development of a new transportation funding formula for First Nations.
The key findings of the assessment, transportation costs, and recommendations regarding a cost-based model
for First Nations student transportation are presented within this report.
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Methodology
The methodology used for the First Nations Education Transportation Assessment is outlined in Figure 1 below
and a description of each component follows.
FIGURE 1: FIRST NATION EDUCATION TRANSPORTATION ASSESSMENT METHODOLOGY
Components of the Study
Engagement with First Nations
The goal of community engagement was to explore the entire spectrum of cost drivers and unique
circumstances faced by First Nations communities when it comes to student transportation. Therefore, MNP in
conjunction with AFN identified a sample of First Nation school jurisdictions based on their location, degree of
remoteness, and student population served. A total of 13 First Nation school jurisdictions and five First Nations
education service organizations from eight provinces volunteered to participate in the assessment. Table 1
summarizes First Nations participation in the assessment, by province.
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TABLE 1: FIRST NATIONS PARTICIPATION SUMMARY
Participant
ISC
Geographic
Zone
Enrolment
(Band-
Operated
Schools)
Aggregate
Jurisdiction or
Single First Nation
Number
of
Schools
Provide
Transportation
for Provincial
Schools
Number
of Active
Bus
Routes
1
2
1,129
Aggregate
6
No
20
2
1
963
Single First Nation
4
Yes
35
3
2
142
Single First Nation
1
Yes
6
4
4
700
Aggregate
1
No
2
5
1
47
Single First Nation
1
Yes
2
6
2
50
Single First Nation
1
Yes
2
7
1
130
Single First Nation
2
Yes
4
8
2
913
Single First Nation
1
No
21
9
2
864
Single First Nation
2
No
12
10
4
184
Single First Nation
1
Yes
3
11
4
360
Single First Nation
1
No
8
12
4
1,272
Aggregate
1
No
7
13
4
1,842
Single First Nation
4
Yes
12
In addition to First Nations school jurisdictions, MNP contacted First Nations Education Organizations,
including the Manitoba First Nation Education Resource Centre (Manitoba), First Nation Education Steering
Committee (British Columbia), First Nation Education Council (Quebec), Meadow Lake Tribal Council
(Saskatchewan), and Mushkegowuk Tribal Council (Ontario).
The First Nations data from the above participants was collected through a combination of interviews and
email correspondence. Specifically, First Nations and First Nations Education Organizations were asked to
describe transportation needs and factors that influence needs (e.g. the ability of parents to provide
transportation, safety hazards, level of remoteness, transportation services provided, number of students
served, conditions of transportation fleet, and other infrastructure). Further, MNP collected transportation cost
and operational data, including, but not limited to:
Bus replacement costs;
Bus driver compensation;
Maintenance costs;
Fuel costs;
Number of bus routes served and route lengths;
Fleet statistics (e.g. age, size, and fuel type of buses);
Transportation budgets and funding; and
Costs related to extracurricular and cocurricular activities.
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Jurisdictional Scan and Provincial Benchmarking
To understand the baseline transportation requirements, costs, and factors affecting the costs, MNP conducted
a jurisdictional scan which included:
A review of publicly available transportation data, such as:
o Provincial and federal laws and regulations pertaining to school bus transportation;
o Collective bargaining agreements covering school bus driver compensation;
o Financial statements and annual reports of provincial school jurisdictions;
o Transportation reports published by provincial governments, transportation associations,
third-party auditors, and third-party consultants;
o Relevant academic publications; and
o Other pertinent documentation (insurance rate sheets, training cost information,
transportation fee schedules etc.)
Primary research to fill data gaps. To understand student transportation delivery models across the
provinces, MNP interviewed school jurisdictions, provincial transportation associations, provincial
Ministries of Education, private school bus operators, insurers, and dealerships. The summary of
stakeholders interviewed is provided in Table 2.
TABLE 2: JURISDICTIONAL SCAN PARTICIPATION SUMMARY
Province
Completed Interviews
BC
2 provincial school jurisdictions
Ministry of Education
School bus dealership
Alberta
2 provincial school jurisdictions
Provincial transportation association
School bus dealership
Saskatchewan
3 provincial school jurisdictions
School bus dealership
Provincial transportation association
Manitoba
2 provincial school jurisdictions
Manitoba Education
Ontario
2 education consortia
1 large third-party bus operator
Ministry of Education
Provincial transportation association
Quebec
1 provincial school jurisdiction
Nova Scotia
1 provincial school jurisdiction
1 third party-bus operator
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The majority of school jurisdictions interviewed were located in rural and remote areas of their respective
provinces, with two school jurisdictions serving both urban and rural communities. The number of students
transported by the school jurisdictions varied significantly. There were two jurisdictions with fewer than 100
students transported and fewer than five bus routes, and one with over 5,000 students receiving transportation
services and over 100 routes. Table 3 shows the distribution of interviewed provincial school jurisdictions by
the number of bus routes served.
TABLE 3: INTERVIEWED PROVINCIAL SCHOOL JURISDICTIONS BY NUMBER OF BUS ROUTES
Analysis of Funding Approaches
To understand how transportation funding is being provided to provincial and First Nations school jurisdictions,
MNP reviewed both provincial education funding manuals published on government websites and 2020/21
ISC Regional Funding Model Narrative Overviews for all 10 provinces. Specifically, MNP:
Summarized and assessed the provincial transportation formulas identifying whether each province’s
model uses the key cost drivers of student transportation;
Summarized and assessed the differences between each province’s model for provincial schools and
First Nations schools; and
Evaluated each of the model’s benefits and drawbacks, as well as their suitability for First Nations
communities.
Cost Modelling
The final stage of the project involved the development of this report, as well as an Excel-based transportation
cost model. The cost model was built using the province-specific cost benchmarks, as well as other information
collected through First Nations engagement and the jurisdictional scan. In addition to province-specific
differences, the model also provides adjustments based on remoteness, distances traveled, and the number of
bus routes. The cost model will allow individual First Nations school jurisdictions to calculate their total
transportation costs by inputting the following elements:
The total number of students transported to on-reserve schools as per Nominal Roll;
The total number of on- and off-reserve bus routes; and
The number of kilometers traveled to and from school, and for extracurricular activities.
Number of Active Bus Routes
Interviewed School
Jurisdictions
Under 5
2
5 to 40
4
41 to 100
4
Over 100
1
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Data Limitations
First Nations Data
The sample size of First Nations was relatively small and community data varied widely due to individual First
Nations’ population, size, remoteness, jurisdiction, infrastructure, and geographic region. The variability of
individual First Nations in terms of size, jurisdiction, and geographic location prevented this assessment from
reflecting all situations that could impact education transportation costs. For example, due to their location,
some First Nations in British Columbia must access water-taxi or ferry transportation for students to attend
provincial schools, which dramatically increases their transportation costs relative to other First Nations.
Further, due to the availability of participants and the short timeline over which the Assessment was conducted,
there were no First Nations participants in Nova Scotia, New Brunswick, and Quebec.
Other data limitations are related to the granularity and completeness of the transportation cost data.
Transportation costs were self-reported and depended on the current administrative capacity of First Nation
school jurisdictions. Larger First Nations or aggregate school jurisdictions with designated transportation and
finance departments could provide more detailed cost data compared with smaller First Nations that did not
have a robust budgeting and cost tracking system in place.
Jurisdictional Scan Data
Provincial governments typically do not collect aggregate data on transportation costs from the provincial
school jurisdictions. As a result, there were several limitations with the data provided through stakeholder
engagement, including:
The sample size was relatively small. Many provincial school jurisdictions contract out transportation
and were unable to provide detailed cost data.
There was difficulty in comparison across school jurisdictions, as certain cost components were not
included in some school jurisdictions’ student transportation budget but were included in others. As
a result, the per-bus costs or percentage rates were significantly different across school jurisdictions.
o For example, two provincial school jurisdictions do not include bus replacement costs in their
budgets as it is paid for by the province.
o Some provincial school jurisdictions include extracurricular transport in their student
transportation budgets, while other jurisdictions do not.
Many jurisdictions did not track all of the cost categories included in the analysis, and as a result, the
dataset from provincial jurisdictions was incomplete.
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Overview of Student Transportation
Role of Student Transportation in First Nations
Education
Every school day throughout the country, over 50,000 school buses transport approximately 2.2 million of the
roughly 5.4 million (40 percent) elementary and secondary students to and from school and activities, resulting
in an estimated 792 million student trips annually across Canada. [4] [5]. Transportation service levels vary
because of differences in local geography, population density, and eligibility policies established by the
provincial government or the local school jurisdiction. While most transportation services to and from school
are provided through yellow buses, some students are transported to and from school using aircraft, ferries,
smaller passenger vehicles, and other modes of transportation.
Access to reliable, adequate, and safe education transportation is particularly important in rural and remote
communities and in First Nations, as there are generally fewer alternative options for transportation (e.g.
walking, public transit, and parent-provided transportation). [6]
For example, in Manitoba, 37 percent of students at provincial schools receive transportation services, but the
proportion of transported students varies depending on the location of the school jurisdiction. In urban
provincial school jurisdictions in Manitoba, only 20 percent of students receive transportation services, while
in rural jurisdictions 61 percent of students receive transportation services. [7]
FIGURE 2: PERCENTAGE OF STUDENTS RECEIVING TRANSPORTATION SERVICES IN MANITOBA
1
Note: Other’ refers to all other modes of transportation aside from publicly funded school bus transportation.
Among interviewed provincial school jurisdictions across Canada, the proportion of students receiving
transportation services ranged from approximately 30 percent to 60 percent, with the exception of school
jurisdictions in very small and remote communities with no other transportation options, that transported close
1
Manitoba is the only province that reports the number of students receiving transportation services for all of its public
school jurisdictions.
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to 100 percent of their students. For First Nations participating in this study, the percentage of students using
school-provided bus services ranged between 50 percent and 99 percent with an overall proportion of 82
percent.
FIGURE 3: PERCENTAGE OF STUDENTS RECEIVING TRANSPORTATION SERVICES
Note: Other’ refers to all other modes of transportation aside from publicly funded school bus transportation.
Key themes regarding the role of student transportation that emerged through the interviews with First Nations
participants were:
1)
Transportation as a contributor to classroom learning. First Nations participants, as well as participants
from provincial school jurisdictions, brought forward the notion that the bus is an extension of the
classroom since it ensures that all students are transported to and from school in a safe and timely
manner and arrive ready to learn. It was noted that the experience that students have on the bus sets
the tone for their learning for the rest of the day. Further, providing convenient and flexible
transportation, to and from school, plays an important role in increasing school attendance, which is a
big challenge for many First Nation jurisdictions and a key barrier to academic success [5].
2)
Transportation as a mean to deliver language and culture programming. First Nations participants
noted that student transportation is also a critical piece in the delivery of language and culture
curriculum. The school buses were routinely used to support land-based and cultural programs and to
access learning sites off-campus, with several participants noting daily visits to on-the-land classrooms
located beyond walking distance from their school.
3)
Transportation as a contributor to the enrichment and well-being of students. First Nations participants
felt that the scope of student transportation should go beyond solely taking children to and from school
in order to bridge the gap in both educational and extracurricular opportunities.
It was also highlighted throughout the interviews that for most First Nations students, school-
run/sanctioned extracurricular activities represent the only available sources for enrichment. This is
particularly true in remote and isolated areas, where students rarely have the opportunity to travel
outside of their community.
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Delivery of Student Transportation Services
The delivery of student transportation services significantly differs across the provinces. For example, in Ontario
student transportation is delivered by third-party bus operators contracted by transportation consortia. These
service providers are responsible for quality assurance for vehicles, drivers, and driver safety training. In other
provinces, there is typically a mix of transportation services managed in-house by the school jurisdictions and
contracted bus operations. Contracted bus operations are typically located in urban areas, while the majority
of the school jurisdiction-owned systems are located in rural areas.
First Nations predominantly provide transportation services on their own, without engaging third-party bus
operators. Two First Nations participants noted that they hire bus owner-operators or small contractors from
their First Nations to provide transportation services but were in the process of building the capacity within
their education authorities to take over the transportation functions. Other First Nations noted that their Public
Works Department operated all transportation services for the schools and community at large.
First Nations deliver transportation services for either band-operated schools, First Nation students attending
provincial schools, or a combination of both. All but one First Nations participant provided transportation to
their jurisdiction's band-operated schools (which only provided transportation to neighbouring provincial
schools), while 46 percent of participants were responsible for transporting First Nation students to provincial
jurisdictions.
Regulatory Framework
Regardless of whether the transportation services are delivered by provincial school jurisdictions, a First Nation,
or a third-party bus operator, there are several federal and provincial regulatory requirements that must be
followed.
Transport Canada is responsible for establishing regulations and setting safety equipment requirements in the
Canada Motor Vehicle Safety Standards, including specific safety requirements for buses; such as brake
systems, electronic stability control, window retention, lighting, tires, wheels, and other safety equipment.
Transport Canada works with all orders of government to keep these standards up to date and performs tests
to ensure compliance. Provinces’ jurisdiction includes safety enforcement on roads and highways and
standards around driver and vehicle licensing (e.g. speed limits, insurance requirements, bus driver training
requirements, safety inspections, walking distance to school).
The school jurisdictions or third-party bus operators, on the other hand, are responsible for governance and
oversight for student transportation services to eligible students, including establishing transportation policies
and service standards, hiring staff to implement these policies, and monitoring service delivery.
The jurisdictional comparison of key standards related to student transportation is summarized in Table 4. For
simplicity, only those standards that may have a direct impact on transportation costs were selected.
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TABLE 4: STUDENT TRANSPORTATION REGULATIONS AND STANDARDS, BY PROVINCE
Requirement/Standard
BC [8]
AB [9]
SK [10]
MB [11]
ON [12]
QC [13]
NS [14] [15]
Bus Driver Training
Class 2
driver’s
licence
Between 30-
40 hour
training
course
Class 2
driver’s
licence
53.5 hours of
Mandatory
Entry-Level
Training
Class 1-5
driver’s
licence and
school bus S
endorsement
Driver’s must
re-take the S
endorsement
test every 5
years
Class 2F
driver’s
licence (for
all types of
buses)
Class B
driver’s
licence
Must
complete
School Bus
Driver
Improvement
Course
Subject to
regular re-
examinations
Class 2
driver’s
licence
Certificate of
competence
(15 hours
initial
training, 6
hours per
year)
Class 5 driver’s
licence with
endorsement B
for school buses
Maximum Age of Buses
10 years
No mandatory
standards;
common
practice – 10
years
No mandatory
standards;
common
practice – 10
years
No mandatory
standards: 12-
15 year
maximum on
average
Determined by
jurisdiction –
10-12 year
maximum on
average
12-year
maximum
Determined by
jurisdiction – 12-
year maximum on
average
Frequency of Vehicle
Inspections [16]
Every 6 months
Every 6 months
Every 12
months
Every 6 months
Every 6 months
Every 6 months
Every 6 months
Walk Limits (to
determine eligibility) [17]
Determined by
school
jurisdictions
2.4 km
Determined by
school
jurisdictions
Typically 1.6km
for rural
students
Determined by
school
jurisdictions –
approximately
500m for
kindergarten
and up to 3km
for high school
Determined by
school
jurisdictions
1.6 km for
elementary school,
2.4 km for middle
and high school
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Requirement/Standard
BC [8]
AB [9]
SK [10]
MB [11]
ON [12]
QC [13]
NS [14] [15]
Maximum Distance to a
Bus Stop
Determined by
school
jurisdictions
Determined by
school
jurisdictions –
approximately
300m to 400m
Determined by
school
jurisdictions
Determined by
school
jurisdictions
Determined by
school
jurisdiction –
approximately
200m
No information
available
Determined by
school jurisdictions
Maximum Ride Times
No mandatory
standard
No mandatory
standards;
No mandatory
standard
No mandatory
standard –
Manitoba
Government
attempts to
keep ride times
under one
hour
No mandatory
standard
No information
available
Ride time must be
less than one hour
Special Needs
Transportation
Determined by
school
jurisdictions
School
jurisdictions are
mandated to
transport
special
education
students to the
school to which
they have been
directed.
Determined by
school
jurisdictions
Determined by
school
jurisdictions
Determined by
school
jurisdictions
No information
available
Transportation is
made available to
all students with
special needs,
regardless of the
distance to the
school
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First Nations’ Compliance with Transportation Regulations
Similar to provincial school jurisdictions, First Nations must comply with both federal and provincial legislation
pertaining to education transportation. Therefore, even though First Nations and their lands are primarily under
federal jurisdiction, they are also subject to provincial traffic laws, driver licensing requirements, and safety
requirements, which change from province to province [18].
Below is a summary on First Nations’ compliance with transportation regulations, based on findings from
interviews with First Nations:
Walk limits and eligibility standards. Walk limits are typically imposed by provincial school jurisdictions
to limit the number of students eligible for transportation and improve route efficiency. Of the 13
participating First Nations, 12 considered walk limits standards and other transportation service level
standards applied by provincial school jurisdictions inappropriate and did not impose them.
For example, in Alberta, both the School Act and the Transportation Regulation reference the walk
limit or service standard of 2.4 km [17], which mandates that transportation services are provided only
to students that reside over 2.4 km away from school. No interviewed First Nations in Alberta were
following this standard due to safety issues stemming from wildlife, dogs, walking on a highway/road,
and extremely cold weather. Further, due to safety issues, most First Nations participants reported
picking up their students in front of their homes.
Training and inspection requirements. Due to a lack of financial resources and systematic barriers to
adequately adhere to provincial transportation regulations on reserve lands, it is not uncommon for
First Nations to be non-compliant with provincial requirements around bus driver training, safety
inspections, and licensing:
o One fly-in First Nation participant noted that none of their bus drivers met the provincial
licensing standards, except for the Transportation Coordinator. The non-compliance was due
to a combination of factors, including COVID-19 quarantine requirements, the high cost of
travel to obtain the necessary training, and the unavailability of spare bus drivers to cover
absences. This community also reported experiencing several bus incidents over the past
three years and as a result, bus drivers are unable to drive students outside of the community.
o Another remote and isolated participant reported being unable to conduct bi-annual safety
inspections due to lack of year-round road access and provincial requirement to have
inspections completed in a licensed inspection facility.
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Assessment of Student Transportation
Costs
Transportation Expenditures Overview
Student transportation expenditures are typically the third-highest expenditure category in a school
jurisdictions’ budget, after instruction and operations and maintenance. Comparable data on transportation
expenditure by province were only available for Western Canada. As shown in Figure 4, in Western Canada in
the 2019/20 school year student transportation accounted for between 4.4 3.9 percent and 5.7 percent of
education expenses, on a province-wide basis. [7] [19] [20] [21]
FIGURE 4: PERCENTAGE OF TOTAL EDUCATION EXPENDITURES ON STUDENT TRANSPORTATION, 2019/20
Figure 5 displays student transportation expenditures per student Full-Time Equivalent (FTE) for Saskatchewan,
Alberta, and Manitoba, broken down by jurisdiction type. [22] [23] [24] Average province-wide student
transportation expenditures per FTE student ranged from $450 to $700. However, there were significant
differences between urban and rural and remote/northern jurisdictions. In urban jurisdictions, expenditures
were below $400 per student FTE, while for rural school jurisdictions transportation expenditures per student
FTE were between $700 and $1,000 and in northern/remote school jurisdictions expenditures per student FTE
were between $795 and $1,300 per student FTE.
FIGURE 5: STUDENT TRANSPORTATION EXPENDITURES PER FTE, 2019/20
3.9%
5.7%
4.4%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Alberta Saskatchewan Manitoba
$471
$672
$591
$363
$389
$283
$707
$962
$981
$1,279
$795
$1,160
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Alberta Saskatchewan Manitoba
Total Urban Rural Northern/Remote
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Typical Cost Structure
The typical categories of costs for providing student transportation are generally similar across jurisdictions
and can be divided into capital costs, direct operating costs, and indirect operating costs.
The direct operating costs are those directly related to performing school transportation functions, like bus
driver salaries, fuel and maintenance costs, licensing, insurance, and training. Indirect costs are those not
directly involved with the operations of the school buses, like administration staff salaries and route planning
software. Figure 6 summarizes the cost types by category.
FIGURE 6: STUDENT TRANSPORTATION COST TYPES BY CATEGORY
It is also important to make a distinction between fixed and variable transportation costs. Fixed costs are
incurred regardless of whether the bus is in use or not and do not depend on the number of kilometres of
travel (e.g. purchase of insurance, mandatory inspection), while the variable costs change based on the use of
the bus (e.g. fuel and maintenance). Figure 7 summarizes the types of costs that are fixed vs. variable.
FIGURE 7: FIXED VS. VARIABLE COSTS FOR STUDENT TRANSPORTATION
Distinctions between fixed and variable costs are important in developing a cost-based transportation formula.
Communities can have significantly different costs for providing transportation to a similar number of students
depending on factors that drive variable costs (e.g. the number of kilometres, road quality, climate).
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For provincial school jurisdictions interviewed, the total cost of running a typical 72-passenger school bus is
between $40,000 and $60,000 per year. Overall, bus driver salaries account for the largest share of the
transportation budget (35 percent to 55 percent), followed by bus replacement costs (15 percent to 25 percent),
maintenance (15 percent to 25 percent), and fuel (10 percent to 15 percent).
Transportation Cost Elements
This section provides an overview and analysis of each of the key elements of the student transportation costs,
including bus driver wages, school bus replacement costs, maintenance costs, fuel costs, insurance and
registration costs, training costs, and costs associated with extracurricular activities. This section summarizes:
Common transportation operations practices among provincial and First Nations school jurisdictions;
Provincial cost benchmarks, as well as costs incurred by First Nations; and
Key factors that cause a variation in each cost element (also referred to as cost drivers).
Bus Driver Wages
Wages and benefits for school bus drivers typically account for the largest percentage of student
transportation costs. For some bus drivers, compensation is determined through collective bargaining
agreements, while for others it is set by private bus operators and school jurisdictions. For drivers that work
for school jurisdictions under collective agreements, wages typically increase based on the number of years
of service, with set increases defined by salary bands.
Regular Bus Drivers
The compensation structures for regular bus drivers vary significantly from province to province, and among
school jurisdictions and school bus operators. It is common for bus drivers to be paid in one of three ways:
A combination of a daily wage and a per-kilometre rate;
A flat hourly wage; and
An annual salary.
Some interviewed provincial school jurisdictions also reported paying extra for serving students with special
needs, supporting extracurricular travel, participating in safety meetings and training, etc.
Across Canada, hourly wages for school bus drivers generally fall between $20 and $25 per hour, regardless
of the salary structure.
2
This equates to an annual salary of between approximately $20,000 and $25,000, before
benefits, assuming a five-hour workday and 195 school days per year. However, there are important wage
differences between provinces, which are highlighted in Figure 8. British Columbia and Quebec are on average,
above $25 per hour, while wage rates in PEI and New Brunswick are on average, at or below $20 per hour.
2
This estimate does not include benefits.
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FIGURE 8: SCHOOL BUS DRIVER, AVERAGE HOURLY WAGES, BY PROVINCE
3
In addition to differences across provinces, there are also important regional differences within provinces.
Wages can vary by region due to differences in cost of living, labour supply and demand, and availability of
other sources of employment. For example, the cost of living tends to be much higher in remote communities,
which typically increases the wages. Also, the wages tend to be higher in areas with higher demand for drivers.
For example, one interviewee from a provincial school jurisdiction noted that bus driver wages were particularly
high in their region due to competition from several nearby mines, which offer high wages.
First Nation participants noted that they typically set their bus driver hourly wages at or above nearby provincial
authorities, and like provincial jurisdictions, drivers’ wages increase based on the number of years of service.
While the hourly rates were comparable to provincial school jurisdictions, First Nations were more likely to
employ bus drivers on a full-time basis due to a requirement for a greater number of hours of work per day.
The higher number of hours worked was driven by the following:
Double Runs: Five of the thirteen First Nation participants noted that their bus drivers completed
double runs
4
, at least once per day;
Off-Campus Requirements: The majority of First Nation participants noted that buses were used to
transport students to land or culture-based programs off-campus at least once a week;
Additional Extracurricular Support: 10 of the 13 First Nation participants noted that they ran additional
bus runs after school to support extracurricular programs;
Longer Routes: A few First Nation participants also reported having longer bus routes and bus runs
approaching three hours return for drivers, including daily inspections.
First Nations also mentioned that they must pay full-time wages to their bus drivers to retain them, since bus
drivers residing on-reserve have little to no opportunities to supplement their wages with other work, and
government-provided social assistance can be comparable with the part-time driver earnings. The annual
salaries for First Nation participants school bus drivers ranged from $33,000 to $55,000.
3
The average hourly wages displayed are for a sample of select school jurisdictions in each province, collected through
school jurisdictions’ collective agreements and interviews with school jurisdictions. This does not include benefits.
4
A double run is where a bus driver either completes one bus route twice or serves two different bus routes in the morning
and/or in the afternoon.
$26.94
$21.87
$21.40
$23.87
$22.90
$25.85
$20.28
$24.14
$17.80
$20.95
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
Hourly Wage
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Spare Bus Drivers
In addition to regular school bus drivers, school jurisdictions and bus operators also retain a pool of casual bus
drivers (commonly referred to as “spare bus drivers”). These drivers usually work on-call to replace bus drivers
that have called in sick, are running late due to inclement weather, or are unable to perform their duties for
other reasons. Typically, the provincial school jurisdictions try to hire one casual driver for every seven to ten
full-time drivers. [25]
Casual drivers are typically paid on an hourly basis for only the days they are called in. The wage rates for
casual drivers are generally around $20 per hour. Many provincial school jurisdictions also use their casual
drivers for extracurricular transportation during the school day, for field trips, as well as after school, for sports
trips. When casual bus drivers are asked to support extracurricular activities in the evenings or on the weekends,
they are typically provided with a meal allowance.
First Nation participants noted that casual drivers are typically paid hourly or on a daily flat rate. A participant
in a remote location noted that the daily rate for casual drivers had recently been increased to $300 per day
because they were unable to attract qualified drivers.
Bus Driver Benefits
School bus drivers also receive benefits, as part of their compensation. Through interviews with provincial
school jurisdictions, it was determined that benefits packages are approximately an additional 20 percent of
drivers’ salaries. Benefit packages include pension or retirement contributions, as well as health and dental
packages. First Nation participants indicated that benefits provided for school bus drivers were on par with the
rest of First Nation band administration employees, which is typically lower than in provincial school
jurisdictions (5 percent to 15 percent).
Compensation and Bus Driver Retention Issues
While the compensation models are quite diverse, there was a consensus among provincial school jurisdictions
and First Nations that the current wages are not sufficient to retain drivers. Drivers often work part-time and
180 to 195 days per year, as such, a bus driver’s annual earning potential is significantly less than that of a
typical full-time worker who works 8 hours per day and 250 days per year [25]. Further, school bus driver
salaries are notably lower than the salaries of commercial bus operators employed by other industries.
School Bus Replacement Costs
School bus replacement costs typically account for the second-largest percentage of student transportation
costs, after school bus driver salaries. Given the large up-front cost of purchasing school buses, they are
typically amortized over five to ten years and the standard range for amortized school bus replacement costs
is between $6,000 and $15,000 per bus per year. The annual bus replacement costs are driven by the number
of bus routes and the need for spares, access to quality maintenance services, bus prices, road conditions etc.
It is important to note that, depending on the province, the responsibility for bus replacement may rest with
the provincial government. For example, in Nova Scotia, the provincial government is responsible for replacing
all school buses, which means that individual school jurisdictions do not incorporate the bus replacement costs
in their respective budgets. In BC, the provincial government organizes a province-wide School Bus Purchase
Program, which allows both provincial and First Nations school jurisdictions to use the standing offer prices
[26].
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Typical Fleet Composition
According to the 2020 Report of Task Force on School Bus Safety, the most common type of bus is the Type
C bus, often called a “conventionalbus, with a gross vehicle weight rating of more than 10,000 pounds. [27]
The type C buses are typically able to accommodate up to 72 elementary school students or between 40 and
55 secondary school students.
While Type C buses are most common across Canada, their prevalence varies by province. Manitoba and Nova
Scotia’s fleets are almost entirely comprised of Type C buses, while PEI does not have any Type C buses. Figure
9 displays the percentage of each province’s fleet comprised of Type C buses.
5
[4]
FIGURE 9: PERCENTAGE OF BUSES IN EACH PROVINCE THAT ARE TYPE C
In rural and remote school jurisdictions, Type C buses tend to be less common. This is because there are fewer
passengers per route and smaller buses provide sufficient passenger capacity and are easier to maneuver. A
similar trend was observed in First Nations, as the First Nation participants with the largest service areas had
fleets that were composed primarily of 50 to 54 seat buses. Conversely, First Nations with very few routes,
smaller service areas, and more dense populations reported using only 70 to 72 seat buses.
In terms of manufacturers, school jurisdictions typically own a mix of Thomas, Bluebird and International buses
and preferences towards certain manufacturers are based on proximity to dealerships, historical fleet
composition, and driver preferences. Regardless of make and model, all school buses operated in Canada are
expected to follow a set of federal technical standards, including stipulations on items such as construction
processes, required materials, safety features, and other requirements.
Number of Active Buses
The number of active buses operated by the school jurisdiction typically equals the number of bus routes. To
determine the number of routes, most provincial school jurisdictions use a school bus routing software. This
software is aimed at configuring routes in a way that is efficient yet maintains acceptable ride times. Among
the interviewed provincial school jurisdictions, average ride times were between 30 and 40 minutes, with
5
PEI does not have any Type C buses, while BC has both Type C and Type D buses, which both carry the same number of
passengers.
65%
72%
73%
98%
67%
73% 73%
95%
0%
81%
0%
20%
40%
60%
80%
100%
Type C
- Percentage
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maximum ride times of up to 90 minutes. Most school jurisdictions’ primary goal with routing was to limit ride
times to under one hour.
Unlike the provincial school jurisdictions, First Nations were unlikely to use the software to plan their bus routes.
Rather, the number of on-reserve bus routes was driven by historical practices. The number of off-reserve bus
routes is driven by the location of schools attended by the students, ride times, and First Nation policies
regarding school of choice
6
.
A few participants noted that over time, they “learned to do more with less”, even though the practices did not
align with the provincial school jurisdictions. Often, the number of bus routes was adjusted based on the
number of buses in good working order and the number of qualified bus drivers. One participating rural First
Nation noted that they have an internal policy to keep ride times under one hour, but due to a shortage of
drivers, they found it challenging to implement the policy. Two First Nation participants, who operated both
provincial and band-operated school routes, noted that ride times could regularly exceed 90 minutes,
sometimes reaching 120 minutes in inclement weather. Two other First Nation participants noted that within
the last three years that there had been occurrences where buses were so overcrowded that students were
asked to stand during their rides to and from school.
It was also common for First Nations to operate
double runs, with about 38 percent of participants
reporting the need to perform double runs daily. For
example, in one participating First Nation, where the
entire population lives in a small area, buses complete
their routes multiple times in the morning picking up
students.
Spare Buses
In addition to active buses, school jurisdictions and bus operators also maintain spare buses for periods when
their active buses are being repaired and, in many cases, for extracurricular activities. The majority of school
jurisdictions interviewed did not indicate that there is a standard ratio or percentage of spare buses they
require. Many school jurisdictions decide to keep their older buses when they purchase new ones. As a result,
the number of available spare buses can be as high as 30 percent of an active bus fleet (i.e. three spare buses
per ten active buses). The lowest ratio of active to spare buses among provincial school jurisdictions interviewed
was one to ten.
First Nation participants reported having fewer spare buses:
Close to 40 percent of First Nations participants did not have any spare buses in good working order
(e.g. meeting safety standards and having up-to-date inspections).
Several First Nation participants noted that some of their spare buses were only considered spare
because they did not have enough qualified bus drivers to operate additional routes.
A lack of spare buses limited the First Nations’ ability to provide extracurricular opportunities, led to frequent
service interruptions, and double runs. The double runs have a significant negative impact on both student
6
School of choice is program or policy in which students are given the choice to attend a school other than their on-
reserve schools. It is up to First Nation jurisdiction to determine whether the students attending schools of choice (i.e.
provincial schools) are eligible for transportation. Some First Nations have established official catchment areas, while others
have not.
Transported Students per Active Bus Ratio
First Nation participants ratio of transported
students to active buses ranged from 24 to 130
with a median of 43, while provincial school
jurisdictions typically range from 25 to 45, with a
median of 32.
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learning experience and staff morale, as both students and staff must either wait for over 30 minutes for buses
before and after school or allow students to leave early/arrive late, thereby interrupting the instruction time.
Bus Replacement Practices
The average age of a school bus in Canada is six years, with Ontario, Quebec, and Nova Scotia school
jurisdictions having the youngest fleets and PEI and Manitoba having the oldest. Figures 9 and 10 display the
percentage of school buses by age. [27]
FIGURE 10: PERCENTAGE OF BUSES IN EACH PROVINCE BY AGE
FIGURE 11: PERCENTAGE OF BUSES BY AGE, AMONG FIRST NATIONS PARTICIPANTS
While school jurisdictions and bus operators typically retire their buses from active routes after between 10 or
12 years, the bus replacement practices depend on several factors, including:
Regulatory requirements: While most provinces do not mandate school bus replacement timing,
British Columbia replaces school buses after 10 years.
Distance travelled: School buses with significantly more kilometres of travel may have a reduced active
life. Regardless of the age, buses are typically retired at approximately 300,000 kilometres or more.
Road conditions: School buses that travel on dirt, gravel, or muddy roads with potholes can also have
a reduced active life due to wear and tear.
Weather conditions: School buses in harsh climates may also have a reduced active life, due to salt
damage or other mitigation techniques.
0%
20%
40%
60%
80%
100%
BC AB SK MB ON QC NB NS PEI NL
Percentage of Buses
0-5 years 6-10 years 10+ years
47%
26%
27%
0%
20%
40%
60%
80%
100%
First Nation Participants
Percentage of Buses
0-5 years 5-10 years 10+ years
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Access to regular maintenance: Regular and/or preventative maintenance programs are among the
most significant factors affecting the lifespan of a school bus. Buses that receive quality, regular
maintenance can have significantly longer lifespans.
Bus storage: Indoor bus storage can reduce the wear and tear on buses and lengthen the active
lifespan.
Bus Replacement Cost Benchmarks
The cost of a single school bus (70 to 72 passengers) can range from $100,000 to $180,000, depending on the
fuel type, number of modifications required and location of the school jurisdiction. The standard base cost for
a diesel or gasoline bus is typically between $115,000 and $120,000, while propane buses typically cost an
additional $10,000 to $20,000. There is relatively minimal variation in the baseline school bus costs across
provinces, as any differences are primarily caused by sales taxes, as well as the availability of bulk purchasing
agreements. The latter were not common in First Nations, which purchased individual buses outright on an
ad-hoc basis. One of the few exceptions is British Columbia, where First Nations have access to provincially
negotiated bus purchasing rates through the British Columbia Tripartite Education Agreement and can apply
for bus replacement support through the First Nation Education Steering Committee’s Bus Capital Program.
Aside from bulk purchasing arrangements, the variation in school bus costs arose from bus modifications and
peripheral equipment added to the purchase. These items are typically added at the discretion of the
purchasing school jurisdiction due to geography, climate, and the needs of the student population. Costs for
peripherals and modifications typically range from $1,000 to $20,000 and include, but are not limited to: [26]
Wheelchair lifts ($8,000 to $15,000);
Digital cameras ($500 to $2,000);
GPS ($500);
Heaters ($1,000 to $2,000); and
Mounted spare tires ($500 to $1,000).
First Nation participants indicated that the majority of new buses are purchased with added security systems
and cameras to protect drivers, students, and jurisdiction property.
Maintenance Costs
Maintenance costs constitute between 15 percent and 25 percent of the overall costs per bus and vary
depending on:
Age of the bus: Both participants and secondary sources confirmed that operations and maintenance
costs increase as school buses age. This is particularly the case for buses that have been used actively
for over 10 years.
Fuel type: Based on information from a car dealer in British Columbia, day-to-day maintenance for a
diesel engine costs more than maintenance for a gas engine. Gas engines often have longer service
intervals for engine coolant, spark plugs, and engine oil.
Access to maintenance services: Frequency and quality of maintenance and proximity to service shops
can significantly increase the useful life of a school bus.
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Road conditions: According to a report by Canadian Automotive Association (CAA), as the
International Roughness Index (IRI)
7
becomes very high, repairs and maintenance costs can increase
by as much as 70 percent compared to a baseline scenario (i.e. well-maintained paved roads). [28]
Provision of Maintenance Services
Nine out of 11 provincial school jurisdictions have their own school bus maintenance shops and employ full-
time maintenance staff; however, two interviewed school jurisdictions rely on external service shops for school
bus maintenance.
All interviewed provincial school jurisdictions, which deliver their transportation services in-house, reported
employing qualified mechanics and having access to at least one shop facility. The ratio of mechanics to buses
(including active and spares) was generally between 1:10 and 1:20 (i.e., one mechanic per 10 to 20 buses);
however, some of the small school jurisdictions had lower ratios, as they employed only one mechanic and
had very few buses. There was one school jurisdiction with a ratio close to 1:30. In Manitoba, the provincial
government recommends a ratio of 1:15.
The situation was the opposite in First Nations. Out of the 13 First Nation school jurisdiction participants, only
two employ qualified mechanics while another shares mechanics and shop facilities with their respective First
Nation’s Public Works Department. All other First Nations participants relied on external service shops to
provide school bus maintenance services.
Participants from provincial school jurisdictions and First Nations noted that having in-house maintenance with
access to a service shop provided significant benefits, including:
Cost savings: For school jurisdictions with fleets of over 30 buses, in-house maintenance services were
less expensive compared with using external service shops, and the savings become even more
significant for large fleets (over 100 buses). As maintenance staff are salaried employees, minor repairs
and safety inspections do not add to the overall cost of maintenance.
Timeliness of repairs: In-house maintenance staff are available to handle problems as they occur and
can provide a significant response time advantage. Many school jurisdictions, particularly those in cold
climates, indicated that their maintenance staff are needed to replace bus batteries and assist with
starting broken-down buses throughout the winter months, which is something an external service
provider would not be able to provide.
Increased frequency of maintenance: Access to qualified mechanics allows school jurisdictions to
create their own robust preventative maintenance program, rather than deal with issues as they arise,
as many First Nations communities do. Some interviewed school jurisdictions indicated they have
maintenance plans where buses receive mandatory
service every 6,000 kilometres or eight times per
year. This increased the lifespan of their buses by up
to 20 years. On the other hand, the majority of First
Nations participants do not have access to qualified
mechanics within their community. As a result, they
reported taking their buses for maintenance only twice a year – during mandatory bi-annual
inspections.
7
International Roughness Index (IRI) is the most commonly used worldwide index characterising longitudinal road
roughness for managing road systems. IRI serves as a measure of pavement performance and ride quality. [65]
Provincial school jurisdictions with in-
house maintenance shops service their
fleet at least fleet twice as often as their
First Nations counterparts.
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Bulk purchases of supplies: School jurisdictions with large fleets and multiple service shops require
large orders of replacement parts, oil, and fluids. As a result, these jurisdictions can receive volume
discounts and further benefit from scale economies.
Maintenance Cost Benchmarks
In general, maintenance costs across interviewed provincial school jurisdictions ranged from $5,000 to $10,000
per bus annually, including the following:
Maintenance staff salaries: Maintenance staff (mechanics) salaries typically account for most of the
maintenance costs for provincial school jurisdictions. Maintenance staff typically earn between $55,000
and $85,000 annually, excluding benefits. The two First Nation participants that reported employing
certified mechanics paid similar wages ($64,000 and $87,000 per year) and had an apprentice at
$33,000 per year.
Safety inspections: Safety inspections are thorough examinations of school buses engines, interiors,
and exteriors. In all provinces, inspections are mandatory once every six months, except for
Saskatchewan where they are mandatory once per year. Certain school jurisdictions inspect their buses
more frequently or have a set number of kilometres for which they inspect their buses. For school
jurisdictions with in-house maintenance staff, the costs are included in the staff salaries, while external
service shops typically charge between $200 and $500 per inspection. Fly-in First Nations noted that
they are required to cover travel, accommodation, and shop rental costs to conduct safety inspections
on their buses, in the community, which ranged between $5,500 and $9,000 before labour and parts.
Routine maintenance: Routine maintenance typically includes the following:
o Oil changes: Oil changes are generally done after a set number of kilometres (e.g. every 5,000
to 10,000 kilometres) and typically cost between $200 and $500 per bus annually, excluding
labour costs.
o Tire changes: Tire changes are also typically done after a set number of kilometres; however,
the frequency can vary significantly by school jurisdiction due to road quality and climate. As
a result, the typical costs can vary significantly depending on the region and the most
appropriate tires.
o Fuel filter replacements: Fuel filters are typically replaced during a safety inspection if it is
deemed necessary. They are a relatively minor cost (less than $100).
o Routine maintenance costs for First Nations vary greatly depending on their specific context.
Remote and fly-in communities noted an additional 20 percent to 30 percent markup for all
parts and supplies.
Additional maintenance (major repairs and emergency repairs): Major repairs to buses can range
widely in price and scope, depending on the type of repairs needed. Major engine repairs or bodywork
due to accidents can add over $10,000 per year to the maintenance budget.
First Nation participants noted that regular maintenance, safety inspections, and additional maintenance are
conducted simultaneously to reduce travel and save costs. A rural First Nation interviewee in Alberta reported
approximately $5,000 per bus for combined inspection and associated major and emergency repairs, per visit.
First Nation participants with older fleets reported more frequent requirements for emergency repairs with one
participant noting 3 to 4 major repairs per year with a fleet of two buses.
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Overall, participating First Nations' total maintenance costs ranged from $3,500 to $11,800 per bus per year
with a median of $7,847. The lowest costs in this range were incurred by a newly established First Nation school
jurisdiction with seven brand new buses and a limited amount of operational activity during COVID-19.
Fuel Costs
Fuel costs account for between 10 percent and 15 percent of the overall costs of student transportation. Fuel
costs per kilometre ranged from $0.30 to $0.60, while fuel costs per day per bus ranged from $40 to $65.
Overall, the fuel costs are impacted by the following factors:
Distances travelled: In geographically dispersed rural school boards, buses tend to travel longer
distances, which increases fuel costs on a per-bus basis.
Fuel type of school buses: According to the leading school bus dealer in Canada, diesel engines
provide from 30 percent to 35 percent better fuel economy than comparable gas engines. This is
because diesel engines work with a combustion process that is leaner, burning less fuel than a
conventional spark gas engine [29].
Age and condition of school buses: Older or poorly maintained buses tend to be less fuel-efficient
compared to the new models.
Quality of roads: Higher surface roughness reduces fuel efficiency and leads to increased fuel
consumption [9]. For example, according to a report by the CAA, poor quality roads increase the fuel
consumption in passenger vehicles by as much as 12 percent.
Fuel prices per litre: Fuel prices vary depending on the province, proximity to urban centers and school
boards’ ability to purchase fuel in bulk, and the overall global market conditions.
Fuel Types
The majority of provincial school jurisdictions interviewed were operating buses that run on diesel; however,
two participants indicated they are transitioning to propane fuel and six reported using a mix of gasoline and
diesel buses.
The observations were similar in First Nations, where the overwhelming majority of the fleet is fueled by diesel,
but the intention is to move towards gasoline in the short term. Both participants from First Nations and
provincial school jurisdictions indicated that the transition to gasoline is due to downsides to traditional diesel
school buses, including their propensity to break down in cold weather, increased maintenance costs, increased
emissions, and poor performance on gravel and dirt roads. Another advantage of using gasoline buses was
better access to gas compared to diesel at First Nation operated on-reserve gas stations.
While not yet a common practice across Canada, an increasing number of school jurisdictions are also
contemplating the transition to cleaner fuel alternatives, such as propane and electric buses. One interviewed
school jurisdiction estimated lifetime cost savings of 30 percent per bus due to switching from diesel to
propane, mostly due to reduced maintenance costs. Propane and electric buses are not an option for most
First Nations and rural and remote communities due to the lack of availability of propane fueling and charging
stations.
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Fuel Prices
Across Canada, British Columbia has the highest fuel costs while Alberta and Saskatchewan have the lowest.
Fuel costs are generally most expensive in urban centres like Vancouver, as well as remote communities. Figure
12 displays the cost per litre of diesel and gasoline in major urban centres in each province, as of July 2021.
FIGURE 12: DIESEL AND GASOLINE COST PER LITRE, BY PROVINCE, JULY 2021
Retail fuel costs reported by participating First Nations ranged from $1.41 to $2.00 per litre for diesel and from
$1.21 to $2.75 per litre for gas with median costs at $1.60 and $1.55 for diesel and gas, respectively. The majority
of participating First Nations noted that they can purchase gas without some taxes which vary by jurisdiction
and the location of their retailer. First Nation participants noted that fuel they purchase can be exempt from
some combination of excise and duty taxes, fuel taxes, carbon taxes, and/or GST/HST. These tax exemptions
provided a discount between 8 percent and 25 percent with a median savings of 16 percent. Even considering
tax exemptions, remotely located First Nations incurred substantially higher fuel costs compared to urban
centres.
Table 5 provides comparisons of gasoline prices in some northern/remote First Nations participants versus
major urban centers:
TABLE 5: GASOLINE PRICE COMPARISON, NORTHERN AND REMOTE COMMUNITIES VS. URBAN
COMMUNITIES
Case Study participant
Gasoline price
reported by FN (with
tax exemptions)
Gasoline prices in the
province’s major urban center
(at the time of interview)
[30]
1.
Northern Fly-in Aggregate First Nation
Jurisdiction in Saskatchewan
$2.54
$1.41
2.
Northern Fly-in First Nation in Ontario
$2.18
$1.42
3.
Northern Aggregate School Board in Manitoba
$1.62
$1.42
$0.00
$0.50
$1.00
$1.50
$2.00
Diesel ($/L) Gasoline ($/L)
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It is important to note that market-driven fluctuations in fuel prices are beyond control of school jurisdictions
and bus operators and can significantly escalate the overall cost of providing student transportation services.
For example, in September 2021, the average retail price of gasoline in Canada had increased by 35 percent
relative to September 2020, and 24 percent relative to the onset of the COVID-19 pandemic (February
2020).[28]
Bulk Purchasing
Apart from geographic differences, fuel cost is dependent on school jurisdictions’ ability to purchase fuel in
bulk. The interviews indicate that urban provincial school jurisdictions and southern rural school jurisdictions
are typically the ones benefitting from buying fuel in bulk (e.g. bulk fuel tanks), while the rural operators
typically use retail gas stations. Additionally, school jurisdictions that can participate in bulk purchasing
programs can lock in favourable fuel prices for long periods, insulating themselves from regular energy price
swings. The cost savings relative to retail fuel prices range significantly, as the following examples show:
One school jurisdiction in Alberta purchases fuel through a bulk agreement with the agriculture
industry association, which provides them with a discount of between 30 percent and 40 percent off
diesel prices at regular gas stations.
One school jurisdiction in Manitoba has a bulk purchasing agreement for propane that provides them
with a 40 percent discount from retail prices.
School jurisdictions with small fleets of buses generally received a $0.01 to $0.02 discount on fuel,
while jurisdictions with extremely small fleets (under 5 buses) did not receive any discount.
First Nations are rarely able to purchase fuel in bulk, only 15 percent of participating First Nations noted that
they purchased fuel in bulk. Another remote fly-in First Nation interviewee noted that they purchased fuel in
bulk for their maintenance and transportation for the first time during the last winter. The jurisdiction which
operates two diesel and four gas buses commonly had to purchase retail fuel at $2.50 per litre. The bulk
purchase price was under $1 per litre before shipping costs. This First Nation has not been able to fully realize
the cost savings from bulk purchasing because one of the two fuel trucks was stranded in a different community
part-way up the ice road on the way to the First Nation.
Administrative Costs
Salaries of Administrative Staff
School jurisdictions and school bus operators require administrative staff to support their operations. The types
of administrative staff can include the following positions:
Transportation Manager: Oversees all aspects of student transportation, including negotiating fuel and
bus purchasing agreements, hiring drivers and maintenance staff, and managing issues related to bus
breakdowns.
Transportation Assistant: Assists the Transportation Manager with all aspects of their role. This position
only exists for the largest school districts.
Routing Manager: Manages the planning of bus routes and analysis of route efficiency (costs, ride
times etc.).
Maintenance Shop Supervisor: Manages the scheduling and prioritization of school bus maintenance,
as well as oversees service parts inventory and purchases of service parts and equipment.
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Administrative Assistant: Assists all other members of the administration team, manage
correspondence with suppliers, parents, service providers etc.
The number of staff varies by the size of the school jurisdiction and the number of students requiring
transportation. Among the provincial jurisdictions interviewed, there was one administrative FTE for
approximately every 750 to 850 transported students. For larger school jurisdictions, it was common to have
at least one FTE in all of the above roles. For smaller school jurisdictions, it was common to have an Operations
Director or Associate Superintendent overseeing transportation, along with other areas of operations, such as
facilities maintenance, or finance. Among the interviewed provincial school jurisdictions, the number of
administrative employees ranged from 0.33 to 6 Full-Time Equivalents (FTEs).
Administration costs among interviewed school jurisdictions ranged between $2,000 and $6,000 per bus
annually, though jurisdictions with larger school bus fleets were able to capitalize on economies of scale and
generally had lower administration costs per bus.
Similar to provincial school jurisdictions, First Nations administration staffing and costs varied based on the
number of students requiring transportation and the number of bus routes. Just under one-half of First Nations
participants had designated Transportation or Fleet Coordinator positions. These positions were often hired
on a part-time basis and performed other transportation duties (e.g. acting as bus drivers or training
instructors). Smaller First Nations school jurisdictions with limited administrative capacity placed the
management of their transportation services with maintenance or facility managers, education directors,
and/or principals. As many First Nations do not have dedicated transportation education staff and
responsibilities were shared among several positions, it was difficult to identify and allocate the administrative
costs on a consistent per-bus basis, First Nation participants noted that administrative costs could reach 10
percent of total transportation costs.
Other Administrative Costs
Other administrative costs incurred by provincial school jurisdictions included IT costs related to purchase and
ongoing licensing of routing and bus maintenance software, finance and accounting, legal fees, and other
general costs. Since these “other administrative costs” were not typically incurred by First Nations and/or the
expenditure amounts on a per-bus basis were immaterial, they were not researched in detail.
Number of Transported Students
Administrative Staff
Under 800 students
Up to 1 FTE
800 to 2,000 students
1 to 2 FTEs
2,000 to 4,000 students
3 or 4 FTEs
Over 4,000 students
5 FTEs or more
TABLE 6: ADMINISTRATIVE STAFF COMPARED TO TRANSPORTED STUDENTS IN PROVINCIAL
JURISDICTIONS
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Insurance and Registration Costs
School jurisdictions and bus operators must purchase insurance to provide coverage for their fleet. These costs
fluctuate across provinces due to varying provincial regulations around insurance. School bus operators in
British Columbia, Saskatchewan, and Manitoba must purchase their insurance coverage from public insurers
and generally have the option to buy additional coverage from their public insurer or a private insurer of their
choice. For example, Manitoba Public Insurance (MPI) will only publicly underwrite a commercial vehicle policy
for up to $500,000 liability, above that requires a third-party insurer. The additional insurance can be provided
through a private stream of MPI or an approved third-party insurer. In Quebec, only bodily injuries are covered
by public insurance, and other coverages must be purchased from private insurance companies. In all other
provinces, insurance is purchased from private insurance companies.
Insurance is typically provided on a per bus basis and is paid annually. School bus insurance typically costs
between $170 [31] and $3,000. Provinces providing public insurance typically have lower rates and do not
experience significant fluctuations year-over-year
8
.
The insurance costs depend on the following factors, including:
Driver history;
Carrying of passengers and number of passengers (passenger hazard);
Size, make, model, and age of bus;
Number of buses (fleet policies are cheaper than non-fleet policies);
The area where the bus is used (territory) and road safety record of that area. Urban population centres
have higher premiums;
Distance operated;
Where the bus is stored and propensity for bus theft and/or vandalism;
Accident history of the bus;
Liability limits;
Bus usage, outside of carrying students to and from school (e.g. use for field and charter trips typically
increases the premiums); and
Discounts – based on driver experience, driver history, safety, low distances travelled, and whether the
bus is part of a fleet or not.
Training Costs
All school bus drivers in Canada undergo specialized training and certification before employment with a
school jurisdiction. All provinces and territories require that school bus drivers have a particular class of
commercial licence that qualifies them to drive a vehicle of that size and type. Further, some provinces require
school bus-specific training that covers such topics as legal frameworks and responsibilities, driver condition
(fatigue, impairment), defensive driving, passenger behaviour, vehicle safety features, and emergency
procedures [4]. For example, the province of Alberta (effective March 1, 2019) requires that all school bus drivers
8
Alberta saw insurance costs rise dramatically in November 2021 with insurance rate renewals, and small school bus
operators have been hit particularly hard. Rates have increased up to 358 percent for small-medium bus operators resulting
in an approximate change from $1,200 a bus up to $6,523 a bus, with rural and remote areas hit the hardest.
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participate in a provincial Mandatory Entry-Level Training program for commercial drivers, where school bus
drivers must undergo 53.5 hours of training [4].
The total cost of training includes new driver training as well as the expenditure for ongoing driver training.
New driver training costs incorporates all costs related to the training of a bus driver (e.g. courses,
materials, tests, training, classroom materials and manuals, first-aid and CPR training, and road tests).
Ongoing driver training costs these costs are associated with maintaining a safe level of driver
performance.
Bus driver training costs vary significantly by province. Courses range from $200 in Ontario to over $4,000 in
Alberta. Driver licensing costs between $50 and $400 with renewal fees typically costing $100 or less. A detailed
summary of bus driver training costs is provided in Appendix A.
Considering the country-wide driver shortage, it is common for school jurisdictions, school bus operators,
and/or the provincial government to cover training and licence renewal costs. The larger school jurisdictions
(with over 50 bus routes) typically employ a qualified training instructor to manage and deliver all necessary
training for the bus drivers. The smaller school jurisdictions and bus operators are either outsourcing third-
party service providers or partnering with neighbouring school jurisdictions, which have access to in-house
training instructors. Having access to in-house training instructors significantly reduced the overall expenses
associated with travel (incl. course fees and travel expenses) and increased flexibility of training options.
Unlike the provincial school jurisdictions, 12 of 13 interviewed First Nations accessed external training services
or relied on drivers covering their own new driver training costs. First Nations with in-house training staff noted
that their only additional driver training costs were related to testing which was between $100 and $150. First
Nations without an in-house trainer noted that new driver training programs ranged from $5,000 to $15,000.
Northern and Remote First Nation participants also emphasized the need to cover travel costs, which were a
minimum of $2,500 per driver.
None of the First Nations participating in the assessment partnered with provincial jurisdictions to receive a
discount on training services, however, one participant noted that a southern provincial school jurisdiction
allowed some fly-in communities to use their buses for testing purposes.
Extracurricular Transportation Costs
All the school jurisdictions interviewed provide extracurricular transportation, which typically involves both field
trips for students as well as transportation to sports events. Many of the school jurisdictions interviewed noted
that provincial funding formulas focus only on busing students to and from school and do not cover
extracurricular transportation. As a result, for these jurisdictions, extracurricular transportation costs are
charged back to schools and not included in transportation budgets.
Extracurricular expenses are dealt with in three primary ways:
Per hour rate for the driver: This amount is typically between $18 per hour and $22 per hour and is
charged back to the school, as jurisdictions that use hourly rates typically don’t have set extracurricular
funding.
Per kilometre rate: This amount is typically between $0.40 and $2.00 per kilometre and is also charged
back to the school, as jurisdictions that use per kilometre rate typically don’t have set extracurricular
funding.
Total budget for extracurricular transportation: Schools are given a set total budget for extracurricular
transportation and are then expected to organize either third-party contractors or spare buses/drivers
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to provide transportation. The school jurisdictions interviewed that managed extracurricular
transportation this way budgeted between $50 and $100 per student.
In addition to the typical extracurricular transportation provided by both First Nation and provincial
jurisdictions, First Nation school jurisdictions’ extracurricular transportation often provides support for after-
school extracurricular programs and land-based learning.
The additional bus runs supporting land-based/cultural and additional after-school programs for First Nations
are primarily budgeted as part of specific projects or programs and/or were part of individual schools’ overall
budgets. Participants noted that the bus driver salary costs for the programs were either included in the full-
time hours of bus drivers, were counted as overtime hours, or were flat rates paid to the drivers ranging from
$80 to $110 per trip.
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Cost Drivers Specific to First Nations
The section below provides a summary of key cost drivers, unique to First Nations school jurisdictions. These
cost drivers increase the transportation costs elements outlined in Section 2 beyond provincial benchmarks
and result in provincially comparable funding being insufficient in the First Nations context.
Lack of Economies of Scale
Provincial transportation formulas are designed for school jurisdictions with over 2,000 students. According to
the 2020 ISC Annual Report to Parliament, 70 percent of First Nations reserve communities have less than 500
inhabitants, while only four percent have more than 2,000 inhabitants [32]. With on-reserve populations being
small, First Nations school jurisdictions do not benefit from economies of scale the way their provincial
counterparts do.
Lack of economies of scale increases maintenance, fuel, bus replacement, administration, and training costs as
described in Table 7.
TABLE 7: IMPACTS OF THE LACK OF ECONOMIES OF SCALE FOR FIRST NATIONS
Cost Element
Negative Impact of Lack of Economies of Scale
Maintenance
Unlike provincial school jurisdictions, First Nations tend to outsource maintenance
services to third-party providers. Lack of access to qualified on-site mechanics leads to:
Increased per-unit costs for all basic service jobs and parts (oil changes, fuel filter
replacement etc.).
Increased the likelihood of breakdowns and costly emergency repairs since the
preventative maintenance is not performed as regularly as in provincial school
jurisdictions.
Bus
Replacement
Since most First Nations purchase only one or two buses at a time, they do not benefit
from volume discounts and pay full retail prices.
Fuel
The small size of operations prevents First Nations from purchasing fuel in bulk (e.g.
buying fuel tanks). As a result, they purchase fuel from local retailers at a higher price.
Administration
Most First Nations do not have a large enough size of operations to hire dedicated
transportation staff. As a result, First Nations more often administer their transportation
services as part of maintenance or facility portfolios and/or rely on their education
directors and/or principals to manage their transportation services. This represents an
additional administrative burden for education professionals with scarce time, limiting
their ability to focus on educational improvement or other issues.
Training
The vast majority of First Nations do not have a certified bus driver trainer on staff due to
the lower number of bus drivers. As a result, they must hire external contractors to
conduct all new-driver and ongoing bus driver training, which, on a per-driver basis,
tends to be much more expensive.
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Increased Scope of Transportation Services
As highlighted in Section 1 of this report, the scope of transportation services is much wider for First Nations
relative to provincial school jurisdictions. The increased scope of transportation services is driven by:
Lower socioeconomic status of First Nations students;
Safety hazards and climatic conditions in the communities that make walking to school unsafe;
The need to support off-site language and culture activities; and
The need to provide off-reserve transportation for students attending provincial school jurisdictions.
The increased scope of transportation services results in the need for additional bus routes and increases all
direct transportation costs; such as bus driver salaries and benefits, fuel costs, maintenance costs, bus
replacement costs, training, and other costs.
Lower Socio-Economic Status
The 2016 gap in the average Community Wellbeing (CWB) Index scores between First Nations and non-
Indigenous communities was substantial. In 2016, the average CWB score for First Nations communities was
19.1 points lower than the average score for non-Indigenous communities. Between 1981 and 2016, the income
gap remained virtually unchanged and represents 22.1 points. The average income score was 53.5 for First
Nations communities and 75.6 for non-Indigenous communities for a gap of 22.1. [33] Figure 13 displays the
CWB score comparison for First Nations vs Non-Indigenous communities.
FIGURE 13: CWB SCORE COMPARISON, FIRST NATIONS VS NON-INDIGENOUS COMMUNITIES
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According to the participants, the lower socio-economic status of student families and communities has several
implications on the provision of transportation services:
A much higher percentage of First Nations students are eligible for and require bus transportation.
Participants noted that due to the low socio-economic status of many families, a relatively low number
of families have access to vehicles and can drive their children to school. It has been estimated that 75
percent of First Nation peoples do not have a valid driver's licence [58] stemming from barriers such
as cost, a lack of accessibility to licensing facilities and training facilities/services, and a lack of
identification or other bureaucratic challenges.
First Nations are unable to rely on parents to provide extracurricular transportation and cannot charge
fees for extracurricular transportation. Therefore, to ensure substantive equality
9
for students, First
Nations school jurisdictions require transportation funding for a provincially comparable range of
extracurricular activities, including
o Sports practices and tournaments;
o Field trips to museums, recreation centres, libraries, universities, etc.
o Arts, music, clubs, and other activities;
o Mentorship and tutoring programs; and
o Other extracurricular activities are necessary for exploring new opportunities, developing
social skills, and improving emotional wellbeing.
Safety Issues
First Nations participants consistently brought up the following safety concerns:
Absence of sidewalks. With many First Nations having no designated pathways or sidewalks, students
must share roads with vehicle traffic to walk to school.
Harsh climate. First Nations participants from northern communities and those with higher humidity
noted that harsh climatic conditions make it unsafe for students to walk even short distances to school.
Wildlife and dogs. The majority of First Nation participants noted that packs of free-ranging dogs and
wildlife, such as bears, in their community can make it unsafe for students to walk to school or wait at
bus stops.
The above safety concerns were noted by First Nation participants as major reasons why their communities do
not implement a provincial eligibility standard around walking limits or introduce their own. Without those
eligibility standards in place, First Nations have to transport a much greater number of students relative to
provincial school jurisdictions. Further, students are picked up closer to their homes, which increases the
distance travelled by buses and reduces the efficiency of the bus routes.
Language and Culture Curriculum Requirements
Most First Nation school jurisdictions have developed, or are in the process of developing, their language and
culture curriculum. A vital component of this curriculum is land-based learning, which typically involves a
combination of outdoor classrooms, outdoor learning camps, and on-the-land excursions referred to as land-
9
Substantive equality entails equal access, equal opportunity, and the provision of services and benefits using the principle
of distinctions-based recognition [7].
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based learning sites.
To support these programs, which are typically located away from schools (participants noted distances
between 5 km and 50 km), transportation services are usually required. Of the First Nation participants, 18
percent reported that their jurisdiction provided transportation to land-based learning sites once a day, while
45 percent brought students to the sites multiple days per week. The remaining participants either brought
their students to culture camps or other land-based opportunities once per week or sporadically.
Off-Reserve Transportation
Over half of the interviewed First Nations provided transportation services to off-reserve schools. Off-reserve
bus routes tend to be longer than on-reserve routes, and in some cases, 2.5 times longer. One rural First Nation
interviewee with a relatively large service area operated nine routes to off-reserve schools, transporting
students to 10 different provincial schools located in six communities. These off-reserve routes are the First
Nation’s longest making up 26% of the total routes and account for 79% of the kilometres driven, with some
routes with student ride times exceeding 1.5 hours. The longest routes had ride times exceeding 1.5 hours.
As most First Nations allow their students to choose a provincial school they wish to attend, some routes tend
to have very few students on them. For example, one First Nation in the Atlantic region reported transporting
fewer than eight students on a route.
Poor Road Conditions
According to data collected from Core Public Infrastructure Survey, 15 percent of Canadian roads are in poor
or very poor condition. These roads are responsible for most of the incremental vehicle operating costs and
Canadians who rely on these roads for their daily travel can be faced with costs well above the national average.
[28] Even compared to rural and northern school
jurisdictions, First Nations appear to have lower-
quality roads and infrastructure. Of the 13 First
Nation respondents, 11 described the quality of
their roads as poor, noting that road quality not
only shortened the lifespan of their buses but also
increased regular maintenance costs and the
occurrence of major and emergency repairs.
A First Nation in Alberta noted that due to
constantly driving through mud and over
potholes, vibrations have cracked headlights, knocked windows loose, added repair costs related to cleaning
caked-on mud, damaged leaf springs, worn-out clamps, and knocked off exhaust systems. The same First
Nation often declares states of emergencies in the spring and fall during inclement weather as road conditions
deteriorate to the point where emergency vehicles are physically unable to reach individual homes. Other
participating First Nations noted that these challenges are not uncommon and that roads deteriorate
significantly in inclement weather.
Impact of Poor Roads on Bus Replacement Costs
One First Nation participant, which rated their roads
as a “zero on a scale of one to ten”, purchased buses
designed to operate with lower air in the tires and
altered suspensions to increase the lifespan of buses.
The off-road and winterized packages for these buses
were estimated to be $200,000.
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FIGURE 14: ROAD CONDITIONS IN PAUL FIRST NATION, ALBERTA
The impacts of poor road conditions on specific cost categories are summarized in
Table 8
.
TABLE 8: IMPACTS OF POOR ROAD CONDITIONS ON TRANSPORTATION COSTS
Cost Element
Negative Impact of Poor Road Conditions
Maintenance
Poor road conditions result in more wear and tear on buses and higher routine
and emergency/corrective maintenance costs. For example, potholes and poor
drainage of roads result in premature tire wear, bouncing and shaking on rough
roads reduce the working lifespan of shocks, and moisture and mud building on
vehicles can damage lines, brakes, and all moving parts of vehicles. The
roughest roads can increase maintenance and repair costs by up to 70 percent.
[34]
Bus Replacement
The lifespan of buses that drive on poorly maintained gravel and mud roads
daily, tends to be much lower. First Nations noted that due to poor road
conditions, buses need to be replaced every 5-6 years instead of the 10 years
which is a common practice among provincial school jurisdictions.
To avoid service interruptions caused by frequent breakdowns or buses being
stuck in mud or deep snow, First Nations need to have access to a substantial
number of spare buses, which further increases the annual bus replacement
costs. Damage to buses caused by poor roads also reduces the value of buses
when they are decommissioned and potentially sold.
Fuel
Higher surface roughness reduces fuel efficiency and leads to increased fuel
consumption [28]. Driving with mud or off-road tires to improve traction on
muddy roads can decrease fuel economy by up to 15 percent. [35]
In addition to the above direct impacts on costs, First Nations noted that due to poor road conditions buses
are required to travel at a slower speed with one participant noting that deteriorating road conditions can
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increase bus ride times for students by up to 30 minutes. To maintain reasonable ride times, First Nations have
no choice but to add more bus routes at a reduced passenger capacity. Added routes mean a higher salary,
maintenance, fuel, insurance, and licensing and training costs.
Remoteness
First Nations are often more remotely located compared with their provincial counterparts. Remoteness is
generally defined by a community’s distance from services measured by network distance, travel time, or costs.
Canada’s Remoteness Index, which assigns a value between 0 and 1 (0 being the least remote and 1 being the
most remote), is based primarily on proximity to multiple points of service. Based on the Remoteness Index,
First Nations communities are more remote compared to the rest of Canada. The population-weighted average
Remoteness Index equals 0.427 for First Nations communities vs. 0.142 for all communities in Canada
combined. [37] ISC’s Model for Cost Adjustment Factors Based on Remoteness estimates cost adjustments for
funding based on location using a combination of the Remoteness Index and whether the community is
isolated (Fly-in) or not. First Nation’s Adjustment Factors range from 5 percent to 133.6 percent with a median
of 33.4 percent. According to the ISC Cost Model Report, 13.4 percent of First Nations are considered fly-in
communities and have a minimum cost increase of 80.1 percent. [1]
For example, a First Nation in Northern Ontario noted that to conduct regular bus inspections, maintenance,
and repairs, they are required to charter a flight to their community to carry the mechanic and any required
parts and tools which costs between
$8,000 to $9,000 per trip. This First
Nation noted that if specific parts aren’t
brought up during safety inspections,
buses may have to remain unused until
the next visit of a mechanic (typically
every three months). A First Nation
interviewee in Newfoundland and
Labrador noted that, historically, they
had to ship buses on a barge to bring
them to a licensed facility several
hundred kilometres away.
Distance from service centres increases costs for many First Nation school jurisdictions. Bringing in buses to
maintenance shops means that school buses are required to be taken in on days when bus drivers would not
otherwise be working, or a bus needs to be taken out of service, which increases the time on buses for students
or the number of bus runs and means spare drivers must be called in.
The impacts of remote locations on specific cost categories are summarized in Table 9.
Example of A Northern Saskatchewan First Nation
A fly-in First Nation education jurisdiction in Northern
Saskatchewan has fuel costs that range from $2.57 to $2.75 per
litre.
There is no maintenance shop, so the First Nation must pay to fly
mechanics up for repairs and inspections:
Travel and accommodation costs start at $2,294 per trip;
Shop rental and labour are typically $3,200 before parts;
Additional costs stem from high shipping costs for parts.
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TABLE 9: IMPACTS OF REMOTENESS ON TRANSPORTATION COSTS
Cost Element
Impact of Remote Locations
Wages
The cost of living in remote and isolated communities can be substantially higher
than in urban areas (e.g. housing, food, fuel, utilities, and services). To attract bus
drivers, many First Nations in northern and remote communities must pay higher
wages.
Bus Replacement
The long travel distance between First Nations and maintenance facilities tends to
reduce the lifespan of buses and increase bus replacement costs. One First Nation
interviewee noted that they need to travel up to 1,000 km per year per bus for routine
maintenance, oil changes, and minor repairs. To avoid service interruptions, remote
First Nations must maintain a higher number of spare buses as any malfunction or
safety issues can leave a bus out of service for weeks or months at a time. Further,
shipping new buses up to communities can be expensive, especially for communities
without any seasonal road access.
Maintenance
Remote and isolated First Nations participants noted substantial maintenance costs
related to the transportation of parts, certified mechanics, and shop access.
Fuel
Fuel costs can be substantially higher in northern and remote communities. Fuel costs
were 197 percent higher for an isolated First Nation participant in Northern
Saskatchewan compared with a road-connected First Nation in the same region.
Training
The expenses related to new bus driver training are significantly higher for remote
First Nations as they are typically required to cover training fees and travel expenses
for new hires to take private training programs at distant locations. On-going training
costs can also be significantly higher as First-aid, CPR, and other regular training
facilitators must be brought up to provide the training opportunities.
Higher Student Needs
The transportation costs in the participating First Nations communities were also driven by higher student
needs, including behavioural challenges and special needs.
Behavioural Challenges
Bus drivers are responsible for not only safely transporting students to and from school but creating a safe
environment for students. First Nations respondents noted that difficult and disruptive student behaviour on
buses was an important safety concern for their school system that could negatively impact student learning
and attendance if not properly managed. Behaviour management is particularly stressful for new drivers, who
often lack training and tools to deal with misconduct on the bus.
Behavioural management and COVID-19 social distancing requirements often dictate the need for school bus
monitors and bus security systems in addition to bus drivers. School bus monitor positions existed in 80 percent
of participating First Nations and were either filled by existing educational assistants, or part-time hires from
the community.
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Special Needs
First Nations typically have a higher number of special needs students who require paratransit services. Larger
provincial school jurisdictions have designated special needs schools, programs and/or routes that can reduce
the number of additional routes for paratransit services and reduce costs. 54 percent of First Nation participants
noted that they had a passenger vehicle or a bus that has been modified to accommodate First Nation
students. Several of the participants noted that their paratransit services served only one or two students.
Participants that did not offer paratransit did not do so because they currently did not require the service, were
in the process of acquiring a suitable vehicle, and/or cited a lack of available funding.
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Funding for Student Transportation
Current Transportation Funding Allocations for First
Nations
ISC Regional Funding Models for First Nation education attempt to apply provincial funding models to First
Nation education jurisdictions to provide provincial comparability. Due to the lack of First Nations-specific
transportation data (e.g. number of transported students, number and length of bus routes), provincial
transportation formulas have not been applied directly. Instead, transportation funding in most provinces is
based on historical funding approaches in each specific region. These approaches vary quite dramatically:
In the Alberta Region, the current ISC Transportation funding approach has been in place since the
late 1980s and has not seen any major increases, apart from fuel subsidies and increments of two
percent in some fiscal years.
The ISC Saskatchewan Region funds transportation using a historical funding approach unrelated to
the provincial model and includes a bus replacement rate, a per-kilometre rate, and a remoteness
factor for some First Nations.
The ISC Manitoba Region’s formula for transportation is ISC’s most comprehensive cost-based model,
which includes bus driver salaries, per-kilometre maintenance costs, typical replacement cost of a
school bus (10-year lifespan), bus driver training, extracurricular transportation, and a remoteness
adjustment.
Ontario is currently reviewing its transportation formulas and current ISC applications bases funding
on the 2017/18 transportation dollar amount for Indigenous Services’ Ontario Region, with an annual
adjustment of four percent for 2020/21 and 2021/22, which is consistent with the Student
Transportation Grant’s growth of the past three years. The calculations behind the historic funding
amounts are not explained or included in the Regional Funding Model.
Funding Gap
All First Nation participants reported that their current transportation costs exceeded the transportation
funding allocation provided as part of the Regional Funding model. The funding gap ranged from 6 percent
to 127 percent, with a median shortfall of 45 percent. To make up for funding shortfalls, First Nations accessed
other funding sources, such as Jordan’s Principle, or used instructional funding.
Based on ISC’s Analysis of 2020-21 Jordan's Principal Administrative Data Tables, there were 420 individual
requests and 31 group requests
10
related to education transportation, with the total requested funding
amounts of $874,552 and $2,400,631 respectively. [37].
10
Individual requests are typically made by parents and guardians, while group requests are made by First Nations
communities and organizations.
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The summary of approved and denied funding requests is provided below:
TABLE 10: SUMMARY OF TRANSPORTATION FUNDING REQUESTS SUBMITTED THROUGH JORDAN'S
PRINCIPLE 2020-21
Education
Transportation
Request Type
Total Number of
Requests
Number of Denied
Requests
Requested Funding
Amount
Approved Funding
Amount
Individual
Requests
420
48
$874,552
$705,126
Group Requests
31
10
$2,400,631
$455,471
Further, several First Nation participants noted that using instructional funding to cover transportation deficits
negatively impacted the scope and quality of
education services provided to students.
Through the interviews, it also became evident that
the actual costs incurred by First Nations are often
not representative of true needs. First Nations tend
to spend the funds they are provided, and in some
cases, their transportation systems fall short of
meeting safety and quality and service level
standards that provincial school jurisdictions do.
Analysis of Provincial
Funding Approaches
To further examine current funding practices, standard components included, and the extent to which ISC
Regional Funding Models address the cost drivers unique to First Nations, MNP reviewed provincial funding
formulas for student transportation across Canada. Specifically, the following funding models were examined:
British Columbia – Operating Grants Manual – Student Transportation Fund;
Alberta – Funding Manual for School Authorities – Transportation Grant;
Saskatchewan Funding Manual. Prekindergarten to Grade 12 Funding Distribution Model
Transportation;
Manitoba – Funding of Schools – Transportation;
Ontario – Education Funding, Technical Paper – Student Transportation Grant;
Québec - Règles Budgétaires Pour Les Années Scolaires - Transport Scolaire; and
ISC Provincial Funding Model Overviews for the corresponding regions.
It is important to note that the funding for student transportation is generally used to cover bus service to
schools in the morning and bus service back home in the afternoon. Extracurricular transportation, including,
for example, trips to museums during school hours or trips to sports tournaments after/outside of school, are
generally included in the school’s internal budget and not funded through the transportation grants.
The Funding Gap Exceeds Current Deficits
Looking at the current level of transportation
spending, as one participant noted that
“Transportation expenditures were limited by a lack
of bus capital funding, a lack of safe and suitable
buses, an inability to attract certified bus drivers, and
a lack of overall educational funding”.
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Primary cost drivers are elements in the formula that contribute to determining the majority of funding needs.
The four primary cost drivers that were compared between models were a per FTE rate and per kilometre rate
as well as whether the model accounts for the number of routes/buses and remoteness.
Secondary cost drivers are elements in the formula that factor into the overall allocation but are applied after
the primary calculation for primary cost drivers has been completed. The four secondary cost drivers that were
compared were whether the model accounts for population density, special needs students, parent-provided
transportation, or bus replacement costs.
The components of the provincial funding formulas for transportation are summarized in Figure 14.
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TABLE 11: PROVINCIAL TRANSPORTATION FUNDING FORMULAS SUMMARY
Province
Primary Drivers of Funding
Secondary Drivers of Funding
Other
Number of
transported
students
Distance
traveled
Number of
buses or
routes
Remoteness
Population
density
Special needs
adjustment
Parent
provided
transport
adjustment
Bus
replacement
costs
Considers
previous years
costs
Other costs and
adjustments
Alberta
Adjustment for
non-resident
transport
British
Columbia
No unique formula for transportation
Saskatchewan
Manitoba
Safety grant and
francophone
district
adjustment
Ontario
Adjustments for
underfunding,
enrollment
changes,
inflation, and
safety training
Quebec
Adjustments
based on an
Economic
Vitality Factor
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Table 12 provides an overview of each province’s transportation funding formulas, as well as their current
application to First Nations by ISC. It also describes the benefits and drawbacks of each of the respective
formulas, as well as their appropriateness in the First Nations context.
TABLE 12: OVERVIEW OF PROVINCIAL TRANSPORTATION FUNDING FORMULAS.
Province
Provincial/
First Nations
Transportation Formula Overview and Analysis
Alberta
Provincial
Formula [38]
[39]
The Alberta formula is fairly comprehensive, and funding is based on the key cost
drivers of transportation. The formula provides funding primarily based on a per-
student and per-kilometre rate that varies for urban vs. rural/remote school divisions.
These rates are additionally multiplied by a weighting factor for a school divisions’
density. The formula also includes funding for students with special needs and the
transportation of First Nations from reserve to provincial schools.
Additionally, rural and northern school divisions receive significantly higher funding
levels per student FTE than urban and metro divisions, indicating divisions with higher
expected costs receive more funding.
There are several issues with using the Alberta formula for First Nations communities:
Without specialized geographical mapping software, it would be difficult to
collect and maintain the required data in the short term. The formula
requires the calculation of the distance from every child’s home to the school
they attend.
It is unclear as to whether it would provide sufficient funding as looking at
financial statements, many school jurisdictions in Alberta report
transportation deficits.
o For example, The Northland School Division’s Transportation
department had a nearly $400,000 deficit in 2019/20. [40]
Based on interviews, it became evident that even school jurisdictions
classified as “Rural” or “Rural Distant” transport a small percentage of
students.
Note: The Alberta Transportation funding model is currently under review and may be
revised. 2020/21 funding levels were held constant based on each divisions’ 2019/20
funding, plus approximately five percent of supplemental funding.
ISC Regional
Funding
Model
[41]
Due to data constraints, ISC provides funding based on historical transportation
funding levels for the percentage of First Nations students attending First Nations
schools, plus an adjustment of two
percent per year for inflation.
For block funding recipients, funding is based on the 2010/11 school year. For non-
block funding recipients, funding is based on the 2017/18 school year. The calculations
behind the historic funding amounts are not explained or included in the Regional
Funding Model.
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Province
Provincial/
First Nations
Transportation Formula Overview and Analysis
BC
Provincial
formula [42]
[43]
BC does not have a unique student transportation formula.
Student transportation funding comes out of the overall education budget for each
school district. Education budgets are primarily determined by the number of student
FTEs, with adjustments for a host of factors including:
Remoteness
Climate
Special needs students
Declining enrolment
Small schools
BC additionally provides a top-up for student transportation through the Student
Transportation Fund, which began in 2016, to provide school districts with the means
to improve student transportation. It is based on the rural makeup of each school
district and is meant to allow the district to eliminate bus fees, add routes, make safety
improvements, and improve extracurricular transportation.
Given that BC does not have a unique student transportation formula, it cannot be
leveraged as a national funding approach for First Nations.
BCTEA
Funding
Model [44]
Funding for First Nations education in British Columbia is provided through the BC
Tripartite Education Agreement (BCTEA). The funding formula is based on the BC
Ministry of Education’s formula, with adjustments to reflect the unique needs of First
Nations schools.
For student transportation, funding is provided by a weighted eligible enrolment,
where First Nations with smaller student populations receive a higher per student
amount.
There is also approximately $1 million of annual funding to replacebelow standard
school buses in First Nations. Funding allocations are determined based on the ages
and kilometres on each First Nations’ school bus. Additionally, the First Nations can
work together with the provincial school jurisdictions to determine First Nation
Student transportation needs and co-develop Joint First Nations Student
Transportation Plans. The Plans are to include strategies to address various modes of
transportation, such as walking, driving, bussing, ferry, or water taxi, depending on
local needs, as well as transportation to extracurricular activities. [45]
Bus capital replacement funding, as well as support for extracurricular activities
negotiated through the BCTEA, are important and impactful best practices that need
to be leveraged to develop a national funding approach for transportation.
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Province
Provincial/
First Nations
Transportation Formula Overview and Analysis
Saskatchewan
Provincial
Funding
Formula
[46]
The Saskatchewan provincial transportation formula provides funding primarily based
on a per-student and per-kilometre rate that varies between urban and rural school
divisions. Additional funding is also provided for students with special needs.
The Saskatchewan model has some advantages including:
The formula uses distance travelled and the number of students as the two
primary funding components, which reflects the main cost drivers of student
transportation.
It is easy to apply and collect the required data.
The formula includes a northern adjustment to increase funding for
jurisdictions in remote, northern regions.
However, there are also drawbacks, including:
It is unclear how the rates (per student and per km) are being determined.
The formula does not include any calculations related to the number of
buses or routes required, and these are key cost drivers for student
transportation.
ISC Regional
Funding
Model
[47]
The ISC formula used in Saskatchewan differs from the formula used in provincial
schools. The ISC formula includes a bus replacement rate and a per-kilometre rate,
which is increased for daily travel above 50kms, and adjusted for remoteness with a
‘northern factor’ for certain First Nations.
The rates used in the formula, in many cases, are significantly lower than the actual
costs. For example:
The bus purchase costs are estimated at $77,500, which is between 30
percent and 40 percent lower than the typical cost of purchasing a school
bus ($115,000 to $125,000).
Bus drivers' salaries are calculated at $12 per hour as opposed to $20 to $25
per hour, which is typical at provincial school jurisdictions.
Repairs are budgeted at $2,000 per year, which is significantly less than the
typical $5,000 to $10,000 per bus per year paid by provincial school
jurisdictions.
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Province
Provincial/
First Nations
Transportation Formula Overview and Analysis
Manitoba
Provincial
formula [48]
[49]
The Manitoba formula provides funding based on a combination of a per student rate
as well as a rate per loaded kilometre rate that varies by the size and density of each
school division. The rates vary for rural/urban divisions, and there is additional funding
for students with special needs.
The Manitoba formula is not recommended for use by First Nations due to data
collection issues, as the formula includes a requirement to calculate the number of
loaded kilometres and a dispersion factor based on the area of the school jurisdiction.
Also, providing a funding rate only for loaded kilometres, or when students are on the
bus, does not capture the total costs involved in operating the school bus, as most
cost elements are incurred regardless of whether the bus has children on it.
Additionally, in Manitoba, approximately 60
percent of education funding is from the
province, as determined by the provincial formulas, while approximately 34
percent of
funding is from municipal sources, including property taxes. As a result, the funding
formula for Manitoba provincial schools is not directly comparable as it is not
intended to fund the entirety of the student transportation budget.
ISC Regional
Funding
Model
[50]
The Manitoba Regional Funding Model provides funding primarily based on the
number of buses required and bus driver salaries. These are calculated based on the
number of kilometres of travel, for routes, the typical replacement cost of a school
bus (10-year lifespan) and driver salaries for a remote school division in Manitoba. A
remoteness factor is applied as well as additional funding for special needs, bus
modification, and bus driver training.
The formula also has a component to determine the number of buses required, which
is done by taking the total student enrollment divided by 48 (school bus capacity).
The Manitoba funding formula is the most comprehensive cost-based model available
across the country and provides a template for both on-reserve transportation and
transportation to provincial schools.
The drawbacks of this formula are as follows:
It does not distinguish between fixed and variable costs and all costs are
calculated on a per-kilometre basis.
It does not account for administrative costs associated with student
transportation (e.g. Transportation Coordinator salary).
It does not include supports for special needs transportation (e.g. paratransit
services).
The calculation of the number of buses does not align with provincial
benchmarks and First Nations practices. For example, based on
benchmarking results, the buses in the rural area operate only at about 50
percent capacity. Further, the 72-passenger can carry no more than 56
secondary school students. Further, the formula does not recognize the
need for spare buses.
The extracurricular amount is a set amount that doesn’t reflect geographic
differences between communities or differences in the number of students
enrolled in each school.
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Province
Provincial/
First Nations
Transportation Formula Overview and Analysis
Ontario
Provincial
Formula
[51]
The Ontario formula (Student Transportation Grant) provides funding based on the
previous year’s allocation, with adjustments for enrollment changes, cost changes,
safety training, fuel price changes, and stabilization of funding.
The Ontario formula is not advisable for First Nations, as it does not include funding
that varies by the key cost drivers like the number of routes/buses, kilometres, and
students.
The Ontario student transportation funding formula is currently being reviewed by the
Ontario Ministry of Education. To support this review, the Ontario Ministry of
Education commissioned an independent cost benchmarking study. The results of this
study are not yet publicly available.
ISC Regional
Funding
Model
[52]
While the Ontario funding formula is being reviewed, ISC bases funding on the
2017/18 transportation dollar amount for Indigenous Services’ Ontario Region, with an
annual adjustment of four
percent for 2020/21 and 2021/22, which is consistent with
the Student Transportation Grant’s growth of the past three years.
The calculations behind the historic funding amounts are not explained or included in
the Regional Funding Model.
Quebec
Provincial
formula
[53]
The Quebec funding formula is based on the number of students transported as well
as a series of adjustments for variations in student population levels, retained funding
from previous years, and corrections to historical base funding. The correction
calculation includes the number of students, the number of vehicles, and the number
of kilometres travelled.
While the Quebec formula covers several of the primary cost drivers, there is no direct
adjustment for remoteness. Additionally, the Quebec formula is complicated to
calculate and would require significant administrative work to gather the required
data. As a result, it is not advisable for First Nations.
ISC Regional
Funding
Model [54]
ISC does not apply the provincial formula to First Nations due to a lack of available
data. The annual amount is based on historical amounts, with an adjustment of 1.95
percent to reflect inflation. This method creates the potential for underfunding,
particularly if the base historical amount is not adequate. Additionally, a 1.95 percent
annual adjustment may not be enough to keep up with increasing enrollments and
the increased number of students requiring transportation. As a result, this method is
not advisable for First Nations.
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Recommended Cost Model
Based on information collected through the jurisdictional scan and engagement with First Nations
communities, MNP developed a cost model. The model is meant to reflect provincial cost differences,
remoteness, and other cost drivers, as well as unique considerations for providing student transportation in
First Nations communities across Canada. The general structure of the model is provided below:
FIGURE 15: COST MODEL STRUCTURE
First Nations Inputs
The model requires the following data elements to be entered by First Nations:
The number of transported students.
The number of on and off-reserve bus routes
11
.
o The model will have some high-level checks on whether the number of buses meets the
minimum requirements for transportation of students.
The number of kilometres driven on a daily or an annual basis.
o If the number of kilometres is unknown, the calculations will be based on the total number of
kilometres of roads on reserve, the same as in the current Transportation Model for the
Manitoba Region.
The number of kilometres travelled for extracurricular activities.
11
Calculation of the optimal number of bus routes is a complex undertaking that requires an understanding of school
jurisdictions’ geography (population density, travel distances, and location of student residences). Therefore, the calculation
of the optimal number of routes is outside the scope of this project.
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Cost Modelling Assumptions
TABLE 13: COST MODELLING ASSUMPTIONS
Key Elements of the
Cost Model
Assumptions
1.
Bus Driver
Wages
The number of regular bus drivers equals the number of active bus routes.
All regular bus drivers are employed 7.5 hours per day for 180 to 190 days
per year (depending on the province) plus 5 maintenance and training days,
which equals between 1,388 and 1,463 hours per year.
Bus drivers are paid the average wages of school bus drivers in their
province.
Bus drivers receive provincially comparable benefits packages, which equal
20 percent of their base salary.
Spare bus driver salaries are 10 percent of full-time bus driver salary costs.
To reflect the higher cost of living and shortage of labour in remote First
Nations, base salaries of regular and spare bus drivers will be multiplied by
the ISC Cost Adjustment Factor Based on Remoteness.
2.
Administrative
Salaries
Administration costs consist of salaries and benefits provided to staff
involved in managing transportation services.
The number of required administrative staff is based on the number of
transported students. The suggested staffing allocations are as follows:
Fewer than 100 transported
students
0.25 Transportation Manager FTE
100 to 300 transported students
0.5 Transportation Manager FTE
300 to 1000 transported students
1 Transportation Manager FTE
1000 to 1500 transported students
1 Transportation Manager FTE and 0.5
Administrative Assistant FTE
Over 1500 transported students
1 Transportation Manager FTE and 1
Administrative Assistant FTE
The salaries will be determined based on average provincial salaries for
Transportation Coordinator/Manager positions in a particular province.
To reflect the higher salaries in remote areas, total administrative costs will
be multiplied by the Cost Adjustment Factor Based on Remoteness.
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Key Elements of the
Cost Model
Assumptions
3.
Bus Monitor
Wages
Each bus route requires a Bus Monitor, compensated on an hourly basis.
Bus Monitor positions are part-time (working 5 hours per day for 180 to 190
school days per year).
Bus monitors are paid a relevant minimum wage in their province, multiplied
by the Cost Adjustment Factor Based on Remoteness.
4.
Fuel Costs
Fuel costs are calculated on a per-km basis based on the number of
kilometres entered by the user and average diesel/gas prices per kilometre
for each province on a certain date (e.g. September 1
st
).
To reflect higher fuel costs in remote communities, total fuel costs are
multiplied by the ISC Cost Adjustment Factor Based on Remoteness.
5.
Maintenance
All maintenance services are outsourced to external service shops.
Buses are taken to the maintenance shop four times per year to meet the
minimum maintenance standard across provincial school jurisdictions.
Inspections are conducted as per provincial legislation.
To reflect the higher costs of maintenance and travel to maintenance shops,
total maintenance costs will be multiplied by the Cost Adjustment Factor
Based on Remoteness.
6.
Bus
Replacement
Costs
The bus replacement cost is calculated based on the number of active and
spare buses. The number of active buses equals the number of bus routes
as determined by the user, while the number of spare buses is determined
by an average ratio of active to spare buses (five to one).
The buses are to be replaced every six years, and costs will be amortized
over a six-year period.
Bus purchase costs equal the average retail costs of a 72-passenger bus.
20 percent of buses are wheelchair accessible.
The cost of peripherals (e.g. cameras, GPS, heaters), commonly required by
First Nations, will be added to the purchase costs, based on the average
prices of these items.
7.
Insurance Costs
Insurance costs per bus equal average estimates obtained from insurance
providers (government or third party) in each province.
Insurance costs are incurred regardless of bus usage (e.g. both active and
spare buses require insurance).
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Key Elements of the
Cost Model
Assumptions
8.
Training
All training is delivered by third-party providers, as opposed to in-house.
Costs associated with entry-level training, licensing, and medical
examinations, as well as travel, are fully covered by First Nations school
jurisdictions.
All fees are based on information and quotes collected from training and
licensing providers in each province.
For introductory level training, it is assumed that the annual bus driver
turnover is 20 percent (i.e. 20 percent of all bus drivers are new and require
training).
To reflect the higher costs of providing training in remote communities,
training costs will be multiplied by the Cost Adjustment Factor Based on
Remoteness.
9.
Extracurricular
Travel
Extracurricular travel costs depend on the number of kilometres of travel per
year. This will be input by the user.
A typical rate per kilometre will be used to calculate costs.
To reflect the higher costs of providing extracurricular travel in remote
communities, extracurricular costs will be multiplied by the Cost Adjustment
Factor Based on Remoteness.
10.
Cost
Adjustment
Factor Based on
Remoteness
[55]
Cost Adjustments for Remoteness are from ISC’s model for Cost Adjustment Factors
Based on Remoteness. A remoteness index score and corresponding cost
adjustment factor are calculated for each First Nation in Canada.
The measured remoteness of each community is based on labour cost differentials
in each community and shipping costs to each community. Fly-in communities
receive additional weighting to account for significantly higher costs.
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Cost Model Calculations
The cost model was applied to a number of First Nations for which data was collected through interviews. The
average cost per bus generated by the model was between $95,000 and $115,000 for communities with road
access. The per-bus cost for isolated/fly-in communities was as high as $170,000.
These estimates are significantly higher than the typical cost of $40,000 and $60,000 for provincial school
jurisdictions due to the following key differences:
Buses are assumed to be replaced every six years in the cost model, while they are typically replaced
every 12 years in provincial school jurisdictions. This increases the replacement costs compared to
provincial school jurisdictions ($6,000 to $15,000 per bus annually).
Bus drivers are assumed to work full-time hours (7.5 hours per day) rather than five hours per day,
which is typical for provincial school jurisdictions. This increases the costs by approximately $10,000
on a per bus basis (50 percent increase);
All buses require a bus monitor, which is not typical of provincial school jurisdictions and adds between
$20,000 and $30,000 annually per bus.
The cost adjustment factor for remoteness typically increases costs by between 5 percent and 40
percent, depending on the First Nation. For fly-in only communities, costs are increased by upwards
of 120 percent. The following categories are adjusted for remoteness:
o Bus driver and bus monitor wages;
o Administrative salaries;
o Fuel and maintenance costs;
o Training and extracurricular travel.
The following table provides an example of the inputs and results from the cost model, for an Alberta First
Nation school jurisdiction.
TABLE 14: COST MODELLING RESULTS, EXAMPLE
Inputs
Category
Parameters
Bus Routes/Types
15 routes serviced by 72-passenger Type C buses
1 route serviced by a bus with a wheelchair lift
100% diesel fuel
Kilometres
500 km of one-way routes (i.e: morning only, total kms travelled across all
routes)
150,000 km of extracurricular travel annually
Transported Students
800 non-special needs students
10 students with severe disabilities
Cost Adjustment Factor
Based on Remoteness
A community-specific cost adjustment factor based 40.3% added to
calculations
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Results
Category
Cost per Bus
Total Costs
Bus Driver Wages
$44,470
$844,939
Bus Monitor Wages
$24,153
$458,902
Bus Replacement Costs
$16,632
$316,000
Maintenance Costs
$7,737
$147,000
Fuel
$6,009
$114,180
Administration
$8,207
$155,936
Licensing/Insurance
$1,606
$30,520
Training
$1,170
$22,224
Sub Total
$109,984
$2,089,701
Extra Curriculars
N/A
$210,450
Total
$109,984
$2,300,151
The majority of the expenditures for student transportation are for bus driver and bus monitor wages, followed
by bus replacement costs. For the above school jurisdiction, extracurricular transportation accounts for a
relatively large amount, however, this can be highly variable depending on the location of the First Nation
community and regularity of extracurricular travel.
The table below compares the costs for an Alberta First Nation school jurisdiction generated by the model with
costs collected through interviews with provincial school jurisdiction and a third-party bus operator in Alberta.
TABLE 15: COMPARISON OF COSTS GENERATED BY THE MODEL WITH COSTS INCURRED BY A PROVINCAIL
SCHOOL JURISDICTION AND A BUS OPERATOR IN ALBERTA
Cost Category
Costs per School Bus, Alberta
Remote First Nation
School Jurisdiction with
15 routes
(generated by the model)
Northern Provincial
School Jurisdiction with
45 routes
Third-Party Bus
Operator with 285
routes across
Alberta
Bus Driver Wages
$44,470
$25,000
$21,500
Bus Replacement Costs
$16,632
$7,500 - $11,500
$6,800
Maintenance Costs
$7,737
$5,500
$6,500
Fuel
$6,009
$7,000
$ 4,700
Administration
$8,207
$3,000
$ 3,000
Licensing/Insurance
$1,606
$2,150
$ 1,340
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Cost Category
Costs per School Bus, Alberta
Remote First Nation
School Jurisdiction with
15 routes
(generated by the model)
Northern Provincial
School Jurisdiction with
45 routes
Third-Party Bus
Operator with 285
routes across
Alberta
Training
$1,170
Not provided
$ 1,440
12
SUBTOTAL
$85,831
$50,150 - $54,150
$45,280
Bus Monitor Wages
$24,153
N/A
N/A
TOTAL
$109,984
$50,150 - $54,150
$45,280
12
This estimate includes training and other costs not captured in other cost categories (e.g. marketing of transportation
services, IT-related expenses etc.).
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Conclusions
First Nations are facing issues with provincial comparability due to lack of economies of scale, lower socio-
economic status of First Nations students, remoteness, higher student needs, and poor conditions of roads
and infrastructure. As a result, their transportation costs on a per-bus basis are much higher than the
benchmark transportation costs incurred by the provincial counterparts. The average cost estimate for student
transportation derived from the model is between $95,000 and $115,000 per bus annually, compared to
$40,000 – $60,000 in the provincial system.
The model developed as part of this First Nations Transportation Needs Assessment serves as a starting point
for estimating the true costs of transportation. It can be utilized by First Nations as a tool to support their
funding negotiations as part of the Regional Education Agreement (REA) process. Ultimately, it may also be
used by ISC to inform the development of the new cost-based transportation funding model for all First Nations
across Canada.
Additional Considerations
Presented below are some additional operational and funding considerations that need to be taken into
account in order to improve the delivery of transportation services and reduce costs.
Bulk Purchasing Programs
School Buses and Parts
In an effort to reduce costs, it may be beneficial to implement a bus purchasing program at a national or
regional level, similar to the one that exists in BC. This would enable First Nations to benefit from standing
offers with major bus dealers across Canada for a specified period of time (e.g. fiscal year). The benefits of the
standing offers are as follows:
The prearranged pricing is established through competition and helps avoid fluctuations in prices due
to exchange rates and other factors.
First Nations may opt to participate in the purchasing program, but participation is not mandatory.
With a standing offer in place, First Nations can place orders quickly and do not need to arrange the
procurement on their own.
This program could also be expanded to include school bus parts that regularly need to be replaced, like tires,
oil, and fuel filters. Replacing these types of regular parts can be significantly more expensive if it’s done on an
ad hoc basis through local repair shops.
Fuel
For some First Nations school jurisdictions, it may be advantageous to consider buying fuel in bulk. Such
undertaking requires a detailed cost-benefit analysis, which takes into account the geography of transportation
operations, fuel needs, upfront installation, and maintenance costs for fuel tanks etc.
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Bus Driver Training
To reduce the expenses and administrative burden associated with bus driver training, it may be worthwhile
to consider one of the two options:
First Nations could consider collaborating on organizing bus driver training in multiple locations in
each province in the summer. This would allow to save on instructor fees and reduce costs for
participants.
Alternatively, First Nations and ISC could potentially work together with the provinces (through tri-
partite tables) to allow First Nations to participate in the training provided by their neighbouring
provincial school jurisdictions.
Route Planning
For larger First Nations school jurisdictions, it would be beneficial to implement bus routing software, which
helps configure the routes in an efficient and flexible way to reduce ride times and better meet the needs of
the student population.
This would ensure that the number of routes entered into the cost model is an optimal number given First
Nation’s geography, catchment area, and student population.
Extracurricular Transportation
While extracurricular and co-curricular travel plays a central role in improving student experiences and ensuring
substantive equality, it is very difficult to provide an accurate estimate for these expenses due to the wide
variation of First Nations’ needs, geography, program, and curriculum offerings etc.
As a result, it may be beneficial to establish a separate funding program to support the extracurricular and co-
curricular travel, outside of the core transportation funding model. In doing so, it would be worthwhile to
leverage leading practices in BC with regards to implementing a First Nations Student Transportation Fund for
students attending both First Nations operated and provincial schools.
School Transportation Infrastructure
The cost model does not address capital needs, with the exception of school bus replacement. However, most
First Nations participants believe that having access to necessary infrastructures, such as indoor bus garages
and maintenance shops, would help reduce maintenance costs and increase the lifespan of school buses.
While having an in-house maintenance shop is not feasible in smaller First Nations school jurisdictions,
they would be warranted in larger school jurisdictions with a fleet of over 15 buses, as well as some
isolated communities.
Indoor garages, on the other hand, would be beneficial for all First Nations, regardless of their size.
These bus garages will help reduce weather damage and prevent potential security issues.
Therefore, it is recommended that moving forward ISC provides funding for First Nations transportation
infrastructure that aligns with best practices related to fleet storage and Maintenance.
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On-reserve Students Transported by Provincial School Jurisdictions
While the scope of this assessment did not include First Nations students transported by provincial school
jurisdictions, it has been recognized that both appropriate policies and funding are required in order to meet
their needs. The common issues that must be addressed by First Nations in conjunction with federal and
provincial governments include:
Access to extracurricular transportation;
Transportation to cultural events, community events, and land-based learning opportunities;
Parameters around pick-up locations (e.g. elimination of highway pick-ups or minimum walking
distances for First Nations students).
Facilitation of safe arrival for children (e.g. supervision during bus travel for special needs students, or
supervision while waiting for the bus);
Funding for First Nation students who are required to leave home to attend a public school and are
boarded and billeted; and
Funding for bus stop shelters.
Some of the leading practices in this area could be found in First Nations Student Transportation Planning and
Procedures adopted through the BC Tripartite Education Agreement.
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[1]
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[2]
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[6]
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First Nations Education Transportation Needs Assessment
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[17]
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[18]
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[19]
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[20]
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[21]
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[22]
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[23]
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2017-18 School Year".
[24]
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[25]
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[26]
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Program," [Online]. Available: https://astsbc.org/standing-offer/.
[27]
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on School Bus Safety," 2020.
[28]
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[29]
Dynamic Specialty Vehicles, "Pros and Cons of Gas versus Diesel Bus Engines," [Online]. Available:
https://dynamicspecialty.com/pros-and-cons-of-gas-versus-diesel-bus-engines/.
[30]
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https://saaq.gouv.qc.ca/en/saaq/rates-fines/insurance-contributions.
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https://www.sac-isc.gc.ca/eng/1602010609492/1602010631711#fn9.
[33]
I. S. Canada, "Report on trends in First Nations Communities, 1981 to 2016," 2019. [Online]. Available:
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[34]
Canadian Automobile Association, Costs of Poor Roads in Canada, 2021.
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Motortrend, Tires and Fuel Economy, 2011.
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[37]
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First Nations Education Transportation Needs Assessment
61 | P a g e
[38]
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[39]
Government of Alberta, "Interim Funding Manual for School Authorities 2020/21 School Year".
[40]
Northland School Division, "Audited Financial Statements, for the year end August 31, 2020".
[41]
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[42]
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BC Ministry of Education, [Online]. Available: https://news.gov.bc.ca/releases/2016EDUC0076-001429.
[44]
BCTEA, "BC First Nations Education Funding Handbook. 2020/2021".
[45]
F. N. E. S. Committee, " BC Tripartite Education Agreement," [Online]. Available:
http://www.fnesc.ca/bctea/transportation-public-schools/.
[46]
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Distribution Model".
[47]
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[48]
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[51]
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Nations au Québec," 2020-2021.
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[57]
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First Nations Education Transportation Needs Assessment
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https://www12.statcan.gc.ca/census-recensement/2016/dp-pd/dt-td/Rp-
eng.cfm?TABID=4&LANG=E&A=R&APATH=3&DETAIL=0&DIM=0&FL=A&FREE=0&GC=01&GL=-
1&GID=1325190&GK=1&GRP=1&O=D&PID=112125&PRID=10&PTYPE=109445&S=0&SHOWALL=0&S
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First Nations Education Transportation Needs Assessment
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Appendices
Appendix A: Detailed Training Cost Data
Province
13
Training costs for new bus drivers
Costs associated with licensing and licence
renewal
British
Columbia
Optional training is a flat fee of $350
per day for the instructor’s time, plus
any travel expenses.
Licence - Fees set by the province:
Combined cost
14
of $275
Licence renewal - $75 every five years.
Alberta
Mandatory Entry-Level Training
delivered by independent third-party
training providers costs
approximately $4,500.
Licence - Fees are set by independent providers,
with median prices as follows:
Combined cost of $387
Licence renewal - Drivers are required to retake
their medical exams every 1-5 years depending
on their age.
Saskatchewan
Introductory training for bus drivers
is not mandatory and varies between
providers:
Immanuel Driver Safety Education:
$1,695 average per participant
(based on 10 participants)
15
+ trainer
travel expenses.
Licence (S endorsement) - Fees set by province:
Combined cost of $305
Licence renewal - Drivers are required to submit
a $25 annual licence renewal, retesting is done
every five years.
Manitoba
Historical average $1,000 per person,
currently under review.
Licence - Fees set by province:
Combined cost of $175
Licence renewal - Renewal price based on driver
safety rating ($35-$3020), if the driver has a
negative rating it may mean the driver is subject
to additional conditions and costs to maintain
their licence (such as driver fitness courses).
13
The information in this table was retrieved through primary research. Sources include ICBC, Alberta Transportation
Driver’s Fitness and Monitoring, SGI, Pupil Transportation Unit Government of Manitoba and MPI, School Bus Ontario,
SAAQ and Montreal Heavy Weight Training Centre, New Brunswick Department of Education, Newfoundland and Labrador
Department of Education and Digital Government Service NL, and Immanuel Driver Safety Education
14
Combined licence costs can include the following components: driver’s medical/physical exam, written exam (knowledge
test), road test (including pre-test inspections), criminal record check and/or vulnerable sector query, sign exam, driver’s
abstract, air brake endorsement, and emergency first aid/ epi-pen training. When a range was provided for a cost
component, the median amount was included in the combined cost figure.
15
Number of participants affect cost greatly due to economies of scale.
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Province
13
Training costs for new bus drivers
Costs associated with licensing and licence
renewal
Ontario
Mandatory one-day, eight-hour
School Bus Driver improvement
course on average costs $200.
Licence - Fees set by training centres:
Combined costs of $381
Licence renewal1-5-year medical renewal
based on age, licence renewal fee (anyone
under 80-years of age- every five years) - $90.
Quebec
Certificate of Competence (15 hours
initial training and six hours of
retraining every three years
thereafter)
Licence - Fees set by province:
Combined cost of $67
Licence renewal - Renewal every four or eight
years ranging from $87.28-$427.33, based on
driver’s demerit points
New Brunswick
Training costs are approximately
$500 per applicant and include
licence training, first aid, coursebook,
course trainer, medical exam, and
written exam fees.
Licence – Fees set by province:
Combined cost of $240
Licence Renewal- Renewals may be 1-4 years
depending on the age of the driver - $90.
Newfoundland
and Labrador
Mandatory online certification is
available at no cost to drivers or
service providers.
Licence – Fees set by province:
Combined cost of $204
Licence Renewal- 5-year renewal with medical -
$125.
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