Memo from Wagner to Porter Re: Cost of One-Way Movement of Pupils to Desegregate Detroit

    Exhibit B

TO:

F R O M :
S U B J E C T :

Dr. John Porter

Hal Wagner jltL

r.’DATE: 2/24/72
l >. £  0? £  U t/ I :

FF-
Lj

‘072
Cost of one-way movement of pupils to desegregate Detroit

. Pirl.TU-IJ CF EDUCATiCii

As indicated on page 36 of Metropolitan One Way Student Movement 
and Reassignment Plan as submitted to Judge Stephen J. Roth, it is 
erroneous to assume that the statewide per pupil average cost of 
transportation ($56.27 in 1969-70) or the statewide per mile 
average cost of transportation ($0,456 in 1969-70) can be used to 
estimate the cost of the one way movement of pupils. The following 
are the reasons why the use of such averages would be in error:

1. It costs much less per mile to transport pupils in a rural
setting or a typical suburban setting than in an urban traffic 
environment. The statewide averages apply largely to rural 
and suburban situations. ■

2. It costs much less per pupil to transport pupils when one 
driver in one bus can make several trips (from two to five 
trips) each morning and afternoon instead of a single trip.
Using the tynical 66 -passenger bim the nor- i-anit-a cost is g-rept-lv- 
reduced if the bus transports from 132 to 330 passengers instead of 
66 passengers as is envisioned in one way movement of pupils in the 
Detroit metropolitan area. The state wide average costs reflect 
the very significant economics of multiple use of the services of
a single driver and bus.

Our estimate of the per pupil cost of the subject one way transportation 
of pupils is as follows:

The cost of a 66 passenger bus is $10,000.00
Depreciation of the bus over 7 years is ' 1,430.00
The hourly wage of the driver plus benefits is estimated 4.00
Two hours in the morning and two hours in the afternoon

will be required —  daily wage is 16.00
There will be 180 days of transportation —  annual wage is 2,880.00
Depreciation ($1,430) plus annual wage ($2,880) is 4,310.00-
Depreciation and wages typically are 63% of cost —

therefore, 100% of cost (annual cost) will be 6,841.00
Since this is a 66 passenger bus, the per capita cost
of the transportation is estimated at 103.60

Please call on me if I can be of further assistance.

1 -L