District finance officials and DOE staff told the commission that transportation and contracted services are among the fastest-growing cost centers in special education.

DOE/district examples showed stark variability across vendor invoices: daily rates ranged from about $124 to $609 in the samples shown, and one vendor quoted a $7,200 monthly flat fee for specialized transportation. Commissioners said limited provider capacity and driver shortages reduce competition, forcing districts to accept high bids for specialized routes or vehicles with lifts. Districts that run their own buses reported detailed internal mileage and attendance logs; contracted providers typically submit simpler logs sufficient for Medicaid-to-Schools (MTS) reimbursement but inconsistent across vendors.

The commission heard that contracted services have similar dynamics: therapist and provider rates vary by geography and scarce specialty staffing, driving up costs for non-staff contract lines. DOE staff said DOE 25 supplemental reporting captures transportation and contracted-service costs by district (wages, benefits, contracted services, supplies, equipment) and that district-level reports can be pulled for analysis; commissioners urged DOE to provide district exports so the panel can quantify where costs concentrate and whether regional or statewide contracting, or creating in-state capacity, could mitigate price spikes.

Members conceded there are trade-offs between local in-district programs (which keep children closer to home but can be expensive to staff) and centralized or out-of-state placements that can be costly to transport. The commission asked DOE to analyze district-level transportation and contracted-services spending and to identify opportunities for regional or state-level cost control.