At their regular meeting on November 24, the Board of Trustees passed a motion to increase the contract bus operator (CBO) annual fuel allowance to $750 and to cover $2,300 of the 2021-2022 increase to insurance premiums for contracted school bus operators who are insured under the Alberta Risk Management Insurance Consortium (ARMIC).
“Black Gold School Division shares in the frustration felt by our contracted bus operators with the continued increases in insurance premiums,” said Board Chair Devonna Klaassen. “Along with providing our bus operators with the additional support, the Board of Trustees recently worked with other school boards, who are similarly affected, to bring the plight of our small contractors to the attention of the Province.”
“In order to provide this additional mid-year support, the Board will be utilizing the majority of its Transportation operating reserves in the 2021-2022 school year,” said Superintendent of Schools Bill Romanchuk. “We value our bus contractors and the vital service they provide each day to our students; however, the continued use of reserves to support insurance premiums is not sustainable.”
“In preparation for the 2022-2023 spring budget, the Division will be completing a review of the overall transportation services,” said Chelsy Volkman, Associate Superintendent, Business and Finance. “We hope to collaborate with the Black Gold Bus Contractors Association in this review.”
While Black Gold is encouraged by the Alberta Government’s announcement on October 27, 2021, regarding the proposed Captive Insurance Companies Act legislation to help address lack of availability and high prices, the Division, together with its partner school boards, has requested that the Province take this urgent matter into consideration when determining the 2022-2023 Alberta Education Transportation funding model, as school boards cannot sustain the continued use of reserves to support school bus insurance premium increases.
The insurance market continues to be very challenging, with only a few insurance companies underwriting CBO insurance in Alberta. Several companies have either left the marketplace or are not willing to take on risk with public school transportation, and those still offering bus insurance are not willing to provide sufficient liability coverage.
In 2020-2021, school bus insurance premiums increased by over 200 per cent from the prior year, and in 2021-2022, they increased by another 60 per cent for a premium of over $6,000 per bus. These dramatic increases have resulted in some CBOs cancelling contracts, thereby impacting equitable and safe access to education for a number of children, especially those in rural areas.