Going out of business — driver’s ed

This fall will be the last time teens in Lake Orion will be able to take driver’s education through the school district.
School board members on Aug. 27 decided not to offer the class again once students currently enrolled finish the program.
Parents only option will be to choose private companies to teach their children how to drive.
The school district’s expenses to run the program have increased since it decided to run the driver’s education program year round a few years ago.
The program collected $87,135 (based on 398 students) in student fees during last the last session of driver’s ed. The state also reimburses the district $87 per pupil, but the district won’t receive those funds until this January. Revenues for the last session totaled $121,761.
Expenses totaled $120,184. That amount would increase with an expected 3 percent increase in salaries under a new contract. School administrators said it was hard to put a specific amount on other costs such as liability insurance, potential liability on passengers and administrative time.
“Repairs (vehicle) repairs are unknown from year to year,” LO’s Financial Director Jillynn Keppler said. ”There’s no consistency.”
According to LO Assistant Superintendent Dave Beiter, he’s been told by administrators in other school districts the main reason they’re dropped driver’s ed is because of liability issues.
He said private vendors have improved since the state clamped down on them. Instructors must be state certified and company cars have to be inspected.
“I’ve spoken to parents who have children who have gone to both (private and school district) and they saw no difference,” Beiter added.
An advantage to parents of future driver’s ed students is that they would receive the state reimbursement when the school district discontinues it classes.
The school district charged $225 per pupil for its last session. Private companies charge $297-$305. Factoring in the state refund, the estimated cost to parents who use an outside vendor would vary from $210-$218.
Parents will also be able to schedule their teen’s driving time at their convenience rather than having to work around the school system’s schedule.
David Rathburg, who said he’s taught driver’s education for 25 years, told school board members he was puzzled as to why no employee was talked to about the driver’s education program being possibly shut down.
“Eighty five percent of the school systems still offer driver’s ed,” he said.
Rathburg claimed Beiter’s financial facts were distorted and misleading. He said salary costs were closer to $55,000 rather than the estimated $72,308, although he admitted he didn’t get Beiter’s information on the expenses until just before the school board meeting and had to guess at some of the figures he was using.
The school district will be renting out class space to driver’s training companies which will generate additional income.
Beiter said parents can pick up reimbursement forms at the school administration office on Lapeer Street in downtown Lake Orion. They will also receive a letter notifying them of the dropping of future driver’s ed classes.