Ranked 16th in the state in costs spent on transportation, the South Pike School District is taking its first steps to possibly outsourcing bus services.

School board members on Monday approved seeking proposals on outsourcing the transportation department operations, including school bus lease, service and maintenance, personnel and bus routing agreements.

The board last month heard a proposal from Fred Smith of First Student, which is North America’s leading school private transportation operator.

South Pike is a rural district, and costs are expected to be higher than other districts, but superintendent Dr. Bill Gunnell questions whether South Pike should be among the top 20 districts in transportation spending.

The proposals, he said, would give the trustees facts and figures to see where costs may be saved.

“Are we in line? Are we out of line?” Gunnell asked, noting there has been some resistance from the department to outsourcing the work.

Gunnell said the proposals will initially be for information purposes only, and that the district will in no way be obligated to accept any services proposed. It’s a way to find out where the district may save money.

“We can cut costs back, but I don’t think we should be ranked 16th,” Gunnell said.

In another matter, trustees discussed the problem high school teachers are having concerning grading policies and how GED students are affecting the classrooms.

Dr. Lynda Taylor, chief of academics at South Pike, explained that the federal government has declared that all students, including GED students at the school, should be included in the annual Subject Area Testing. To meet federal regulations, 95 percent of all high school students should take the Subject Area Tests, including GED students who are in the classroom — even though they may not be enrolled in one of the four subject area classes.

However, Taylor said the federal policy is in conflict with a state policy that prohibits those GED students in classes.

Because GED students weren’t included in the 2006 testing, South Pike, and others in the state, were placed in a School Improvement Plan.

It’s something that needs to be addressed immediately, Taylor said, because it not only affects school Average Yearly Progress, it also means that 20 percent of all Title I money has to go to the high school.

Gunnell said it’s imperative to move GED students out of the district if they’re not serious about getting help at South Pike.

“If they can’t make it, we need to move them on ... where they need to be,” such as the GED program at Summit Learning Center, directed by Alvin Hogan.

Gunnell said the district will have two committees studying grading policies — one for the lower grades, the other for high schoolers.

Another plan is to create a ninth-grade academy, which would target kids who are struggling and give them time to catch up with their proficient classmates before moving up a grade.