Federal regulators have ordered a halt to public bus routes that some students in Michigan's northern Lower Peninsula take to and from school.
The Federal Transit Administration says the Bay Area Transportation Authority needs to cease several routes because they violate regulations intended to prevent unfair competition between federally funded public transit and private school bus operators.
The Traverse City Record-Eagle reports the routes serve about half of 600 students enrolled in Suttons Bay Public Schools.
BATA routes have saved Suttons Bay schools roughly $1 million since 2010, allowing the district to retain teachers and keep class sizes from rising. The district began paying BATA about $128,000 annually for 400 bus passes at the start of the 2010 school year.
The routes drew scrutiny from a school bus organization.
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