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Audit Finds NYC Left $42.6 Million in School Bus GPS Penalties Uncollected

The comptroller urges using a new three-year extension to pursue stronger enforcement or structural changes to the outsourced system.

Overview

  • Transportation officials assessed damages in only 5.5% of GPS log-in breaches, collecting $1.7 million, according to the audit.
  • Parents filed more than 15,000 late-arrival calls and over 14,000 no-show complaints in 2023–24, underscoring unreliable service.
  • The audit says required GPS log-ins frequently failed and a $51.7 million Via upgrade has not produced reliable tracking.
  • After contractor pressure for a five-year deal, the city finalized a retroactive three-year extension that advocates say should be used to rebid, municipalize, or expand nonprofit service.
  • DOE said the report lacks context, citing 8,000 twice-daily routes and $4.9 million in liquidated damages last fiscal year, while roughly 145,000 mostly vulnerable students rely on buses costing nearly $2 billion annually.