RISK MITIGATION 

Implementing a transportation service for children during school hours requires proactive risk management across legal, operational, and technological domains. The following safeguards are built into the program design to ensure safety, trust, and compliance: 

Data Privacy & Security 

• All parent and student data is encrypted and stored securely. 

• The mobile app and parent portal use multi-factor authentication. 

• Access to sensitive data is restricted to authorized personnel only. 

• Regular audits and cybersecurity protocols are enforced. 

Emergency Protocols 

• All staff are trained in CPR, first aid, and emergency response. 

• Vehicles are equipped with emergency kits and direct communication lines to dispatch. 

• A protocol is in place for handling medical emergencies, behavioral incidents, and unexpected route changes. 

Vehicle Safety & Reliability 

• Daily vehicle inspections are mandatory before dispatch. 

• GPS tracking and onboard cameras monitor vehicle activity in real time. 

• A backup vehicle is available in case of breakdowns or delays. 

• Maintenance schedules are strictly followed to prevent mechanical issues. 

Legal & Insurance Compliance 

• Commercial vehicle insurance and business liability coverage are secured. 

• Childcare transport licensing and DOT permits are maintained. 

• Background checks and child safety certifications are required for all staff. 

Secure Handoff Procedures 

• Students are only released to pre-authorized caregivers or guardians. 

• Identity verification is conducted at both pickup and drop-off points. 

• Real-time notifications confirm each stage of the transport process. 

FINANCIAL FRAMEWORK  

The staffing costs for the TAG pilot program include eight drivers at $40,000 per year, totaling $320,000; four dispatchers at $35,000 per year, totaling $140,000; and eight childcare-certified personnel at $42,000 per year, totaling $336,000. Additionally, one Admin/Operations Manager is budgeted at $55,000. This brings the total staffing cost to $851,000. 

For licenses and insurance, the budget allocates $15,000 for commercial vehicle insurance covering five vehicles, $5,000 for business liability insurance, $3,000 for childcare licensing and background checks, and $2,000 for DOT and local transport permits. These items total $25,000. 

The vehicle expenses include the purchase of five Ford Transit vans at a cost of $225,000. An additional $35,000 is allocated for branding and outfitting the vehicles with wraps, child-safe seating, GPS, and cameras. Annual maintenance and fuel are budgeted at $20,000, bringing the total vehicle-related costs to $280,000. 

In terms of technology, the budget includes $3,000 for hotline setup and VOIP service, $15,000 for mobile app and parent portal development, $5,000 for GPS tracking and routing software, and $4,000 for IT support and hosting. These technology expenses total $27,000. 

The head office budget includes $18,000 for office rent (based on $1,500 per month for 12 months), $3,000 for utilities and internet, and $4,000 for office supplies and equipment, totaling $25,000. 

For marketing and outreach, the proposal allocates $3,000 for initial branding and design, $5,000 for community outreach and school engagement, and $7,000 for digital marketing and advertising. These efforts total $15,000. 

A contingency fund of 5% is calculated on the total above, amounting to $61,150. 

Altogether, the total estimated budget for the TAG pilot program is $1,284,150. 

Funding Request 

The total estimated budget for the pilot program is \$1,284,150.00: 

• Pilot Investment: Fleet, staffing, and technology development. 

• Public-Private Partnership: Co-investment from city/state and private sector. 

• Grant Opportunities: Federal childcare and transportation grants (ESSER, GEER, Title I). 

This structure allows the program to leverage government support for infrastructure and staffing, while engaging private partners to promote innovation and community investment. TAG’s internal revenue from fees and employer-sponsored plans will help offset operating costs and support long-term scalability.   

PUBLIC FUNDING ALIGNMENT & SCENARIO MATRIX 

To ensure fiscal feasibility and maximize public benefit, the Transport Assistance Group (TAG) pilot program aligns with existing budgetary priorities at both the State of Alabama and the City of Montgomery. The following analysis identifies relevant budget line items and outlines a scenario matrix demonstrating how the full pilot cost of \$1,284,150.00 can be covered through strategic allocations. 

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The State of Alabama FY 2026 budget includes several line items that align directly with the goals of the TAG pilot program. The Education Trust Fund has a $40 million increase allocated for School Transportation Expansion, which supports midday student transport. An additional $13.2 million is designated for School Safety & Climate Initiatives, enhancing child safety and supervision. The Department of Human Resources has allocated $91.5 million for Childcare & After School Programs, which frames TAG as supplemental childcare. The Department of Mental Health contributes $5.5 million toward Mental Health School-Based Services, supporting supervised emergency pickups. The CHOOSE Act, with $180 million in flexible education-related spending, also aligns with TAG’s objectives. Finally, the Educational Opportunities Reserve Fund holds $1.12 billion, with $665 million unallocated, offering flexible funding for innovative education programs like TAG. 

At the City of Montgomery level, the FY 2026 budget includes $353.2 million in the General Fund for Public Safety & Emergency Services, which supports emergency transport infrastructure. The Workforce Investment & Merit Increases line item, included in the total, enables hiring of childcare-certified staff. The City Reserve Fund, which is growing annually, provides discretionary funding for pilot initiatives such as TAG. 

To cover the $1,284,150 TAG pilot budget, a scenario matrix outlines a feasible allocation strategy using a blend of state and city resources. From the State ETF, $300,000 is proposed from School Transportation, leaving $39.7 million remaining; $150,000 from School Safety & Climate, with $13.05 million remaining; $250,000 from Childcare & After School, leaving $91.25 million; $100,000 from Mental Health Services, with $5.4 million remaining; and $200,000 from the CHOOSE Act, leaving $179.8 million. An additional $200,000 is proposed from the State Reserve Fund, leaving $664.8 million unallocated. From the City of Montgomery, $84,150 is proposed from Public Safety/Workforce, leaving $353.12 million. These allocations fully cover the TAG pilot budget without requiring new appropriations. 

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Strategic Justification 

TAG’s unique framing as licensed, supervised midday childcare directly supports state and city goals in education, workforce development, and public safety. By leveraging existing line items and reserve funds, TAG can launch without requiring new appropriations—making it a fiscally responsible and community-driven solution. 

This funding strategy also complements TAG’s tax credit and micro-contribution model, allowing for long-term sustainability through civic engagement and donor incentives.  

Fiscal Impact Overview: Cost Savings Without New Revenue 

The Transport Assistance Group (TAG) offers a cost-saving solution for the City of Montgomery and the State of Alabama by reducing operational inefficiencies, liability exposure, and emergency response costs associated with midday student checkouts. TAG does not require new appropriations or capital investments and instead leverages existing budget line items and infrastructure. 

Key Areas of Cost Savings 

• School Operations 

  • Reduces administrative burden on school staff handling midday dismissals. 

  • Minimizes liability risks by using licensed, insured, and childcare-certified personnel. 

• Public Safety 

  • Prevents escalation of non-emergency situations to police or fire departments. 

  • Reduces reliance on emergency services for student transport. 

• Workforce Stability 

  • Supports working parents, especially public employees, reducing absenteeism. 

  • Lowers turnover and retraining costs due to job disruptions. 

• Program Efficiency 

  • Avoids duplication of services by filling a gap not covered by school buses or after-school programs. 

  • Uses existing infrastructure and budget categories, improving allocation efficiency. 

• Budget Optimization 

  • Aligns with current funding streams in education, childcare, and public safety. 

  • Enables reallocation of existing funds rather than creating new programs. 

REVENUE MODEL 

TAG’s revenue strategy is designed to ensure affordability, simplicity, and equity. The model uses a flat fee per transport occurrence, with full subsidies available for qualifying families through public funding and tax-incentivized donations. 

Flat Fee Per Occurrence 

• Standard Rate: \$15 per transport occurrence (includes driver, childcare-certified staff, and GPS-tracked vehicle) 

• Multi-Child Rate: \$10 for two children transported in the same trip 

• Emergency Add-On: No additional charge for verified emergencies (e.g., illness, caregiver unavailability) 

Fully Subsidized Service 

• By utilizing already-established budget line items, service would be free to all families.  

Tax Incentive Option (mentioned later) 

• If this option is chosen, services are free to the family. 

• Funding is provided through donations eligible for Alabama state income tax credits. 

• Donors may receive up to \$250 (individual) or \$500 (joint filers) in tax credits for supporting TAG. 

Administrative Simplicity 

• Parents pay per use via mobile app or invoice 

• Subsidized families are pre-approved through school or state verification 

• All payments and subsidies are tracked securely through TAG’s parent portal