This chapter of "Principles of School Business Management" focuses on financing and managing transportation services for average and exceptional students. The chapter opens with a brief overview of the history of the development of transportation services and public responsibility for their provision. Current state funding models used to support pupil transportation are then reviewed. These models include reimbursement for actual or approved district expenditures, budget models, density formulas, fixed unit cost formulas, and the unique plans used by Hawaii and South Carolina. Eligibility requirements for regulating disbursement of state funds are also described. The chapter then turns to the transportation of exceptional students. Costs on a statewide basis, factors affecting costs for district programs, and recommendations for cost efficiency are considered. The management of pupil transportation is the chapter's next topic, with particular attention paid to personnel problems, the use of quality circles for problem-solving, and the use of computers for management purposes. Arguments for and against the use of seat belts in school buses are examined next. The chapter concludes by reviewing several current issues in the field and assessing trends that could affect the future. Six tables are provided, and 85 footnotes cite relevant sources. (PGD)