This memorandum presents the costs of transporting students to achieve racial balance in the San Francisco public schools. The costs of a district owned school bus system are analyzed for a four year implementation period. Costs of different sizes and types of buses and of major operating requirements (including parking, buildings, staff, and maintenance) are estimated. Annual transportation costs per student are estimated. It is observed that the present contracted transportation arrangement provides a better use of equipment and, thus, is a financial benefit to taxpayers. New equipment would have to be procured at a greater cost to the city. (Author/WI)