A report published in 2011 showed the budget for school bus transport increased by 245% since 1997 but that the number of students taking the bus had fallen 20%.
Some 125,000 now avail of the service with the typical student costing the state some €1,000 to get to school.
The Green Party has said Minister Varadkar has implemented the recommendations in the report to increase charges and reduce eligibility criteria but he has failed to implement the more radical reform that might save money while at the same time improving the service.
Green Party Transport Spokesperson Adam Douglas said: "The predictable 'return to school' gridlock shows the dis-functional nature of our whole transport system. We have a whole new generation who only see the world from the back of a car, which is a drag for the parents as much as the pupils. Meanwhile everyone else gets caught in the morning school run.
"Instead of just raising charges on the parents he should be looking at integrating the schools transport system with other rural transport services that the state provides. That would help set up the bones of a proper rural public transport system and might also save the HSE some of the €28 million they are currently spending on taxi services.
"Plenty of work has already been done on how such integration could happen but neither Ministers Varadkar or Kelly seem capable of making any real reform happen.
"In urban areas the situation is just as bad. Minister Varadkar did put an extra €36 million into CIE to keep it going up to Christmas but the money came from his capital budget for cycling and bus improvement measures, rather than from the roads authority. It is so short sighted to cut the very funding that would get our kids back making their own way to school, which would free up the road space for those who have to use their car."
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