Lincolnshire County Council is looking at ways of reducing the cost of transporting children to school.
The county council wants to cut school transport costs
Transport costs have risen by nearly £2m in the past year, according to budget figures.
The county council says it spent £20.5m on school transport in 2003-04, but that rose to £22.5m this year.
A sub committee will look at how contracts with bus companies are awarded and terminated in the county in an effort to cut costs.
Designated transport areas for schools will also be reviewed along with the current boundaries.
In December 2004, more than 23,500 pupils in Lincolnshire were getting free transport to school or college.