And $100,000 extra would be spent on an education programme to improve the safety of students using BayHopper buses. It was particularly aimed at intermediate aged children.
Operating costs for the new service would be $1.1m a year - $1.5m less than the current service. The majority of savings would come from reducing the number of services and kilometres travelled.
"This means that bus loadings are expected to be much higher and students would generally have longer distances to walk to reach their nearest school bus stop.''
Council transport policy manager Garry Maloney said all schools were ''generally supportive" of the proposal to provide services to Year 7 and 8 students.
He said eight of the 15 schools impacted by the changes supported the proposal to increase school bus services from 11 to about 25. A further three schools were seeking clarification from staff and four special character (religious) schools were holding meetings with parents.
Mr Maloney said the numbers may have to be reworked because of demand and changing school rolls.
The report said that of the 290 students likely to lose services, 100 may be eligible for Ministry of Education transport assistance.
One hundred of the 290 students attended Tauranga Girls' and Boys' Colleges and 40 Otumoetai College. The majority lived on a direct public bus route to their school and the rest were "largely served" by the public bus network.
Where BayHopper services were already at capacity, the council intended to put on extra buses to carry students. The new plan for Tauranga Intermediate would see these "shadow buses" effectively become dedicated school buses.
Tauranga City Council appointee to the committee Terry Molloy said it was a logical way forward. "Let's back it."
Changes to Tauranga's public bus network meant that students living east of Sandhurst Drive, Papamoa, would become eligible for Ministry of Education transport assistance.
The regional council was working with the city council on requests from schools to improve walking and cycling facilities, particularly pedestrian crossings.
City Council growth and infrastructure manager Christine Jones said they were doing work so that infrastructure aligned with the new services.
Proposed new school bus plan for Tauranga
Students carried: 1160 (currently 1450)
Bus kilometres travelled each day: 780km (currently 1700km)
Average bus loading: 44 students (currently 32)
Subsidy per passenger: $370 (currently $1200)
Fare revenue: $700,000 (currently $1m)