Plans to cut the number of Falkirk pupils eligible for free school transport by more than 1,000 could be in place by August, after a consultation on the proposal was agreed.
The cash-strapped local authority - which faces a budget gap of £67 million over the next four years - will now look at increasing the distance at which children are eligible for free transport to school.
Members of Falkirk Council's education, children and young people's executive agreed on Tuesday that a formal statutory consultation could begin.
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At the moment, free transport is provided for pupils up to eight years old who live more than one mile from school and to all pupils aged eight years and over who live more than two miles from school.
If the change goes ahead, 298 primary school pupils and 874 high school pupils could lose their entitlement to free travel.
It will mean only primary pupils who live more than two miles from school and secondary pupils who live more than three miles from school will be eligible.
The distance from home to school must be measured via a safe walking route but the head of planning and resources, Gary Greenhorn, stressed that government guidelines say that the route should be safe for a child accompanied by an adult.
He added the legal responsibility for children getting to school safely lies with the parents.
However, children who live in rural areas where there is no safe walking route to school will not be affected, regardless of distance.
In his report to councillors, Mr Greenhorn also suggested the change would benefit the council's climate ambitions as he hoped more children would walk, cycle or scoot to school.
Members were told Children's Services is also facing an overspend of around £750,000 for school transport alone for 2022/23, due to hugely increased costs when re-tendering bus contracts, which were impacted by rising inflation.
The education portfolio holder, Councillor Laura Murtagh, said it was important to remember they were agreeing to start a consultation.
She added: "We have a significant budget gap and a difficult financial situation and in an ideal world perhaps we wouldn't wish to look at this."
However, she said the change would make significant savings and if was correct to look at the option.
Cllr Murtagh added it was important to note that what is being offered is still more than the legal requirement and is already in place in many other council areas.
The proposal would mean the number of school bus services would be reduced as a result and no longer available to large numbers of pupils, even those paying fares or using the Scottish Government's free travel for under-22's.
During the consultation there will be public meetings to allow parents to give their views and raise areas of concern.
Members of the committee said they were looking for assurances that safe walking routes would be in place. They also had concerns that rather than cutting emissions, more parents will drive their children to school.
Mr Greenhorn promised anything that is flagged up as an issue will be looked at.
The consultation opened today (Wednesday) and will run until Friday, March 17. Public meetings to discuss the proposal will be held on Tuesday, February 7 in Grangemouth High School at 6.30pm; St Mungo's High on Thursday, February 16 at 6.30pm; and Denny High School on March 7 at 6.30pm. Council officers will be there to answer any questions.