Mr Cronin said the city was in a unique position from the prosperity that would follow completion of the three big downtown projects - the Heart of the City plan, the university campus and a new Coastal Marine Centre at Sulphur Point.
Balanced against this was the fact that the life of new congestion-busting roads was only eight years. After that it was ''back to square one and they were clogged again''.
He said the reduction in congestion from fewer students being driven to school would have a flow-on effect, making the roads safer for children to bike to school.
His plan would ensure that buses ran to timetable by giving them priority access through intersections controlled by traffic lights, and to make cycle lanes safer through intersections.
Mr Cronin said the money could be found without increasing rates.
"Funding is not a constraint to doing this. The only constraint is the will of the council."
Tauranga Intermediate's senior administrator and bus controller, Mike Bibby, welcomed the initiative, saying it was educating the youth of today to become the public transport users of tomorrow.
He noticed a big increase in pupils being dropped off at school when Tauranga's free school bus service ended in 2014.
"It's chaos at the school gates."
Tauranga Boys' College principal Robert Mangan said it was a great idea to reduce congestion. It would also reduce the costs to parents of sending their sons to school.
Mr Crosby said there was no doubt that students in cars were a significant element in congestion at peak times and he saw a lot of merit in taking a close look at the proposal.
"It would be a good investment for a whole range of reasons."
Council's public transport subcommittee chairman, Lyall Thurston, said public transport was one of the priorities to emerge from last year's elections. He wanted Tauranga to have one of the most efficient public transport systems in New Zealand.
Tauranga school buses timeline
1986: Ministry of Education begins funding Tauranga urban school bus service.
2006: Regional council decides to collaborate with the ministry to transition to Bay Hopper service for pupils.
2008: Memorandum of understanding signed between council and ministry.
2015: Start of new fare-paying service for pupils.