County councillor Charmian Sheppard, the portfolio holder for education, said the council would maintain transport for those who already had it, but all new children would be assessed against a new policy framework.
The council said it would have to cut costs to reduce its budget deficit.
Last year it overspent its schools' transport budget by 531,000 and it predicts an 800,000 overspend for 2003/4.
This week it will consider proposals to change procedures for transporting special needs pupils to school.
"Most children who have special educational needs and receive free transport do so under discretionary polices.
"It is important to emphasise that having special educational needs or attending a special facility does not convey an automatic right to free transport," states the proposals.
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