M.R.
You are caught in the bubble that many are. It is a shame, but there is a stark reality here. He needs the therapy, and you must get it for him. If you have to pay for it, then pay for it, if you have to pay for transportation so that he gets to the school, then that is what you have to do. He needs the therapy, and I would suggest that you do both private and public because while it may cost you now, he will pay so much more dearly later if you don't find a way. If you suspsect more than a langauge delay as he ages, make sure that you always hold the evaluation that contains his diagnosis, and that you not depend on the district to give you a plan for you child. You should never know less than any school district about what your child needs.
Your school district is misguided on the transportaion issue, the only reasons that they would be required to provide transportation is if they provided transportation for this service to nondisabled children too (not possible) or if they determined in an IEP meeting that the service was necessary for the child to recieve FAPE-something an IEP team can always do, but they cannot reserve any service for a specific category (at risk) and must determine each child's elegibility for any one service individually. Chances are slim that an IEP team would offer it though, even if you can prove that they are full of it, because the district has set a moratorium (they so much as told you so) so they have probably calcualted this being one violation that they can get away with or they would not be doing it quite so openly.
You can join with the rest of us who lobby for insurance to cover these things, but that will not help your son, though it might help someone eles' son. Insurance will only cover what they have to, and if this is what your school bartered for, I would be aking your HR person why a school district has opted for insurance covereage that denys speech therapy. that seems kind of like a pharmacitical company selecting a plan without drug benefits. You can also appeal an insurance denial, but don't delay the therapy while you do.
It is terribly unfair, but time is wasting, and you son has none to waste. I wish I had better news to share with you. Find a way. Move daycare closer, one of you take them, one of you pick him up. Pay someone to drive him, but get the therapy.
Start learning about advocacy at www.wrightlsaw.com. You are in a sticky situation by being employed by the school district, so tread lightly and be sure to follow the suggestions for staying on good terms with them.
Above all (it stinks) but get him the therapy even though you assumed that it would be free or covered by insurance, that is an unfortunate reality for many parents. Take it from those of us who wasted time stomping our feet when we realize that developmental issues are difficult finacially, you have to get past it and realize that the moeny is well spent today.
M.