According to this, CONCORD NH, is spending $1.2 million of "stimulus funds" to place eavesdropping microphones on transit buses. To fritter good money away on hi tech gadgetry is bad enough. To violate privacy is even worse. Apparently the system is accessible from the public internet, like a web cam.
Un mentioned in this article is how the system separates voice conversations from the roar of the engine, but presumably an extension of the "hands-free car kit" technology can do it.