School & District Management

Hurricane Adds to Concern Over Fuel Costs

Accelerating Prices Are Cutting Into District Budgets
By Joetta L. Sack — September 07, 2005 3 min read
June Brown, a maintenance worker at the Laidlaw Transit school bus yard in Hamilton, N.J. replaces the pump nozzle after filling the tank of a school bus with diesel fuel on Aug. 23, 2005.
  • Save to favorites
  • Print

School districts already struggling to meet the high costs of fuel are bracing for a rising tide of red ink in the aftermath of Hurricane Katrina and the yet-untold damage it dealt to oil production along the Gulf of Mexico.

Overnight, fears of $3-per- gallon fuel for school buses have given way to nightmares of having to pay closer to $6 per gallon—as some communities have already seen—if the nation’s fuel supply is severely damaged for a long period of time.

Underscoring the seriousness of the situation, the Baldwin County, Ala., school district extended its storm-related closure for at least one day on Sept. 1 because there was no gasoline available for parents or school personnel to fill up their cars.

“The news is going from bad to worse,” said Michael J. Martin, the executive director of the National Association for Pupil Transportation, located in Albany, N.Y. “[The price of fuel] is the number-one issue right now in the industry.”

A survey by the Association of School Business Officials International last month found that 96 percent of more than 500 respondents said that the rising expense of fuel for bus transportation was adversely affecting their districts.

Some district officials said they feared they would have to resort to cutting school staff positions so that buses could run.

According to the U.S. Department of Energy, diesel fuel averaged $2.59 a gallon last week, compared to $1.87 a year ago and about $1.50 a gallon in September 2003.

The impact of Hurricane Katrina, meanwhile, effectively squelched any optimism that districts will soon see relief.

“There are some districts that anticipated some increase, and budgeted for it, … but the vast majority have not,” said Anne W. Miller, the executive director of the Reston, Va.-based ASBO.

Even before schools in Whitley County, Ind., opened their doors last month for the new school year, the district had a big financial problem on its hands:

Local Impact

Seventy-four percent of the money it had budgeted for bus fuel in all of 2005 had already been consumed.

And if prices continue their upward spiral because of Hurricane Katrina, those remaining funds will likely be spent in the first few weeks of the school year.

The 3,400-student district’s quandary is playing out in districts around the country, as officials scramble to pay the rapidly rising costs of fuel for bus transportation. Some districts are cutting routes, canceling field trips, and stealing from other parts of their budgets to make up for their projected shortfalls.

Whitley County, a rural district north of Fort Wayne, is operating on a calendar-year budget that was written in June 2004, said its business manager, Anthony G. Zickgraf.

Although officials had factored in a small increase in fuel prices, nobody there had guessed that the cost of one gallon of diesel fuel would rise by about a dollar over the past year. And the district pays less than the average consumer because it entered into a cooperative arrangement with other local government entities to negotiate lower prices.

Prices for diesel fuel in the area averaged about $2.59 a gallon in July, up from about $2.15 a gallon in January, and are still rising.

An oil drilling platform, torn from its moorings by Hurricane Katrina, washes toward the Dauphin Island shores in Alabama on Aug. 31, 2005.

The district is looking for ways to consolidate bus routes and will require schools to pay for any extracurricular uses, such as for trips to football games.

“We’ve implemented a policy in which we transport students to and from school, and anything outside of that there is a fee assessed to schools,” Mr. Zickgraf said. “It’s also a cost to the athletic departments.”

Not all school districts are feeling the same pressures from rising fuel costs.

Because districts are government entities, they do not have to pay taxes on the fuel they buy. Further, many districts—especially the larger ones—buy fuel in bulk or secure fixed-rate prices for several months at a time.

But some small, rural districts, in particular, do not have that buying power. Those districts’ buses are also likely to have the most miles to travel, as the students live farther apart.

Most districts are already implementing short-term solutions, such as streamlining bus routes and eliminating field trips or charging students for them, said Ms. Miller of ASBO. If districts have to look at cutting other parts of their budgets, the first places they usually target are facilities maintenance and professional development, she added.

In the ASBO survey, 57 percent of the districts reported taking measures to reduce fuel costs, such as redesigning bus routes, reducing idling time, or teaming up with other districts to buy fuel in larger quantities.

While districts are using “Band-Aid solutions” this year, Ms. Miller added, most will likely have to overhaul their budgets next year if prices continue to rise.

Events

School & District Management Webinar EdMarketer Quick Hit: Build Campaigns That Engage K-12 Leaders
We’ll share what’s resonating with Education Week’s K-12 audience based on user behavior across platforms and other proprietary data.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Assessment Webinar
Measuring What Matters: How District Leaders Are Redefining Student Assessment
In this panel discussion, district leaders and systems experts will examine the gap between the outcomes we want and the systems in place.
Content provided by Otus
Early Childhood Webinar Selling Into Early Learning: New Survey Data and Strategies for Marketers
Selling into PreK? Get fresh EdWeek Research Center data and strategies to position your products and reach the right early learning buyers.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

School & District Management Teachers' Unions Face More Competition for Influence in School Board Elections
A study suggests that parents are perceived as more influential by board members than unions.
4 min read
Yair Lev, center, attends a Lower Merion Board of School Directors meeting in the Lower Merion School District Administration Building on Monday, May 11, 2026, in Ardmore, Pa.
A school board meeting of the Lower Merion school district in Ardmore, Pa., is shown on May 11, 2026. A new study finds that teachers' unions are competing with a growing array of actors for influence in school board elections.
Joe Lamberti/AP
School & District Management Download Fire Drill? Reheated Coffee? You Just Won Principal Bingo!
School leaders, this game is for you.
1 min read
A ghosted bingo card, random shoe, and coffee mug stains in the background with scrapbook-style letters spelling out the word BING and an overhead shot of coffee in a mug that is taking the place of the "O" to spell out BINGO.
Illustration by Gina Tomko/Education Week + Canva
School & District Management Q&A Principals Are Stressed Out. Here's What's Plaguing Them—and What Can Help
Principal mental health is suffering from ‘work spillage,' a new study finds.
5 min read
Man in suit, collaged with thorny branches in front and behind him.
Collage by Laura Baker/Education Week + Canva
School & District Management From Our Research Center What We Know About School Board Members, In Charts
Many school board members are retired and have never worked in education before, survey shows.
1 min read
LOS ANGELES, CA - APRIL 21, 2026 : A board meeting at the Los Angeles Unified School District headquarters on Tuesday, April 21, 2026 , in Los Angeles, CA. The LAUSD met to discuss a resolution calling for development of a Screen Time Policy setting time limits by grade, including elimination of student digital devices for early education through first-grade, prohibiting device use by elementary and middle school students during passing periods, lunch and recess. The board unanimously voted to approve Board Member Nick Melvoin's Resolution to limit student screen time.
The Los Angeles Unified School District school board meets on April 21, 2026, to discuss whether to develop a policy to limit students' screen time. A new EdWeek Research Center survey shows that many school board members nationwide are retired and have never worked in K-12 education.
Kayla Bartkowski/Los Angeles Times