Iran war diesel spikes stretch IPS budgets
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Illustration: Maura Losch/Axios
For many Indiana children, the school day starts on a diesel-powered bus and its driver. Now, school districts are struggling to afford both.
Why it matters: The Iran war is sending diesel costs higher just as districts are grappling with a yearslong bus driver shortage — a double whammy that can ripple into missed breakfasts, late classes and fewer school activities.
The big picture: Districts nationwide are consolidating routes, cutting trips and squeezing more efficiency out of their fleets.
- A May survey of 188 school officials nationwide found 40% had adjusted routes, 25% cut routes, 20% limited optional trips and 8% made students walk farther to stops.
What they're saying: "We're a non-instructional expense for a district," Peter Mannella of the National Association for Pupil Transportation tells Axios.
- "The inclination is always going to be, 'Let's see what we can cut out of transportation costs because we don't want to affect the school library,'" he says.
State of play: While Indiana has some of the cheapest gas in the country, thanks to an ongoing gas tax holiday, the suspension doesn't apply to diesel.
- Diesel prices in Indiana average $6.57/gallon — about $3/gallon more than this time last year.
Zoom in: It's squeezing districts around the state, including Greenwood Community School Corp., where superintendent Terry Terhune said the district has already postponed summer maintenance projects to offset the higher fuel bills.
- Indianapolis Public Schools has reworked bus routes to reduce fuel consumption.
- Kankakee Valley Schools has consolidated two routes after several bus driver resignations. District officials said last month that if diesel prices stay high, "that will have a huge impact."

