Rising diesel prices strain Minnesota school bus budgets
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Maura Losch/Axios
Rising fuel prices are squeezing already cash-strapped Minnesota school districts.
Why it matters: Some districts are consolidating or reducing routes to cut costs, disrupting student and family routines.
State of play: The Iran war is sending diesel costs soaring just as schools grapple with driver shortages and budget shortfalls.
- A May survey of 188 school officials nationwide found 40% have adjusted routes, and 8% made students walk farther to stops.
Driving the news: Hopkins and Stillwater are among the Minnesota districts that have already adjusted bus routes in an effort to rein in rising transportation costs, the Star Tribune reports.
- The family of one Stillwater 9-year-old told the paper that their daughter now spends an hour on the bus ride home, despite living just 3 miles from school.
Between the lines: School officials say declining enrollment, costs related to new state mandates like Paid Family and Medical Leave, and persistent gaps in federal funding for areas like special education are some of the biggest drivers of districts' financial troubles.
Yes, but: Transportation has been a big pain point across the board, due to inflation and wage increases aimed at attracting more drivers.
- In Stillwater, that budget line item increased from $8 million in 2021 to close to $14 million this year, the Strib notes. Scaling back routes saved the district $663,000.
What they're saying: The recent spike in fuel prices is making ongoing budget woes "that much worse," Association of Metropolitan School Districts executive director Scott Croonquist tells Axios.
- "Districts didn't foresee that we were going to have this spike," he says. "It's throwing their transportation budgets out of whack."
Case in point: Anoka-Hennepin expects to spend an additional $500,000 this year on transportation if fuel prices stay elevated, spokesperson Jim Skelly tells Axios.
- The district, which has a roughly $700 million annual budget, has avoided an even bigger hit thanks to its use of several propane-powered buses.
While wage increases have helped the state's largest district ensure it has enough drivers, he expects staffing costs to be an "ongoing challenge."
Fuel costs for St. Paul Public Schools are also up $28,000 year over year, spokesperson Ryan Stanzel tells Axios.
- The silver lining: The district has been fully staffed when it comes to drivers for several years and has not needed to make any changes to routes as a result.
Zoom out: Rural schools with large coverage areas are especially hard hit.
- Mesabi East Schools, which covers 405 square miles, could spend an extra $54,000 this year if diesel stays at its current price, per KARE 11.
What we're watching: Keeping up with bus costs could get even harder for districts next year, when funding the Legislature set aside to offset newly mandated unemployment benefits for drivers and other hourly workers runs dry.