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Rising diesel costs from Iran war strain US school budgets

Rising diesel prices due to the Iran war strain U.S. school budgets, increasing bus and generator costs.

Jack Scott
ByJack Scott- Senior Editor
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Soaring diesel prices since the start of the Iran war are straining already tight U.S. school district budgets, making it more expensive to bus students and run generators.

School districts from Yakima, Washington to Waco, Texas are tapping emergency reserves to keep buses running. In remote Alaska, officials scramble to secure enough fuel for power.

"It's more than a straw on the camel's back, it's like a haystack," said Yakima Superintendent Trevor Greene.

The stress is one of many knock-on effects of the U.S.-Israeli war on Iran, which disrupted about a fifth of the world's oil supply.

Since the war began in late February, fuel prices have posted one of their fastest climbs on record, upending global economies. In the U.S., it poses a political liability for President Trump ahead of midterm elections.

U.S. school buses consume over 800 million gallons of diesel annually. Since December, diesel prices jumped 67% to $5.52 per gallon, adding about $1.8 billion to annual school bus costs, according to Samsara.

"Districts can plan for higher costs, but rapid swings make budgeting difficult," said James Rowan of ASBO International.

Nearly a third of districts are diverting funds from other programs, and almost a fifth are tapping reserves, per an AASA survey.

Officials are consolidating routes, enforcing anti-idling, changing fuel practices, deferring maintenance, and reducing staffing.

Yakima's diesel price rose 64% year-on-year to $6.30 per gallon, costing an extra $213,000 annually for its 60 buses, equivalent to two teachers' salaries.

In Texas, the Waco Independent School District saw an 84% year-over-year diesel price increase in early April.

In Alaska's Yupiit School District, diesel powers generators for electricity. "If they can't produce electricity, we can't run the school," said Superintendent Scott Ballard.

Large districts like New York City and Los Angeles are partially insulated. New York outsources 60% of pupil transport, shifting fuel costs to contractors. Los Angeles increasingly uses alternative fuel or electric buses.

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