(COMTEX) B: Higher fuel prices force some schools to increase their budgets
Aug 26, 2005 (The Fresno Bee - Knight Ridder/Tribune Business News via COMTEX) -- Fast-rising diesel prices are forcing central San Joaquin Valley school districts to increase their budgets by thousands of dollars even as education funding remains tight.
School districts are reallocating funds to cover fuel costs, and some are looking to replace older vehicles with buses that run on cleaner-burning and more cost-effective compressed natural gas.
Although school districts get their fuel about 50 to 70 cents cheaper per gallon than consumers, the effect of spiraling diesel and gasoline prices haven't spared them. School districts do not pay taxes on the fuel.
"Last year we ran out of money for gas during spring, said Joe Bjerke, transportation director for Clovis Unified School District. "We had to augment our budget by close to $80,000 to see us through the year."
Fresno-area's average diesel price increased slightly to $3.23 on Thursday, about $1 more than a year ago, according to AAA. Gas prices reached almost $2.80 a gallon for regular unleaded Thursday from $2.07 a year ago.
Anticipating rising fuel costs, Fresno Unified School District -- California's fourth-largest school district -- raised its allocation for fuel by 15 percent, or $75,000, for school bus services this year, chief financial officer Ruth Quinto said.
"I didn't expect the extent of increase [in fuel prices], but if the prices remain stable or come down, I may be OK," said Terry Beaver, the district's transportation director.
Fresno Unified has 86 buses, which carry 11,000 of the district's nearly 80,000 students.
After falling short on funds for fuel last year, Clovis Unified increased its budget for diesel by more than 70 percent, from $175,000 last year to $300,000 this year.
"Allocation for fuel has been going up over the years, but I think this is the steepest increase we've seen," Bjerke said.
The school district will spend more for fuel this year, but the $6.5 million transportation budget hasn't changed, forcing officials to make "a few adjustments."
This included postponing purchase plans for new vans, reducing a route, and cutting down on the number of students on some buses.
"Nobody lost transportation and the overall hours have stayed the same," Bjerke said.
Of the 35,000 students that the school district serves, 6,000 students ride the school buses at least one way daily.
Visalia Unified School District found itself in a similar situation when its fuel funds started drying up in January. The district had to pump in an extra $150,000, said Terry White, the district's director of transportation.
This year, the district raised its fuel budget for gasoline, compressed-natural gas and diesel by 10 percent, from $335,000 last year.
About 5,500 of the district's 25,000 students ride school buses at least one way daily.
Madera Unified School District, which has about 17,000 students, also has seen a steady increase in fuel bills for school buses, district spokesman Jake Bragonier said in an e-mail. Last year, the school district increased its budget for fuel by 34 percent -- or almost $122,000.
The district has 72 buses that carry 4,500 to 5,500 students every month.
With tight budgets and rising fuel prices, school districts are now vigorously pursuing alternatives, like CNG.
A new CNG bus costs about $45,000 more than the average $100,000 diesel-powered bus.
Clovis Unified's Bjerke is hopeful that the difference will be covered by grants from agencies like the San Joaquin Valley Air Pollution Control District.
He said the district, which runs 21 buses on CNG, has applied to the U.S. Environment Protection Agency for grants, and it was planning to replace old diesel buses with CNG buses.
"CNG has been very good for us," he said. "They are environment-friendly and cost effective."
Compressed-natural gas is about 50 to 75 cents cheaper than gas.
Visalia Unified added four CNG buses last year, increasing its fleet of the cleaner-burning buses to 28. Fresno Unified, which has four CNG buses, is looking at "every grant possible" to buy more.
"I wish I had 40 now, then I wouldn't have been affected by the gas prices," Beaver said.
"Given the prices of diesel, CNG pricing is a breath of fresh air," said Kirk Hunter, CEO of Southwest Transportation Agency.
The agency was formed in 1988 by Riverdale, Caruthers, Laton, Alvina Charter and Monroe elementary school districts as a way to deal with increasing transportation costs.
The Southwest Education Support Center, which houses the agency, set up a fueling station for liquefied and compressed-natural gas earlier this year.
Now, with the new energy bill offering incentives to CNG and LNG users, natural gas as a fuel will be the next big thing, Hunter said.
He said: "The increase in diesel prices has just been a killer."
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