Rising Diesel Prices Push School Bus Budgets to the Brink

Diesel fuel has risen to an average of $5.62 per gallon, up from $3.70 a year earlier, according to AAA. With roughly 90 % of the United States’ 480,000 school buses running on diesel, the price surge is forcing districts to confront budget overruns. A May survey conducted by organizations representing school superintendents and bus companies found that more than half of the districts surveyed said diesel costs were already pushing them over budget; 40 % are consolidating routes and about 20 % are limiting non-required trips such as field trips.

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In Yakima, Washington, assistant superintendent of finance Jacob Kuper estimates the higher diesel cost could raise the district’s expenses by 38 %—about $130,000, the equivalent of one teacher’s salary. By consolidating routes, staggering bell times, and increasing bus occupancy, Yakima projects savings of $400,000-$500,000, though longer routes may strain drivers.

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Boise, Idaho, added eight electric buses funded by a federal Clean School Bus Program award while acknowledging a $600,000 increase in transportation costs this year.

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Monterey, California, has shifted most of its roughly 50 buses from diesel to gasoline, where local gas averages $5.77 per gallon—higher than the national average of $4.10 but still competitive with diesel in many markets. Transportation director Tom Thorde says the district is monitoring costs “carefully, conservatively.”

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Elleka Yost, director of advocacy and research at the Association of School Business Officials International, noted that many districts are tapping reserves or rainy-day funds as a temporary fix, a practice that could weaken future financial resilience.

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Lanette Daw, Boise’s transportation supervisor, emphasized that each bus stop adds mileage and cost, prompting the district to trim stops per route.

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• Diesel price: $5.62 / gal (AAA, current); $3.70 / gal (one year prior).

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• Diesel-powered buses: ~90 % of 480,000 U.S. school buses.

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• Survey findings: >50 % of districts over budget; 40 % consolidating routes; 20 % limiting non-required trips.

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• Yakima projected diesel-related cost rise: 38 % ($130,000). Anticipated savings: $400,000-$500,000.

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• Boise’s electric-bus addition: 8 vehicles, funded by Clean School Bus Program.

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• Monterey gasoline price: $5.77 / gal (local); national average $4.10 / gal.

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• “Every stop adds mileage and cost,” — Lanette Daw, transportation supervisor, Boise School District “Every stop adds mileage and cost,” — Lanette Daw

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• “I knew I wouldn't have enough money,” — Tom Thorpe, transportation director, Monterey Unified School District “I knew I wouldn't have enough money,” — Tom Thorpe, the school district's transportation director

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