Skyrocketing Diesel Prices Put Pressure on Iowa School Districts

Record fuel costs, driven by the war in Iran, are adding to transportation expenses as Iowa schools head into homecoming and fall activities

DES MOINES, Iowa — Iowa school districts are facing another increase in transportation costs as diesel prices reach record levels, putting additional pressure on school budgets just as the fall sports and activity season gets into full swing.

AAA-Iowa’s average cost for diesel reached $6.32 per gallon on Sept. 21, the highest average price recorded in the state and nearly $2.80 more than the average price a year ago. Diesel prices have climbed sharply in recent weeks as the war in Iran continues. Representatives Zach Nunn and Mariannette Miller-Meeks voted to continue the war in Iran five times this year.. 

For school districts, the higher prices affect more than the daily bus routes that get students to and from school. With homecoming season approaching, schools are preparing for football games, volleyball matches, cross-country meets, marching band performances and other activities that require students and equipment to travel.

Around 90% of the nation's school buses run on diesel, making fuel prices a significant part of school transportation costs. School districts across the state have been looking for ways to manage the increase, including using reserves and reducing transportation costs where possible.

A superintendent from Eastern Iowa told KCRG that the district buys diesel in bulk and has to decide each year whether to lock in a fixed price or purchase fuel at a rate that changes with the market. This year, the district chose the flexible rate after being quoted a price more than a dollar higher per gallon than the previous year.

For districts, cutting back on bus use is not always a simple option. Students still need transportation to school, and school-sponsored activities require buses to get students to competitions and events. The impact may not show up as a line item on a school bill, but higher transportation costs can affect the resources districts have available for classrooms, activities, and other services.

“School districts should not have to make difficult choices that could limit student access to activities because of rising fuel costs,” said Melissa Peterson, Legislative and Policy Director of the Iowa State Education Association. “Students rely on school transportation not only to get to and from school, but also to participate in athletics, music, academic competitions and other school-sponsored activities. When transportation costs increase, districts have to account for those costs in their budgets, which can affect the resources available for students. It is an example of how decisions that affect fuel prices can have direct impacts on Iowa schools, students and families.”