Education News

Rising diesel prices burn through school and bus operator budgets

A school bus parks
A school bus drops off students at Highland Park Middle School in St. Paul on Sept. 2, 2025.
Ben Hovland | MPR News file

The start of a new school year means the big yellow buses are back on the road.

But school districts are facing an increasing strain on their budgets in order to keep the wheels on the bus going ‘round and ‘round.

Last week, Minnesota reached a new record for diesel prices, according to AAA. The price tag on Saturday was $5.75 per gallon — near the national average of $5.80. And the trend is inching toward the $6 per gallon mark.

When diesel is still the main fuel source that powers 87 percent of school buses nationwide, it chips away at budgets.

Schools are grappling with the challenge of skyrocketing fuel prices brought on since President Donald Trump launched the war with Iran last spring.

In May, 56 percent of respondents to a national survey conducted by the Association of School Business Officials International as well as other school and transportation associations said they ran over budget for fuel in the last school year.

St. Paul Public Schools, for example, told MPR News year-over-year fuel costs increased $28,000.

Bethany Bertram, co-owner and CEO of Trobec's Bus Service in St. Joseph. Her company operates about 125 vehicles and runs routes for school districts in Sartell, St. Stephen and St. Cloud.

Bertram said its hard to plan budgets when costs are constantly changing, whether its school districts or a transit company.

“Knowing that they don't have an infinite budget is really important. And being smarter with the decisions that we make as far as controlling our costs is key,” Bertram said.

Bertram said her company has to review its entire operation to keep rising costs in check. And it's not just diesel.

“Fuel prices are certainly something we've been watching for a while now. We're also seeing the costs increase with new equipment, parts, tires, insurance,” Bertram said. “So it's kind of a whole package that every everything that encompasses what it takes to make our business run is going up.”

The national survey also found that bus operators and schools are using creative ways to save on fuel while maintaining operations, like consolidating bus routes, limiting extra activities like field trips and turning off buses rather than idling.

Bertram's done the same.

“We've implemented a zero tolerance idling policy,” she said. Because idling is one of the biggest wasters of fuel. It's also bad for the environment. If you're not driving, turn the bus off. There's no need to let it run.”

But if fuel prices continue to rise, schools may start to look at more drastic measures to get students to school on time.