Survey: Half of School Districts Paying At Least 6% More for Diesel

May 19, 2026

A joint survey administered by AASA: The School Superintendents Association and the National Association for Pupil Transportation indicates how much rising diesel costs are hurting school district bottom lines, not simply in budgets but also in the classrooms.

About 54 percent of the 188 school districts that responded to the survey, conducted the week of May 4, said they are paying 6 percent more for diesel since the Iran war started. Fourteen percent reported that diesel costs are running 20 percent or more over budget. Meanwhile, 22 percent have seen their fuel bills increase by 11- to 20 percent over budget and 20 percent said they are 6- to 10 percent over budget.

“The data suggests that many districts have, to date, prioritized limiting impacts on core instructional programs, instead relying on strategies such as route optimization, deferred maintenance and targeted spending adjustments,” NAPT said in an email Monday to members. “While some districts report fuel costs exceeding planned amounts, the overall approach reflects a deliberate effort to manage rising expenses while maintaining stability in educational services.”

Nearly two-thirds of the districts said they are absorbing the rising diesel prices within their current transportation budgets, as their states do not provide dedicated transportation funding that rises with fuel prices. Over 30 percent said they are transferring funds from other district programs, 19 percent are using rainy-day funds, and 15 percent have yet to cover the increased costs.

Consolidating routes/adjusting route efficiency is the leading response to reducing the impact of rising diesel costs, according to 40 percent of the responses. Other operational changes are enforced anti-idling procedures at 27 percent, reducing the number of routes at 25 percent, limiting non-required bus trips (20 percent), and changing fuel purchasing practices at 14 percent. Other responses are increasing walk-to-stop ratios (8 percent), moving away from “yellow bus to non-diesel vehicles” (7 percent), meaning either school buses, vans, SUVs or sedans, an AASA spokesperson clarified for School Transportation News, and negotiating contracts with transportation vendors (6 percent).

Dipping Into Other Programs to Pay for Diesel

Meanwhile, 55 percent of the districts reported that they have yet to implement offsets in their current general budgets to address the fuel price hikes, and 17 percent said they have so far avoided making cuts through the reliance on rainy-day funds. But of those that have, 16 percent have deferred maintenance/facilities work, 13 percent reduced support personnel, 13 percent trimmed administrative staff/spending, and 12 percent reduced summer instruction. Less than 5 percent selected one of the following: Reduced instructional staff; increased class sizes; delayed instructional improvement initiatives; cut extracurricular programs; and cut spending on instructional materials.

While 52 percent of districts said they have yet to address budget cuts or they are still in development, one-third have added a contingency or reserve fund to address fuel volatility. Another 16 percent have negotiated contracts or adjusted vendor terms. Fourteen percent have drawn down reserves, and 10 percent have sought local/state revenue specific to transportation.

To address the next school year’s budget, 37 percent said they are likely to use reserve or rainy-day funds, while 36 percent said they are not sure what their plan will be. Thirty percent are considering cutting athletic/extracurricular transportation, and 29 percent would defer maintenance and facilities. Foregoing professional development or consulting services, or technology purchases and replacements, came in at 22 percent of responses, respectively. Fourteen percent said they could skip purchasing supplies, materials and textbooks next year, and 6 percent said they would pause instructional staffing and programming.

Despite higher initial purchase costs, alternative-fuel school buses are providing relief at the pump. Bibb County School District near Macon, Georgia is tapping into about $1 million in savings a year from less expensive propane school bus fueling and maintenance to pay for its few dozen gasoline-powered school buses. Director of Transportation Anthony Jackson, who presented the findings earlier this month at ACT Expo in Las Vegas, Nevada, told School Transportation News his staff has not purchased diesel fuel since February.