Bill to Help Schools with Fuel Costs

U.S. Senator Bob Casey (D-PA) today introduced a bill to help rural school districts deal with the rising cost of fuel. The Rural Fuel for School Act would help schools pay for the cost of transportation of students to and from school through a new grant program.

“With gas prices at record highs, school districts, especially ones located in rural areas, are facing challenges meeting their transportation needs,” said Senator Casey. “This bill will help take some of the burden off of the school districts so their money can be better put to use teaching students, rather than worrying about transportation costs.”

In 2005-2006, approximately 7,900 school districts nationwide that were classified as “fringe rural,” “distance rural” and “remote rural” by the National Center for Education Statistics. In Pennsylvania alone, there are almost 200 school districts who would be eligible for the grant program.

The grant program would be administered through the Department of Education (DOE). In order to be eligible, school districts must have at least a 20% rise in fuel costs compared to the previous fiscal year and must be classified as a “fringe rural,” “distance rural” or “remote rural” under the new classification system of the National Center of Education Statistics.

If a school district is classified as rural, the school district would apply to the DOE. The DOE would then use its discretion in determining which school districts receive the grant and the amount of the grant. Individual grants would range from 10% to 50% of the district’s total transportation costs from the year before. Local education agencies or entities under contract to provide transportation to such entities would be eligible to use funds, but only individual school districts could apply for funds.

The bill also includes a hardship waiver for rural schools that do not meet the criteria but are certified by the Secretary of Education as being in an extreme and unusual circumstance. The money would be appropriated through the annual appropriations process.

Between June 2003 and June 2008, regular gasoline prices have risen 171% and diesel prices have risen 229%. Rural schools face extreme fiscal limitations and declining enrollment. Moreover, they have a limited tax base to generate revenue.

The Rural Fuel for School Act has the endorsement of the American Association of School Administrators.

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