Budgetary sigh of relief

Falling fuel prices have area schools breathing a budgetary sigh of relief.

In recent years, Libby and Troy school districts have seen more and more of their money burned up by rising energy prices. Rural districts are confronted with higher mileage for bus routes and buildings rely on oil for heat. Kootenai sports teams also accrue more miles being tucked in the northwest corner of the state.

Coupled with a decreasing population, existing tax bases can be stretched thin when unpredictable fuel fluctuations occur.

Libby and Troy approach the transportation aspect from different angles. Libby contracts with Harlow’s Bus Service while Troy owns its buses.

Libby superintendent Kirby Maki said annual fuel budgets can be very tricky because of the unpredictable nature of markets.

“Current fuel prices are really good news,” Maki said. “We have to do our best guess as to fuel prices for the budget year.”

The ebb and flow of fuel costs are combated by a fuel escalation clause between Libby and Harlow’s.

Libby schools spend roughly $150,000 per year on transportation, which includes all bus routes and activities travel. Harlow’s buses put on 180,000 miles annually  taking students to and from their learning centers and sports destinations.

Harlow’s operator Jeremy Hageness has been contracting with Libby Public Schools since 1992. He called the clause a best fit that compensates both ways.

Hageness explained that for every 5-cent fuel increase there is an extra penny per mile inflation, and for every 5-cent decrease, there is a penny drop per mile that correlates.

Troy budgeted $29,000 for diesel this year and $55,000 for heating oil and pellets.

The Troy buses currently drive 425 miles a day. At a cost of $2.50 per gallon, that equates to $590 per week. If the cost is near $3.50 a gallon, the difference comes out to $10,000 for the year.

Hageness included that Troy is able to pay lower fuel costs due to tax breaks given to schools. With outside contracting, Libby does not qualify and its estimated figures were calculated using $3.25 per gallon. 

Brady Selle, Troy superintendent, said his district bought 14,000 gallons of heating oil in October to the tune of $33,040. Selle contrasted the estimated $51,000 they would have spent to fill the same amount last spring.

Troy Elementary uses pellets as its primary heating source with oil as a backup.

“We would need a crystal ball to truly know how much to budget in these ever-changing areas,” Selle said. “We have guessed right so far this year, but we have a full heating season ahead of us.”

The schools heating bills are dependent on the severity of winter. A mild winter vs. a long, cold winter can change the face of a budget, Selle said.

Maki said heating oil was the biggest reason for the district’s nearly $90,000 shortfall last year, which resulted in more fuel funds appropriated this school year.

“We hope not to go into the hole this year,” he said. “When the economy is not good and you tack more money onto taxpayers, it is not a good thing.”

Maki said that the schools have more flexibility when the budget is not “gobbled up by fuel costs.” He added that the recent Secure Rural Schools funding will further remove Lincoln County taxpayer burdens.