NIAGARA FALLS, N.Y. (WKBW) — Rising diesel fuel costs are draining the Niagara Falls City School District's budget, creating an $8 million deficit heading into the next school year.
According to AAA, diesel fuel in the Buffalo Niagara region is now more than $5.90 a gallon. The district operates its bus fleet and has been forced to dip into cash reserves to cover added expenses.
Schools Superintendent Mark Laurrie tells me diesel prices have jumped $2 more per gallon, putting the district in a difficult financial position.
"But when you compile rising diesel fuel costs with the high cost of health insurance, the high cost of utilities, the high cost of everything, it puts education in a tough place. Again." Laurrie said.
The school district runs 45 buses every day, and the school board approved using reserve funds to cover the extra costs.
"Those are called rainy day funds. It's pouring out right now. One of the major factors is the cost of diesel fuel, the number of buses we employ and the number of maintenance vehicles we use that require that." Laurrie said. "So, it's a perfect storm at a time when budgets are very, very tight."
Despite financial pressure, Laurrie said the district is not looking to raise taxes, which voters will decide in the 2026-27 school budget on Tuesday, May 19.
"Using the rainy day or reserve funds is not a sustainable option," Laurrie said.
Laurrie said the mid-year price spike has forced difficult choices.
"When diesel fuel is rising in the middle of the school year, $2 it puts you in a precarious situation about making choices of gas or programs, and that's not a good place to be," Laurrie said.
WATCH: 'A tough place': Niagara Falls schools face $8M deficit from rising diesel costs
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