The cost of busing Montclair’s public school students to classes is going to go up when the new school year begins in September — way up, according to officials.
Montclair School District budget planners say the new contract the Board of Education just approved with one of its two school bus operators will jump by more than $112,000. They placed the blame squarely on the soaring cost of oil.
"Energy costs are going to make the year ahead a real challenge," said Dana Sullivan, the district’s business administrator.
School officials approved a $110 million budget for the 2008-2009 academic year this past March when diesel fuel was still in the $3 a gallon range. Just three months later, they must cope with a diesel price that is above $5 a gallon.
In the wake of several rounds of price increases and unprecedented volatility in oil markets around the world, some experts are forecasting that fuel costs will continue to skyrocket in the month ahead.
Sullivan said the district had hoped to extend their contract with Trans-Ed for the 3.9 percent annual increase allowed by the state, but was told by the company that it couldn’t because it would be operating at a loss if it did. The move required the district to seek new a round of bidding in which Trans-Ed emerged as the eventual lowest bidder.
Earlier this year, the district was able to do just that with Laidlaw, the company that operates buses for the Montclair’s other schoolbus routes. The renewed $788,000 contract with Laidlaw came when oil prices were at a much lower rate.
Officials fear that the nearly $766,000 contract that went to the Trans-Ed company, which operates 12 of the district’s two dozen school bus routes, could be a harbinger of even tougher times ahead.
"Budget planning is very difficult in an uncertain economy," Schools Superintendent Frank Alvarez explained. "We start building our budget approximately nine months prior to the actual implementation. We make the most informed decisions possible regarding needs and expenses. Most of the time, we get it right."
Even with $1.5 million in cuts to its initial budget proposal for next year, district officials were still able to set aside funds for expected higher energy costs.
More than 3,200, or nearly half of Montclair’s 6,500 public school students, rely on the bus transportation system provided by the district.
Bus transportation plays a key role in the overall operation of the Montclair’s 11 public schools. Montclair’s seven elementary schools and its three middle schools are organized as a magnet system in which each school offers a specialized curriculum.
Unlike traditional public school systems in which students attend the elementary or middle school nearest to their home, Montclair youngsters apply for a place in the school of their choice. That choice often can be the school furthest away from their residence.
The district operates two dozen individual school routes that make it possible for the magnet system to work smoothly. In recent years, Sullivan said the district has trimmed and consolidated the routes to make the system as "optimum" as possible.
The district also provides transportation for its special education students who receive instruction outside Montclair.