Alabama Faces Potential K-12 Transportation Funding Crisis, Warns State Superintendent
MONTGOMERY, Ala. – Alabama’s public school transportation system may face a funding crisis within the next five years, according to State Superintendent Eric Mackey. In a recent meeting with state board members, Mackey highlighted the dramatic rise in school bus prices—now averaging $160,000—coupled with a decrease in state funding for these costs, which has plummeted from 85-90% to just 54%.
Mackey projected that if current trends continue, the state could face a staggering $200 million transportation funding shortfall. Existing policies stipulate that the state provides "fleet renewal" funding, which covers one-tenth of a bus’s cost each year for a decade, after which districts receive no further assistance. This model worked well when bus prices were lower; however, increased costs now threaten the ability of school districts to maintain updated fleets.
Drawing on historical context, Mackey recalled that during the 2009 recession, many districts diverted fleet funding to cover other expenses, leading to long-term operational difficulties. He has urged immediate actions, emphasizing that the Alabama Department of Education’s request for $100 million in supplemental appropriations—aimed at alleviating current bus costs—went unmet, leaving schools scrambling for funding.
In addition to rising bus costs, manufacturers have recently added tariffs ranging from $2,500 to $4,500 per bus, further straining school budgets. For instance, Autauga County recently faced a $15,000 tariff bill for six buses, compounding the existing financial pressures.
Mackey plans to collaborate with lawmakers to address this looming crisis and suggests optimizing bus routes and negotiating bulk purchasing to mitigate costs. "If we don’t address it in the next two budget cycles, we could end up in a serious financial problem," he said, highlighting the urgency of the situation.
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