The Alberta School Bus Contractor's Association (ASBCA) says high fuel prices are posing an immediate threat to school bus services in the province.
Mark Critch, the president of the ASBCA, said in an interview that unless something is done to help to cover the cost of fuel before September, many school bus operators will go out of business.
"We’re nearing the end of the school year so people have to make decisions," Critch said. "Contractors have to make decisions on whether they’ll keep going for next year.
"I have a bad feeling if we don’t hear something soon, quite a few of those will be shutting down their businesses.”
Critch said the ASBCA has been calling on the provincial government to reinstate the fuel-price contingency fund for years. The Alberta School Boards Association is also calling for the fund to be reinstated.
The contingency fund, which hasn't been in operation since 2013, was a government fund that aided school boards in covering high fuel costs.
“I don’t believe many of our contractors will survive another year at these rates unless the school districts just help in some way," Critch said, adding that, "Most of the school districts we speak to tell us they’re out of funds for transportation — their budgets are tapped out."
St. Albert Public Schools spokesperson Paula Power said in an email that, as part of the division's new contract for yellow bus services coming into effect in September, the rate for service increased by about 14 per cent.
"[The rate] is significantly higher than the 4.6-per-cent funding increase for 2022-2023 from Alberta Education," Power said.
"This will result in higher bus fees for families in upcoming years. It’s very concerning both in terms of having to increase rates to families, and in terms of seeing a possible loss of contractors due to the increased costs in the industry."
'Everything has just gone through the roof'
Laura Doroshenko, the general manager of Cunningham Transport, said the cost of diesel for her fleet has gone up by 53 per cent since last year.
"It cuts into your profits, and if you can’t have extra money to work with to do the new hires; to train new people; to advertise to get new people; to employ people; it's going to result in layoffs and cutbacks," Doroshenko said.
Cunningham Transport operates more than 100 bus routes for St. Albert schools. The company also operates in Edmonton and Sturgeon County.
Critch said that among the "100 or so" ASBCA members, 34 contractors don't think they'll be able to continue their operations next year if measures aren't taken to help with fuel costs before fall.
Doroshenko, who is a member of the ASBCA, said Cunningham isn't among the 34 operators, but her company is "very close to that.”
The problems arising from diesel prices is just one of many challenges Cunningham is facing, Doroshenko said.
“Everything has just gone through the roof,” she said, adding that there have been significant cost increases in bus parts and insurance rates.
“Our parts have increased by 20 per cent in some cases," said Doroshenko.
The reinstatement of the fuel-price contingency fund is "something that we need," Doroshenko said.
"That would help with dealing with some of these increases that we’ve seen over the last year.”
In 2013, the threshold to use the fuel-price contingency fund was when fuel surpassed 60 cents a litre. Natural Resources Canada listed the price of diesel in the Edmonton Area at 190.8 cents a litre on June 8.
"It’s a serious issue that needs support from the government," Power said. "We are hopeful for some relief so that busing contractors across the province can continue to provide this valuable service in the safe and efficient manner that they do."
Student transportation funding model
Katherine Stavropoulos, the press secretary to Alberta's minister of education, said in a statement emailed to The Gazette, the government is about to start working on phase two of a three-phase action plan based on the recommendations from the Student Transportation Task Force. The government initially announced the action plan in May of 2021.
The task force was formed in the spring of 2020, and was instructed to review and make recommendations on how Alberta Education could improve student transportation legislation, safety, and eligibility. According to the Alberta Government's website, the task force submitted their report "in late 2020."
Stavropoulos said that as part of phase one, two audit teams reviewed the transit operations of 12 school divisions in the province.
"As part of the second phase, Alberta’s government is working to enhance regional co-operation among school divisions," Stavropoulos wrote. "We are reviewing current provincial purchasing opportunities for buses, fuel, insurance, and parts."
Critch, who served on the student transportation task force, said bulk provincial purchasing for fuel makes sense as "the vast majority of what we do in our business is work for the government.”
As part of phase three of the government's action plan, Stavropoulos said, "a new student transportation funding model is being developed for the 2023/24 school year.”
Critch said he hopes the government will consider fuel costs in the new transportation funding model.
"I’m just hoping and praying that we get some help,” Critch said.
