Inflated prices for natural gas poised to burn school budgets

[jpak]

http://www.thederrick.com/stories/09122005-1004.shtml

Like everyone else, school district business managers are shaking their heads as fuel prices soar in the wake of Hurricane Katrina.

Because they purchase their natural gas from a supplier, the Cranberry, Franklin, Oil City and Valley Grove school districts have several options - they can pay the market rate or secure contracts with a fixed rate for one month, three months or a year.

But each of those options carries a certain risk posed by the fluctuations of the market.

If they lock in a rate and the price of natural gas falls, they will pay more than they should - possibly for an entire year. But if they wait to lock in a rate and the price continues to climb, there may be no relief in sight.

<more>

(and with record high diesel prices - a double whammy for rural or cash-strapped school systems....)

[jean]

1. isn't that another tenet of the neocon agenda - bring down the public

schools? Or is that a tangential benefit they glean from shrinking and drowning our government?

[phantom power]

2. No doubt Norquist is wetting his pants with excitement.

One more branch of government that he can drown in his bathtub. Better yet, he gets to replace it with private schools for the ruling class, home-schooling for Jesus-land and no schooling for the underclass. The perfect neo-victorian class system.

[brokensymmetry]

3. You ain't seen nothing yet.

Energy prices are poised for a major, world-changing upmove.

[phantom power]

4. Even if they stabilize at their current levels, things will change.

My fondest hope is that events allow us a few years at more or less the current prices. High enough to force some serious action, but hopefully not so high that total disaster ensues.

But that's just hope, not a plan.

[Southpaw Bookworm]

5. My home county

Has already cut the number of after-school activities buses that will be running. For my high school, where many students lived 10 or more miles from the school, students are not allowed to drive to school, and some families have just one car, this is going to impact many, many programs, from yearbook to sports.

[LiberalEsto]

6. Some places are locked into long-term price contracts

that provide them with natural gas or fuel oil at last year's prices or better. So it won't mean immediate disaster for every natural gas consumer, especially the larger ones. Homeowners are the ones who will really be impacted this year, with price increases of 58%-71% or more.

I'm getting my attic heavily insulated as soon as possible, and we'll have to wear sweaters and turn down the thermostat.