Local governments feel the pinch as budgets lack funding for ever-rising fuel costs.
Consumers and businesses aren't alone in feeling the pain from rising gas prices. Public agencies are suffering, too.
Higher fuel costs are part of a double whammy for local governments already feeling the pain from shrinking revenues. With two months left in the fiscal year, some governments in the Valley are practically running on empty:
Fresno County has already spent the $4.7 million budgeted for fuel service and expects to pay another $1.4 million to keep county vehicles running through June.
The city of Fresno expects to spend nearly $700,000 more than the $7.2 million that was projected to cover much of the city's fuel costs.
Clovis expects to pay nearly $100,000 more on fuel than the $1.5 million allocated.
Fuel prices hit record highs in the past two weeks in every major California market, according to the American Automobile Association. In Fresno, for instance, the average price of a gallon of unleaded gas peaked last week at $3.95, up 50 cents from a year ago.
Local governments pay less for fuel than consumers. They don't pay federal fuel taxes and have contracts with fuel distributors for bulk rates, which are currently running 25 to 35 cents below street prices.
Still, governments are seeing similarly steep increases. What's more, many government vehicles rely on diesel fuel, which has gone up even more than regular gas.
The higher fuel costs come as local governments grapple with shrinking revenues, largely because sales and property tax revenue has fallen short of expectations.
"You're talking about one of my biggest concerns," said Clovis Finance Director Robert Woolley. "Our budgets are so tight for next year and the police and fire vehicles eat up a lot of fuel."
Some expect fuel prices to exert even more demands on local budgets next year.
Fresno expects a 25% jump in fuel costs next fiscal year for Fleet Management, which maintains most city vehicles, said division manager Jim Schaad. His division is responsible for fueling all city vehicles except for Fresno Area Express buses and some Fire Department equipment.
FAX expects to keep its fuel costs within the $4.4 million budgeted for this fiscal year, said John Downs, a planner for the agency. FAX anticipated higher fuel costs this year, he said.
Next year's projected increase for Fleet Management fuel is based on analyst reports and an expectation that oil costs will continue to increase, Schaad said.
As a by-product of its decision to buy the Dodge Charger for the Police Department, the city is saving gas, he said.
The Charger gets about 3 miles per gallon more than the Ford Crown Victoria -- not a lot in itself, but taken together will result in thousands of dollars in fuel savings for the city each year, Schaad said.
The city also has switched more than half of its garbage trucks to models using alternative fuels. Clovis plans to do the same.
Garbage trucks are among the biggest municipal fuel users, along with police patrols and public utility trucks, officials said.
Some fuel-efficient vehicles might not work for some government vehicles, such as having police patrol in a Toyota Prius. But some elected officials said fuel efficiency has to become a greater priority for local governments.
Fresno needs to include the purchase of more alternative-fuel vehicles in the coming budget, said Council Member Henry T. Perea. A candidate for mayor, Perea has a history of advocating for alternative fuel use by local governments.
"I don't think we're moving fast enough," he said.
Fresno County Supervisor Susan Anderson said she and other supervisors will look for ways to cut fuel costs as they comb through budget proposals.
"Has the county done enough to comprehensively address this problem? No," she said.
Harold Crain, the county's fleet services manager, conceded that the only significant cost-cutting proposal for vehicle use is to get rid of low-use vehicles, and that won't lower county fuel consumption.
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At Data Center: Valley government budgets
