Guzzled Up by Gas Prices

ByABC News
August 23, 2005, 1:16 PM

Aug. 24, 2005 — -- For 30 years Mike Connally and his wife, Susan, have taught all types of dancers in their elite dance school -- jazz and ballet lovers of all skill levels -- some of whom have gone on to become professional dancers. Lately enrollment has dropped off sharply -- but not for lack of interest.

Enrollment at the Connallys' Dance Workshop in San Antonio has fallen by 50 percent over the last six months. The reason: sky-high gas prices. More and more students and their parents have decided they can't afford to make the drive four to six times per week, as their training and class schedules often dictate.

"We've got a lot of students who have to drive a long way to get here, one who even drives 70 miles one-way," Mike Connally said. "A lot of these people drive SUVs and they carpool to keep expenses down. But now the expenses have gone up exponentially and they've decided they just can't afford it."

The Connallys' school is just one of many small businesses struggling to handle the impact of high fuel costs. Gas prices have climbed to all-time highs this summer as the price of crude oil has traded steadily above $60 a barrel. The average price for a gallon of gas has jumped 24 cents over the past two weeks to a nominal record of $2.61 in the United States, according to the Energy Information Administration. The crushing expense of filling up a tank this summer has had a ripple effect through the business world, particularly for smaller companies that offer niche or luxury products or services.

The Connallys employ seven teachers, all of whom are degreed professional dancers, including Susan Connally and the couple's daughter, Karin. As enrollment dwindled from 300 to fewer than 150 students this summer, money became an issue. Susan, who serves as the artistic director in addition to teaching classes, didn't take a paycheck for five months earlier this year, and the Workshop was forced to let an instructor go last month.

"Not because she wasn't good, but because we couldn't afford her," Connally said. "It's like anything with the arts -- people treat it as a want rather than a need. And if it's between that and paying their mortgage, then there's no choice."