August 30, 2006
Privatization in schools: It pays to outsource
In July last year, I mentioned about the outsourcing storm brewing in schools. More than a year down the line, the controversy seems to have taken epic proportions, but paradoxically, the concept of privatization in schools is also gaining credence.
The pressure of working with smaller budgets has led to widespread privatization in non-instructional areas such as janitorial, food, and busing services. This has also stirred superintending authorities to investigate privatization in schools.
The statistical figures are there for all to see:
Officials at Muskegon Reeths-Puffer expect to save about $480,000 a year with private custodians over the life of the contract. That works out to about $114 per student. In Auburn Hills, a new contract may save the Avondale School District up to $490,000 — $128 per student — in fiscal 2007. In Jackson, a new custodial contract is expected to annually save $1.3 million, or about $193 per student.
Outsourcing or contractual agreements with third-party service providers are here to stay in school management. Private vendors increasingly provide services like transport and food. The school authorities are happy because it gives them an efficient management technique, and then there is the "small matter" of budgetary savings.
Make no mistake, the benefits of privatization in schools are real and touches lives across different districts in the US.
Mackinac Center, which contacted all 552 schools listed in the Michigan Education Directory, has more details on the growing trend of privatization in schools.
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