Privatize nonteaching services in schools

The Detroit News is highlighting ideas from various groups to promote discussion on reform, restructuring government and the economy.

Privatize nonteaching services in schools

Idea 17: Privatize or contract out to private companies for noninstructional functions in public schools.

Why: Schools can save money by privatizing transportation, food and custodial services. The Mackinac Center's most recent survey shows that 45 percent of school districts already have a competitive contract in place for at least one of these functions.

Benefit: If all school privatization opportunities were realized, it would save hundreds of millions of dollars, dwarfing a $165 per-pupil foundation grant cut on the table in state budget negotiations. For example, Richmond Public Schools expects to save $823,545 annually from contracting out custodial services -- an effective per-pupil funding increase of $435. Wyoming-Godwin Heights schools will save $69 per pupil, and Troy $14 by privatizing food service. And Benton Harbor Area Schools projects annual savings equal to $113 per pupil by privatizing transportation.

How: Cut the amount of state school aid by the amount districts could save by privatizing. Specifically, require every district to request bids and make a good-faith effort to privatize. For some districts, privatization would not be practical, so districts coming up empty could seek a waiver.

Obstacle: Despite having privatized some services -- at times with nonunion workers -- at its headquarters, the Michigan Education Association fights the same cost-cutting ideas for school districts statewide. The MEA has instigated, aided or abetted recall campaigns against school board members in a dozen districts for defying the union on this issue. Many Democratic legislators and at least 14 Republicans, according to MIRS News, have received MEA political contributions.

Source: Mackinac Center for Public Policy