Privatization of School Functions, Gloucester, Virginia

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A presentation created by Phillip Bazzani, Gloucester,Virginia Board of Supervisor's and presented to county government as well as the public. Posted here for use in a news story on Gloucester, Virginia Links and News website. Visit us.

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Privatization of School Functions, Gloucester, Virginia

  1. 1. 1 Privatizing Certain SB Functions Phillip N. Bazzani, CPCM, MBA Supervisor – York District Gloucester County, Virginia February 17, 2014
  2. 2. 2 Discussion Topics ! Gloucester’s  economic  reality.   ! What  is  priva6za6on?   ! Why  priva6ze?   ! What  can  be  priva6zed?   ! What  are  the  poten6al  savings?   ! What  other  states  have  found.   ! What  other  locali6es  are  doing?   ! What  might  this  mean  for  our  schools?   ! Recommenda6ons  
  3. 3. 3 Gloucester’s Economic Reality !  Gloucester  is  at  an  economic  cross  roads,  and  our  current  economy  is   stagnant.   !  Taxpayers  are  being  asked  more  and  more  to  fund  both  the  county  and   school  opera;ons.   !  Household  income  averages  $58,000;  and  with  tax  expenses  and  mortgages,   there  is  less  than  $850/month  of  discre;onary  income.   !  The  number  of  households  in  Gloucester  are  only  half  of  our  neighboring   locali;es,  such  as  York  and  James  City.   !  The  County  and  School  Board  (SB)  must  robustly  find  ways  to  alleviate  the   burden  to  the  taxpayer  and  facilitate  private  sector  growth.   !  The  County  and  the  SB  must  look  introspec;vely  into  their  budgets  and  adjust   where  necessary  much  like  the  ordinary  ci;zen  must  do  when  economic   condi;ons  change.  
  4. 4. 4 What is Privatizing? !  Priva;za;on  is  the  transfer  of  government  services  to   the  private  sector.       !  Services  formerly  provided  by  government  may  be   contracted  out.       !  The  objec;ve  is  oPen  to  increase  government  efficiency   and  reduce  opera;ng  costs.  
  5. 5. 5 Why Privatize? !  Schools  provide  a  variety  of  services  having  no  rela;on  to   their  fundamental  role  of  educa;ng  students.     !  Such  services  can  be  subject  to  priva;za;on.     !  By  priva;zing  these  non-­‐educa;on  related  func;ons,  we   may  achieve  two  posi;ve  results:         "  Educators  are  allowed  to  focus  on   educa;on.     "  Priva;zing  may  lower  the  cost  and   improve  the  quality  of  those  services   that  have  been  outsourced.    
  6. 6. 6 What Can Be Privatized? !  The  following  are  poten;al  “non-­‐academic”  candidates  that   could  be  considered  for  priva;zing  by  the  School  Board  (SB):     "  Transporta;on,     "  Food  services,   "  Cleaning  and  Maintenance  (Custodial)   "  Technology  Management   !  Freeing  up  these  func;ons  to  private  firms  could  poten;ally   allow  school  teachers  to  focus  on  their  core  mission:      
  7. 7. 7 What are the Potential Savings? !  Two  statewide  surveys  of  school  districts  in  Illinois  and   Alabama  showed  that  priva;zed  non-­‐academic  services   saved  tax  dollars  to  the  school  system.  *     !  The  systems  were  then  able  to  reallocate  the  savings   into  core  services-­‐teachers'  pay,  new  textbooks  and   computers,  and  other  instruc;onal  ac;vi;es.*   !  Even  the  AASA  states  that  the  most  frequently   contracted  services  include  food  services,  custodial  and   transporta;on  as  the  most  visible  because  these   func;ons  consume  the  greatest  propor;on  of  school   budgets.**       *Source:    Geoffrey  F.  Segal,  The  Reason  Founda6on  and  a  member  of  the  Board  of  Scholars  of  the  Virginia  Ins6tute  for  Public  Policy.   **  American  Associa6on  of  School  Administrators     !  Savings  typically  range  from  12  to  25  percent.*  
  8. 8. 8 What Others States Found   !  Gloucester  SB  should  carefully  consider  how  non-­‐core,  non-­‐educa;on   related  services  are  provided.   !  Priva;za;on  can  allow  the  School  Board  to  enhance  the  educa;onal   experience  of  Gloucester’s  youth.     *Source:    Geoffrey  F.  Segal,  The  Reason  Founda6on  and  a  member  of  the  Board  of  Scholars  of  the  Virginia  Ins6tute  for  Public  Policy.   !  Some  of  the  most  important   conclusions  from  the  Alabama  and   Illinois  surveys  showed  that  two-­‐ thirds  of  school  officials  rated   priva;za;on  a  success.*     !  Outsourcing  can  be  used  to  address   budget  challenges  while  direc;ng   more  funds  toward  instruc;onal   programs.*    
  9. 9. 9 What Other Localities Are Doing !  Hampton  City  public  schools  were  recently  presented  with  a  Facili6es   op6on  that  showed  a  20%  reduc6on  in  facili6es  and  maintenance  costs.*     !  Richmond  public  schools  is  considering  outsourcing  its  transporta6on  and   facili6es  maintenance  departments.   !  Roanoke  City  Schools  outsourced  its  student  transport  in  2009.     Controversial  at  the  6me,  a  Roanoke  City  Schools  spokesperson  says  the   district  saves  $1.4  million  every  year  because  it  outsources  its   transporta6on.**     !  Norfolk  public  schools  contract  out  for  supplies,  training  and  some   management  services.**     !  Portsmouth  public  schools  outsources  some  maintenance  services  such  as   HVAC.**   !  In  2009,  the  Isle  of  Wight  school  board  voted  to  turn  their  custodians  over   to  a  na6onal  commercial  cleaning  company  saving  about  $500K  in  costs.**   *      Hampton  City  Public  Schools,  School  Board  Mee6ng  2-­‐19-­‐14  Presenta6on   **Source:    PilotOnline;  11-­‐15-­‐13  
  10. 10. 10 Recommendations !  Take  a  close,  introspec;ve  look  at  “non-­‐academic”  SB  services  and   iden;fy  which  can  be  candidates  for  outsourcing.   !  Benchmark  locali;es  that  already  have  priva;zed  programs  –  see  what   works  or  does  not  work.   !  Work  with  Central  Purchasing  to  solicit  RFPs  and  have  vendors  present   their  proposals  to  the  SB.   !  Decide  whether  proposals  will  actually  lower  costs.   !  Savings  should  be  returned  to  the  School  System  for:   "  Teacher’s  pay   "  New  Technology   "  Hiring  more  teachers  

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