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Competitive contracting grows despite myths

"The reaction is quite emotional"

Wed., September 6, 2006

As more and more public school districts across Michigan turn to competitive contracting as a way to save on costs and spend more dollars on education, the reactions by those opposed to it become more negative.

Accusations ranging from poor performance and putting children in danger to claims that private company employees are outsiders or illegal immigrants have sprung up at school board meetings and union rallies across Michigan this year.

Last May, The Detroit News reported that David Murray, a member of the Detroit Public Schools board of education, filed a police report over what he perceived to be threats of violence on a radio call-in show. The comments came after the DPS board voted to sign a $21.7 million contract for food services with a private company. Aramark, which won the contract, bested other offers, including one from the union that had been overseeing the operation.

In April, at a Michigan Education Association union rally to protest the privatization of custodial services in the Reeths-Puffer schools, state Rep. Doug Bennett, D-Muskegon, was overheard telling Kathie Oakes of the MEA, “We all know what’s going to happen — they are going to hire illegal immigrants to fill the jobs,” The Muskegon Chronicle reported.

“When we try to discuss this, we’re met with an emotional outburst,” said Jason Church, a school board member in Perry. “We’re told we’re evil, we have no morals. There’s nothing constructive there.”

Church said the Perry schools, near Lansing, have been discussing competitive contracting for custodial services. The discussion is often met by claims that janitors from a private company are “outsiders and low lifes,” have “criminal backgrounds” and would be a “danger to the children,” Church said.

“This really doesn’t make any sense,” Church said. “Half of our entire staff lives outside the district. Just because someone lives 20 minutes away makes them a bad person?”

While privatization opponents say that public school employees care more about students, or that non-school employees would pose some type of danger, it was revealed earlier in the summer that a Michigan State Police background check found almost 470 public school employees with felony conviction records, including 56 teachers. Charges ranged from stalking to larceny to drunk driving. Those found with felony sex crime convictions were immediately fired as per a 2005 “student safety” package of new laws.

Rick Simpson, a regional sales director with Chartwells Food Service, said most companies had stricter hiring guidelines than the state did for public schools up until the adoption of a new state law last fall aimed at increasing student safety.

“We did drug testing, fingerprinting, background checks, everything,” Simpson said. “We don’t hire people with felony convictions.”

“It doesn’t matter if you’re a school or a private firm, people need to remember we all dip our buckets into the same well of applicants,” said John Markey, vice president of Educlean Services. “The difference is what you do after you draw up that bucket.”

Markey said his company puts employees through a rigorous background check that includes fingerprinting and personality testing. Educlean’s insurance coverage includes not only liability, but also theft, mysterious loss and third-party indemnity.

“A policy for mysterious loss can be better than bonding, because a bond will generally only pay out when there’s a conviction,” Markey said. “With mysterious loss, if say, a laptop computer turns up missing while we’re in the building, the claim is paid because of the loss, not a conviction.”

Third-party indemnity covers property or equipment that are considered in the “care, custody and control” of the company’s personnel.

“If someone trips over an extension cord we’re using for a floor buffer, that covers it,” Markey said. “It’s specifically written in that way.”

Church said another roadblock people use when fighting against competitive contracting is the question of a track record.

They say privatization is one thing, but what if it doesn’t work,” Church said.

According to a 2005 privatization survey by the Mackinac Center for Public Policy, 35.5 percent of the 552 districts surveyed privatize at least one of three major noninstructional services – custodial, transportation or food services. That was up from 34 percent in 2003, even though 27 districts brought some service back in-house after it had been privatized two years earlier.

“A lot of people think of it in terms of proposals and contracts, when they’re really partnerships,” Markey said. “We used to always want to be the first one (contractor) in, but not any more. Being the first one in means you take all the heat. Being the second one in is much easier.”

Markey said one way to reduce problems with competitive contracting is for school boards to be as specific as they can be in issuing RFPs (Requests for Proposals).

“There are companies that are certified and there are associations for these kinds of firms,” he said. “The school board should make sure about the level of insurance a company has. They can request the background checks, drug testing, things like that.”

Simpson said people who oppose privatization should remember that the companies are driven by performance.

“It’s not easy to terminate an employee who works for a school district, but it is easy to terminate a contract,” he said. “All of our contracts have 60-day cancellation clauses. Knowing you can lose all your business in 60 days is pretty good motivation to hire people you can trust and depend on.”

Michigan Education Daily
"An ambitious proposal to overhaul Detroit Public Schools ran into opposition Thursday over the issue of dissolving the school board and allowing Mayor Dave Bing to take charge." >>
"At least 14 public school districts in the Muskegon area offer some type of alternative education, either on their own or through a consortium, but the programs are under both budget and academic pressure." >>
"Michigan voters may see a ballot initiative in August asking them to approve a sales tax on services, with the understanding that their approval would also mean education spending reform, the chairman of the House Education Committee said Wednesday." >>
"All Flint Community Schools administrators, including members of the superintendent's cabinet, are likely to receive layoff notices this spring, though the majority could be back next year." >>
"Sara McLaren is taking a once-in-a-decade opportunity to tie the U.S. Census directly to her civics and social studies curriculum at Niles High School." >>
"Research done by the dean of the University of Michigan school of education was featured at length in a New York Times magazine article recently about training effective teachers." >>
"A public education advocacy group said Monday that Michigan should begin taxing consumer services at 5.5 percent, while reducing the existing sales tax from 6 to 5.5 percent, as a way to generate $550 million for schools in 2011." >>
User Comments
Is it true that young ones today are losing interest on these subjects? Obviously, the White House is promoting programs that will help students on coping up with math and science subjects. But, The federal government thinks that the quality of math and science education can repair credit with the scientific community and improve US education with a few <a rev="vote for" title="U.S. Government Spends $250 Million on Science and Math" href="http://personalmoneystore.com/Payday-Loans/ ">payday loans</a> of sorts. In reality, it will take far longer to accomplish than they might think – US educators can't even get students to accept that "irregardless" isn't a word, and the difference between their, they're, and there – our students can't even learn their own language! It's a noble aim, to be sure, but throwing money at it may not work in the long run. >>
I am a teacher in the same county who is presently trying to quit the union. Like Caldwell, I strongly disagree with the MEA.

This article was timely.

Rob Olson
Pittsford Area Schools

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I agree this is a change worth making. I describe some of the uneven effects of the idea on my blog at http://rickolson.blogspot.com/2009/08/statewide-health-insurance-plan-for.html which you may also wish to read.

The devil will be in the details, so this is one we will need to monitor closely.

Rick Olson from Saline, former school Business Manager >>

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I AGREE >>
Godfrey-Lee on the west side of the state has been running all-day, every-day kindergarten for several years. >>
We have a problem in Detroit Public School, their system had cash flow problem for years now. And honestly it getting worst in terms in progression with more children leaving to charter their schools almost every year. The state decided to give the Detroit school districts cash advance of $70 million so they would meet the schools expenses, as well as payment for teachers. Robert Bobb, the newly appointed emergency financial manager, requested the funds early in order for him to get the house in order before he had to start panicking. President Obama has been giving out large sums of money for troubled school districts, perhaps that’s where a generous portion of the aid came from. Getting Detroit Public Schools in working order is a worthy cause.

LINK TO READ FOR MORE INFO:
http://personalmoneystore.com/moneyblog/2009/03/10/state-advance-detroit-public-schools-70m/


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I am all for school choice and think its great that charters are finally moving forward. However, I'm wondering if the research accounts for a playing field that is not level. I can't take my school buildings and move them anywhere I want, nor can I simply slap up a pole building and make it a school. If anything, public schools need less state regulation and oversight so we can play by the same minimal rules charters do. If you want public schools to compete to improve, remove the barriers to doing so. I will gladly except less funding per pupil if the playing field is level.
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The purpose is to encourage non excercising children to excercise but my daughter's highschool gave her an improper body fat percentage and made my healthy daughter who trains 20 hours a week in tap jazz and ballet believe she was overweaghit instead of a person with muscles.
I believe the public schools do not have the right to make the diagnoses with these kids because they are using one measurement and recording it from their arms that they have a certain percetnage of body fat with one arm caliper test.
Does any one have feed back?
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Specifically, 81 percent of students in religiously affiliated schools and 82 percent of students in other private schools have parents who report being "very satisfied" with their schools, compared to 55 percent of students in assigned public schools and 63 percent of students in chosen public schools.

High levels of satisfaction among private school parents also extend to opinions about their children's teachers, academic standards of the school, order and discipline at the school, the amount of homework assigned, and interactions with school personnel.

http://fitt.in >>