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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
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"Inland Lakes Schools is considering hiring a private firm to provide custodial services as a way to save money, but a union representative says that new federal funding makes such a move unnecessary." >>
User Comments
education is an all around development for a child
he should be mentally and physically strong


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education is an all around development for a child
he should be mentally and physically strong >>
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Public servants like Presidents, Vice-Presidents, Senators, Congressmen, Judges, Secretaries of Various Departments and the like should be first to be compensated for performance.
The idea that the playing field for students is level everywhere is as Quixotic as thinking all politicians are honest and competent.
There are neighborhoods where only Portugese or gang sign language is spoken, where the parents both work two jobs to pay rent, where getting to school and back is more dangerous than Iraq and Afghanastan.
This Secretary of Education has to remove the silver spoon, roll up his sleeves and take his superior intellect attitude into the trenches and show the poor slobs that are taking their teachers jobs for granted how he would do it. Just because his mommy used to help out in Chicago doesn't give him the Congression Medal of Honor. Actually he's a stuffed shirt pretending to know it all.
How much do you want to bet that he wouldn't attempt entering these neighborhoods let alone these schools without security. >>
This article is tucked away yet is profoundly correct. Parents are pseudo parenting little objects of consumption. Teens, professionals, working moms like the "idea" of a child but are not in for the long haul and everyone loses.

Schools are enabling parents to do precious little. The time parents spend with their children is the only thing that matters. Bussing needs to be cut, school breakfast, lunch, and afterschool care needs to be stopped. Parents will grow that bond by sacrificing the nails, hair, parties, drugs, quads, vacations, etc. and making a lunch for their child and arrangements to be home when the child is out of school. No one is that poor that they can't provide a boloney sandwich, a baggie of pretzels, an apple, 50 cents for a milk, and two cookies each day.

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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.

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I AGREE >>