MASPAHR: We Have A

Problem!December 2, 2010

Jasen M. Witt

Legal Considerations,

Political Considerations,

Service Considerations, AND

Financial Considerations

Is the service a non-instructional support service? Paraprofessionals assigned to the classroom are considered

“instructional” support staff.

How will we satisfy the new requirements of PERA (MCL 423.215)?

“…union must be given the opportunity to bid on the contract…on an equal basis as other bidders.”

School districts do not have a duty to bargain the procedures for obtaining bids for outsourcing non-instructional support services. (ALJ Peltz, Lakeview Community Schools, MERC Case No. C10C-059, Mt. Pleasant School District, MERC Case No. C10E-104)

Will the Board of Education & Superintendent support the decision, if it proves to be the best option?

What is the make-up of your community?

What level of service is currently being provided in this support service area?

Will a change decrease, maintain, or improve our current level of service?

How does this support service area impact our district’s core mission?

With the current state of Michigan’s economy and public school funding, this should be a financial decision.

What savings will the district realize by contracting with a third party service provider?

Average or poor performance can be improved by private sector companies whose core mission is:

Transportation;

Cleaning Buildings;

Maintenance of Buildings & Grounds; OR

Feeding Large Groups of People.

Exceptional performance can also be maintained.

Any concerns with contracted employees are handled in an efficient manner.

EXAMPLES: Managers Low Performers Misconduct Cases

Your high performers can take positions with the third party contractor.

TSD Initial Numbers: Transportation – 86% Food Service – 95% Custodial – 40%

BOE contracted with all service providers to offer a higherhourly rate & slightly enhanced health benefits.

Generates real savings (ex. retirement, health care, & workers’ compensation costs) in district budgets which allows for protection of instructional programs and other student programs.

These savings can be maintained through the competitive bidding process. This also helps to maintain the quality of the service.

New legislative restrictions force high performing retirement-eligible employees to choose between retirement under MPSERS and accepting a position with the service provider.

The politics of this difficult decision may cost fiscally-prudent BOE members at election time.

Resulting Unemployment Costs (must factor these costs into your projected savings)

The decision to contract services will result in good employees losing their jobs. (Note: Given the new PERA requirements, pro-active union locals may avoid this by submitting a competitive bid.)

The decision to pursue bids can lead to unrest and reduced productivity.

Counterproductive for employees working to save their positions.

Impact on PLCs?

The timing of the BOE’s decision can allow forproperty (buildings & equipment) damage andsuspicious work-related injuries.