A Private-Practice Option for Educators

Table 1:
Cost of In-House Services v.s. Contracted Services
Cost of In-House Services  
Teacher Salary, Insurance & Employee Benefits  
     School District's Annual Gross Payroll
     Annual Insurance and Fringe Benefits Paid By District
          Social Security
          Unemployment Compensation
          Worker's Compensation
          Health & Dental Insurance
          Pension Contributions
Total Teacher Salary, Insurances, & Employee Benefits $1,365.00
     Productive Hours  
          Total Classroom Hours Per Teacher Less:
          Average Off-Time (Sick/Personal Days) of 2%
1,100 Hours
(22) Hours
     Total Productive Hours 1078 Hours
Hourly Cost of In-House Services  
          Total Average Teacher Salary Plus Employee Benefits Divided By:
          Total Productive Hours Divided:
          Total Number of Teachers Employed By The District
1078 Hours/
36 Teachers
     Total Hourly Cost of In-House Services $36.18 per Hour per Teacher
Cost of Contracted Services  
     Contractors Hourly Rate for Contract Performance $30.00/Hour
District Savings  
     Hourly Cost of In-House Services Less:
     Hourly Contractors Rate
     Total Hourly Savings (Loss) $6.18/Hour
Source: Gail Ostler, CPA