• 26.3 percent of districts (145 out of 551)
    contract out for custodial services.
  • 32 districts began contracting out the service.
  • Contracting out custodial services is expected to yield districts $14.0 million in savings in the first year.

Contracting out for custodial services grew substantially this year. From 2009 the number of those districts contracting out their custodial services increased 5.4 percentage points.

Graphic 4: Districts Contracting Custodial Service

Graphic 3: Districts Contracting Custodial Service - click to enlarge

Since 2003 custodial service contracting in Michigan public schools grew 300 percent, from 6.6 percent of all districts contracting to 26.3 percent.

Savings from the districts contracting out custodial services range from $11,000 to $3.5 million or $5.35 to $318.37 per pupil.

Baldwin Community Schools had gone eight years without a custodial manager. This year the district decided to hire a custodial and maintenance manager with At Your Service. District officials report that they plan to continue to contract custodial services as custodians retire or otherwise leave the district.

Utica Community Schools contracted out its custodial service to GCA Services and expects to save $4 million through using both contractors and the district’s current employees. The district solicited bids to provide services to give it an expected savings figure. It selected a vendor and a savings target, and worked with its employees providing the service to come up with commensurate savings. The district accepted some concessions, but also contracted out a portion of its custodial services, which is expected to save the district $1.6 million in its first year.

By contracting with Hi-Tec Building Services Inc., Les Cheneaux Community Schools expects to save $62,230 in its first year. After accounting for a couple of continued salary expenses and increased unemployment insurance expenses, the district expects to save $97,337 annually for the remainder of the contract, a savings of $302 per pupil.

In addition to its 2010-2011 cost savings, Novi Community Schools provided a 30-month projected cost savings of $3,622,676. For the 6,000-pupil school district, this  amounts to a $233 per student annual savings, though its 2010-2011 school year savings are only expected to be $1.1 million.

Wayland Union Schools expects to incur severance and retirement costs when transitioning to its contract with CSM. After those first-year costs, the district expects to save $400,000 annually for the remainder of the contract.

Pennfield Schools started leasing workers with PCMI, which saved $2,400 from the start of the contract on March 1, 2010. The district estimated savings for the entire 2010-2011 school year will be $11,000, which works out to an annual savings of $5 dollars per pupil.

Tecumseh Public Schools expects to save $380,000 by contracting out custodial services. The superintendent reported that the district receives superior service from the private contractor for nearly half the price.

Graphic 5

Districts new to custodial contracting

Savings

Walled Lake Consolidated Schools

$3,535,132

Utica Community Schools

$1,581,120

Royal Oak Public Schools

$1,295,753

Novi Community Schools

$1,118,915

Oak Park School District

$1,063,379

Oxford Area Community Schools

$814,635

Mt. Pleasant Public Schools

$795,448

Mona Shores Public Schools

$719,817

Wayland Union Schools

$400,000

River Rouge School District

$389,890

Tecumseh Public Schools

$380,000

Lakewood Public Schools

$316,678

New Haven Community Schools

$300,000

Gladwin Community School

$232,291

Homer Community Schools

$151,629

Adrian Public Schools

$147,760

Holton Community Schools

$133,531

Hart Public Schools

$115,000

Eau Claire Public Schools

$113,214

Buena Vista Schools

$70,000

East Grand Rapids Public School

$65,000

Les Cheneaux Community Schools

$62,230

Mancelona Public Schools

$51,447

Freeland Community School District

$44,662

Three River Community Schools

$39,793

Pickford Public Schools

$34,286

East Jackson Community Schools

$31,672

Pennfield Schools

$11,000

Baldwin Community Schools

Insufficient documentation

Bentley Community Schools

Insufficient documentation

Elkton-Pigeon-Bay Port Laker Schools

Insufficient documentation

Lamphere Schools

Insufficient documentation