• Eight districts brought services back under local governmental provision
  • Four were food service contracts, two were custodial service contracts and two were transportation service contracts.
  • Cost savings from bringing the services in-house is estimated at $473,872.

While contracting out has tended to save districts money, some districts find that changing service provision back in-house or sharing services with other districts may be less expensive. This year, eight districts ended contracting arrangements and either brought services back in-house or began sharing its support services with other districts or through an intermediate school district.

East Grand Rapids Public Schools had a private company providing its food service. The district decided to end the contract and entered into a food service sharing agreement with Grand Rapids Public Schools. The difference between the previous food service director’s management fee and the district’s share of the GRPS director is $140,000.

Comstock Park Public Schools had contracted out to clean two of the district’s buildings. Officials saw a drop in enrollment which allowed them to move their kindergarten and preschool children to a different building. With fewer buildings to clean, they were able to provide the services with existing staff. Officials expect this to save the district $44,000.

After several years of contracting out its food service to a private company, North Branch Area Schools brought its food service manager back in-house. The district expects to save money by dropping the company’s management fee and hiring a less expensive food service director, but final figures were not available.

Oscoda Area Schools decided to bring its food service back in-house in February. Believing that the contractor’s management fees did not justify the expense, the district began sharing a food service director with Tawas Area Schools. District managers estimate that this will save the district $115,799 for its first full year.

Pinckney Community Schools ended its transportation services contract and began busing its students through agreements with the Livingston Educational Service Agency. The superintendent said this allows him to maintain local autonomy and save money while being able to maintain flexibility and collaborate with other school districts. The district expects to save $174,073.

Armada Area Schools had contracted out the transportation director to a private company. The district decided to end the contract with the private company and add the positions responsibilities to a bus dispatcher’s duties.

Graphic 8

Districts that brought services back in-house

Service

Savings

Pinckney Community Schools

Transportation

$174,073

East Grand Rapids Public Schools

Food

$140,000

Oscoda Area Schools

Food

$115,799

Comstock Park Public Schools

Custodial

$44,000

North Branch Area Schools

Food

Insufficient documentation

Baraga Area Schools

Custodial

Insufficient documentation

Stockbridge Community Schools

Food

Insufficient documentation

Armada Area Schools

Transportation

Insufficient documentation