HOLLY — Holly schools is facing a projected deficit of $225,000 for its next fiscal year, and the district is looking at food service contracting to fill the gap, according to The Flint Journal. The move is expected to save $60,000.

The district currently contracts with Chartwells to manage its food service program, but is looking to rebid its contract to include all labor as well. Since 2004, cafeteria employees who end their employment were replaced with employees from Chartwells, according to an Op-Ed by Superintendent Kent Barnes in the Tri-County Times.

Food service programs are prohibited from contributing to a school’s general fund — a district cannot use lunch money to pay for teachers — but a district must subsidize its food service programs if they run at a deficit. Holly’s food services ran at a $58,823 deficit for the 2006-2007 fiscal year, according to its financial reports.

The district also plans on contracting out its social work services, which could save an additional $161,000, according to the Op-Ed.

References
“Holly School District looks to privatize food service to address $225,000 deficit,” The Flint Journal, April 14, 2008

“Guest Viewpoint,” Tri-County Times, April 6, 2008.