The Six Habits of Fiscally Responsible Public School Districts

An Assessment of What Michigan Public School Districts Can Do to Save Money Without Laying Off Teachers or Other Essential Staff

Contents

• Executive Summary
• Introduction: What is a Fiscally Responsible School District?
• Methodology: Finding Innovation
• Habit 1: Minimize Administrative Costs
• Habit 2: Take Advantage of Cost Savings through Outsourcing Non-Instructional Services
  • Maintenance
  • Transportation
  • Food Services
  • Computer/Information Technology
• Habit 3: Manage Employee Health Benefits Effectively
  • Benefit Design
  • Competitive Bidding for Insurance Provider
• Habit 4: Structure Capital Costs Effectively
  • Fiscally Responsible Debt Policy for School Building Purchases/Renovations
  • Fiscally Responsible Leasing of School Buildings and Facilities
• Habit 5: Participate in the Schools-of-Choice Program
• Habit 6: Reform Collective Bargaining
  • Improvement #1: Strengthen Management Rights Clauses
  • Improvement #2: Limit Exclusive Bargaining Representative Clauses
  • Improvement #3: Remove Mandatory Support Clauses
  • Improvement #4: Limit “Just Cause” Discipline and Discharge Clauses
  • Improvement #5: Strengthen Teacher Evaluation Clauses
  • Improvement #6: Replace Seniority-Based Salary Schedules with Performance-Based Pay Scales
  • Improvement #7: Eliminate Class Size Limitation Clauses
• Conclusion
• Endnotes
• About the Authors
• Acknowledgements

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