Savings from Privatization

The number of districts reporting savings from privatization rose this year to 81 percent (188 of the 232 districts that contract), up from 77.9 percent last year.

23 districts (10 percent) reported that they were unsure of whether privatization created savings while 14 districts (6 percent) declined to comment on whether they were realizing savings.

Graphic 9: Savings from Outsourcing

Graphic 9: Savings from Outsourcing - click to enlarge

The number of districts reporting they had "no savings" as a result of privatization was only seven districts (3 percent), down from nine districts (4.5 percent) last year. But even when the contracting did not provide savings to the districts, some still reported being satisfied with the contractor. Of the seven districts, six reported satisfaction with their respective third-party contractor. Only one district, Richmond, reported not being satisfied with services from a private firm.

Six of the districts that reported no savings were contracting for food service, the seventh for transportation. Two of the food service contracts were for management and labor, the other four were for food service management only.