As districts across the country try to handle budget shortages, it appears more districts in Michigan are turning to contracting out for transportation service to cut costs.
The percentage of school districts in the state that contract out for student transportation service has increased six-fold over the past 10 years according to a recent report.
The 2014 Michigan School Privatization Survey, conducted by the Mackinac Center for Public Policy, finds nearly a quarter (24%) of all Michigan school districts outsource with school bus contractors.
The new numbers also mark an increase from the 2013 survey, which found 20.4% of districts were outsourcing. In the time between the two surveys, 24 districts signed new contracts for transportation service.
However, there has also been some movement away from privatization. Four districts which were previously contracting out have since brought their transportation service back in-house between 2013 and 2014.
In 2005, just 3.8% (21) of Michigan districts outsourced school bus service.
In addition to transportation, the Mackinac Center study tracks the contracting of custodial and food services. The report’s authors wrote that “there has been an explosion of privatization in these areas” since 2003.
Economic conditions have been a key reason for outsourcing, according to the study.
“Districts have largely been propelled to contract out for these services based on a desire to save money,” the researchers wrote. “In addition to this rationale, spending pressures, created in large part by rising employee health insurance and retirement costs, compelled districts to find ways to stretch dollars further.”
Read the full report here.
