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FOR Michigan SCHOOL Officials, Media and RESIDENTS Michael D ASCHOOL PRIVATIZATION PRIMER FOR MICHIGAN SCHOOL OFFICIALS, MEDIA AND RESIDENTS Michael D. LaFaive A School Privatization Primer for Michigan School Officials, Media and Residents Mackinac Center for Public Policy Michael D. LaFaive A School Privatization Primer for Michigan School Officials, Media and Residents 2007 Michael D. LaFaive ©2007 by the Mackinac Center for Public Policy Midland, Michigan Guarantee of Quality Scholarship The Mackinac Center for Public Policy is committed to delivering the highest quality and most reliable research on Michigan issues. The Center guarantees that all original factual data are true and correct and that information attributed to other sources is accurately represented. The Center encourages rigorous critique of its research. If the accuracy of any material fact or reference to an independent source is questioned and brought to the Center’s attention with supporting evidence, the Center will respond in writing. If an error exists, it will be noted in an errata sheet that will accompany all subsequent distribution of the publication, which constitutes the complete and final remedy under this guarantee. Permission to reprint in whole or in part is hereby granted, provided that the Mackinac Center for Public Policy is properly cited. ISBN-13: 978-1-890624-63-7 ISBN-10: 1-890624-63-2 S2007-07 About the Mackinac Center TheMackinac Center for Public Policy is a nonpartisan research and educational institute devoted to improving the quality of life for all Michigan residents by promoting sound solutions to state and local policy questions. TheMackinac Center assists policymakers, scholars, business people, the media and the public by providing objective analysis of Michigan issues. The goal of all Center reports, commentaries and educational programs is to equip Michigan residents and other decision-makers to better evaluate policy options. TheMackinac Center for Public Policy is broadening the debate on issues that have for many years been dominated by the belief that government intervention should be the standard solution. Center publications and programs, in contrast, offer an integrated and comprehensive approach that considers: All Institutions. The Center examines the important role of voluntary associations, communities, businesses and families, as well as government. All People. Mackinac Center research recognizes the diversity of Michigan residents and treats them as individuals with unique backgrounds, circumstances and goals. All Disciplines. Center research incorporates the best understanding of economics, science, law, psychology, history and morality, moving beyond mechanical cost-benefit analysis. All Times. Center research evaluates long-term consequences, not simply short-term impact. Committed to its independence, the Mackinac Center for Public Policy neither seeks nor accepts any government funding. The Center enjoys the support of foundations, individuals and businesses that share a concern for Michigan’s future and recognize the important role of sound ideas. The Center is a nonprofit, tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. For more information on programs and publications of the Mackinac Center for Public Policy, please contact us. 140 West Main Street, P.O. Box 568, Midland, Mich. 48640; 989-631-0900, Fax 989-631-0964; www.mackinac.org • [email protected] Mackinac Center for Public Policy Contents An Overview of Privatization ........................................................................................................ 1 Public Education Spending and Personnel ................................................................................................4 Contracting of School Support Services .....................................................................................................5 The Incidence of Contracting for School Support Services .................................................... 7 Food Service Contracting ..................................................................................................................................9 Capacity of School Food Service Contractors ................................................................................... 16 Transportation Contracting .......................................................................................................................... 17 Empirical Studies on Cost Reduction ................................................................................................... 19 Capacity of School Transportation Contractors ............................................................................... 20 Custodial Contracting ...................................................................................................................................... 21 Capacity of School Custodial Contractors .......................................................................................... 22 Noninstructional School Service Privatization in Michigan ............................................................. 23 Privatization and the Core Mission of Education ....................................................................27 Factors Influencing Privatization in Michigan .........................................................................31 Proposal A, School Choice and Student Enrollment Trends ............................................................ 33 Personnel Costs ................................................................................................................................................. 35 School Districts’ Administrative Powers: Public Act 112 of 1994 ................................................... 36 School Privatization Contracting Guide ...................................................................................39 Requests for Proposals, Contracts and Monitoring .............................................................................. 41 Contents of a Request for Proposal ........................................................................................................ 42 RFPs for Transportation Services and Custodial Services ............................................................ 44 RFPs for Food Services .............................................................................................................................. 52 Opposition to Privatization ........................................................................................................................... 54 National Education Association Opposition ..................................................................................... 55 Michigan Education Association Opposition ................................................................................... 57 Responses to Anti-Privatization Claims .............................................................................................. 58 10 Contracting Rules of Thumb ................................................................................................................... 62 1. Begin at the End. ...................................................................................................................................... 62 2. Visit Other Districts. .............................................................................................................................. 63 i A School Priatization Primer 3. Employ a Timeline. ................................................................................................................................. 64 4. Cast a Wide Net. ...................................................................................................................................... 65 5. Develop RFP Specifications Independently. ................................................................................. 67 6. Monitor. Monitor. Monitor. ................................................................................................................. 67 7. Choose a Point Person. .......................................................................................................................... 68 8. Build a Team. ............................................................................................................................................. 69 9. Recommend a Safety Net for Workers............................................................................................. 71 10. Videotape Public Proceedings. ......................................................................................................... 72 Public Involvement in the Privatization Process ............................................................................. 72 Conclusion .......................................................................................................................................75 Appendix 1: A Recent Privatization Court Challenge ............................................................77 The Three Legal Challenges to Privatization in Grand Rapids ......................................................... 79 State-Level Tort Action Against the Private Company ....................................................................... 80 Federal Unfair Labor Practice: the “Successorship Doctrine” ........................................................... 81 State Unfair Labor Practice Charge or Contract Grievance: Repudiation of Collective Bargaining Agreement ..................................................... 84 Summary ..............................................................................................................................................................
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