Shawn D. Lewis / The Detroit News April 5, 2008

1. Southfield school board to vote on privatizingDistrict considers the move to fight budget deficit. Shawn D. Lewis / The Detroit News April 5, 2008 http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20080405/METRO02/804050323/1411/METRO02

2. Schools will vote • SOUTHFIELD -- The Southfield Public Schools board will vote Tuesday on whether to contract with outside firms for transportation, food and custodial services in an effort to combat a deficit that's expected to reach $7 million by June. • The move to privatize would cost about 300 district employees their jobs and offset costs of running these programs by about $6.5 million. • Ken Siver, district spokesman and assistant superintendent, said privatizing would keep cuts away from the classroom in the already shrinking district. • "When you cut programs, you lose students, and that makes the problem even worse," Siver said. "We've already closed two schools, Kennedy and Magnolia, and we've reduced libraries in the elementary schools to half-time. And we've reconfigured the number of art, music and gym teachers in the elementary schools."

3. Other remedies • The district also has initiated early retirement incentives and increased prescription drug co-pays for employees. Siver said those changes have helped the district cut $11 million from its budget over the past two years, but it has not been enough. The cuts are the result of falling enrollment due mainly to people leaving Southfield. • "In September 2006, the district had 9,484 students, and that dropped to 9,205 in September 2007," said Siver. "We lost about 280 students, and now we expect to lose another 400 next fall. The birthrate has been down all over the country for the past 11 years, and when we lose students, we also lose state aid." • School board secretary Darryle Buchanan said nothing has been decided yet. • "This isn't a done deal, and we don't know how it will turn out," he said. "But we have a fiduciary responsibility to look at ways to save money."

4. Bids • The custodial bids were narrowed down from 10 to four, and the transportation bids were decreased from five to two. Siver said displaced employees would be free to apply for the jobs with the private companies that win the contracts. • The Birmingham Public Schools district already has decided to go the privatization route. The Birmingham board voted earlier this week to enter into contract negotiations with private vendors for transportation and custodial services. The move represents a savings in custodial services of about $2.2 million, and a savings of $507,000 for transportation. • The change will be effective for the 2008-09 school year.

5. Analysis • "In September 2006, the district had 9,484 students, and that dropped to 9,205 in September 2007," said Siver. "We lost about 280 students, and now we expect to lose another 400 next fall. • The birthrate has been down all over the country for the past 11 years, and when we lose students, we also lose state aid." 9,484  9205 represents a decrease of 2.94% 9205  8805 represents a decrease of 4.35%% In 2 years, revenues will be down by over 7% Transportation, food and custodial services Impact on educational quality?