A presentation created by Phillip Bazzani, Gloucester,Virginia Board of Supervisor's and presented to county government as well as the public. Posted here for use in a news story on Gloucester, Virginia Links and News website. Visit us.

1. 1
Privatizing Certain SB Functions
Phillip N. Bazzani, CPCM, MBA
Supervisor – York District
Gloucester County, Virginia
February 17, 2014

2. 2
Discussion Topics
! Gloucester’s
economic
reality.
! What
is
priva6za6on?
! Why
priva6ze?
! What
can
be
priva6zed?
! What
are
the
poten6al
savings?
! What
other
states
have
found.
! What
other
locali6es
are
doing?
! What
might
this
mean
for
our
schools?
! Recommenda6ons

3. 3
Gloucester’s Economic Reality
! Gloucester
is
at
an
economic
cross
roads,
and
our
current
economy
is
stagnant.
! Taxpayers
are
being
asked
more
and
more
to
fund
both
the
county
and
school
opera;ons.
! Household
income
averages
$58,000;
and
with
tax
expenses
and
mortgages,
there
is
less
than
$850/month
of
discre;onary
income.
! The
number
of
households
in
Gloucester
are
only
half
of
our
neighboring
locali;es,
such
as
York
and
James
City.
! The
County
and
School
Board
(SB)
must
robustly
find
ways
to
alleviate
the
burden
to
the
taxpayer
and
facilitate
private
sector
growth.
! The
County
and
the
SB
must
look
introspec;vely
into
their
budgets
and
adjust
where
necessary
much
like
the
ordinary
ci;zen
must
do
when
economic
condi;ons
change.

4. 4
What is Privatizing?
! Priva;za;on
is
the
transfer
of
government
services
to
the
private
sector.
! Services
formerly
provided
by
government
may
be
contracted
out.
! The
objec;ve
is
oPen
to
increase
government
efficiency
and
reduce
opera;ng
costs.

5. 5
Why Privatize?
! Schools
provide
a
variety
of
services
having
no
rela;on
to
their
fundamental
role
of
educa;ng
students.
! Such
services
can
be
subject
to
priva;za;on.
! By
priva;zing
these
non-­‐educa;on
related
func;ons,
we
may
achieve
two
posi;ve
results:
" Educators
are
allowed
to
focus
on
educa;on.
" Priva;zing
may
lower
the
cost
and
improve
the
quality
of
those
services
that
have
been
outsourced.

6. 6
What Can Be Privatized?
! The
following
are
poten;al
“non-­‐academic”
candidates
that
could
be
considered
for
priva;zing
by
the
School
Board
(SB):
" Transporta;on,
" Food
services,
" Cleaning
and
Maintenance
(Custodial)
" Technology
Management
! Freeing
up
these
func;ons
to
private
firms
could
poten;ally
allow
school
teachers
to
focus
on
their
core
mission:

7. 7
What are the Potential Savings?
! Two
statewide
surveys
of
school
districts
in
Illinois
and
Alabama
showed
that
priva;zed
non-­‐academic
services
saved
tax
dollars
to
the
school
system.
*
! The
systems
were
then
able
to
reallocate
the
savings
into
core
services-­‐teachers'
pay,
new
textbooks
and
computers,
and
other
instruc;onal
ac;vi;es.*
! Even
the
AASA
states
that
the
most
frequently
contracted
services
include
food
services,
custodial
and
transporta;on
as
the
most
visible
because
these
func;ons
consume
the
greatest
propor;on
of
school
budgets.**
*Source:
Geoffrey
F.
Segal,
The
Reason
Founda6on
and
a
member
of
the
Board
of
Scholars
of
the
Virginia
Ins6tute
for
Public
Policy.
**
American
Associa6on
of
School
Administrators
! Savings
typically
range
from
12
to
25
percent.*

8. 8
What Others States Found
! Gloucester
SB
should
carefully
consider
how
non-­‐core,
non-­‐educa;on
related
services
are
provided.
! Priva;za;on
can
allow
the
School
Board
to
enhance
the
educa;onal
experience
of
Gloucester’s
youth.
*Source:
Geoffrey
F.
Segal,
The
Reason
Founda6on
and
a
member
of
the
Board
of
Scholars
of
the
Virginia
Ins6tute
for
Public
Policy.
! Some
of
the
most
important
conclusions
from
the
Alabama
and
Illinois
surveys
showed
that
two-­‐
thirds
of
school
officials
rated
priva;za;on
a
success.*
! Outsourcing
can
be
used
to
address
budget
challenges
while
direc;ng
more
funds
toward
instruc;onal
programs.*

9. 9
What Other Localities Are Doing
! Hampton
City
public
schools
were
recently
presented
with
a
Facili6es
op6on
that
showed
a
20%
reduc6on
in
facili6es
and
maintenance
costs.*
! Richmond
public
schools
is
considering
outsourcing
its
transporta6on
and
facili6es
maintenance
departments.
! Roanoke
City
Schools
outsourced
its
student
transport
in
2009.
Controversial
at
the
6me,
a
Roanoke
City
Schools
spokesperson
says
the
district
saves
$1.4
million
every
year
because
it
outsources
its
transporta6on.**
! Norfolk
public
schools
contract
out
for
supplies,
training
and
some
management
services.**
! Portsmouth
public
schools
outsources
some
maintenance
services
such
as
HVAC.**
! In
2009,
the
Isle
of
Wight
school
board
voted
to
turn
their
custodians
over
to
a
na6onal
commercial
cleaning
company
saving
about
$500K
in
costs.**
*
Hampton
City
Public
Schools,
School
Board
Mee6ng
2-­‐19-­‐14
Presenta6on
**Source:
PilotOnline;
11-­‐15-­‐13

10. 10
Recommendations
! Take
a
close,
introspec;ve
look
at
“non-­‐academic”
SB
services
and
iden;fy
which
can
be
candidates
for
outsourcing.
! Benchmark
locali;es
that
already
have
priva;zed
programs
–
see
what
works
or
does
not
work.
! Work
with
Central
Purchasing
to
solicit
RFPs
and
have
vendors
present
their
proposals
to
the
SB.
! Decide
whether
proposals
will
actually
lower
costs.
! Savings
should
be
returned
to
the
School
System
for:
" Teacher’s
pay
" New
Technology
" Hiring
more
teachers