Schools

Cherokee School District To Explore Privatizing Custodians, Grounds Services

The Cherokee County School District will review various cost-saving measures due to the "skyrocketing" costs to maintain the State Health Benefit Plan.

The Cherokee County School District will explore cost saving measures that would look at the viability of privatizing custodial and grounds services, and taking some of its employees out of the State Health Benefit Plan.

The district announced on Thursday that it will issue a request for proposals from private companies to perform those two services, which currently occupy 239 positions with the district. 

"This is a fact-finding step and does not necessarily mean that we will subsequently recommend that these serves are privatized," Superintendent of Schools Dr. Frank Petruzielo wrote in a memo. "But, the details and potential impact for all of the options available to the School Board must be known in order to make appropriate policy recommendations and decisions."

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The district will also develop an alternate health plan or health plan contribution model for non-certified employees, that could begin as early as January 2014.

Non-certified district employees are those who came into the district without a teacher certification background.

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Unlike the State Health Benefit Plan, this new plan would not provide health insurance to employees when they retire from the school district. 

At the beginning of the 2012-13 school year, Cherokee had 4,468 employees, which included 2,698 certified employees.

Other school districts throughout the state are considering or have taken similar steps, Petruzielo notes in his memo, and "some have achieved significant cost reductions through contracting for services."

If RFPs the district receives produces "cost-effective results," officials could consider a contract for grounds services that could start in July 2013 and the custodial services start date could be January 2014.

District employees affected by the change were informed about the possible changes late Thursday night, and central office staff will meet this week with affected employees to discuss in greater detail both changes.

The superintendent note the timeline will allow the district to "realize financial benefits" just in time before the board adopts the 2013-14 budget.

He also said it will also allow employees to take advantage of opportunities provided by the Affordable Care Act. 

The district is faced with "fewer and fewer options for reducing expenses" as 85 percent of its budget is directly tied to personnel, Petruzielo states.

While the district has utilized cost-reduction measures such as increased class sizes, consolidated bus routes, leaving administrative and supervisory positions vacant and furloughs, it's now time for the district to make "even more painful recommendations and decisions, with the understanding that our primary — and funding obligations — is teaching and learning," the superintendent notes.

"I know the changes being considered will cause great concern among our employees, and I am equally concerned," Petruzielo said, adding maintaining highly qualified staff depends on the district's ability to provide competitive benefits and salary. "But, due to economic circumstances beyond our control and fiscal decisions at the state level, we are left without other choices at this time," he added. 

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