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  •    
    Due to Financial Breakdown, Michigan plan to Outsource its Schools

     

    The public school district in Michigan is facing such problem with its education system and the only solution they think is to outsource all of it. Highland Park School District is one of the lowest performing schools in the state. And eventually it will transfer its three schools and almost 1,000 students to a private for profit charter school company which is the second district in Michigan City to take this kind of action to prevent its financial breakdown.

    The last week hasty news gave such concern and some ease from other residents especially parents who quickly called a night meeting in the indistinct industrial city. The parents want to hear the side of the charter company which is the Leona Group LLC that insures to increase the learning capabilities and develop student abilities in a school where in the last school year only 22 percent of third graders passed the reading exams and in their math subject only 10 percent passed. But the worst was the outcome of the high school students’ exam which is in math no one passed and in reading exam only 10 percent.

    The district nationwide are studying different approaches to motivate schools financially and academically, it includes isolation of the whole staff or allow other outside groups to run their several schools. Some district in Georgia has transferred into charter districts to escape from teacher salary schedules and under state class-size. The district administration typically resides in place and supervise schools, however each school manages a council of teachers and parents that decide on its budget.

    In New Orleans, one of the greatest steps they take is by transferring most of the schools into charters and letting students use state-funded vouchers to show up in private schools. The charter schools are public schools that operate by outside groups that use taxpayer funds. Some say that the action serves as an aid to other school districts who faces the same problem. In the year 2011 based on the most current state data, 48 out of 793 districts in Michigan ran deficiencies with a total of $429 million over with 18 districts with $59 million in combined shortcomings in 2004-2005.

    Highland Park chooses to privatize  its schools after years of enrollment downfall, the district spent over $16,508 for each student during the 2010-2011 school year compared to $9,202 per student in Michigan districts. Highland Park established an $11.3 million deficiency over the school budget of $18.9 million. Joyce Parker who was appointed as district emergency manager by Republican Gov. Rick Snyder in May stated that the district got into much trouble as it didn’t decrease its staff as quickly as its enrollment failure furthermore with the city’s population that leads to higher expenses per student.

    Using the local property taxes that have recently gone to operate the schools, the district will reside as an entity operate by Ms. Parker to fix its debt with an amount of $5 million. In state funding, a Phoenix-based Leona will get $7,110 every student, in addition the Highland Park District will pay a $780,000 yearly management fee to Leona. The firm said that Leona has hired back 70 percent of the teachers. The latest city charter board will guide the firm’s development in enhancing the student performance with Leona’s 5 year contract.

     

    REFERENCES:
    http://online.wsj.com/article/SB10000872396390443545504577565363559208238.html

    http://www.ncpa.org/sub/dpd/index.php?Article_ID=22237\

    http://www.joannejacobs.com/2012/08/michigan-city-outsources-all-its-schools/