Cost Containment for K-12 Schools
Significant cost reduction strategies help school districts balance budgets
School districts today are facing dramatic budget shortfalls and are grappling with how to reduce costs and still maintain the level of service and education programs their communities expect.
Cost reduction programs involve difficult and complex decisions and processes. In pursuit of cost reductions, you may benefit from having an experienced advisor provide strategy, guidance, and direction. Plante Moran’s K-12 team along with Rahmberg, Stover & Associates has developed a menu of cost containment/savings services for school districts.
Our multidisciplinary team can help your district explore major cost-cutting opportunities such as right sizing, outsourcing, and redistricting. You can depend on our team’s experience to help you avoid mistakes and give you the right information to gain acceptance from your stakeholders.
To find opportunities to maximize efficiency and effectiveness in your district, our team will compile and analyze data on your costs and staffing and compare it to relevant benchmarks. Our cost containment team will identify areas for improvement, redesign processes, and increase the use of your technology.
If you are taking a comprehensive look at cost containment solutions, you should consider outsourcing. The typical savings for outsourcing custodial services is 40 to 50 percent, and the typical savings for outsourcing transportation services is 20 to 25 percent.
Outsourcing can produce these kinds of savings through reduced wages and benefit costs. Districts that have outsourced typically find that service levels either remain the same or, in many cases, improve. The key to successful outsourcing is carefully developing a request for proposal (RFP) that outlines the general terms and conditions as well as details the services within scope and outside of scope.
Our cost containment team can help with RFP development and evaluation of proposals and vendors. They can perform detailed analysis of the proposals and associated costs, conduct interviews, compare current costs against the proposed costs, and calculate the cost of transition. You will appreciate their comprehensive analysis and vigilance during the process, both keys to success.
When redistricting is on the table
Our team of experienced professionals can help you navigate through the challenging process of redistricting. They can coordinate and facilitate all phases of a redistricting initiative from establishing a study foundation to fact finding to analyzing alternatives to formulating recommendations and implementation planning. Working with district staff, parents, students, and the community, our professionals can assist you in managing all aspects of stakeholder relations, including soliciting input and involvement, communication, and gaining acceptance and support for the eventual redistricting recommendations.