Most businesses, when faced with a budget crunch, pare non-essential activities to save money. Firing essential staff is generally a last resort. In schools, however, teachers are often the first to go when money gets tight. But consider this: one resourceful Michigan school district, rather than laying off essential teachers, outsourced its food service operations to a private vendor, which is expected to save the district $180,000 in its first year alone. Better, if the new food service makes good on its promise to increase participation in the lunch program from 30 to 70 percent, the district will keep $50,000 of the added revenues, for a total savings of $230,000. That sounds like 3 or 4 teacher salaries to us.
"Clare schools using privatization to keep teachers," by Michael LaFaive, Mackinac Privatization Report, September 4, 2003