At Issue
A privatization primer
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| Community opposition to privatization was evident in Hartland, where hundreds of people packed school board meetings to protest the firing of district custodians and the hiring of an outside company. Local residents posted anti-privatization signs and the most senior custodians agreed to retire early to preserve jobs. Yet, the school board voted to privatize anyway. Marty Devitt, a maintenance worker whose job wasn’t targeted in last year’s privatization bid, says “it’s still a struggle today.” |
What is privatization in public education?
It’s the process of transferring property or work from the public school district to the private sector. It’s sometimes called “outsourcing.”
Does privatization exist elsewhere?
Yes. Privatization is frequently associated with industrial and service- oriented enterprises, but can also apply to government services. In recent years, public services such as health, sanitation and education have been targeted for privatization.
Is privatization on the rise?
Some studies have shown that privatization in general is on the rise, both in the private and public sectors. MEA members’ jobs have been threatened more in recent years, coinciding with a rise in districts claiming financial problems.
Why do private companies want to work in the public sector, including in public schools?
Money. Private companies can make a lot of money by taking the jobs of public school employees.
One study released last year by the National Federation of Independent Business and the Reason Foundation bragged that “the value of all federal, state and local government contracts with private firms—including service outsourcing agreements— is up 65 percent since 1996, reaching a total of over $400 billion in 2001.”
Michigan public schools spent well over $1 billion on school support services in 2004-05, according to MEA research.
Who’s promoting privatizing Michigan public schools?
The Mackinac Center for Public Policy is probably the biggest proponent of privatization in our state. Using the mainstream media and its own publications, the group spreads misinformation about the impact of privatization.
Some school board advocates have promoted privatization and other tenets of Public Act 112 with school boards as a way to exert more power over employee groups.
The Michigan Association of School Boards trains administrators and school board members to have a year-long public relations campaign as part of their bargaining strategy. The idea is to convince the public—and school employees—that there isn’t enough money to pay for wages and benefits.
Frequently, privatization is threatened as an alternative if employees don’t agree to wage or benefit concessions.
Does privatization save money for schools that are broke?
It’s unclear whether districts save money. Often, it’s difficult to determine because the work performed by a private company isn’t the same work performed by school employees, so comparing pre- and post-privatization expenses is like comparing apples and oranges.
Does privatization cut into services?
Yes, it often does. Private companies cannot do the same work for less money and still make a profit.
Where can I learn more about privatization? Contact your local president or MEA UniServ director. To read more about privatization, visit NEA’s Web site at www.nea.org/esphome/issues.